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Finances & Real Estate Does any Vancouver mortgage broker know if I should lock in or hold? Please HELP!

Discussion in 'General Discussion' started by Mike2012, Oct 7, 2012.

  1. Mike2012

    Mike2012 New Member

    If mortgage rates increase soon i'm not certain whether I should lock in or if I should leave the mortgage rate floating. Every mortgage broker in Vancouver I talk to keeps telling me something different.... :( I am so lost... My home has quite a huge mortgage and I am uncertain... thanks
  2. Nemolicious

    Nemolicious New Member

    Hey Mike. I believe it would entirely depend on whether you are planning to sell or refinance early (to consolidate debt or drop your mortgage rate) in the next year or so. Do not lock in because you will be faced with interest rate differential (IRD) penalties with a fixed rate mortgage. Variable mortgages only have a 3 month interest penalty. The higher your mortgage (as yours probably is, as you mentioned) the worse the penalty in either perspective. Three months interest is much less of a liability in the end. I hope this helps. Contact me if you have further questions! I don't mean to self-promote but I am a Vancouver mortgage broker. :) and I work from 1705 - 789 Drake Street. You can always call me at 778-320-4346. Miruna Alexandru
  3. lumix

    lumix Full Member

    Mortgage rate is so low now that you can lock in. The best rate now is 2.89% 5-year fixed offered by True North Mortgage. This is close to the variable rate and it makes sense to lock in when the variable is about par with the fixed rate. BMO 5-year fixed is now 3.09%.
    cheeseshredder likes this.
  4. Jennifer604

    Jennifer604 New Member

    Everyone is offering 2.89% now because it's with Industrial Alliance. Don't lock in until we know Prime is going up. Use these guys at VERICO mortgage broker team with Jessi Johnson. They helped me with my mortgage and several of my referrals. They had real service even with providing low rates as 2.89%
  5. stack

    stack Junior Member

    Personally, I'm not too impressed with these mortgage brokers. Especially with small firms like those mentioned above. If I have to use a mortgage broker, I use one at the bank. The big banks all have mortgage brokers. The best person to talk to is your personal financial representative at the bank or financial institution you use.

    Because you know this personal financial representative and because he/she is going for long term business, he/she will get you the best mortgage rate for you and most of the time, he/she can match the lowest rate for you. Most banks will match the rates, if Jessi Johnson can get you 2.89%, ask your bank/financial institution to match it and they will. Even if you can't decide, talk to at least 2 different persons and compare at their offering and pick the best.

    If you prefer a bigger firm, something bigger than Jessi Johnson, try True North Mortgage. Their posted rate is 2.99% and special offer is now 2.89%.

  6. compass

    compass Junior Member

    Mortgage brokers are no better than car salesman. On the surface, they tell you they can get you the best rates because they deal with many financial institutions. That is not the case, the rate you get depends on how good is your negotiation. The less they give, the more profitable they are.

    To get the best out of mortgage brokers, always deal with a minimum of 2 mortgage brokers from 2 different financial institutions. If the mortgage broker is not from a bank (such as Jessi Johnson), ask for who the financial institution is before you sign anything. If the mortgage broker is reluctant to reveal the financial institution, then you should walk out as soon as possible.

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