要 renew mortgage mortgage, closed, prime

閒人一個

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.

librazhy

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

快樂牛郎

theoretically these should be arbitrage free right

Quest

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.

Lik

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

mimilim

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.

閒人一個

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??

chobit

Mortgage rate here in US is alot higher =(

Lik

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

mimilim

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)