REVscene - Vancouver Automotive Forum

JulyZerg · 05-01-2009, 02:21 AM

What rates have you guys been getting to renew your terms for financing your home?

My parents bank offered them 3.8% over 25 years and I'm wondering if there's anything lower then that as my friends uncle got 3% flat for his term, just a few months ago.

Is there anything lower? With the recession and decline in rates, I'm pretty sure there's at least something better then 3.8%.

Thanks in advance!

MWR34 · 05-01-2009, 03:52 AM

My buddies friend does 2.8% all day long, but before he will consider new applicants he requires a fee. an Advanced Fee. but dont worry, it isnt an Advanced Fee Scam.. i swear.

*cough*

StylinRed · 05-01-2009, 04:21 AM

i might be totally whacked out, but i think my parents are paying 1.5% bi-weekly on one of their houses

i dont really pay attention when they talk finances etc.. ill ask

Nightwalker · 05-01-2009, 04:45 AM

Talk to a mortgage broker.

quasi · 05-01-2009, 05:32 AM

Quote:

Originally Posted by Nightwalker

Talk to a mortgage broker.

Exactly, they'll get you the lowest rate. I got one of those -0.75 PR open variables a year and a half ago. At 1.50% right now.

Nightwalker · 05-01-2009, 06:04 AM

My mortgage broker blew my bank out of the water completely. Both in interest rates, and in the amount I could borrow.

Ferra · 05-01-2009, 07:10 AM

Quote:

Originally Posted by Hewlett-Packard

What rates have you guys been getting to renew your terms for financing your home?

My parents bank offered them 3.8% over 25 years and I'm wondering if there's anything lower then that as my friends uncle got 3% flat for his term, just a few months ago.

Is there anything lower? With the recession and decline in rates, I'm pretty sure there's at least something better then 3.8%.

Thanks in advance!

3.8% over 25 years? i would take that in a heart beat! heck, I'd even buy a house just so that i can use that mortgage!

On a more serious note, your parent probably misunderstood the bank offer. No bank offers a mortgage term for 25 years. Most are 5 years, and they go up to 10 years.
25 years is usually for the amortization of the mortgage. (i.e. most people have a 25 years mortgage that are renew / renegotiated every 5 years)

The rate depends on a few factor like open/close, fixed/variable.
If you go with a variable closed mortgage you should be able to get under 3% based on the current prime rate. (2.25%) But with variable you are taking more risk since the interest rate will change depending on the prime rate which depends on BOC fed rate.

People who got their variable mortgage 1-2 years ago at prime - 1% are probably laughing their ass off now paying only 1% interest. But the prime minus mortgage are long gone.
nowadays, you should be looking at these rates:
Fixed: 3.5% - 3.8% (Btw, 3.8% is the posted rate which is sort of like the MSRP)
Variable: Prime + 0.6% - 0.8% (2.8%-3%)

Ferra · 05-01-2009, 07:13 AM

Quote:

Originally Posted by Nightwalker

My mortgage broker blew my bank out of the water completely. Both in interest rates, and in the amount I could borrow.

Problem is finding one that is trustworthy.
Many of them make it up by adding hidden charges or higher rate after first year..etc

chet · 05-01-2009, 11:52 AM

Having just renewed I got prime +.8 from amortgage broker. So 3% right now on a variable mortgage. fixed are more. Nobody is doing 10 year anymore 5-7 is the max it seems. I would go variable for a year and wait until it goes up .25% then lock in for the fixed rate for 5-7 years.

MegaMx · 05-01-2009, 12:09 PM

1.25% here

ToyotaPowah · 05-01-2009, 12:22 PM

I'm at 1.75% right now with a 3 year closed variable term.

chinesespareribs · 05-01-2009, 12:37 PM

As of May 1 2009all these are closed rates if you want open variable call me

1 year 2.90
2 year 2.95
3 year 3.05
4 year 3.69
5 year 3.49

*Mod Edit* - No Ads.

InvisibleSoul · 05-01-2009, 12:39 PM

Quote:

Originally Posted by MegaMx

1.25% here

Nice rate!

