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Worth Switching Banks for Mortgage Renewal?

Millions

0
Registered
Joined
Oct 6, 2007
Messages
214
Hey everyone!

I'm currently with Scotia for a mortgage, which is up for renewal. They offering me 2.3% variable with the possibility of 2.25%.

However, a mortgage broker friend of mine says he can get 2.05% at another institution. I don't know which one but probably not a big 5.

Is it worth switching banks to do this? From my calculations on the $210,000 remaining balance, the savings between the two would be only about $1000 - $1200 over five years.

I've been with Scotia now for about 8 years....

Thoughts?
 

Thembi

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Registered
Joined
Feb 27, 2008
Messages
104
Hey Matthew,
Have you considered the other clauses that come with both companies,like penalties,balloon payments etc. I think it all comes down to your plan. If you had to sell the property today or say make a big payment,which mortgage would be flexible? If you wanted to skip a payment for some reason which company would help you. Sometimes cheaper comes with a lot of restrictions. Also is this your personal or investment mortgage?
If you have a chance,listen to Peter Kinch's mortgage view in the April recordings( B.C). He talks about strategically positioning your mortgages. Some banks can limit you on how many mortgages you can get with them or in total. I think Scotia is flexible but rules might have changed of late. So depending if this is your first mortgage or 5th,you could blow your chance if Scotia or the other lender has those limiting factors. I would talk to a broker and have a plan so they position you for better qualifications later.
All the best!
Thembi Bheka
 

GaryW

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Registered
Joined
Mar 31, 2009
Messages
149
Hi Matthew:
I use "The Ultimate Mortgage Checklist" which has 63 questions to pick and choose from that you can pose to your Bank or Broker. I think Peter Kinch helped develop it. If you like I can send it to you.
 

Millions

0
Registered
Joined
Oct 6, 2007
Messages
214
Hey Matthew,
Have you considered the other clauses that come with both companies,like penalties,balloon payments etc. I think it all comes down to your plan. If you had to sell the property today or say make a big payment,which mortgage would be flexible? If you wanted to skip a payment for some reason which company would help you. Sometimes cheaper comes with a lot of restrictions. Also is this your personal or investment mortgage?
If you have a chance,listen to Peter Kinch's mortgage view in the April recordings( B.C). He talks about strategically positioning your mortgages. Some banks can limit you on how many mortgages you can get with them or in total. I think Scotia is flexible but rules might have changed of late. So depending if this is your first mortgage or 5th,you could blow your chance if Scotia or the other lender has those limiting factors. I would talk to a broker and have a plan so they position you for better qualifications later.
All the best!
Thembi Bheka

Thanks for the reply! This is an investment mortgage, although it was set up as a homeowner one as I lived there for the first year. I guess I will get him to run the application anyway and see what banks can offer a lower rate... but if it's too much trouble, an extra $20 is nothing to stay with Scotia...
 
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