Go Back   BuildingHomes.ca - Building your community! > Ontario > Ottawa

Ottawa For those in Ottawa, Kanata, Stittsville, Orleans, Nepean. Mattamy, Minto, Bridlewood, Cardel, Claridge, Braebury, Monarch, Barrhaven, Half Moon Bay, Fairwinds, Findlay Creek, Notting Hill, West Pointe, Stonebridge, Edinburgh Common, Uniform at Orchard-Stonebridge-Barrhaven and more!


Reply
 
Thread Tools Display Modes
  #1341  
Old 2019-05-24, 12:31 PM
equestrian_girl equestrian_girl is offline
Junior Member
 
Join Date: Apr 2019
Location: Barrhaven
Posts: 4
Default

I was quoted 2.79% 5 yr fixed closed through CanWise with Equitable Bank. The broker insisted there was nothing out of the norm, that this was a typical lender with typical terms and conditions (I'm trying to read through them now but it might be over my head).

Any advice before I commit?

Terms and conditions link:
https://www.equitablebank.ca/docs/de...rsn=df9dbd2d_2
Reply With Quote
  #1342  
Old 2019-05-30, 09:32 AM
MortgageGuy MortgageGuy is offline
Senior Member
Regular User
 
Join Date: Jul 2008
Location: Ottawa, Ontario
Posts: 1,032
Default Lender Issues

Quote:
Originally Posted by equestrian_girl View Post
I was quoted 2.79% 5 yr fixed closed through CanWise with Equitable Bank. The broker insisted there was nothing out of the norm, that this was a typical lender with typical terms and conditions (I'm trying to read through them now but it might be over my head).

Any advice before I commit? SEE BELOW....

Terms and conditions link:
https://www.equitablebank.ca/docs/de...rsn=df9dbd2d_2
Good Morning Equistrian Girl,
VERY sorry about the delay in being on site...
Equitable is a good lender with no restrictive clauses... BUT they have one MAJOR shortfall, they do not provide bridge financing. I would not recommend them, let the buyer beware. Bridge financing is needed if you sell your home during the term of the mortgage, and purchase another. If the sale date happens a couple weeks AFTER your purchase date(almost no one ever buys and sells their home on the same day), then you run into an expensive problem.
Your broker should have told you this. I don't use Equitable for "A" clients. There are other lenders with a similar rate that have bridge financing, I would use them.
Remember that the 2.79% rate floating around out there generally has a restrictive sales clause with broker lenders(HSBC may still have have something comparable), but always ask.
A more normal rate in my world with a full privileged mortgage is 2.94%.
Hope that helps.
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
Reply With Quote
  #1343  
Old 2019-05-30, 09:46 AM
MortgageGuy MortgageGuy is offline
Senior Member
Regular User
 
Join Date: Jul 2008
Location: Ottawa, Ontario
Posts: 1,032
Default Bank of Canada Rate set, rates as of May 30th...

So yesterday, the Bank of Canada announced no change in rates... good news for everyone..
https://www.ctvnews.ca/business/not-...nged-1.4441763
Current rates...
Similar mortgage rates to last weekÖother than a great new 5 yr special rate at 2.79%(it does have one restrictive pre-payment clause) with MCAP Mortgage Corp... I don't usually advertise mortgages with restrictive clauses, but it is out there, so I am letting you know. It simply has a clause that states that if you get a bunch of money(ie. win a lottery or get an inheritance), you CANNOT pay the mortgage down by anymore than the 20% prepayment allowed. PERIOD. No exceptions. If the house is SOLD though, or if you die , the mortgage is allowed to be paid off. Many people are deciding they can live with the clause to get the better rate. MCAP DOES have bridge financing.
Someone mention earlier the name Canwise, this is just a mortgage broker, not your lender. So always ensure you are getting the name of the LENDER who is lending the money, the "broker" name is not important. You want to know the clauses of the LENDER. Someone also mentioned "Think financial", make sure they provide bridge financing, they are a new lender, I don't know if they provide bridge loans. Someone ask. And by the way, the answer, "we do them on exception" is essentially a no, so assume they don't in making your decisions.
So with NO restrictive clauses...
Best 5 yr fixed 2.94% 120 day rate(insured purchase- less than 20% down)
Best 5 yr fixed 3.04% 120 day rate, insurable (insurable purchase- min 20% down)
Best 5 yr closed variable is Prime -1.05% or 2.90% today, insured
Best 5 yr closed variable is Prime -1.00% or 2.95% today, insurable
Best 7 yr fixed 3.49% 120 day rate, insured
Best 10 yr Fixed 3.54% 120 days rate, insured
Have a great day,
Dan 613-222-2624
__________________
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
  #1344  
Old 2019-05-30, 10:02 AM
MortgageGuy MortgageGuy is offline
Senior Member
Regular User
 
Join Date: Jul 2008
Location: Ottawa, Ontario
Posts: 1,032
Default Delayed responses... Constance Bay flooding...

