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標題: 要 renew mortgage [打印本頁]

作者: 閒人一個 時間: 2011-10-19 16:27 標題: 要 renew mortgage

又到renew mortgage 時侯

銀行比

fix
1yr    3.05%
3yrs 3.3%
5yrs 3.49%

variable
3yrs open prime+1,    now prime 2.35%
5yrs closed prime-0.05%,    now prime 2.35%

大家有mug意見.

作者: librazhy 時間: 2011-10-19 16:40

5 yr closed vari's 2.3% is physically attractive, hsbc has it.

but I think depending on the loan amount, cibc'c 2% cash back gives you a bit more discount. I'm not sure if they still offer 5 closed yr 3% fix, anyways, need to work out the term mathematics to find out the exact cost for each loan

作者: 快樂牛郎 時間: 2011-10-19 17:41

theoretically these should be arbitrage free right

作者: Quest 時間: 2011-10-19 18:57

It's all about how you determine your risk factor.

If you are a risk taker, go with variable.

If you are risk-adverse (like me), go with fixed.

Some credit unions now offer 1/2 and 1/2, meaning that you can do 1/2 of your mortgage variable (to take advantage of the low interest rate); and the other 1/2 fixed (up to 5 yr fixed). That would even it out to approx 2.8% avg.

If you study these package offering closely, you'll also notice that they give you one "get out of jail free" option during the mortgage period: that is for you to bail out (change the other 1/2 from fixed to variable if the interest rate increase) w/o penality. Beware of some of the banks that does not give you the bail out w/o penality options.

Good luck!

Q.

BTW: I'm on a 5yr fixed right now, and will consider 1/2 and 1/2 when our current mortgage is up for renewal.

作者: Lik 時間: 2011-10-19 20:09

The US has already re-iterated that they are not going to raise the interest rate until at least next year. With the way things (economy, job situation, US election, etc.) next year, I don't expect the interest rate to climb that much at all in the medium term (next 2 - 3 years). Even if it were to climb some time in the 3rd year, I think the 5 year closed option is still going to be your best choice. You get to enjoy the lowest rate in the early part of your term, so that'll already give you the best savings on interest. Even when the interest rate invariably climbs, it is still going to need a lot of increases before it reaches the rate offered by the fixed terms. Even if the rate were to increase, a lot of times you can re-negotiate / renew your mortgage term early without much of a penalty (if at all) to lock your rate in.

-Lik

作者: mimilim 時間: 2011-10-28 14:05

First of all
Prime is 3%
so prime -.05 means you are paying 2.95%..
not 2.35%

The rates that you are getting from your bank are bad.
You can get a fixed 4 year for 2.99%, or 5 year for 3.19%
5 year variable right now is about P-0.2, so 2.8%.

Talk to a broker.

作者: 閒人一個 時間: 2011-10-28 14:51

本帖最後由閒人一個於 2011-10-28 14:52 編輯

回復 6# mimilim

ths for all reply

for HSBC, premier account, prime is 2.35%, so -0.05 = 2.3%

Do you think "var 2.3% 5yrs closed" the best choice? or should i go for fix rate?

will interest rate up to 5% within 5yrs??

作者: chobit 時間: 2011-10-29 05:01

Mortgage rate here in US is alot higher =(

作者: Lik 時間: 2011-10-29 09:25

What are you talking about, man? My friend in Seattle bought a place down there. Not only was the foreclosure unit super cheap, he also got himself a killer rate (definitely lower than 3%) that he has locked in for the entire duration of the mortgage or 20, 25 or 30 years!

-Lik

作者: mimilim 時間: 2011-11-16 12:46

What are you talking about, man? My friend in Seattle bought a place down there. Not only was the fo ...
Lik 發表於 2011-10-29 09:25

Lik:

I have never seen or heard a rate lower than 3% in the US, let alone for 25-30 year amortization.

I call BS on your friend unless you can provide more details. (which bank)

作者: 匿名 時間: 2011-11-16 13:47

@@
畦~ 原來 mortgage rates 依然係這麼平宜啊﹖

我係你呢就一定做 5 年 fixed closed。。。但係當然還要睇埋﹐你有無打算5年內換樓﹐有無打算比 10% lump sum 等等。。。若有的話﹐要同銀行查詢要不要額外付費等等﹐最好問問你個 AM 叫她提供意見﹑。。。

但單看字面﹐唔使問都係 5-yr fixed closed。。。最好有埋 10 年 fixed closed 添﹐呢種利率呢種市場﹐十年內你實有著數呀。。。

作者: Look4chrisng 時間: 2011-11-16 14:50

mimilim:

Do you work in the mortgage biz ? if yes, can you entertain a few question?

作者: mimilim 時間: 2011-11-16 15:56

I know of the industry but I am not a broker. You can ask questions and I will try to answer them.

If you need a referral I can PM the broker I dealt with.

作者: mimilim 時間: 2011-11-16 15:58

@@
畦~ 原來 mortgage rates 依然係這麼平宜啊﹖

我係你呢就一定做 5 年 fixed closed。。。但係當然還要 ...
匿名發表於 2011-11-16 13:47

fixed rate is at a historic low

作者: Look4chrisng 時間: 2011-11-16 16:28

When I break a fixed closed mortgage, the usually penalty is 3 month interest or IRD.

If current interest rate is actually higher, there is no such thing as IRD. So banks can only charge 3 months interest as penalty?

作者: Look4chrisng 時間: 2011-11-16 16:36

回復 14# mimilim

also, thanks for future contact. Next time, I for sure talk to a broker before I go to the bank.

作者: librazhy 時間: 2011-11-16 17:01

有無打算比 10% lump sum 等等。。。若有的話﹐要同銀行查詢要不要額外付費等等
匿名發表於 2011-11-16 13:47

can you explain more details about this "有無打算比 10% lump sum"?

thanks

作者: mimilim 時間: 2011-11-16 17:29

本帖最後由 mimilim 於 2011-11-16 17:32 編輯

When I break a fixed closed mortgage, the usually penalty is 3 month interest or IRD.

If current in ...
Look4chrisng 發表於 2011-11-16 16:28

Yea they take higher of. I think IRD is calcuated on the POST RATE at that time, not the actual mortgage rate you got for the mortgage.
By the way, with the variable discount rate so low right now, fix is looking very good if you know for sure you wont move or sell during the mortgage term.

作者: mimilim 時間: 2011-11-16 17:31

can you explain more details about this "有無打算比 10% lump sum"?

thanks
librazhy 發表於 2011-11-16 17:01

When you have a mortgage, many banks will allow you to do a prepayment annualy without penalty. Can range from 10-25% of the initial mortgage amount.

作者: Look4chrisng 時間: 2011-11-16 17:51

回復 18# mimilim

thanks.

Post rate of the current rate you must mean?

作者: mimilim 時間: 2011-11-16 18:00

回復 20# Look4chrisng

Post rate of when you got the mortgage and when you terminate. The rate now is 5.29 (AKA Qualifying Rate). So even say if you get a mortgage for 3.29 your post rate is still 5.29

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