I got in about a year ago, just before everything crashed... got the prime minus 75 points, so I'm sitting at 1.5% as well.

JulyZerg · 05-01-2009, 02:34 PM

You guys have been getting pretty good rates!

I might have mixed something up haha since I'm not totally sure what this is, as these numbers are ballpark numbers.

Well my parents were planning to take like 20k out from the house. The house has like 60k left, so approx. 6 years until we "officially" own the house. The guy at the bank said they'd have to extend it to 25 years. They're paying 1.4k a month at the moment and if they extend it, it'll be like $500 a month, which is stupid cause they're getting so much interest.

We do, however still have the option to pay more then $500 a month(if we have extra cash that month) but it states 80k(approx) over 25 years @ $500/per month with 3.8% rate. The whole procedure is fine, according to what the bank says but the 3.8% rate is a bit high I think..

I was wondering, would I be able to get a better rate elsewhere? Our 5 year fixed-rate will be ending next year and we have the option to go somewhere else(without penalties)

Also, could anyone recommend a trustable and GOOD mortgage broker?

Thanks guys!

Nightwalker · 05-01-2009, 02:47 PM

I should have mine confirmed on monday. 3.51% 5-year fixed.

Manic! · 05-02-2009, 09:01 PM

I got 3.25 for a 15 year open mortgage.

johny · 05-03-2009, 06:17 PM

Quote:

Originally Posted by Hewlett-Packard

You guys have been getting pretty good rates!

I might have mixed something up haha since I'm not totally sure what this is, as these numbers are ballpark numbers.

Well my parents were planning to take like 20k out from the house. The house has like 60k left, so approx. 6 years until we "officially" own the house. The guy at the bank said they'd have to extend it to 25 years. They're paying 1.4k a month at the moment and if they extend it, it'll be like $500 a month, which is stupid cause they're getting so much interest.

We do, however still have the option to pay more then $500 a month(if we have extra cash that month) but it states 80k(approx) over 25 years @ $500/per month with 3.8% rate. The whole procedure is fine, according to what the bank says but the 3.8% rate is a bit high I think..

I was wondering, would I be able to get a better rate elsewhere? Our 5 year fixed-rate will be ending next year and we have the option to go somewhere else(without penalties)

Also, could anyone recommend a trustable and GOOD mortgage broker?

Thanks guys!

so you're going from a 6 year left mortage to a 25 yr mortage?? even at a low rate you're getting screwed for interest.... 19 years of interest is a lot or money..

I'm betting there is better ways.... you might even be better off leaving the mortage and getting a 20k line of credit or something like that.

Gt-R R34 · 05-04-2009, 12:24 AM

Hewlett-Packard.

My advice to you, go talk to your banker again/another bank That said, i'm sure you have information mixed up.

No matter how i read that, that isn't how banks work.
Amortizations can be fiddled with, you can have it for a year if you like.
Anyways, go re-read your information.

taylor192 · 05-04-2009, 02:37 PM

Quote:

Originally Posted by chet

I would go variable for a year and wait until it goes up .25% then lock in for the fixed rate for 5-7 years.

That's bad advice.

Best variable is prime + 0.6% right now, or 2.25+0.6 = 2.85%
Best fixed is 3.49%

So for 1 year you'll save 0.64%, then pay 0.25% more for 5 years. I'll do the math for you, that's 1.25% > 0.64%.

Moreso fixed rates follow the bond market, not the BoC prime rate, although they are loosely related. If you've been watching bonds (which you aren't) you'd know rates topped 2% in the US and Canada for the first time in a few months, and have been steadily rising. A year from now prime may still be at 2.25%, yet fixed may be > 4%.

Lock in now, enjoy the ride for 5 years.

Here's a chart of the BoC rates, beware rising rates, cause they go up quickly.
http://www.oursilverlining.ca/_image...2009_graph.gif

quasi · 05-04-2009, 05:00 PM

Quote:

Originally Posted by taylor192

That's bad advice.

Best variable is prime + 0.6% right now, or 2.25+0.6 = 2.85%
Best fixed is 3.49%

So for 1 year you'll save 0.64%, then pay 0.25% more for 5 years. I'll do the math for you, that's 1.25% > 0.64%.

