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Thread: Mortgage Renewal - Scotiabank

  1. #16
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    Quote Originally Posted by tjthemanto View Post
    That's on a very high side. Their own fixed rate is 3.19 % although its a special offer :

    The least thing they can do is match that without any checks/verfication ..but not sure if they will do any checks or not, if you go for that.

    Or see if you can go for a 5 year variable rate ..instead of fixed , keeping everything else the same.

    http://www.scotiabank.com/ca/en/0,,216,00.html

    Special Offers
    Holy cow that is way higher than I would be expecting. We got a 5 year fixed rate 4 years 3 months ago and we got 3.78% then (and the interest rate has dropped way lower since then).

    I wonder how they come out with the number. I would be tempted to say that you have it as 3.19% on their website and is there any way they can match for existing customers.
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  2. #17
    Smart Canuck angel_2011's Avatar
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    that's what i'm thinking of doing but then again.. don't want to add any unnecessary attention to myself

  3. #18
    Luv Saving People Money MortgageQueen's Avatar
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    Angel,

    Is your situation that extreme? Questions I would ask you as a broker are: How much equity do you have in the property? Have you ever missed a payment or been more than a week late? Are you in collection with any Scotia products (ie. visa)? Is your employment situation secure?
    I have known people to have late payments and even collections, when Scotia has renewed mortgage.
    At the moment, you should at the least get a 5 year for 2.99%.
    You could ask (very innocently) if they offer 2.89% because your heard from a friend that brokers are offering that.

    As for credit checks, they are generally automatic, but bank is not interested in calling the loan generally unless you are a very serious risk and you have less than 20% equity in property.
    Another option is variable or a 1 year fixed term (also at 2.99) It all depends on what your circumstances are?
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  4. #19
    Smart Canuck angel_2011's Avatar
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    not that extreme (IMO) but I pm'd u

  5. #20
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    Canadian banks on brink of mortgage price war

    http://www.theglobeandmail.com/repor...ticle22639128/

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  6. #21
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    f you go to ratespy.com you will see that Scotia is offering 2.84% today while brokers can go as low as 2.54%
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  7. #22
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    We can renew on April 1 and I can't wait - the rate has dropped a lot since we locked in last time!
    For every friend who opens a Tangerine Account with a $100 deposit using ORANGE KEY:44683723S1 www.tangerine.ca we both get $50!
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  8. #23
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    I have a Lender offering 2.69% for a 5 year term already.
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    Quote Originally Posted by MortgageQueen View Post
    I have a Lender offering 2.69% for a 5 year term already.
    @MortgageQueen it's been so long since I've dealt with a broker, is there a fee that must be paid and how does the penalty for leaving your current mortgage for early renewal because of better rates, feel free to pm me.

    Also I only have 48,000 remaining so I know that some lenders will not be interested.
    2019 is the year that we continue to save before we buy!!!

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    Quote Originally Posted by jasperandchar View Post
    @MortgageQueen it's been so long since I've dealt with a broker, is there a fee that must be paid and how does the penalty for leaving your current mortgage for early renewal because of better rates, feel free to pm me.

    Also I only have 48,000 remaining so I know that some lenders will not be interested.
    Those are good questions and I will PM you as well, but I thought I'd post the answers for everyone's benefit.

    It does NOT cost you anything to use a broker. Brokers are paid pretty much the same across the board from the Lenders.

    Lenders don't mind this cost at all because it actually saves them a ton of overhead costs of office/banks, employees, etc. and they only have to pay for actual mortgages they know they are funding.

    The advantage of brokers is they have so many Lenders at their disposal to help you find just the right one/best rate and which fits your circumstances best. PLUS, they know about a lot of hidden costs that can save you thousands.

    As for leaving your current mortgage early, that depends on several things. If you are in a fixed rate mortgage, it can be quite expensive to do. If you are in a variable rate mortgage, you will likely just have a 3 month interest penalty charge, so for example. . .
    If your mortgage is $50k (as you mentioned but rounded out) and your current VARIABLE rate was 3%, you'd only be looking at around $400 penalty
    If you're quite close to your term ending with a FIXED rate mortgage, it may not be that bad either, only because the balance is low. You can go to your Bank's website and check out their prepayment penalty calculator. Every bank is a little different, so that's the best way to find out your specific penalty.

    Usually the only reason for paying out an existing mortgage with a penalty is there is a big enough difference in rates to still make it worthwhile to do so. It also may take some financial pressure off in that one's actual "monthly" payment could become significantly less. . . so helpful if one's income has been reduced in any way.

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    I'm fixed rate with renewal in October 2016 at 3.89% so the penalty may be too high?
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    2019 is the year that we continue to save before we buy!!!

  12. #27
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    I would visit CIBC and RBC with whatever their quote is...CIBC is offering a pretty good deal to go with them...and then I decided to go to RBC with their 50 dollar gift card offer and see if I could do any better with RBC....for shopping around I received 400 dollars cash and 50 dollar gift certificate from the two banks. I have not made up my mind yet. I am leaning towards CIBC but it pays to shop around.
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  13. #28
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    Quote Originally Posted by jasperandchar View Post
    I'm fixed rate with renewal in October 2016 at 3.89% so the penalty may be too high?
    If you go to your banks web site and fill in the figures on their prepayment calculator, it will give you the penalty amount.
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  14. #29
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    Quote Originally Posted by mandolinatou View Post
    I would visit CIBC and RBC with whatever their quote is...CIBC is offering a pretty good deal to go with them...and then I decided to go to RBC with their 50 dollar gift card offer and see if I could do any better with RBC....for shopping around I received 400 dollars cash and 50 dollar gift certificate from the two banks. I have not made up my mind yet. I am leaning towards CIBC but it pays to shop around.
    I hope for your sake you never have to break your mortgage.

  15. #30
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    Quote Originally Posted by jasperandchar View Post
    I'm fixed rate with renewal in October 2016 at 3.89% so the penalty may be too high?
    Its either going to be 3 months interest penalty or IRD ( interest rate differential ) penalty for the remainder of the term..whichever is higher.

    The banks are smart ( crooks ) they won't just use the 3.89 % rate you got , they will see the posted rate at that time ..so if the posted rate at that time was 4.89 % and you got a discount of 1 % to make it 3.89 % ..they will use the rate of 4.89 % to calculate your penalty and not 3.89 % , even though you are paying only 3.89 %.

    Did you get a discounted rate of 3.89 % or was it a straight posted rate of 3.89 % ?

    Its usually better to do a lump sum payment before changing/breaking your MTG to reduce the penalty. Use all the pre payment privileges you can before breaking your MTG.

    In your case its only $ 48,000 left and only about 1.5 yrs left , so I don't think the penalty is going to be much. At the same time it might not be worth the hassle to switch either , paying penalty fees , exit fees , new appraisal fees etc etc. You are probably not going to save much by switching.

    If it was a bigger amount & more time left , it makes sense.
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