AS A SIDE NOTE, IT IS A BUSY TIME, especially since I have been working from my cottage in Constance Bay, manning the pumps that are holding back the Ottawa River. I have been here since April 24th, first time ever working from "home" and not the office. I now call the Ottawa river, "the Beauty and the Beast". She has caused such devastation here in Constance Bay. I am one of the lucky ones, I did NOT over land flood, but the high water table has caused MANY homes, like mine to have water piling into their basements. With out sump pumps and power to run them my basement would flood. But I have been very fortunate that I have not(knock on wood), and am down to two pumps running 24 hrs a day(that is around 86,000 gallons of water being piped out from my 2(two) pumps in 24 hours. One pump fills a 12 litre bucket in 6 seconds.. I think my math is right. An amazing amount of water. At the peak, I had 4 pumps running 24/7 and one cycling on and off.
The water though is dropping a little every day, and I am hopping to be back in the office by next week and working more efficiently

In general, if I don't respond to a post by next day, PLEASE drop me a quick email to dan@mortgagemoney.ca. I will get that and answer back asap.
Thanks again for your understanding with the delayed response times on this site.
The sun is shining it's a great day!
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
Reply With Quote
  #1345  
Old 2019-05-31, 06:58 AM
equestrian_girl equestrian_girl is offline
Junior Member
 
Join Date: Apr 2019
Location: Barrhaven
Posts: 4
Default

Quote:
Originally Posted by MortgageGuy View Post
Good Morning Equistrian Girl,
VERY sorry about the delay in being on site...
Equitable is a good lender with no restrictive clauses... BUT they have one MAJOR shortfall, they do not provide bridge financing. I would not recommend them, let the buyer beware. Bridge financing is needed if you sell your home during the term of the mortgage, and purchase another. If the sale date happens a couple weeks AFTER your purchase date(almost no one ever buys and sells their home on the same day), then you run into an expensive problem.
Your broker should have told you this. I don't use Equitable for "A" clients. There are other lenders with a similar rate that have bridge financing, I would use them.
Remember that the 2.79% rate floating around out there generally has a restrictive sales clause with broker lenders(HSBC may still have have something comparable), but always ask.
A more normal rate in my world with a full privileged mortgage is 2.94%.
Hope that helps.
Dan
Thanks very much for this. We discussed porting and blending but he definitely did not mention bridge financing. In this sellerís market, bridge financing makes sense a lot of the time, but in truth Iím so risk adverse I donít think Iíd ever buy before I sold so this missing feature might be fine for me personally.

Thanks for the info!
Reply With Quote
  #1346  
Old 2019-05-31, 07:40 AM
MortgageGuy MortgageGuy is offline
Senior Member
Regular User
 
Join Date: Jul 2008
Location: Ottawa, Ontario
Posts: 1,032
Default mis understanding... I think

Just making sure you understand. Bridge financing has nothing to do with this market. Bridge financing is used when you HAVE SOLD your home unconditionally and simply the CLOSING date of your purchase is a week or two before that date. This circumstance happens ALL the time. It allows you to go into your new home and repaint, do repairs etc, while you you are still in your residence, before you move all your stuff in. It is nothing to be risk adverse about, and EVERYONE should have this option available to them. It is a mistake to have a lender that does NOT have bridge financing.
Everyone has to remember when we are discussing rates, the difference between 2.94% and 2.79% is .15 of 1%, not in my mind worth giving up important clauses in a mortgage, ESPECIALLY the ability to have bridge financing in the future.
Anyhow I do understand we are all adults and make choices that we are comfortable with. That's the way it should be.
Dan
The question to ask yourself is when is the last time you have bought and sold a home on the same day, it doesn't happen often, and is very difficult to arrange with movers etc as you often only get keys to the new house, late in the day. This is what bridge financing allows you to avoid.

Quote:
Originally Posted by equestrian_girl View Post
Thanks very much for this. We discussed porting and blending but he definitely did not mention bridge financing. In this sellerís market, bridge financing makes sense a lot of the time, but in truth Iím so risk adverse I donít think Iíd ever buy before I sold so this missing feature might be fine for me personally.

