[GomGom]

Hi guys, I'd like to start a thread regarding mortgage rate as a reference to all of us.

My mortgage is up for a renewal and BMO is offering me 3.09% for a fixed 5 year closed term. Is it a good rate?

If you find a better rate, please post and comment your experience with the institution. I currently not in town so I cannot shop for mortgage at the moment.

Thanks all

[iamed]

Got quoted at BMO a couple weeks ago for 2.99%, 5 yr fixed

was all over the news too:
BMO slashes 5-year mortgage rate to 2.99% - Business - CBC News (http://www.cbc.ca/news/business/bmo-slashes-5-year-mortgage-rate-to-2-99-1.2588308)

[Gnomes]

I check this site to compare rates, it compiles the big banks and some smaller lenders:
Best Mortgage Rates 5-Year Fixed - Compare Today's Current 5-Year Fixed Rates - 2.94% (http://www.ratehub.ca/best-mortgage-rates/5-year/fixed)

[LookitsMarkA]

2.99 is the current rate for bigger banks atm
rates might be going up after 2 years assuming from the market conditions but not guaranteed.
(but things can change..)

some mortgage professionals are encouraging 10year fixes instead of 5.

[will068]

Factors to consider:

Fed Taper for bond buying - it's consistent $10 billion dollar decrease for every Fed Reserve Meeting will result in the latest Quantitative easing to be gone by end of 2014

Result: IR increase

US Economy going sideways for the foreseeable future unless we get a slump in the economy without much Fed interference (so the US economy can recover properly - instead of being stagnant since 2008).

Result: IR decrease or not rise with increase bond buying from the market in the short term (+ the Fed won't increase rates during a recession - aside from getting rid of QE). Once we get the real recovery, IR will eventually increase as money will flow back to equities. Real recovery could slowly start sometime in 2015.

Janet Yellen (Bernanke successor) committing to injecting money in the economy to keep it afloat (e.g. buy bonds).

Result: IR decrease or not rise with increase bond buying (from the Fed).

Because of this, I would look more into variable instead of fixed mortgages for the next 5 years.

[Spoon]

^ did you make a typo? how can the Fed be tapering while Yellen's commiting to buying bonds? they're the exact opposite . . .

[will068]

^ did you make a typo? how can the Fed be tapering while Yellen's commiting to buying bonds? they're the exact opposite . . .

Weird huh? That's what she said last month. Yet the Fed is scheduled to finish QE end of this year. What does that mean ? Who knows, more bond buying next year perhaps if the US economy does not improve perhaps..
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[Tegra_Devil]

i just locked in to 2.94% 5yr fixed through my mortgage broker

[Szeto]

seems like 2.99 is the common rate everywhere @ 5 yr fixed.

[KimLund12]

I guess you should consult a financial advisor for that.

[fsy82]

I've stuck with Variable and I would suggest anyone who is getting a mortgage to do the same. With the unstable market int he US I don't see our prime rating going up. They keep saying it will but I'm three years into my 2.25% variable rate. (Prime minus 0.75%)

[Selanne_200]

I would say that's the case a few years ago as I've done the same but then Prime minus variable rates are no more so it may be a safer bet to just go with a 5 year fixed at 2.99% considering the likelihood of prime rate going down is virtually none

[fsy82]

I would say that's the case a few years ago as I've done the same but then Prime minus variable rates are no more so it may be a safer bet to just go with a 5 year fixed at 2.99% considering the likelihood of prime rate going down is virtually none

Variable did go up a bit during last year but it was still way below the fixed rate. I just talked with my mortgage broker and it seems like variable is heading down again.

As of last Monday Dominion lending centre has Variable at prime minus 0.50%

[Wild_Penguin]

IG has a 1.99% for 3 years Variable (prime -1.01%)
Investors Group cuts mortgage rate to 1.99% - The Globe and Mail (http://www.theglobeandmail.com/report-on-business/economy/housing/mortgage-rates-hit-new-low-as-investors-group-pushes-variable-rate-below-2-per-cent/article18640689/)

[LookitsMarkA]

im seeing 2.84% for 5 years right now.

my sources say it might go down a little more to 2.79% for 5 years


but it might change around september to a higher rate.

if youre planning to get pre-approved. now is the time to get youre "good for 3 months pre-approval"

I can redirect you to a mortgage broker if you want who will give you 30% of his commision

pm me.

[4444]

US Economy going sideways for the foreseeable future unless we get a slump in the economy without much Fed interference (so the US economy can recover properly - instead of being stagnant since 2008).

Result: IR decrease or not rise with increase bond buying from the market in the short term (+ the Fed won't increase rates during a recession - aside from getting rid of QE). Once we get the real recovery, IR will eventually increase as money will flow back to equities. Real recovery could slowly start sometime in 2015.

good commentary.

if this scenario were to play out, i'd be more worried about losing my job. everyone thinks they're fine... until it's too late.