- Joined
- Nov 17, 2010
- Messages
- 36
Locking mortgage in may make sense now !
I have typically mostly went variable as rates usually lower. But just now locked in a 5yr fixed on several properties at several different banks.
Always ask for discounts after they initially quote you rates. They usually come down
If you are like me and value cash flow (to reinvest ) over mortgage paydown ask to bump amortization back to original when you got mortgage
Example
When you bought your amortization was 25 and your 7 years in so current amortization is now 18 yr bump it back to 25 and you have lower payments better cashflow to reinvest
Even if you like to aggressively pay your mortgage down take the extra cashflow and make lump sum. Lower payments help you qualify for more .
Some not all banks offer this option lots of bankers won't be aware of this option but can offer it without any re-qualifying hoops at time of signing a new term .
At one time ( I think still do ) CIBC also offered cashback mortgages even on renewals. Yes you pay a higher rate but at the time the cashback more than paid for the higher rate . Do the math !
Example
Cashback was $4000 and you would pay $3000 more in interest over the term so $1000 free money . I went through it in detail with banker as seemed to good to be true but was legit and I did several mortgages this way . The banker justified it as they like long term higher interest loans in portfolio so willing to over pay on cashback?? ...
Can either take the $ and reinvest / upgrade property or pay it directly on mortgage or buy a quad (don't buy a quad with it haha)
One thing to be aware though the higher your mortgage payment is harder it is to be approved for the next one . That is also one more reason to bump amortization back up in earlier example to qualify for other mortgages.
I have typically mostly went variable as rates usually lower. But just now locked in a 5yr fixed on several properties at several different banks.
Always ask for discounts after they initially quote you rates. They usually come down
If you are like me and value cash flow (to reinvest ) over mortgage paydown ask to bump amortization back to original when you got mortgage
Example
When you bought your amortization was 25 and your 7 years in so current amortization is now 18 yr bump it back to 25 and you have lower payments better cashflow to reinvest
Even if you like to aggressively pay your mortgage down take the extra cashflow and make lump sum. Lower payments help you qualify for more .
Some not all banks offer this option lots of bankers won't be aware of this option but can offer it without any re-qualifying hoops at time of signing a new term .
At one time ( I think still do ) CIBC also offered cashback mortgages even on renewals. Yes you pay a higher rate but at the time the cashback more than paid for the higher rate . Do the math !
Example
Cashback was $4000 and you would pay $3000 more in interest over the term so $1000 free money . I went through it in detail with banker as seemed to good to be true but was legit and I did several mortgages this way . The banker justified it as they like long term higher interest loans in portfolio so willing to over pay on cashback?? ...
Can either take the $ and reinvest / upgrade property or pay it directly on mortgage or buy a quad (don't buy a quad with it haha)
One thing to be aware though the higher your mortgage payment is harder it is to be approved for the next one . That is also one more reason to bump amortization back up in earlier example to qualify for other mortgages.