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  #491  
Old 2011-04-05, 09:18 AM
briar briar is offline
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Hi Dan,

Thanks for all the great info you've been sharing with the community..

We've signed to buy a new home to be built Sept 2012. RBC has a guaranteed rate for 18months (4.09% for 5 years). The only issue is what would happen if the closing date gets delayed.. FYI, I'd probably prefer to go with a variable rate; but it seemed wise to lock in for the 5 year rate just in case things go up a lot between now and then. What do you suggest?
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  #492  
Old 2011-04-05, 10:07 AM
MortgageGuy MortgageGuy is offline
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Default 18 month closing date

It would be foolish NOT to happily take the 4.09% 5yr guaranteed for Sept 2012 closing date. It's anyones guess where 5 yr rates will be even 12 months from now. Remember you are not obligated to take the mortgage, you can always switch to a variable rate when you get to 30 days before closing, if you think that is an attractive option at that time.

As for the chance of having a closing date extended, worry about things you can control, that I'm afraid you can't. Do the best with what you have, and check with me 4 months prior to your closing date, you'll likely be bragging about what a great rate you have
Dan

Quote:
Originally Posted by briar View Post
Hi Dan,

Thanks for all the great info you've been sharing with the community..

We've signed to buy a new home to be built Sept 2012. RBC has a guaranteed rate for 18months (4.09% for 5 years). The only issue is what would happen if the closing date gets delayed.. FYI, I'd probably prefer to go with a variable rate; but it seemed wise to lock in for the 5 year rate just in case things go up a lot between now and then. What do you suggest?
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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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  #493  
Old 2011-04-05, 06:35 PM
briar briar is offline
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Quote:
Originally Posted by MortgageGuy View Post
As for the chance of having a closing date extended, worry about things you can control, that I'm afraid you can't. Do the best with what you have, and check with me 4 months prior to your closing date, you'll likely be bragging about what a great rate you have
Dan
Great advice.. Just to clarify my concern with the closing date being extended.
The current closing date is pretty much 18 months from now, and 18 months is the length of time RBC can guarantee that rate for. So if it gets extended beyond 18 months, I guess I lose out on the locked in rate and I'd get whatever the current rate ends up being? Here's hoping it doesn't get extended..
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  #494  
Old 2011-04-05, 06:47 PM
Dunky Dunky is offline
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Other banks can do a rate hold for up to 2 years, I have a builder rate hold through TD for 24 months. See what else you can find if you're worried about a possible delay.
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  #495  
Old 2011-04-06, 09:55 AM
MortgageGuy MortgageGuy is offline
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Default 18 mnth

I would ask RBC directly that question, I have not known a bank financing a project not to extend the rates if there is a delay on closing. Especially if they are doing the whole project, they usually take care of the builder, when there is a relationship.
As the previous buyer mentioned if not then look elswhere.
Dan
Quote:
Originally Posted by briar View Post
Great advice.. Just to clarify my concern with the closing date being extended.
The current closing date is pretty much 18 months from now, and 18 months is the length of time RBC can guarantee that rate for. So if it gets extended beyond 18 months, I guess I lose out on the locked in rate and I'd get whatever the current rate ends up being? Here's hoping it doesn't get extended..
__________________
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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  #496  
Old 2011-04-12, 09:28 AM
MortgageGuy MortgageGuy is offline
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Default Bank Prime

For all your variable rate folk out there, Bank of Canada Governor Frank Carney
has left the bench mark lending rate at 1%(therefore our Bank Prime lending rate will remain at 3%).
http://www.theglobeandmail.com/repor...rticle1981580/

So rates have now settled down...
Variable 5 year term, Prime less .80% or 2.20% today
FREE DOWN PAYMENT mortgage 5.69% (5% down payment given as cash back)

10 yr 4.89%
7 yr 4.69%
5 yr 4.04% 90 day closing 4.24% 120 day closing
3 yr 3.65% 90 day closing
1 yr 2.64%
Complete rate and terms can be found at
www.mortgagemoney.ca
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"

613-222-2624 anytime
Off 613-563-5070
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  #497  
Old 2011-04-12, 10:17 AM
battmib battmib is offline
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Default Great Rate

We were recently offered by the bank of a rate of 3.59% on a 5 year closed and cash back...I'm a little in shock!
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  #498  
Old 2011-04-12, 12:34 PM
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mc_ottawa mc_ottawa is offline
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Quote:
Originally Posted by MortgageGuy View Post
For all your variable rate folk out there, Bank of Canada Governor Frank Carneyhas left the bench mark lending rate at 1%(therefore our Bank Prime lending rate will remain at 3%).
http://www.theglobeandmail.com/repor...rticle1981580/
Who's Frank Carney?
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  #499  
Old 2011-04-12, 01:08 PM
R_D_G R_D_G is offline
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I thought his name was Mark Barney.
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  #500  
Old 2011-04-12, 01:51 PM
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Zorro Zorro is offline
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Quote:
Originally Posted by battmib View Post
We were recently offered by the bank of a rate of 3.59% on a 5 year closed and cash back...I'm a little in shock!
when are you closing? I imagine that this rate is on a 90 or 120 day close.

Thanks
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