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  #511  
Old 2011-04-15, 12:11 PM
MortgageGuy MortgageGuy is offline
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Default Long term rates

In general I would say that any long term rate hold(up to two years I am seeing) that is at a similiar rate as one being held for 4 months is a great deal. Add on cash back at that same rate and you should be happy as a pea in a pod. My only comment is that any cash back should be takin only in the very end. If you take it early or as a credit at the design center you have effectivley tied your self to the bank, and won't be able to change banks prior to closing(unless of course you give them their money back) if there are better rates available when you get to the 120 day mark. That is why T.D. loves Brick buck promotions and design center credits, it ties you down to them.
Dan

Quote:
Originally Posted by bigfootryan View Post
I've been offered the same type of thing through TD. 4.34% 5 year fixed (closed) with 1% cash back and we're planning on purchasing at the end of May and we'll be closing in August 2012. We filled out the paperwork with the TD rep, and the rate is guaranteed for up to 2 years.

Seemed legit to me... should I be concerned?
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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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  #512  
Old 2011-04-28, 05:43 PM
MortgageGuy MortgageGuy is offline
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Default Mortgage Rate Update April 28

Just a heads up that most banks are INCREASING variable rate mortgages only giving Prime less .65%, likely all will follow shortly.
Summary of rates…
10 yr 4.89%
7 yr 4.69%
5 yr 3.94% 90 day closing 4.14% 120 day closing
4 yr 3.69%
3 yr 3.59%
2 yr 3.40% 90 day closing
1 yr 2.64%
Variable 5 year term, Prime less .80% or 2.20% today
FREE DOWN PAYMENT mortgage 5.69% (5% down payment given as cash back)
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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  #513  
Old 2011-05-02, 02:30 PM
33Kennedy 33Kennedy is offline
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Hi Dan,

Just wanted your opinion in regards to the Manulife One mortgage...We had initially decide to go with it, but now are not sure...and we are having a hard time finding someone who has experiece with both, the Manulife One and a conventional mortgage...Are you familiar with the Manulife product?? Here's what we were thinking, the variable rate with the broker is at 2.25, and with Manulife it's at 3.50. What I am not understanding is that with the conventional mortgage our payment seems to be higher per month than with the Manulife One..for example if the payment is 1800 with the broker, and only 1600 with Manulife then the we could pay the extra 200 every month directly on the principle, or this is what we are being told by the Manulife rep?? I'm not sure if I am confused or if this in infact how the Manulife One would work, is there a similar conventional mortgage set up like this, it seems that the way the Manulife One is structured, is different than the conventional mortgage ?? We are a first time buyers and a month away from closing on our new builder home... and trying to wrap our head around all this....Thanks for any info..
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  #514  
Old 2011-05-02, 04:14 PM
MortgageGuy MortgageGuy is offline
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Default Manulife One mortgage

The Manulife one Mortgage is an all in one type product, similiar to the Scotia Step mortgage(and many other banks multi part mortgages) in the sense that it is registered as a collateral mtg and CANNOT be transferred to another institution on a no fee transfer when it is up for renewal. For that reason I do not recommend them because it ties you to them. The mortgages can be registered for up to 100% of the properties value thus if you run into trouble financially in the future you will never be able to put a 2nd mortgage on your home if needed.

Regarding the specifics of your question regarding payments, I would prefer you give me a quick call to discuss and I can ask you the info I need to answer you in detail. Everyone can always reach me at my cell 613-222-2624 or my office 613-563-5070.

If anyone hasn't heard, variable rate mortgage rates are on the rise, meaning most banks are DECREASING their discounting to Prime less -65%....
see article link below
http://www.canadianmortgagetrends.co...-pressure.html
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

Last edited by MortgageGuy; 2011-05-02 at 10:30 PM. Reason: correction
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  #515  
Old 2011-05-03, 07:43 AM
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Zorro Zorro is offline
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Default Hbp

Hi Dan,

I wanted to know if this was feasible. I read on-line that a few poeple did this but the articles are a couple years old and therefore am not sure if it's still possible.

My GF and myself want to take advantage of the HBP, but don't have any RRSPs. Our down-payment has as well been consummed as a deposit to the builder. Our plan was to make an RRSP loan from the bank, withdraw it under the HBP, repay the loan and receive the large tax refund (to use for closing costs).

I have proposed this to my bank and although they agree, they say that i must repay the loan BEFORE the withdrawal. Is the bank yanking my chain or is that a new rule?

