Have some rental property, and a home with a mortage due, Any suggestions as to where, for best intrest rates
Tks All
Tks All
Intrest Rates
- Thread starter way.tomuch
- Start date
The biggest issue is always going to be fixed or variable. Until recently most have been choosing variable, but with fixed rates so low and given the level of uncertainty in the world with respect to inflation, many now are choosing fixed. As to a website with rates, this is where I go;
http://www.cannex.com/canada/english/
http://www.cannex.com/canada/english/
Can't hurt to go with a mortgage broker. They don't make any money off you, they make money off the lender, so there's really no reason not to. There are a few good deals out there right now, the best of which is a 2.69% 3-year fixed term mortgage. If you want to go 5-year fixed you're probably looking at 3.09% to 3.49%. For example, ING has a 5-year fixed at 3.19%, but they do not negotiate their rates.
Go with a mortgage broker....and make sure that you ask for a shorter ammortisation period....as in 10-15 years instead of 25 years....most people will tell you that the payments will be higher and yeah they will.....but you will thousands of dollars worth of interest payments.
SR
Like others have said, go with a broker then bring the broker's best deals to your existing lender to see if it will match or even beat those deals. Staying with the existing lender should save you some $$ (no appraisal fees, additional legal fees, etc.).
A broker can certainly save you money but a MUCH bigger effect is the schedule of payment. The standard is monthly payments but if you can arrange something where you pay biweekly or weekly, the effective term you will pay out over will be cut dramatically. For example, if your monthly payment would be $3000 and you instead pay $750 every week (equal to slightly more than $3000/month), you can expect a roughly 20% drop in the length of the mortgage. Ours went from a 25 year mortgage with monthly payments to about 19.5 years with weekly payments! This is mostly due to the savings on interest and most lenders will offer an option of weekly or at least biweekly payments.
Even better is the new system Manulife is offering where you basically move your banking to them so that your chequing or savings account is your mortgage account. You arrange to have your salary direct deposited into that account and when you need to pay a bill or withdraw some cash you do that against the mortgage. This way the money you would otherwise keep in your chequing or savings account is working for you by helping to keep the principal lower and thus saving you money. From experience, this has the effect of knocking about 30% off the length of time you'll be paying off your mortgage. Manulife's interest rates are usually a few basis points (i.e., hundredths of a percent) about the lowest you'd find elsewhere but this system is totally worth it in the end.
Even better is the new system Manulife is offering where you basically move your banking to them so that your chequing or savings account is your mortgage account. You arrange to have your salary direct deposited into that account and when you need to pay a bill or withdraw some cash you do that against the mortgage. This way the money you would otherwise keep in your chequing or savings account is working for you by helping to keep the principal lower and thus saving you money. From experience, this has the effect of knocking about 30% off the length of time you'll be paying off your mortgage. Manulife's interest rates are usually a few basis points (i.e., hundredths of a percent) about the lowest you'd find elsewhere but this system is totally worth it in the end.
While you can't really go too far wrong going with a mortgage broker you do have to keep in mind they are getting paid by the lending institute and in some cases you can get a better deal if you find a lending institute that doesn't use brokers and can pass the saving on to you, hence my link of rates. I believe they normally get paid .25% and you have to have a minimum fixed term.
