Mortgage Rates

[mike81]

Hey guys,



What kind of rates are people seeing for 5 yr variable? (not on principle)

2.60?



cheers

 

[MatPiche]

Hey Mike,



My clients are getting rates around 3%-3.5% on rental properties.



But remember, don't be focusing solely on rates as a motivator. Lower rate mortgages can often come with horrible terms i.e. not being able to pay more towards the principle, large penalties for breaking early etc.



Make sure to talk to an investment savvy mortgage broker (not just any mortgage broker) to find the right mortgage for YOU and YOUR goals.



Good luck!!

 

[mike81]

[quote user=MatPiche]Hey Mike,



My clients are getting rates around 3%-3.5% on rental properties.



But remember, don't be focusing solely on rates as a motivator. Lower rate mortgages can often come with horrible terms i.e. not being able to pay more towards the principle, large penalties for breaking early etc.



Make sure to talk to an investment savvy mortgage broker (not just any mortgage broker) to find the right mortgage for YOU and YOUR goals.



Good luck!!



Thanks, sort of along the same lines -



For rentals, if you only have a 1 or 2 properties, is it a good strategy to pay down the principle as quick as possible? Or would it make more sense to take that pay down amount and invest/diversify into other things (especially now with low interest rates)



I'm assuming both strategies work...

 

[Dan Golby]

[quote user=mike81]Or would it make more sense to take that pay down amount and invest/diversify into other things (especially now with low interest rates)




Why not use the money for more real estate? Put it towards your next down payment perhaps.......just a thought.

 

[MatPiche]

Hey Mike,



It really depends on your strategy. I can't really say what's best for you.



For me personally, I'm with Dan.



Keep using your money, or joint venture money, to buy MORE real estate. Don't worry about paying down your current rentals faster. That will come in time thanks to our lovely tenants.



But, I have a plan of owning a large number of properties to fund my entire life in the near future.



Maybe you only want to own 5 properties max let's say. Then maybe your best strategy is to pay down that mortgage to boost your cash flow without having the headaches of owning multiple properties.



See what I mean?



You gotta ask yourself "what do you want out of life?" I know we've all heard this a MILLION times by now, but it really is important.



I just did this not too long ago believe it or not thanks to my business coach forcing me and it changed EVERYTHING!



Figure out what you want, how much money will that require and then work out how many properties will you need in your specific niche (single family, multi family, student rentals, rent to own etc) in order to fund that lifestyle? Don't know which niche you want to specialize in? Figure that out based on your goals.



Lot's of thinking, eh?

 

[tnguyen]

You can get a 5yr VIRM for prime - 0.5 = 2.5% for rental one

 

[Tootse]

Today, I was offered 3.09% on a 5 yr fixed, or 2.5% 5 yr variable. Both Scotiabank.

 

[LAndersen]

Got P-.4 on a rental in February. Seeing similar rates now for investors!

 

[Thomas Beyer]

[quote user=LAndersen]Got P-.4 on a rental in February. Seeing similar rates now for investors!


yup .. I got two of those P-0.4 mortgages on two of my rental units too ( one a condo, one a house)

 

[itchycow]

Mike, I agree with what Matt says, it depends on what you want to get out your real estate. But assuming you're investing/diversifying means more real estate, I would also suggest getting in touch with an investment focused mortgage broker who can offer you guidance on dealing with your current mortgages and especially on going for your next one, which lender so you can qualify again and again and so on.

 

[ekisielewski]

I got Prime - .4 from TD in Dec 2013 on my latest purchase.


Elisabet

 

[bruynjustin]

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Current mortgage rate is 3.24%. It
rises from 2.89% to 3.37% in last 52 weeks. Mortgages can have vary
with the terms and conditions, in addition to the interest rate.