Hi AshwaniG,

Could you please let me know the Scotia branch where they give
4.15 for 4 yrs w/o penalty ..

Also, where do you get 3.84 for 5 yrs after paying penalty ?

Could you please send me a PM?

Thanks.

First of all 6300$ is a lot of penalty for 222K mortgage.. Usually it is 3 months of interest.. Seems like the mortgage provider is not a good or reputable one..


2ndly the new mortage broker is putting all the mumbo jumbo in the deal that there is something hidden that ur are not accounting..

6300$ cash back for a 1 year mortgage of 222k is not going to give the mortage provider a ROI of more than 0.75%.. So this deal looks too good to be true..



Int on 100k Variable = 3500 (@ prime (2.5) + 1)
Int on 100k Fixed = 4200

total int for 1 year 7700 - 6300 = 1400.. = .75 % ..

Something wrong here.. no bank gives away cash like this..

Quote:

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Originally posted by Pramod Chopra

Quote:

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Originally posted by gforacle

Hi Pramodji,

I have a balance mortgage of approx 222000 at a fixed rate of 5.09 for the balance 3 years and 3 months

I have been offered below option to switch

a) 100K mortgage - % (Prime + 1 ) Open for 5 years. Open Option to move to fixed

b) Balance - 4.29 fixed for 1 year (and with some gaurantee to get the best rate after 8 months)

c) Penalty for approx 6300 will be absorbed by the new lending bank

My monthly payment is going down by about 200

Can you help me out with the calculations, and is it worht doing this change?

Regards
gforacle

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If your new lender is 'absorbing' (and not adding in to the new mortgage) the penalties worth $6300 then it would make this a worthwhile deal, even though the rate for 1 year term is much higher than available elsewhere. Essentially the new lender is loading a part of penalty in the new 1 year term making it a higher than the best rate available but still it is a good deal.

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Hi Raajen !
Pls check you PM ..
3.84 mortage is offered by Pramod G website ..If you want you can call him to get details.
Good luck
Ashwani

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Growing Old Is Mandatory ..Growing UP is Optional

Just found out from National bank my mortgage provider..



Variable Int usually has 3 months interest penalty for closing the mortgage..



Fixed usually has 3 months interest or rate difference as penalty..


This actually tilts the balance to variable .. because u can sell any time and have minimum penalty..

Hello Pramod,
I have heard a lot about your professional expertise, and am really impressed that so many people have such excellent opinion about your services.
I have sent you an e-mail also, however, if you have not received it or it is missed in the e-mail flurry; then please let me know.

I will highly appreciate if you could advise me that is there any chance of getting benefit of presently low mortgage rates in my particular situation? I tried to calculate on my own the penalty amount for switching mortgage from RBC and it appears to be $35,000, so believe I am doing some mistake. Details of present mortgage details with RBC are as follows.

Line # Description Details Remarks
1 Mortgage NHA from RBC Bank
2 Amortization Period (Months) 480
3 Maturity Date April 26, 2012
4 Interest Rate/Type 5.222% Fixed Close (Reduction of 2.686% from then Posted Rate 7.908%)
5 Mortgage Amount $456,777.00 Biweekly Payment of $1126.48
6 CMHC Default Insurance Application Fee & Premium $6,777.00 Because I had already paid $9873.85
7 GST/PST/HST On CMHC Default Insurance $542.16
Because I had already paid $789.90
8 Sum (line 6 + line 7) $7,319.16
9 Lawyer Received (line 5 - line 8) $449,457.84
10 Total Interest Paid $27,308.77
$4,064.77 during 2007; $23,244.00 during 2008
11 Total Principal Paid $7,048.87
$1004.39 during 2007; $6044.48 during 2008
12 Balance on Jan 01, 2009 $449,728.13

Penalty Amount: Greater of the 03 months' interest at your existing interest rate on the amount you want to prepay, or interest for the rest of the term at an interest rate differential (difference between existing rate and (posted rate - rate reduction).

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A. Malik

Quote:

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Originally posted by PakistaniEngineer

Hello Pramod,
I have heard a lot about your professional expertise, and am really impressed that so many people have such excellent opinion about your services.
I have sent you an e-mail also, however, if you have not received it or it is missed in the e-mail flurry; then please let me know.

I will highly appreciate if you could advise me that is there any chance of getting benefit of presently low mortgage rates in my particular situation? I tried to calculate on my own the penalty amount for switching mortgage from RBC and it appears to be $35,000, so believe I am doing some mistake. Details of present mortgage details with RBC are as follows.

Line # Description Details Remarks
1 Mortgage NHA from RBC Bank
2 Amortization Period (Months) 480
3 Maturity Date April 26, 2012
4 Interest Rate/Type 5.222% Fixed Close (Reduction of 2.686% from then Posted Rate 7.908%)
5 Mortgage Amount $456,777.00 Biweekly Payment of $1126.48
6 CMHC Default Insurance Application Fee & Premium $6,777.00 Because I had already paid $9873.85
7 GST/PST/HST On CMHC Default Insurance $542.16
Because I had already paid $789.90
8 Sum (line 6 + line 7) $7,319.16
9 Lawyer Received (line 5 - line 8) $449,457.84
10 Total Interest Paid $27,308.77
$4,064.77 during 2007; $23,244.00 during 2008
11 Total Principal Paid $7,048.87
$1004.39 during 2007; $6044.48 during 2008
12 Balance on Jan 01, 2009 $449,728.13

Penalty Amount: Greater of the 03 months' interest at your existing interest rate on the amount you want to prepay, or interest for the rest of the term at an interest rate differential (difference between existing rate and (posted rate - rate reduction).

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada