Another mortgage thread...questions

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#8635611 - 04/25/16 01:32 PM Another mortgage thread...questions
civic13 civic13 Post Master Registered: 04/18/01 Posts: 2658 Loc: You Know	So I'm currently with Scotia Bank and mortgage is up for renewal end of June. Went to see my broker today and he said that the best variable rate is prime (2.7) - 0.4 from RMG (never heard of this place), which he said is a big company, with a 20/20 option, 17yr 6mnth amortization. Currently Scotia is variable, only an annual 15% with 25yr amortization. We would have to pay a penalty of $600-$700 to FCT(First Canadian Title) to make the switch from Scotia to RMG since the current mortgage is a STEP (Scotia Total Equity Plan) mortgage. We were't told about this when we first signed up through the same broker. The broker said he'd have to talk to his boss and see if they'll absorb the penalty or some of it. The only thing that really matters to me is a good rate. The other options are good but not necessary. I'm not good with financial stuff so some of this is way over my head. Would going to Scotia and see if they'd match it be a waste of time since they already have our business? Any help/advice would be greatly appreciated. edit forgot to mention that the broker has to make some changes to the renewal document but once it's ready, in a couple of days, he'd asks us to come in and sign it. Is this a sales tactic? What would be my options?
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#8635678 - 04/25/16 02:07 PM Re: Another mortgage thread...questions [Re: civic13]
iamfob iamfob Post Master Supreme Registered: 09/06/02 Posts: 24698 Loc: Out There	FCT fee is not a penalty. They are title insurance company to prepare legal signing document for the switch from Scotia to RMG. FCT will register a charge on title of property for RMG. Usually when a mortgage switches from one lender to another lender, the new lender will absorb the cost of appraisal and FCT document fees. Because the new lender wants your business. _________________________ FTMFW!!!
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#8635752 - 04/25/16 02:54 PM Re: Another mortgage thread...questions [Re: iamfob]
civic13 civic13 Post Master Registered: 04/18/01 Posts: 2658 Loc: You Know	Originally Posted By: iamfob FCT fee is not a penalty. They are title insurance company to prepare legal signing document for the switch from Scotia to RMG. FCT will register a charge on title of property for RMG. Usually when a mortgage switches from one lender to another lender, the new lender will absorb the cost of appraisal and FCT document fees. Because the new lender wants your business. So shouldn't RMG be absorbing the costs if they wanted our business not me having to pay it? Cuz it seems that's how the broker explained it to me.
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#8635861 - 04/25/16 04:16 PM Re: Another mortgage thread...questions [Re: civic13]
TheRealCSnapper TheRealCSnapper Post Master Supreme Registered: 12/05/02 Posts: 31956 Loc: Toronto, Canada	I'm with RMG, and they're legit. they're a monoline lender, so you may not necessarily hear their name a lot. i don't remember if i paid, or if my broker absorbed the fees when i switched.
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#8635866 - 04/25/16 04:17 PM Re: Another mortgage thread...questions [Re: civic13]
xza8 xza8 Sr Member Registered: 12/18/09 Posts: 1065	Fees are generally paid by the applicant if going through a broker The broker may absorb the fee, depending how much they want your business At the end of the day, is the rate better than w/o the broker & fees considered?
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#8635970 - 04/25/16 05:31 PM Re: Another mortgage thread...questions [Re: xza8]
4age 4age XD XD XD XD Post Master Sr Registered: 09/11/01 Posts: 3969 Loc: North York, Ontario, Canada	Try another bank branch. That's a horrible rate. You can get sub 1.9% variable these days _________________________ http://dreamingin302ci.blogspot.ca/ XD XD XD XD
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#8635995 - 04/25/16 05:58 PM Re: Another mortgage thread...questions [Re: 4age]
Senor Eduardo_82 Senor Eduardo_82 miataist Post Master Supreme Registered: 01/09/03 Posts: 38036 Loc: Ca�ada	I'm calling BS on that. Show me a rate better than 2% variable without a ton of conditions.
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#8636215 - 04/25/16 09:02 PM Re: Another mortgage thread...questions [Re: Senor Eduardo_82]
civic13 civic13 Post Master Registered: 04/18/01 Posts: 2658 Loc: You Know	OK here's some more info/clarification on my situation.... Our mortgage is a STEP (Scotia Total Equity Plan) mortgage (http://www.scotiabank.com/ca/en/0,,569,00.html) which allows us to borrow up to 80% of the value of our home to do renos or what not. But it is registered as a collateral charge which makes it difficult to switch to another lender without incurring legal fees. That's what the $600-$700 charge is for. I spoke to our broker and he clarified this and also said that the new lender won't absorb the cost because it is not a simple switch and more like a refinancing. The broker also mentioned that FCT will be representing both me and RMG for the switch and that no lawyer is needed yet in the clause of the RMG paper work it states "RMG Mortgages will be utilizing the services of First Canadian Title which will have access to all information relating to your mortgage and application. You are responsible for paying the legal fees and associated costs for preparation and registration of the mortgage, including the fees of First Canadian Title. In addition, you will need to retain your own lawyer to advise you on the mortgage. You have advised us (or will advise us as soon as possible) the FIRM (if applicable) and lawyer, address, phone, fax and e-mail address or the lawyer to be used for this mortgage transaction is...". Would you guys agree with the brokers statement? I also told my broker about a client of my brother-in-law who got prime - 0.5 and he sounded doubtful about it. He mentioned that he would talk to this lender (RMG Mortgage) about getting the 0.5% instead of the offered 0.4% but said his boss might have to "buy the rate down" (pay the lender money ~$1500) to get the 0.5%. His boss will either absorb the $600-$700 or the "buy down the rate" (the latter isn't likely because of the amount). I'm not sure why he has to go with this particular lender and not deal with my brother-in-law's client's institution or any other institution for that matter. I also looked at ratehub.com and 5yr variable is as low as 2.04%, so I'm not sure why he says he can't get better than prime - 0.4%. I looked at this after I spoke to him. Just an fyi.... Current mortgage (Scotia) 5yr term 25yr Amortization Variable (started @ 2.25%. Now @~1.98%) 15%/15% Renewal/refinance (RMG Mortgage) 5yr term 17yr 6mnth Amortization variable @ 2.313% 20%/20%
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#8636376 - 04/26/16 06:49 AM Re: Another mortgage thread...questions [Re: civic13]
LNXGUY LNXGUY Tougher than Logan Roy Post Master Supreme Registered: 08/06/00 Posts: 107860 Loc: Barrie, Ont,	I got prime - 0.75 without much of a hassle on the new house with TD. (Same rate as my old house) Your broker sounds like he's full of shit. _________________________ -Bill The GN would OWN you, your children and your children's children. Left foot, right foot, just keep moving!!! -Jeffrey P. Murphy
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#8636385 - 04/26/16 07:13 AM Re: Another mortgage thread...questions [Re: LNXGUY]
Riskhe Business Riskhe Business Provides a Great Work Environment. Post Master Supreme Registered: 05/17/10 Posts: 45657	When was that, the things change
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#8636387 - 04/26/16 07:21 AM Re: Another mortgage thread...questions [Re: Riskhe Business]
LNXGUY LNXGUY Tougher than Logan Roy Post Master Supreme Registered: 08/06/00 Posts: 107860 Loc: Barrie, Ont,	Originally Posted By: Risky Business When was that, the things change Sept '15. _________________________ -Bill The GN would OWN you, your children and your children's children. Left foot, right foot, just keep moving!!! -Jeffrey P. Murphy
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#8636449 - 04/26/16 08:51 AM Re: Another mortgage thread...questions [Re: LNXGUY]
TheRealCSnapper TheRealCSnapper Post Master Supreme Registered: 12/05/02 Posts: 31956 Loc: Toronto, Canada	Originally Posted By: LNXGUY Originally Posted By: Risky Business When was that, the things change Sept '15. i think that's a life time in the world of mortgage rates.... i got prime - 0.7 in Jan 15. who's the broker you're working with? i think thats' the problem with a lot of mortgages these days, that people don't know what they're getting into (collateral mortgage) because of the rate and rate alone. when i switched mine from first line to RMG, my broker rebated me on some fees.
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#8637259 - 04/26/16 04:47 PM Re: Another mortgage thread...questions [Re: TheRealCSnapper]
iamfob iamfob Post Master Supreme Registered: 09/06/02 Posts: 24698 Loc: Out There	Yes, avoid Collateral mortgage!!! (TD, First National) _________________________ FTMFW!!!
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#8637260 - 04/26/16 04:47 PM Re: Another mortgage thread...questions [Re: iamfob]
iamfob iamfob Post Master Supreme Registered: 09/06/02 Posts: 24698 Loc: Out There	OP if you need a better mortgage broker, holla at me. _________________________ FTMFW!!!
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#8637493 - 04/26/16 08:38 PM Re: Another mortgage thread...questions [Re: iamfob]
SW20_MR2 SW20_MR2 Post Master Sr Registered: 08/27/01 Posts: 5282 Loc: Markham, Ontario, Canada	First National does not do collateral charge mortgages. I know National Bank, Tangerine, and TD do. Not sure about others. _________________________ 1991 MR2 Turbo aka "The Myth"...does it really exist? 2006 Mazda3 Sport aka "Reality"...it really does exist...
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#8637512 - 04/26/16 08:56 PM Re: Another mortgage thread...questions [Re: iamfob]
civic13 civic13 Post Master Registered: 04/18/01 Posts: 2658 Loc: You Know	Originally Posted By: iamfob OP if you need a better mortgage broker, holla at me. Thanks man. Shoot me a PM with the info. Doesn't hurt to have a backup plan $\:\)$ The only reason we went with this broker/company is because my sister used them when she and her husband were looking at brokers and they were satisfied with it. If collateral charge mortgages are such BS why do brokers put clients in them knowingly?
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#8637670 - 04/27/16 06:10 AM Re: Another mortgage thread...questions [Re: civic13]
Choco 'Nuck Choco 'Nuck Proud Member of BLM Post Master Supreme Registered: 07/10/01 Posts: 17568 Loc: Somewhere out there	Commission $\:D$
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#8637683 - 04/27/16 06:51 AM Re: Another mortgage thread...questions [Re: Choco 'Nuck]
SW20_MR2 SW20_MR2 Post Master Sr Registered: 08/27/01 Posts: 5282 Loc: Markham, Ontario, Canada	There are times where using a collateral charge makes sense. For example, if you want a LOC tied to your mortgage or you know you may need to borrow more money in the future, you can get it done all at once. _________________________ 1991 MR2 Turbo aka "The Myth"...does it really exist? 2006 Mazda3 Sport aka "Reality"...it really does exist...
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#8637692 - 04/27/16 07:14 AM Re: Another mortgage thread...questions [Re: SW20_MR2]
LNXGUY LNXGUY Tougher than Logan Roy Post Master Supreme Registered: 08/06/00 Posts: 107860 Loc: Barrie, Ont,	Getting a HELOC at the bank really isn't a big deal either. _________________________ -Bill The GN would OWN you, your children and your children's children. Left foot, right foot, just keep moving!!! -Jeffrey P. Murphy
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#8637797 - 04/27/16 08:46 AM Re: Another mortgage thread...questions [Re: iamfob]
c2k c2k Post Master Supreme Registered: 05/21/00 Posts: 19310 Loc: Wiesloch-Walldorf, Germany	Originally Posted By: iamfob OP if you need a better mortgage broker, holla at me. Are you a mortgage broker? CSi-ON special rate incoming! _________________________ Who cares
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#8637846 - 04/27/16 09:15 AM Re: Another mortgage thread...questions [Re: c2k]
spd-dmn spd-dmn Post Master Registered: 11/24/04 Posts: 2271	In july 2015 you could get prime -.86 but these days if you get -0.6 you are doing well. Altho I have heard of a 2.29 4-year fixed going around. That is a good buy, too.
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#8637909 - 04/27/16 09:52 AM Re: Another mortgage thread...questions [Re: LNXGUY]
SW20_MR2 SW20_MR2 Post Master Sr Registered: 08/27/01 Posts: 5282 Loc: Markham, Ontario, Canada	I agree. If you get a LOC thru a big bank, they will charge you for things like the home appraisal. Hence, getting things done at the same time as a mortgage might make sense for some. I just get a LOC thru PCF. Cheap and easy. Originally Posted By: LNXGUY Getting a HELOC at the bank really isn't a big deal either. _________________________ 1991 MR2 Turbo aka "The Myth"...does it really exist? 2006 Mazda3 Sport aka "Reality"...it really does exist...
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#8638006 - 04/27/16 10:37 AM Re: Another mortgage thread...questions [Re: SW20_MR2]
LNXGUY LNXGUY Tougher than Logan Roy Post Master Supreme Registered: 08/06/00 Posts: 107860 Loc: Barrie, Ont,	Home appraisal and legal fees are such bullshit _________________________ -Bill The GN would OWN you, your children and your children's children. Left foot, right foot, just keep moving!!! -Jeffrey P. Murphy
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#8638526 - 04/27/16 02:06 PM Re: Another mortgage thread...questions [Re: c2k]
iamfob iamfob Post Master Supreme Registered: 09/06/02 Posts: 24698 Loc: Out There	Originally Posted By: c2k Originally Posted By: iamfob OP if you need a better mortgage broker, holla at me. Are you a mortgage broker? CSi-ON special rate incoming! No I am not a mortgage broker but I am connected in that space. I sent OP a PM with my contact in case he needs a second opinion. I am just shocked the broker is making OP paying for the FCT fees on a mortgage switch _________________________ FTMFW!!!
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#8641955 - 04/29/16 05:37 PM Re: Another mortgage thread...questions [Re: iamfob]
civic13 civic13 Post Master Registered: 04/18/01 Posts: 2658 Loc: You Know	Went to see a Scotia rep today to see what they can offer since I'm already with them. Currently my rate is @ 1.95% and the rep was pushing to go 2yr fixed @ 2.19. Variable 5yr is 2.35%, pretty much standard. I know most of you guys are 2yr fixed but is it because it's lower than a 5yr variable? Or is there more to it than that? I always thought variable was the way to go and that's why I went that route initially.
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#8660806 - 05/17/16 07:32 AM Re: Another mortgage thread...questions [Re: civic13]
Riskhe Business Riskhe Business Provides a Great Work Environment. Post Master Supreme Registered: 05/17/10 Posts: 45657	I am going to see my mortgage guy soon, ratehub is advertising 2.05% 5 year variable. Seems like a decent deal...thoughts?
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#8660808 - 05/17/16 07:33 AM Re: Another mortgage thread...questions [Re: Riskhe Business]
spd-dmn spd-dmn Post Master Registered: 11/24/04 Posts: 2271	is that a legit 2.05 or is it a cash back, high ratio, blah blah blah seems cheap
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#8660840 - 05/17/16 08:11 AM Re: Another mortgage thread...questions [Re: Riskhe Business]
Screamin' Type-R Screamin' Type-R Post Master Supreme Registered: 02/20/01 Posts: 47941 Loc: T.O. - Canaduh	Originally Posted By: Risky Business I am going to see my mortgage guy soon, ratehub is advertising 2.05% 5 year variable. Seems like a decent deal...thoughts? i have HELOC 2.05 from rbc since last year, 2yr variable. 6-month early renewable option. if you can get 5yrs at 2.05 i think that's decent. one would assume rates SHOULD be up by then....but then again we said that 1-2 yrs ago too lol. _________________________ "Ban low performance drivers, not high performance cars"
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#8660860 - 05/17/16 08:27 AM Re: Another mortgage thread...questions [Re: Riskhe Business]
SW20_MR2 SW20_MR2 Post Master Sr Registered: 08/27/01 Posts: 5282 Loc: Markham, Ontario, Canada	Just check to make sure that the prepayment options and cancellation clauses are appropriate for what you're looking to do. Also verify that there are no qualifiers (eg. high ratio only, minimum mortgage amount, new sales only, etc). Originally Posted By: Risky Business I am going to see my mortgage guy soon, ratehub is advertising 2.05% 5 year variable. Seems like a decent deal...thoughts? _________________________ 1991 MR2 Turbo aka "The Myth"...does it really exist? 2006 Mazda3 Sport aka "Reality"...it really does exist...
