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  #1  
Old 2008-09-22, 11:43 PM
MortgageGuy MortgageGuy is offline
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Default Ask the Mortgage Guy?

My name is Dan Faubert of Ottawa-Carleton Mortgage. I have been a mortgage broker in Ottawa since 1985, dealing mainly with the financing of residential real estate across Canada. As a broker, I deal with dozens of financial institutions, including the "big banks", credit unions, and many life and trust companies. It is with these varied source of funds that allows me to have "better than bank" rates and products to fill many needs. I was referred to this site from a client who had purchased a builder home and thought that my finance knowledge may be of use to others. So the doors are open. If you have mortgage questions or looking for advise, I would be happy to do my best in answering them and offering suggestions. If I hear of up to date mortgage news that I feel is relevant to the public, I will also post it here.
Have a great day,
Dan
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Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

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  #2  
Old 2008-09-23, 01:25 PM
karrietg karrietg is offline
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Do you recommend a fixed rate or a variable rate mortgage given the current economic situations?
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  #3  
Old 2008-09-23, 04:35 PM
MortgageGuy MortgageGuy is offline
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Default fixed or variable

Surely one of the most common questions I am asked!
First and foremost I would only decide this question approx 30 days in advance of my closing. I would NEVER sit with a mortgage approval as a variable, I would always fix a 5 year rate and then if things look very downward trending and or stable 30 days before, I would then move to a variable. It costs nothing to change the type of mortgage you take prior to closing on your house. In your circumstance with a November closing, I would stay fixed for now and decide beginning of Nov.
Now for the fixed or variable question in general. First decide if you are a gambler or security conscious? 5 yr fixed rates today are likely at 40 year lows, so in the long run it would be hard to go wrong with fixed rate mortgages today. Could they drop in the very near future, possible, but will they drop a lot, not likely. I can get 5.09% 5 yr fixed, a very attractive rate with good prepayment.
Could rates go up in the new year, quite possibly. It will largely depend on inflation and the banks cost of funds. If that starts to rise, watch out for rates. This is a very general statement, but inflation will likely be the 1st cue to higher mortgage rates.
Just remember that you ultimately are responsible for the decision you make regarding gambling(variable) or going fixed. I am not an economist, and won't pretend to be. I personally have been a long term, sleep well type of guy, and have not regretted it yet. Everyone has to live by a budget, some tighter than others and therefore decide accordingly.
Dan
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Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070

Last edited by MortgageGuy; 2008-09-24 at 11:34 AM. Reason: sounded stupid
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  #4  
Old 2008-09-23, 10:31 PM
djkoloks djkoloks is offline
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what about home equity loan vs traditional mortgage? is it worth looking into the HEL?
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  #5  
Old 2008-09-24, 10:21 AM
MortgageGuy MortgageGuy is offline
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Default home equity Line of Credit

I ONLY recommend getting a line of credit secured against your residence if you really think you will need it. It is just another way for the bank to make it easy to pull out your hard earned equity and spend it. Also if you are getting a line of credit, DON'T use one of the "all in one" mortgages such as the Scotia STEP mortgage(not picking on Scotia, all the major banks have these). They can never be transfered(without cost) to another lender upon the renewal of the fixed portion of your mortgage 5 yrs from now. If you must have a line of credit, get it separate from your first(as a second mortgage) and then it leaves you options when your 1st comes up for renewal. Remember that lines of credit have a floating rate therefore you are exposed to fluctuating rates in the future. I will also mention that there are MANY people out there who I have financed that are likely sorry they ever had a line, having used it to the max living beyond there means.
Dan
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Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #6  
Old 2008-09-24, 11:29 AM
MortgageGuy MortgageGuy is offline
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Default prime -1% variable

Sorry Katherin and Chris,
new to this forum, not sure how to apply when there is not a "reply" button, so am trying the "quote button"
to clarify, NO discount off prime is worth it if the "bank" does not guarantee some form of discount when you lock in to a fixed rate. The banks know that when rates start to rise, MOST will lock in. That is why the banks are so keen to to push variable. They will NOT put in writing what discount you will get when you lock in. The best discount I know with a discounted lock in rate is prime less .70%.
Dan

Quote:
Originally Posted by Katherine&Chris View Post
Hello mortgage guy - Do you have any lenders who will offer a Prime -1 variable rate?
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Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #7  
Old 2008-09-24, 03:04 PM
MortgageGuy MortgageGuy is offline
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Default variable

Hi Katherine and Chris,
.90% off prime is the best there is, you may have arranged this some time ago?
Be happy with it. More importantly though as mentioned earlier, variable rates are closed with a 2 or 3 month interest penalty to leave. So with 5 yr posted rates at 6.75% very important to have in writing what you will recieve as a discount when you lock in. If it is not in writing, and your "bank" has the dreaded posted rates, I would take prime less .70% over your 1%(unless of course you intend to stay variable for the full term).
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #8  
Old 2008-10-04, 09:28 PM
peterd peterd is offline
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Default mortgage insurance

I did not have mortgage insurance on my last mortgage and now that we are negotiating a new mortgage this october, I think it's time we got insurance considering we have children now and are getting a bigger mortgage. Can you offer any insight?
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  #9  
Old 2009-01-19, 11:07 AM
jessekaa jessekaa is offline
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Hi, we got a great rate through our year of trying to buy a new house. Its (variable rate at prime -.65%)(Copied and pasted from the loaner, lol)which this rate expires in Feb.. We have not sold our house, but don't want to loose this rate, so we are thinking we should take our house off of the market, and transfer our mort now of like 5% to this one. I guess if we do this we can't take this mortgage to the new house later on, but can give this rate to the people who buy my house in a year or two.

Can this rate be matched or be better? We have been told no.
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  #10  
Old 2009-01-19, 01:36 PM
MortgageGuy MortgageGuy is offline
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Default prime less .65%

In short, NO one can touch that rate, it is a thing of the past. Prime PLUS are the rates of today. It was a great rate for its time. In essence use it or lose it.
There are lots of unknowns I'm afraid regarding your second question(ie is there a penalty to break your existing mortgage, would your new prime less mortgage be assumable?) and all are really of a personal nature. Feel free to call me directly or email me a # where I can call you and it can be discussed. Do NOT assume that someone will be interested in assuming(taking over a mortgage of yours) if they buy your house a "year or two from now".
Have a great day,
Dan

Quote:
Originally Posted by jessekaa View Post
Hi, we got a great rate through our year of trying to buy a new house. Its (variable rate at prime -.65%)(Copied and pasted from the loaner, lol)which this rate expires in Feb.. We have not sold our house, but don't want to loose this rate, so we are thinking we should take our house off of the market, and transfer our mort now of like 5% to this one. I guess if we do this we can't take this mortgage to the new house later on, but can give this rate to the people who buy my house in a year or two.

Can this rate be matched or be better? We have been told no.
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
Reply With Quote
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