Thanks for the info!
__________________
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; 2019-05-31 at 07:44 AM. Reason: addition
Reply With Quote
  #1347  
Old 2019-05-31, 08:07 AM
equestrian_girl equestrian_girl is offline
Junior Member
 
Join Date: Apr 2019
Location: Barrhaven
Posts: 4
Default

Quote:
Originally Posted by MortgageGuy View Post
Just making sure you understand. Bridge financing has nothing to do with this market. Bridge financing is used when you HAVE SOLD your home unconditionally and simply the CLOSING date of your purchase is a week or two before that date. This circumstance happens ALL the time. It allows you to go into your new home and repaint, do repairs etc, while you you are still in your residence, before you move all your stuff in. It is nothing to be risk adverse about, and EVERYONE should have this option available to them. It is a mistake to have a lender that does NOT have bridge financing.
Everyone has to remember when we are discussing rates, the difference between 2.94% and 2.79% is .15 of 1%, not in my mind worth giving up important clauses in a mortgage, ESPECIALLY the ability to have bridge financing in the future.
Anyhow I do understand we are all adults and make choices that we are comfortable with. That's the way it should be.
Dan
The question to ask yourself is when is the last time you have bought and sold a home on the same day, it doesn't happen often, and is very difficult to arrange with movers etc as you often only get keys to the new house, late in the day. This is what bridge financing allows you to avoid.
That sounds more like a luxury that can only be afforded by those who can carry two mortgages at once.
Reply With Quote
  #1348  
Old 2019-05-31, 09:30 AM
suezuki650 suezuki650 is offline
Senior Member
Regular User
 
Join Date: Oct 2015
Location: Half Moon Bay
Posts: 428
Default

Quote:
Originally Posted by equestrian_girl View Post
That sounds more like a luxury that can only be afforded by those who can carry two mortgages at once.
Actually no. I cannot afford two houses at once, that's for sure, but they essentially use the equity in one for the down on the other and offer to carry both for a short period as long as the old home is sold unconditionally and the dates aren't too far apart.

It meant I could get appliances and some curtains installed before my move and I didn't have to wait until after 4pm to move in.
__________________
Half Moon Bay South
Reply With Quote
  #1349  
Old 2019-05-31, 01:27 PM
equestrian_girl equestrian_girl is offline
Junior Member
 
Join Date: Apr 2019
Location: Barrhaven
Posts: 4
Default

Quote:
Originally Posted by suezuki650 View Post
Actually no. I cannot afford two houses at once, that's for sure, but they essentially use the equity in one for the down on the other and offer to carry both for a short period as long as the old home is sold unconditionally and the dates aren't too far apart.

It meant I could get appliances and some curtains installed before my move and I didn't have to wait until after 4pm to move in.
Were you not responsible for the cost of both mortgage payments during this overlap period?

As far as I know, closing dates are negotiable... bridge financing is a nice option but an expensive one that's not necessary and carries a degree of risk (you can still get out of an unconditional purchase/sale that hasn't closed).
Reply With Quote
  #1350  
Old 2019-06-01, 02:27 PM
suezuki650 suezuki650 is offline
Senior Member
Regular User
 
Join Date: Oct 2015
Location: Half Moon Bay
Posts: 428
Default

Quote:
Originally Posted by equestrian_girl View Post
Were you not responsible for the cost of both mortgage payments during this overlap period?

As far as I know, closing dates are negotiable... bridge financing is a nice option but an expensive one that's not necessary and carries a degree of risk (you can still get out of an unconditional purchase/sale that hasn't closed).
One of the mortgages is an interest only payment that gets dealt with the final close. There is the same degree of risk if both are closing the same day, unless you are telling your lawyer not to close on the buy until you get the cash on the sell. That could really delay your move and I'm not even sure they'd do it. There's a time limit on getting the deal done.

Closing dates are negotiable, but do you want to walk away from a really good offer just because the days are off by a bit? I got less on my sale because it was important to get close to the same dates. I could have got more if I didn't mind being homeless for a month (hard to do with pets and family).

As was discussed, it's a nice option to have if you're thinking you might move during the life of your mortgage. If you don't care about it, do what you want.
__________________
Half Moon Bay South
Reply With Quote
Reply

Bookmarks

Tags
mortgage, mortgage broker

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
When to get the Mortgage with a new home three star Financing, Mortgages and Insurance 10 2007-10-26 10:48 PM
Mortgage rates? KellyM Financing, Mortgages and Insurance 13 2007-06-25 02:23 PM
Mortgage Insurance coton Chit Chat 1 2007-04-01 04:51 PM
RBC Mortgage mavoledo Stouffville - Mattamy On Main and WheleríS Mill 10 2006-08-29 12:06 PM



All times are GMT -4. The time now is 05:19 PM.



Copyright © PHAND Corporation
This document may not be used elsewhere without the expressed written consent of PHAND Corporation.
*** There is no association between this website and any builder. ***

Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2019, vBulletin Solutions, Inc.