Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by Aashu
How is this offer ? Expires today though.
The link is not working, pl check http://www.scotiabank.ca" rel="nofollow">LINK
Get the upper hand 4.35 % , 12 month fixed rate mortgage.
"Now is the time to find out more about the special 4.35% rate on our Save Now, Save Later® Mortgage.
You save now with this great rate. And you will save later because we will give you a guaranteed 1.25% off the posted rate should you choose to renew to a 5-year fixed rate closed-term mortgage. Better yet, you can choose to convert to a five year term anytime during the first year of this mortgage, and still take advantage of this offer."
Given the uncertainty and the rate environment we are in where variable rates are prime + 1%, this Scotia offer is one of the best available in market.
I am advising my clients to go for this rate for the time being and decide 1 year later the best product as per market conditions at that time.
Hi Pramod,
I am not an expert at these things for sure but it seems you can do way better than variable rates that are prime+1%. You can get variable rate (open) which is prime-0.5%. I personally don't believe barring unforseen miracles that interest rates will go up by that much if at all it will go up in the next year.
Do you feel otherwise?
-----------------------------------------------------------------
If you have a gun, you can rob a bank.
If you have a bank, you can rob everyone.
- Bill Maher
Quote:
Originally posted by blorean
Hi Pramod,
I am not an expert at these things for sure but it seems you can do way better than variable rates that are prime+1%. You can get variable rate (open) which is prime-0.5%. I personally don't believe barring unforseen miracles that interest rates will go up by that much if at all it will go up in the next year.
Do you feel otherwise?
Hi blorean : Although you wrote to Pramodji but I wud like to know who is offering prime -0.5 ? I spoke to all banks but none said that.
I recently renewed my mortgage with Scotia Bank and it was they who gave a 5 year, Prime-0.5% variable rate (open). I don't know if I lucked out because I was renewing. But Iam pretty sure there was some other post regarding such an offer on CD recently...let me search for it.
I am sorry but I am not comfortable giving out the name of the Mortage Advisor without consent. I can check and get back to you.
-----------------------------------------------------------------
If you have a gun, you can rob a bank.
If you have a bank, you can rob everyone.
- Bill Maher
Quote:
Originally posted by blorean
I recently renewed my mortgage with Scotia Bank and it was they who gave a 5 year, Prime-0.5% variable rate (open). I don't know if I lucked out because I was renewing. But Iam pretty sure there was some other post regarding such an offer on CD recently...let me search for it.
I am sorry but I am not comfortable giving out the name of the Mortgage Advisor without consent. I can check and get back to you.
For the last 5-6 weeks, the mortgage rates have been fluctuating and have gone up significantly for variable rate mortgages and slightly or more for fixed rate mortgages. However, any body who had the pre approval prior to that time would get the rate promised till 120 days from the date of approval.
Most likely you must have either renewed or started discussion for renewal before 29th September, 08 and you were offered the rate you have.
Before Sept 29, 08, I was offering my clients (through Scotia Bank, of Course) a rate of prime -0.50 and just before Sept 24, 08 a rate of prime -0.75%.
So, you can see when the approval came and whether you got a good rate or not. Right now, all the banks are offering variable rate at ranging from prime + 0.5% to prime + 2.0%.
-----------------------------------------------------------------
Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Location: carl sagan's universe
Posted on: 02-11-08 19:12:13
As usual I shall gum up the works and throw something else into the equation.
The rate P-.50% was as Pramod points out available in Sep as was P-.75%.
If you had at that time booked it, you would still be eligible for it even if your closing is end of this month or w/in 120 days of booking it.
Right now as Pramod says it has been jacked up.
However if you are putting 20% or more equity in your home, or if you are coming up for renewal or doing a refinance, where the balance of your mortgage is less than 80% of your home value, you can go for an all-in-one account at Prime or currently 4% with many institutions.This is still an available option today.
This is a variable rate and may go down or up and you may just pay the interest- should you so desire, though my recommendation is to pay the full mortgage amount and if you have your salary/ies deposited into the account, there is a possibility of paying down your mortgage faster.
I am sure Pramod Bhai can expound on this better.
We got pre approval done before but being first time buyer they would only preapprove for fixed rate and not variable. So although we had pre approval, we do not gain from it. They said when we actually get mortgage, they would let us know how much variable they can offer but during a pre approval their policy is to offer only fixed rate. Does this sound right ?
Location: carl sagan's universe
Posted on: 03-11-08 13:04:39
Hi Aashu,
Pre-approvals are usually given on fixed rate basis but you are not bound to take that rate. You can take the most advantageous rate at the time you finalise your home deal.
Are you planning to pay 20% down on your home? If you are you can get rate of prime.
Also if you have room in your RRSP deduction limit as per your NOA( notice of assessments), you can utilise that to get money from the govt to use for the down payment or for your closing costs or for renovation or to pay down your debts etc. Very good maneuvre. I do it very often for my clients.
Something a bank doesn't tend to offer.
