I just renewed with Coast Capital at 2.59 for fixed 5 year. Previous 5 years was 2.69 so a bit in the right direction this time. Our mortgage is on the last term so most of the payments are principle now so not worth changing institutions and having to pay for lawyers fees to make a switch. The last time Coast Capital gave us $1000 to make the switch to them.
Mortgage rates on the rise as lending rates are cut
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kingblazer84
Well-Known Member
im fixed at 5 year at 2.55
Gong Show
Well-Known Member
Lawyer fees for a refi are pretty reasonable, like under $600.00.
There are disbursements and taxes on top, of course.
It's the bank fees for payout penalty and then setting up fees that will get you.
If Coast Capital is paying $1000.00 to switch, that is a great deal.
Morty
Well-Known Member
Likely no downward changes in the GVRD GVA markets. Here's a few reasons why:
* several world agencies state that Canada is one of the top countries in the world to live in (if not THE best)
* the best climate in that country is Vancouver-Victoria
* property prices are dependent on supply
* GVRD cannot expand in many directions like Calgary, Saskatoon, Toronto, Denver,.....
* go 10 blocks West of downtowm Vancouver and you're in the ocean, go North and you can see the line on the North Shore where they're running out of household water pressure, Go East and you're into the Agricultural Land Reserve, Sounth 45 minutes and you're not longer in this most-favored country.
* when you've got limited supply, and world demand, prices go UP!!
Consider with that:
- the challenges with China and Hong Kong and the possibility many HK may want to move to ...??
- there a more millionaires in India than there are people in Canada and some of those wish to own here
- in only takes a handful of wealthy people from each of 100 other countries to influence our limited supply here.
Judging by the dozens of multi-billion dollar lenders that I work with, real estate sales have been as busy, or busier, than they were in the previous 6 months. Sure they're down 49% compared to same month last year but last year was a huge Spring. New listing here in Surrey aren't lasting long. I've heard of one listing in Vancouver that got 60 offers last month.
Rick
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Rain City
Crew Member
Yup my brother is looking for a house in Hastings Sunrise which to a lot of people would be crack town but the hipsters love it. Mostly because it was the cheapest place to buy about 10 years ago. A tear down on a short lot listed for 1.4 and sold for 1.55 with over 40 viewings that Saturday morning!
Morty
Well-Known Member
Rates aren't everything. "You get what you pay for"
Too many lenders and online mortgage services are unfortunately advertising their absolute LOWEST interest rate. Some of those are what's known as "Low Rate Basic" mortgages. You can be locked in to those for 5 years and have a penalty as high as 3-1/4% of the payout amount even if you sell the home before the 5 year Term is over. Some have NO Prepayment Privileges, or very restricted early pre-pay options. (e.g. only once per year and only on the exact anniversary date).
"Rates" are a factor the Humongous Bank has baited us into focusing on so that we overlook the other important factors of a mortgage: Payment frequency options, ability to change payment frequency, how often you could pay extra, how much you can modify your regular payment, ability to manage your own mortgage via an internet portal, etc...
It's important to remember when dealing directly with a bank is that their employees are legally required to try to make as much profit for their employer as possible - that's what they were hired to do. Some bank mortgage specialists are holding themselves out as Mortgage Brokers when in fact they are just comission employees. The BC Financial Services Authority (BCFSA) has a website where you can look up who the legitimate Mortgage Brokers are.
When dealing with an intermediary Mortgage Broker (who gets paid by the lender) and does 10's of millions of dollars with a lender per year, they have way more buying power than someone after $400,000 once every 5 years.
Rate is simply a distraction - payment and features are key !!!
Morty
Well-Known Member
There's no such thing as a free $1,000 !!!! The rate for those is a tiny bit higher and you pay them back more than the $1,000 over the Term
Banks don't offer deals so that THEY can make LESS money.
