Prime -1, is it too good to be true?

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duke76
Member since: Apr 09

Posts: 41
Location:
Post ID: #PID

Posted on: 16-01-11 00:01:48

Hi

I have been offered a rate of prime -1 (2%) variable rate by a mortgage broker operating out of Hamilton. The offer is from FirstLine Mortgage, which I understand is a part of CIBC. None of the other brokers that I have talked to was able to offer anything like that, the best that they can offer is prime -.90 (2.10).
When I told them that I have a offer of prime -1, most of them said that there must be something wrong in the deal. Being a first time home buyer, I am a bit tensed up, but apparantly I was not able to see any abnormal charges in the Mrtg agreement. What could be the catch?

The mrtgg comes with a 5 yr term, 20/20 prepayments, assumable and portable, and conversion to fixed term anytime.

Feedbacks would be appreciated.

Thanks

freakoutguy
Member since: Sep 06

Posts: 666
Location: GTA
Post ID: #PID

Posted on: 16-01-11 12:10:59

I've had my mortgage with First Line for around 8-9 years. In fact. I got the same offer (Prime minus 1)for a fully variable and portable mortgage around 4.5 years back and have stuck on to that rate. First Line is a reputable company (owned by CIBC) and I've had no issues ever with them.

surtalme
Member since: Nov 04

Posts: 82
Location: ontario
Post ID: #PID

Posted on: 17-01-11 22:38:39

Quote:
Originally posted by duke76

Hi

I have been offered a rate of prime -1 (2%) variable rate by a mortgage broker operating out of Hamilton. The offer is from FirstLine Mortgage, which I understand is a part of CIBC. None of the other brokers that I have talked to was able to offer anything like that, the best that they can offer is prime -.90 (2.10).
When I told them that I have a offer of prime -1, most of them said that there must be something wrong in the deal. Being a first time home buyer, I am a bit tensed up, but apparantly I was not able to see any abnormal charges in the Mrtg agreement. What could be the catch?

The mrtgg comes with a 5 yr term, 20/20 prepayments, assumable and portable, and conversion to fixed term anytime.

Feedbacks would be appreciated.

Thanks

Hi Duke76

I'm in the market for mortgage and my broker has offered only Prime less 0.8% (2.2%) from First Line (CIBC). Can you provide me with the reference of your broker?

Is your offer for 3 year or 5 year Variable?

Thanks

duke76
Member since: Apr 09

Posts: 41
Location:
Post ID: #PID

Posted on: 18-01-11 11:46:27

Hi

Its for a closed variable for 60 months @ 2%.
I am in the process of finding out the genuinity of the whole thing, although FirstLine has already confirmed that both the broker and the underwriter is genuine. I am trying to find out any hidden clauses/charges in the mrtgg commitment doc that I have received.
What's your contact number, you can send me a PM.

Quote:
Originally posted by surtalme

Quote:
Originally posted by duke76

Hi

I have been offered a rate of prime -1 (2%) variable rate by a mortgage broker operating out of Hamilton. The offer is from FirstLine Mortgage, which I understand is a part of CIBC. None of the other brokers that I have talked to was able to offer anything like that, the best that they can offer is prime -.90 (2.10).
When I told them that I have a offer of prime -1, most of them said that there must be something wrong in the deal. Being a first time home buyer, I am a bit tensed up, but apparantly I was not able to see any abnormal charges in the Mrtg agreement. What could be the catch?

The mrtgg comes with a 5 yr term, 20/20 prepayments, assumable and portable, and conversion to fixed term anytime.

Feedbacks would be appreciated.

Thanks

Hi Duke76

I'm in the market for mortgage and my broker has offered only Prime less 0.8% (2.2%) from First Line (CIBC). Can you provide me with the reference of your broker?

Is your offer for 3 year or 5 year Variable?

Thanks

surtalme
Member since: Nov 04

Posts: 82
Location: ontario
Post ID: #PID

Posted on: 18-01-11 12:42:05

Sent you a PM

duke76
Member since: Apr 09

Posts: 41
Location:
Post ID: #PID

Posted on: 21-01-11 14:02:20

Check your PM's please. Contains the Mrtg broker's info.

Quote:
Originally posted by duke76

Hi

I have been offered a rate of prime -1 (2%) variable rate by a mortgage broker operating out of Hamilton. The offer is from FirstLine Mortgage, which I understand is a part of CIBC. None of the other brokers that I have talked to was able to offer anything like that, the best that they can offer is prime -.90 (2.10).
When I told them that I have a offer of prime -1, most of them said that there must be something wrong in the deal. Being a first time home buyer, I am a bit tensed up, but apparantly I was not able to see any abnormal charges in the Mrtg agreement. What could be the catch?

The mrtgg comes with a 5 yr term, 20/20 prepayments, assumable and portable, and conversion to fixed term anytime.

Feedbacks would be appreciated.

Thanks

dudewheresmycar
Member since: Jan 07

Posts: 980
Location:
Post ID: #PID

Posted on: 21-01-11 15:36:21

1> Check if they have tagged any monthly fee to ur mortgage
This was done to me by my broker , my lawyer caught it and i had them waive it

2> Check if the mortgage can be closed with 3 months interest..
Generally all variable int mortage follow this rule.. This rule is good because u can sell before ur term is up without a whole lot of penalty.

Contributors: surtalme(4) duke76(3) freakoutguy(1) dudewheresmycar(1) sudesingh(1)

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