Pre-approval generally will be valid for 120 days.

With current trends, pre-approval is not pretty popular nowadays, as there has been speculations that rates will go down. Because of recent decrease in prime rate, more and more people are going for variable rate, but you can't be pre-approved for a variable rate. Fixed rates have also shown downward trends for the past few weeks.

Regarding the credit bureaus, brokers use Equifax when submitting deals to lenders, but sometimes, there are some lenders who pull out both bureaus. Genworth, the mortgage insurance company, would pull out both bureau. I've heard people say that Transunion tends to generate higher score than Equifax.
Car loans do show up on Equifax report. It's not always bad to have a loan, because it actually builds up your credit, as long as you make the payments on time.

Mr Shah and all other in \"schoch & Vichar\" for Mortgages, kindly click on \"back to home page\" and go to \"Articles\" and look-up \"Mortgage Basics\"
Simplified and thorough on this subject
thank you & Kind regards

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S. kanji
I may not agree with your opinions, but I will fight to death for you be able to air your views.

I have pre-approved Mortgage at 5.25% variable rate

My closing date is after 2 months

Just wondering, shd I continue with Variable rate or while closing go to Fixed rate.

I heard Fixed rate is always higher than Variable.
How much differnence always will be ?

What is preferable, fixed or Variable?
Can some one tell me advantages & disadvantages of both?

If I am not wrong, one can go from Variable to fixed, but can't go back from fixed to Variable, correct?

Thanks

Quote:

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Originally posted by mumdxbcan

I have pre-approved Mortgage at 5.25% variable rate

My closing date is after 2 months

Just wondering, shd I continue with Variable rate or while closing go to Fixed rate.

I heard Fixed rate is always higher than Variable.
How much differnence always will be ?

---

Quote:

---

Originally posted by mumdxbcan

What is preferable, fixed or Variable?
Can some one tell me advantages & disadvantages of both?

---

Quote:

---

Originally posted by mumdxbcan

If I am not wrong, one can go from Variable to fixed, but can't go back from fixed to Variable, correct?

---

Quote:

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Originally posted by mumdxbcan

Thanks

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You're approved for prime-0.5%. You should see about two weeks before closing what the fixed rate and the prime rate are.

The best 5-year rate now is 5.74%. The best variable rate is now prime - 0.6%.

Can't say which one is better. AT this moment, variable rate is a better deal because of the decrease in prime rate, but you'll never know what would happen to prime rate in the near future. It all depends on your comfort level really. If you like the comfort of not having to worry about rate fluctuation, then go for fixed rate. If you don't mind with the rate fluctation, you should go for variable now and lock in to fixed rate later on when the rate goes down. It is expected to go down as it has for the past few weeks.

Fixed rate depends on Canada's bond yields. If we look at historical data (fixed rate vs bond yields), with current bond yields, fixed rate should have decreased to about 5.2%. However, lenders are reluctant to decrease its fixed rate because they have incurred losses on their variable products (because of decrease in prime). They're trying to keep the fixed rate to compensate for the losses.

Right now, I think the best strategy would be to go with variable for now and lock in to fixed rate later on.

Quote:

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Originally posted by mortgageexpert

Fixed rate depends on Canada's bond yields. If we look at historical data (fixed rate vs bond yields), with current bond yields, fixed rate should have decreased to about 5.2%. .

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Live and Let Live

I thought the next rate revision is on Mar 4 only... The variable rate at ING site has gone down by 10 points today....