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#8661161 - 05/17/16 11:31 AM Re: Another mortgage thread...questions [Re: Screamin' Type-R]
iamfob iamfob Post Master Supreme Registered: 09/06/02 Posts: 24698 Loc: Out There	Originally Posted By: Screamin DC2R Originally Posted By: Risky Business I am going to see my mortgage guy soon, ratehub is advertising 2.05% 5 year variable. Seems like a decent deal...thoughts? i have HELOC 2.05 from rbc since last year, 2yr variable. 6-month early renewable option. if you can get 5yrs at 2.05 i think that's decent. one would assume rates SHOULD be up by then....but then again we said that 1-2 yrs ago too lol. there is no way you can have a HELOC at 2.05. did you mean your variable mortgage is at 2.05? Most secured HELOC are Prime + 0.5% _________________________ FTMFW!!!
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#8661164 - 05/17/16 11:33 AM Re: Another mortgage thread...questions [Re: iamfob]
iamfob iamfob Post Master Supreme Registered: 09/06/02 Posts: 24698 Loc: Out There	I was offered 5 years fixed at 2.49%, the 2 or 3 years fixed is not a lot lower so I am thinking to do 5 years fixed for security long term. I will ask my guy what is the lowest 5 years variable rate now _________________________ FTMFW!!!
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#8661258 - 05/17/16 12:37 PM Re: Another mortgage thread...questions [Re: iamfob]
Hatorade Hatorade pheggit Post Master Supreme Registered: 11/05/99 Posts: 26908 Loc: Toronto, ON	2.49 is brutal on 2 years. I'm being offered 2.19 on 2 yrs _________________________ '07 997.1 GT3 '08 E90 M3 '11 E90 d '02 Rota Grid - 195-55-16FR (RIP) '04 Volk GTC - 245-35-19F/275-35-19R (Sold to a farm boi) I thought Spark* was a robot from the old movie and I kind of remember seeing him telling some engineer showing the equation for a clear metal that the guy would event years later* - porschetr
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#8661261 - 05/17/16 12:40 PM Re: Another mortgage thread...questions [Re: iamfob]
Screamin' Type-R Screamin' Type-R Post Master Supreme Registered: 02/20/01 Posts: 47941 Loc: T.O. - Canaduh	Originally Posted By: iamfob Originally Posted By: Screamin DC2R Originally Posted By: Risky Business I am going to see my mortgage guy soon, ratehub is advertising 2.05% 5 year variable. Seems like a decent deal...thoughts? i have HELOC 2.05 from rbc since last year, 2yr variable. 6-month early renewable option. if you can get 5yrs at 2.05 i think that's decent. one would assume rates SHOULD be up by then....but then again we said that 1-2 yrs ago too lol. there is no way you can have a HELOC at 2.05. did you mean your variable mortgage is at 2.05? Most secured HELOC are Prime + 0.5% yeah that. my mort is the one where as you pay it down the allowable LOC limit increases. _________________________ "Ban low performance drivers, not high performance cars"
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#8661290 - 05/17/16 01:02 PM Re: Another mortgage thread...questions [Re: Screamin' Type-R]
Senor Eduardo_82 Senor Eduardo_82 miataist Post Master Supreme Registered: 01/09/03 Posts: 38036 Loc: Ca�ada	I imagine you could get a nice Porsche with that LOC limit these days. $\:D$
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#8661309 - 05/17/16 01:26 PM Re: Another mortgage thread...questions [Re: Senor Eduardo_82]
Screamin' Type-R Screamin' Type-R Post Master Supreme Registered: 02/20/01 Posts: 47941 Loc: T.O. - Canaduh	Originally Posted By: eddie_82 I imagine you could get a nice Porsche with that LOC limit these days. $\:D$ aaaaaaaaaaaaaaaaaaaaaaaaannnnd i'm divorced _________________________ "Ban low performance drivers, not high performance cars"
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