(PS: i know that i will have to repay into my RRSP either by payment or by adding into taxable income)

Thanks!
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  #516  
Old 2011-05-03, 02:51 PM
mike407 mike407 is offline
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I was told the same thing by my bank (BMO). Apparently, any remaining RRSP loan balance must first be paid off before funds can be withdrawn as part of the first-time home buyer's plan. If you choose to go ahead with it, any withdrawal you make will first be used to pay off the balance remaining on the loan.

I am in a similar position where most of my upfront savings will be spent on the builder's deposit requirement so I am counting on RRSPs to cover the rest of the downpayment + closing costs. I know it's disappointing but the banks secure these loans to the investments so once the investment is gone, the loan has to go with it.

It's a great idea to maximize your tax return and get some immediate cash. However, my advice would be pay back the RRSP loan as quickly as possible.

If anyone else has any ideas to get around this dilemma or can offer any different experiences with their bank, I would love to hear...
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  #517  
Old 2011-05-03, 02:59 PM
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Zorro Zorro is offline
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Quote:
Originally Posted by mike407 View Post
I was told the same thing by my bank (BMO). Apparently, any remaining RRSP loan balance must first be paid off before funds can be withdrawn as part of the first-time home buyer's plan. If you choose to go ahead with it, any withdrawal you make will first be used to pay off the balance remaining on the loan.

I am in a similar position where most of my upfront savings will be spent on the builder's deposit requirement so I am counting on RRSPs to cover the rest of the downpayment + closing costs. I know it's disappointing but the banks secure these loans to the investments so once the investment is gone, the loan has to go with it.

It's a great idea to maximize your tax return and get some immediate cash. However, my advice would be pay back the RRSP loan as quickly as possible.

If anyone else has any ideas to get around this dilemma or can offer any different experiences with their bank, I would love to hear...
Thank you for input Mike. My bank is BMO as well, but my whole point of doing this, is just for the tax refund. So the HBP withdrawal would serve to repay the RRSP loan.
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  #518  
Old 2011-05-03, 03:40 PM
arigold arigold is offline
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Quote:
Originally Posted by MortgageGuy View Post
If anyone hasn't heard, variable rate mortgage rates are on the rise, meaning most banks are DECREASING their discounting to Prime less -65%....
see article link below
http://www.canadianmortgagetrends.co...-pressure.html
Dan
"Banks have been making almost nothing on variables for a while now..."

So the banks aren't making enough money on variable rate mortgages...

This article alone tells me that taking a variable rate is a much better choice than a fixed... why else would banks call people with a variable rate and try to get them to switch to a fixed rate at... "Spreads are so poor that at least one lender is reportedly calling existing variable-rate clients and offering fixed rates well under the market as an incentive to lock in".

Again I know there are many factors that come into play when deciding between fixed vs variable but if you just look at the numbers how can you say that it is better to go fixed vs variable... pay 2.3% now and it might go up to 4% in a couple years or just be safe and pay 4% for the entire term... I know what I would choose...
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  #519  
Old 2011-05-03, 04:50 PM
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xdarrylx xdarrylx is online now
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Quote:
Originally Posted by arigold View Post
"Banks have been making almost nothing on variables for a while now..."

So the banks aren't making enough money on variable rate mortgages...

This article alone tells me that taking a variable rate is a much better choice than a fixed... why else would banks call people with a variable rate and try to get them to switch to a fixed rate at... "Spreads are so poor that at least one lender is reportedly calling existing variable-rate clients and offering fixed rates well under the market as an incentive to lock in".

Again I know there are many factors that come into play when deciding between fixed vs variable but if you just look at the numbers how can you say that it is better to go fixed vs variable... pay 2.3% now and it might go up to 4% in a couple years or just be safe and pay 4% for the entire term... I know what I would choose...
Hey, it's the super-advocate-for-varible-rates guy! Welcome back...
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  #520  
Old 2011-05-03, 10:41 PM
arigold arigold is offline
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Quote:
Originally Posted by xdarrylx View Post
Hey, it's the super-advocate-for-varible-rates guy! Welcome back...
Thanks...I just prefer to pay as little as possible to the banks and was trying to show facts so others can do the same but I didn't know we weren't allowed to give our opinion in this thread...

I guess it's just a marketing tool so the "Mortgage Guy" can make his $$$ and I have no problem with that...

I'll just let these guys keep asking how to borrow more than they can afford so the "Mortgage Guy" can make it happen for them...

Good Luck
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