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Thread: Mortgage Renewal - Scotiabank
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Wed, Jan 21st, 2015, 02:16 PM #1
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Wed, Jan 21st, 2015, 02:37 PM #2
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Try to negotiate the rates & ask them to price match with other lower priced competitors, if you can. Also lower your amortization period if you can as you must have already paid your MTG for 4-5 yrs now. Most people just keep the standard 25 yr amotization period even at renewal, greatly increasing the interest you pay.
80-90 % of people automatically renew their mortgage and also insurance at the existing rate & term/amortization, the banks want you to do that , as it benefits them.
http://www.canadianliving.com/life/m...mortgage_2.php
I don't know about online. But if you do it over the phone & you are just renewing with them , its a fairly simple process.
You just call their call centre , give your MTG account number & identify yourself. They will ask your name , address etc and a few security questions . Then you just tell them the type of MTG you want , amortization term , length of the term etc.
They don't ask for a job letter or finances or income nothing , & they just mail you the new details after a few days..and the new MTG starts going out of your bank account as usual.
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Wed, Jan 21st, 2015, 05:36 PM #3
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following but ask them to waive your banking fees for your main accounts and they will saving you more $ - best of luck
2019 is the year that we continue to save before we buy!!!
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Wed, Jan 21st, 2015, 05:43 PM #4
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thanks - my financial situation has changed a lot compared to when I first bought the house (SAHM now and my credit isn't too good anymore either) - which is why I'm completely stressing out over this renewal
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Wed, Jan 21st, 2015, 06:20 PM #5
We have Scotia, make an appointment to see your personal banker. From my recollection it took about 30 mins but we were just chatting a lot of the time. If you are currently on a fixed rate you can renew up to 6 month before the rate is up - so if you have a 5 year fixed rate you can renew in 4.5 years without penalty (we did this last time because the rate had dropped so much). Your fixed term then starts on the day you sign the new papers - you can then renew that one 6 months before the term is up. We will be renewing early again as the rate has dropped again in the last 4 years!
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Wed, Jan 21st, 2015, 07:46 PM #6
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Then just renew it ..as is . Don't change anything. If you do that , they don't ask for anything . They don't ask for your job , your finances etc.
They just assume that your situation is the same as before, and as long as you are paying your monthly payment they don't care.
My brother didn't have a job , when his MTG came for renewal with Scotia..but he had savings to pay the monthly MTG.
Initila MTG , was 5 yr fixed closed MTG on a 25 yr amortzation , so when the MTG came for renewal , he just continued on the same 5 yr fixed closed MTG. They didn't ask for anything , his job or bank balance anything like that. Things just continued as before.
If you don't change much at renewal , then you don't have to requalify or refinance, things go on as before. Your bank has no clue , what your current financial situation is, and its business as usual..all they care is that the monthly MTG payments are being made & going out of your account without any issues.
Heck , there are people out there who get mortgages with fake job letters & fake pay stubs. There are people & companies out there who actually charge you and give you these fake letters , so you can secure the MTG..
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Wed, Jan 21st, 2015, 07:57 PM #7
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This is from an article in Globe & Mail : If you have CMHC insurance you even have less to worry about.
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Renewal risk, where your lender declines to automatically renew your mortgage when the term expires, is virtually non-existent today. Customers who pay on time are not bothered with questions about whether their job situation or income has changed.
There’s little chance a lender would hassle you on renewal if your mortgage is insured by Canada Mortgage and Housing Corp. or private sector competitors.
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Wed, Jan 21st, 2015, 08:44 PM #8
Angel,
You can still negotiate with Scotia despite your circumstances. . .you just have to do it . . delicately. PM me your issues and I will try and give you some tips.
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Thu, Jan 22nd, 2015, 08:42 AM #9
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Right now just take the MTG as is , at renewal , if you don't wan the stress.
Then as your situation improves , make major lump sum pre payments towards the MTG , I think Scotia allows 10 % of the principal without penalties.
So even if you don't get great rates at renewal , you can control the situation by increasing the frequency of your payments , increasing your monthly payment , and making lump sum pre payments..so you take back control indirectly. Ofcourse depending upon how much you can afford & without any penalties.
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Thu, Jan 22nd, 2015, 09:53 PM #10
You can pay additional without penalties in two different ways:
1. You can increase your regular monthly payment by up to 15% without penalty (you can change it back at any time you want too - as long as you don't drop below the regular monthly payment amount).
2. Also you can make one-off payments over the year (e.g. if you get a rebate on your taxes) as long as this doesn't amount to more than 15%
Note the 15% in 1 and 2 are different 15 percents so in total you could pay upto 30% extra. This is per year - not sure if this is calendar year or from when you took out your mortgage. They did tell us but I can't rememberBuilt Bars 15% off sitewide, free shipping when you spend $25. User the code LOUISE2020 to get another 10%
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Fri, Jan 23rd, 2015, 06:34 AM #11
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Fri, Jan 23rd, 2015, 06:39 AM #12
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Fri, Jan 23rd, 2015, 04:39 PM #13
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so i got my renewal offer in the mail - 5yr fixed is 4.79% - should I just take that or call them up at the end of Jan/beg Feb to see if I can get a better rate?
If I do ask for a better rate - would I be opening myself up to a credit check/employment verification?
If instead of accepting the 5yr fixed - and I sign for the 3yr or 2yr... am i still opening myself up for the above?
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Fri, Jan 23rd, 2015, 05:02 PM #14
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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
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Fri, Jan 23rd, 2015, 09:29 PM #15
Yes, we do this too. The reason it makes a difference is because you are effectively making an extra monthly mortgage payment in a year (26 bi-weekly payments or 52 weekly payments). If your budget is tight I would suggest not doing this because there are months where if you are paying bi-weekly you will have to pay 3 times and if you are paying weekly you will have 5 weekly mortgage payments. If you have money left over you can always just make a payment off the mortgage.
Built Bars 15% off sitewide, free shipping when you spend $25. User the code LOUISE2020 to get another 10%
PC Insiders please use my code LR1507 you get $25 and I get $10 in points
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