Get a broker. They know what they are doing. Not sure what it is like in BC right now but this is about the lowest in Ontario you may be looking at

https://altrua.ca/lowest-mortgage-rates/

So rates are expected to drop within the next year or so. I dont know to what relative to the 2.89 rate.

If they are going to give you that without having the refinance, it seems like a pretty good deal (as you would have to pay something at the 5 year mark, which would amount to a couple thousand dollars).

So although you MAY be able to get a better deal, you need to look into what you would need to do at the end of the 5 year term (assuming you are in something like a 5 year ARM).

Mortgages are different up here.

It seems like a good idea on its face (lower rate, no hassle of shopping around in 18 months, just go in, sign some papers and we are off). I'm just trying to weigh the options. Also not sure if it's acceptable to say we will agree at 2.7 flat or something, otherwise we will shop around when the time comes. To me, it seems like 2.7x is pretty cheap money compared to what others are getting up here.

Worst case scenario we wait 18 months and rates go up in the meantime.

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Long Chile was a silly place.

It's a deal. If you shop around what are the fees to switch? If you wait till the end of your current term are you really so certain that something won't send rates the other way.

Even if you take this and rates halve, you do not know you could not exit with fees and still be better off.

You have nothing to lose with trying to bargain with them.

I think ours comes up this year - guess I should get on that.

Shopping around is a PITA - but if you can get a better rate at another bank, your bank will usually match it.

Gotcha. Goodluck here, and on the other thread. I would recommend just seeing someone. Its not so much that they can help, but they may know some mechanisms to help (because they see the stuff a lot).

Maybe getting a .1 drop on my mortgage will lift my spirits.

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Long Chile was a silly place.

So you have the baseline of paying off in 1.5 more years or making It years but 0.1% lower? Personally I would keell the baseline and pay off in 1.5 years. You will end up spending more due to the longer term extension. Why bother?

No. We have 23.5 years left total. 1.5 years left on our first five year term. In Canada, you generally get a 25-30 year mortgage, in 5 year terms. You can get a 10 or 15 year term but the interest rate is worse. When we got our 2.89, I think the 10-15 year rate was around 5%.

So, the total length of our mortgage won't change, we are just extending our term with our current lender and lowering our rate slightly.

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Long Chile was a silly place.

You know he has a Canadian mortgage right?

The last time mine was going to be up for renewal in around 6 months, I was contacted by the bank offering me what seemed like a pretty good rate. I sent an email asking a few questions about it to the financial person at the bank that I always dealt with and she told me that she could offer me an even better rate (another 0.3% off I think). I say it doesn't hurt to negotiate - I wasn't even trying, just asking questions to make sure I wasn't going to get dinged with some hidden fee.

Very similar to an American mortgage, just with a little less freedom.

That, and the queen technically owns your house.

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Long Chile was a silly place.

Like so many of these economic decisions, it depends on your risk tolerance. I'm sure you could find professionals on both sides of the interest rate debate. Sure, your bank likely thinks they will go down, but who knows if they are right.

When my mortgage was coming up, my lender wouldn't budge off their rate. I talked to two other companies, and went with a new lender. The rate that was a bit lower than what I had, but not much (I don't remember for sure, but maybe .5%), and a five year term. When you get down as low as the rates currently are, I believe the differences between lenders won't be that big. They don't have much wiggle room. I didn't think it was worth the hassle, or my time, to shop around to a bunch of places looking to save another .2%. I believe most places now will eat any fees on the transfer of your mortgage.

If my original lender had made me a better offer, which I think yours has, I probably would have gone with them without thinking about it too much more. You can easily find a mortgage calculator and do the math to see if it is worth it to you.

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"I keep hoping for you to use your superior intellect to be less insufferable. Sadly, you continue to disappoint." - gofigure

You don't capitalize Queen anymore you republican?

And more interest rate risk

Also, we actually spell it 'mourtgage'.

The way we do it is stupid. I'd much prefer the American way.

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Long Chile was a silly place.

We are the city on the hill

The main thing is if you will have negotiating power 1.5 years from now. This is dependent on B20.

(For reference to those in the south B20 is a stress test imposed by the federal government in late 2017, basically if you qualify for a 5 year mortgage at 3%, the government now says you need to prove stress to 5% or 20 basis points over over the posted retail rate)

B20 limits your choice to the bank you currently deal with, basically creating monopoly situations.

If you have good credit (say 720 or above) 20 percent equity, and the ability to pay 2% above what you currently do, then go tell them to pound sand....or ask for a 5 year term at 2.6%.

The banks are currently in a bit of a mortgage war.

Maurice

You sure weren't in 2008!

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Long Chile was a silly place.