Moreso fixed rates follow the bond market, not the BoC prime rate, although they are loosely related. If you've been watching bonds (which you aren't) you'd know rates topped 2% in the US and Canada for the first time in a few months, and have been steadily rising. A year from now prime may still be at 2.25%, yet fixed may be > 4%.

Lock in now, enjoy the ride for 5 years.

Here's a chart of the BoC rates, beware rising rates, cause they go up quickly.
http://www.oursilverlining.ca/_image...2009_graph.gif

In your opinion if you had one of those prime minus rates would be smarter to wait a bit before locking in?

PNF · 05-04-2009, 05:10 PM

I think I am missing big time on how mortgage works in Canada.... it seems to be very different???

Most of the mortgage rates here, at 30 year fixed are around 4 7/8th with 0 point. With 1 point, we could go down probably to around 4 1/4 for a 30yr fixed, mind you, that is the lowest ever in the US mortgage history since they started recording the rates back in the mid 1900s.

You guys have 3%, 4% fixed mortgage for 5 year only?? How much do you pay monthly and how much down??

The way I saw it, the houses werent cheap in Vancouver...

I am paying around $1500 in mortgage and about $400/month on property tax, at 5.75% for 30 yr fixed and I put down about $100,000 USD.

We do have ARM, adjustable rate mortgage, but the ARM rates are also around 4-5% for a 5 year ARM, 7 year and even 9 year ARM

johny · 05-04-2009, 06:19 PM

Quote:

Originally Posted by PNF

I think I am missing big time on how mortgage works in Canada.... it seems to be very different???

You guys have 3%, 4% fixed mortgage for 5 year only?? How much do you pay monthly and how much down??

The way I saw it, the houses werent cheap in Vancouver...

the rates are fixed for 5 years. the mortages are 25-30 years.

so in 5 years, the monthly payments will be adjusted for the current rate at the time. which in 5 years I bet will be back up to 10%. which means everyone buying now at 3% is going to have their mortage payments double 5 years from now, and lose the house because they can barly afford the payments now.

so if you are getting a 4-5% rate fixed for 25 years you guys have likly have it way better in the long term.

avg houses in Van are still close to a million. over a million for a good one. way over price for any avg. family.

PNF · 05-04-2009, 08:14 PM

Quote:

Originally Posted by johny

the rates are fixed for 5 years. the mortages are 25-30 years.

so in 5 years, the monthly payments will be adjusted for the current rate at the time. which in 5 years I bet will be back up to 10%. which means everyone buying now at 3% is going to have their mortage payments double 5 years from now, and lose the house because they can barly afford the payments now.

so if you are getting a 4-5% rate fixed for 25 years you guys have likly have it way better in the long term.

avg houses in Van are still close to a million. over a million for a good one. way over price for any avg. family.

so, thats like the ARM here then. ARM is for 20, 25 or 30 years at 3,5,7,9 interval rate change.

So, there is no such thing as "fixed" mortgage in Canada?? hard to believe.

I have 5 3/4 fixed at 30 years and my payment will be the same for 30 years regardlessly. But then again, I wont stay in this house for 30 years.. :P

Thanks for the clearing up.

johny · 05-04-2009, 08:32 PM

the fixed rates are fixed for 1-7 years (used to get up to 10 I think they lowered it to 7) but 5 is the norm. the variable ones change monthly following prime changes.

right now some people are only paying 1.25 - 1.5% on their variable mortgage. as 2 years ago mortgages were going for prime - .75 or so.

Blinky · 05-04-2009, 11:14 PM

Oh boy there's some misinformation on this thread. PNF, 4.875% fixed over for an entire 30 year term is sick, sick, sick. I'm rather jealous!

Mortgages with a 25 year term, 25 year amortization, fixed-interest rate are uncommon in Canada, but they're available (http://www.rbcroyalbank.com/products...iew_rates.html). AFAIK most common mortgages in Canada are taken out over a 25 yr+ amortization period over a 5 year term.

At the end of the term the mortgage is up for renewal and if renewed, will be at interest rates available at time of renewal.