I implore all on here who are in the mortgage market to shop around with a professional broker, use 2, compare and see what is offered, you have NO friends or buddies with money, use the pros as Morty states. Every individual is different but each has nothing to loose except the hour or so of time. I am reading things posted here above that make my financial blood boil=pure robbery/theft. Do the research, fixed rates will STEAL $$ from all but a very few in todays market and foreseeable future market. A good pro will run your numbers and compare. Even the news had 1.69 stated as a variable 2 days ago. NEVER USE ANY BANK, they are the Gov. you must NEVER trust them, as stated above they are mandated to screw you. Brokers use companies who loan TO the banks. Without a bank raping fee increase, sometimes a bank may win the battle but ONLY after a broker tells you who, compare apples to apples, if you move lots or are expecting too then breakage fees may be important, portability, payment options and monthly amounts need verifying. Lawyer fees who the hell pays them?? any broker I have dealt with removes or absorbs them. Make the loan companies fight for your business.
I challenge you to NOT believe a word I state, verify, validate and do your due diligence, I am not a pro and have no affiliation with any institute, but I have financially educated myself. Become money smart and keep more of what you worked hard for. Forget banks they are NOT out for you. Lets see what their quarterly profits will be after all this world mess. Bets for still over 1 billion profits? For those with no mortgages and house equity why are you not educating yourself and turning that equity into good dept and cashflow, preferably tax free????
Morty= I say you educated yourself also. Good job.
HM
I challenge you to NOT believe a word I state, verify, validate and do your due diligence, I am not a pro and have no affiliation with any institute, but I have financially educated myself. Become money smart and keep more of what you worked hard for. Forget banks they are NOT out for you. Lets see what their quarterly profits will be after all this world mess. Bets for still over 1 billion profits? For those with no mortgages and house equity why are you not educating yourself and turning that equity into good dept and cashflow, preferably tax free????
Morty= I say you educated yourself also. Good job.
HM
Morty
Well-Known Member
Have been an independent broker for 26 years now. Hence the handle "Morty"
Fins -n- Skins
Well-Known Member
I agree Morty has it right.. Go with a Broker and get the best rate.. We were lucky in no penalty in early pay outs. The lender was in Ontario which the Broker found the best rate. On a side note Single detached homes are in demand in Victoria right now and bidding wars are here again. Low inventory has pushed prices up. But you know the saying where do i go now or buy ? On the news last night realtor said rates as low as 1.99%
wildmanyeah
Crew Member
I am thinking about upgrading to a bigger place. Phoned my real estate agent yesterday and he says its a sellers market but good luck finding a place to buy.
I find that odd tho with no international travel where is this sudden buying pressure coming from you would think if its all local then you would the amout of places for sale would equal the amount to buy.
I was also told that the CMHC is tightening regulations again July 1 so there is some panic buying going on.
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Morty
Well-Known Member
Two points: offshore & CMHC
* with inside 360 degree video, and drone video of property and neighbourhood, combined with electronic DocuSign and bank transfers, a lot of offshore buyer are purchasing in Canada without leaving home. Land Title documents are even filed electronically now. Some appraisers are having homeowners take pictures of every room in the house , including a time/date stamp and using Google earth and BC assessment data to prepare appraisal reports.
* CMHC's competitors, Genworth and Canada Guarantee, have announce that they are not following CMHC's tightening and will continue with the pre-COVID guidelines.
That explains it, I never put it together. I can verify your point on purchase and selling at a distance. Sold my last door without even seeing my realtor, all was done with DocuSign over internet, buyers were out of Province. Worked smooth, organized, only time zones sucked. Good for them, midnight for us. I am not sure of current % of buyers from out of Canada, was not very high last time I looked.
For every one else. USE THE MORTYs. Be smart and save what you have earned.
HM
Pineapple Express
Well-Known Member
5yr fixed?
Hope not, do your due diligence, for nearly all a fixed WILL cost you more up front and then for every payment.
HM
Captain PartyMarty
Crew Member
Hey guy's
I am being offered 1.85% Variable 5Year or 2% fixed 5year for my renewal. I normally go Variable but with rates on the fixed so low i am tempted. Which option would you take?
Martin
I am being offered 1.85% Variable 5Year or 2% fixed 5year for my renewal. I normally go Variable but with rates on the fixed so low i am tempted. Which option would you take?
Martin
kingblazer84
Well-Known Member
I would go fixed IMO 2% is low, unless you want to keep rolling the dice for another 5 years.