I've only let my mortgage go to full term only once. Breaking and blending is one way to go.. Scotia had me on a 50/50 ratio and it was interesting to see how the variable would change when the BOC would increase rates.. overall the variable paid more principle off.. this was in the early to mid 2000s
Just about to close on our first house this October, and my broker told me I could break my 5 year fixed 4.29% rate when the interest rate decreases next year. Their penalty for breaking the fixed rate is 3months interest or IRD whichever is higher (not calculated using IPD). Do you think this is a good deal?
My renewal is coming in two months, can I take variable at renewal date and convert it into fixed in next 8-10 months? Can I move from variable to fixed in less than one year?
Yes, you can convert out of a variable closed at any time to a fixed rate without paying a penalty the difference is some lenders will offer different terms versus others. Please confirm specifics with your broker/lender.
On November 21, 2023, the federal government announced a new Canadian Mortgage Charter. It said that homeowners with insured mortgages (less then 20% down) aren’t stress tested when they renew their mortgage with a different lender. So you’re not stress tested, but you do still have to qualify (without the stress test) The best way to think of the charter is as a list of "rules and expectations" banks are expected to follow. However, with an uninsured mortgage, you would have to requalify and be stress tested when changing lenders. Hope this helps.
@@TomStorey correction right 3 years meant to say I was going to do the same but then thought nah. I am in logistics and i will go with my stats better then the feds stats and saw this coming.
Good information. I like when a learned man talks with clarity . Here we have 2 of them ! Thanks
I've only let my mortgage go to full term only once. Breaking and blending is one way to go.. Scotia had me on a 50/50 ratio and it was interesting to see how the variable would change when the BOC would increase rates.. overall the variable paid more principle off.. this was in the early to mid 2000s
Great show and Jessie seems to be a great resource
Excellent topic
Fed cut 0.50 today, hopefully Bank of Canada will follow on OCT
Has to .. to 0 in 12 months or so
Great info! Keep up the good work!!
Our bank only does 5 yr variable closed. So now its time to look at other options.
Very informative! Thank you for the content!
Just about to close on our first house this October, and my broker told me I could break my 5 year fixed 4.29% rate when the interest rate decreases next year. Their penalty for breaking the fixed rate is 3months interest or IRD whichever is higher (not calculated using IPD). Do you think this is a good deal?
My renewal is coming in two months, can I take variable at renewal date and convert it into fixed in next 8-10 months? Can I move from variable to fixed in less than one year?
Yes, you can convert out of a variable closed at any time to a fixed rate without paying a penalty the difference is some lenders will offer different terms versus others. Please confirm specifics with your broker/lender.
Thanks Nice insight
Do you need to re qualify if you switch lenders for a better deal?
On November 21, 2023, the federal government announced a new Canadian Mortgage Charter. It said that homeowners with insured mortgages (less then 20% down) aren’t stress tested when they renew their mortgage with a different lender. So you’re not stress tested, but you do still have to qualify (without the stress test)
The best way to think of the charter is as a list of "rules and expectations" banks are expected to follow.
However, with an uninsured mortgage, you would have to requalify and be stress tested when changing lenders. Hope this helps.
Tom did you go fixed or variable
Have one of each.
Fixed or variable, the house (bank) always wins,,,😂
Carney has appeared lol
Not true.
Wait
This is why you should never have listened to Steve your sidekick and lock in a t 5 years.
Anyway usually i get his thinking but that he was way off
I went 3 year fixed. Happy with that decision for my primary residence.
@@TomStorey correction right 3 years meant to say
I was going to do the same but then thought nah.
I am in logistics and i will go with my stats better then the feds stats and saw this coming.
@@Relaxlifeisshort2 If I did it again now, I would probably go variable. But not regretting my decision.
@@TomStorey still ok not a bad choice.
I am at 6.7 % at the moment. With two years to complete the term. What are my options