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  #1  
Old 2006-11-08, 02:32 PM
iku iku is offline
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Question Financing of purchasing Mattamy house

Hi,
Did any one know which bank Mattamy deals with?
Closing day is almost 14 months from now, which bank can keep that long term for you, usually banks do 120 days.
If there is anyone who already bought house from Mattamy, please let me know you went through it.
Thanks.
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Old 2006-11-08, 03:33 PM
GreyingJay GreyingJay is offline
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Are you talking about guaranteed mortgage rates?

Just talk to your bank, they should be able to help you out. At the end of this 120-day period you can re-apply.

I close in May, which is only one extra 120-day period, so I was told to call back in February or so (120 days from now) to confirm the final rate. I will get the prevailing rate or 5.15% (5 year fixed) whichever is lower by then. I was told rates should be dropping, though.
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Old 2006-11-08, 03:58 PM
Ena Ena is offline
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When we bought back in August, RBC was offering a 1% cashback to be used at the design centre. I don't know if they still do...
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Old 2006-11-08, 04:07 PM
mart242 mart242 is offline
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BMO used to offer a builder's mortgage. I had locked in at 4.15% for 5 years but that rates expires next month and my house won't be ready until April.

If you want to lock in for only 120 days, talk to a mortgage broker, don't waste time with banks. (brokers's services are free)
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Old 2006-11-08, 04:59 PM
jml jml is offline
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If your closing is more than a year away (as in my case) most bank will only give you a written, no obligation, pre-approval with 1% off prime rate. The good news is you have a whole year to shop for the best rate and yes the rate is predicted to go down. So what i am going to do is every few month i will look at the rate and if it goes down i'll get a written statement from the bank. The real deal is however the 120 day prior to your closing, if at that time the rate is higher than the lowest you've got during the year then negotiate with the bank for the lower one, If the rate is lower then you should negotiate even lower. First get in touch with a mortgage broker and then approach your bank for a written letter (this really serve as an "insurance" so that you have something pre-approve to cover your closing date). But don't tell you bank that you have contacted a mortgage broker or you'll lose lot of your credibility to the bank- use them as leverage against each other when it's time to negotiate to see which one give you the better deal. As i said before, the real negotiation start 120 day prior to closing (and be sure to check with the builder of the closing date because they are only obligate to give you a notice 90 day prior). And don't shop around for too many banks because each time they check your credit you lose one credit point, where a mortgage broker gets one copy of your report and use it to shop around for you - they are free providing you have good enough credit rating. Enough said, good luck.
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Old 2006-11-08, 08:33 PM
jl9004 jl9004 is offline
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I actually work for a bank, and they couldn't touch the offer from Royal.( if comparing apples to apples, our bank does have great rates as well) So we did an application with them. Royal gives you 1% cash back on a 5 year fixed term to spend how ever you choose. They also give you an 18 month rate guarantee. In the mean time we can shop around , but if we don't find better we have covered our a$$es. Brokers are great as long as they don't throw your bureau out for ever Tom, Dick and Harry to hit . I have seen this before when I have done mgt apps and then it is really hard to get a mgt at all, or you are stuck with a broker even if that is not the route you wanted.

I recommend just being educated, rate is not the only thing look at pre payment options that should be a huge factor in your decision . Another good tip is if you are planning on living in your home for a long time consider a 7,10 year term the rates are great these days, below prime. Just think peace of mind for half your mgt. Finally increase your payments or put lump sums on it if you can , you will take years off your mgt. This is easy by doing accelarated payments.
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Old 2006-11-09, 12:46 PM
iku iku is offline
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Thanks all of you for info. With my understanding, i have better get rate from broker not bank, becasue of credit point. also i can take current rate right now, then i shop around for the best rate in 120 days before closing day. at that time, i believe i should have good rate in 2008.
But lots of people said rate will be drop off next year, how about 2008??? rate will go up or down?
Do you need sign a paper with bank or broker for pre-approval?
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Old 2006-11-09, 05:18 PM
jml jml is offline
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The rate you'll get right now is just an "insurance" or "to cover you A$$" as someone put it . Because it's a year away, the rate you'll get right now is much higher then you would've got if you were to start the mortgage right away, the longer they will hold it for you the higher the interest (because of higher risk for the bank). The pre-approval is a letter signed only by the bank- no obligations. I am no mortgage expert, i am telling you from my experience as i am still learning as well.

I am doing research on bi-weekly payment options, it can really save you alots but of course their are pros and cons. jl9004, you work at the bank do you know much about this type of payment option. I know not all banks offer this.
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  #9  
Old 2006-11-09, 06:42 PM
jl9004 jl9004 is offline
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Most banks should do bi-weekly and bi-weekly accelerated. My suggestion is to do bi -weekly acc. Your payment is increased a little but that goes right towards the principal. Most banks should offer this and if they don't I would go elsewhere , because it is of no benefit to do monthly. You can find some great mgt caculators on some bank web pages and it will show you the difference. Or plug me your numbers and I can show you the difference.
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Old 2006-11-09, 07:01 PM
mart242 mart242 is offline
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Quote:
Originally Posted by jl9004
Most banks should offer this and if they don't I would go elsewhere , because it is of no benefit to do monthly. You can find some great mgt caculators on some bank web pages and it will show you the difference. Or plug me your numbers and I can show you the difference.
The interest compounding is still every 6 months, right? So is the weekly accelerated payment the same as paying monthly but every 6 months making a lump sum payment? Or is the interest calculated differently?

I've been doing weekly accelerated but am now thinking that doing monthly payment but putting the difference between monthly and accelerated in a high interests savings account in the meantime would be more profitable. Or go with something like manulife one... but that's a different story.
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