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Are there certain banks with amazing incentives for mortgages?

Torontotony said:
Ethics aside, Prime rate is expected to move up to the 4-5% range within the next 18 months. There are no variable rate mortgages on the market today, that would be even be close to a mid-3% fixed rate at that time. Yes my clients would be paying a rate premium for the next 12 to 18 months, but they will be thanking me after that, as it will be a small price to pay in relation to the savings they incur when Prime spikes up.
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This type of advice is what happened a few years back...mortgage rates were increasing steadily to around 6 or 7%. A lot of people locked in at 5 or 6% fixed rates justifiably so...well, rates as it happened started decreasing again....all the people who listened to the lenders and locked in for five year rates really got whacked and I know personally a lot of people who paid the penalties and broke away, just to get into the variable game or re-finance a much lower fixed term. I personally wouldn't do anything until we see what happens in the next two or three quarters.
 
Torontotony said:
Ethics aside, Prime rate is expected to move up to the 4-5% range within the next 18 months. There are no variable rate mortgages on the market today, that would be even be close to a mid-3% fixed rate at that time.
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No ... but there were 28 months ago; and there will be by then; so I don't see how that's relevent.

Quite frankly, I think anyone would be a fool to take advice from someone who is hear shilling for business! Don't the ethical regulations in your industry ban this kind of shilling?
 
nfitz said:
No ... but there were 28 months ago; and there will be by then; so I don't see how that's relevent.

Quite frankly, I think anyone would be a fool to take advice from someone who is hear shilling for business! Don't the ethical regulations in your industry ban this kind of shilling?
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I agree....even though he did mention in a previous post about his self-gratuitous advertising ways....it still doesn't make it right.
 
MadMax said:
This type of advice is what happened a few years back...mortgage rates were increasing steadily to around 6 or 7%. A lot of people locked in at 5 or 6% fixed rates justifiably so...well, rates as it happened started decreasing again....all the people who listened to the lenders and locked in for five year rates really got whacked and I know personally a lot of people who paid the penalties and broke away, just to get into the variable game or re-finance a much lower fixed term. I personally wouldn't do anything until we see what happens in the next two or three quarters.
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You must either be very young or very ignorant (former is somewhat excusable, latter is not) to honestly think that a 5 year fixed mortgage rate of 3.60-3.75% is high.

I have been investing in real estate for decades and never before seen the cost of money so outrageously low. You can play russian roulette and float your rate but prudent people behave otherwise and furthermore understand that the only reason why rates are so ridiculously cheap is because your government has mandated the CMHC to backstop all risk.

Commercial rates are nowhere near this low because there's no public policy encouraging it and believe me, after the defaults start to pile up on all that NHA MBS you won't be seeing 5 year money with a 3 or 4 handle, I assure you.

The mortgage broker may be shilling his wares but he also makes a lot of sense. You can keep betting on black with your variable 'the world is ending' Prime rate loan and you'll continue to be a hero until of course the ball invariably falls on red.

I should add that Prime was 4.75% on October 8, 2008, approximately 1 year ago. If the housing market is irrationally behaving as though we are back to where we were in the Fall of 2008 how much longer will it be before the Bank of Canada follows suit?
Gamble all you want, but understand the risks. It doesn't appear that you do.
 
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I can understand the cynicism 'Nfitz' and 'Madmax' feel towards industry professionals posting on this board. When we pros decide to participate in any such open dialogues, we sometimes come off looking like schills, and our comments or motives can sometimes be misinterpreted, but that does not negate the sincerity or validity of advice being dispensed. Simply put, if you don't want to do business with someone on this board, don't.

But don't preclude other users of this forum from benefitting from the advice of the lawyers, realtors, mortgage brokers, and other professionals contributing to this board, by engaging in name calling and mud-slinging.

Madmax, your comments regarding locking in a couple years ago are noted and you are correct. We see people almost everyday who are facing massive interest penalties to break existing terms and it's heartbreaking...everytime. But there is no relation between today's interest rate market and that of 2 years ago. We are at the bottom. There is no way to go but sideways (at best) or up (which is more likely).
 
safeashouses said:
You must either be very young or very ignorant (former is somewhat excusable, latter is not) to honestly think that a 5 year fixed mortgage rate of 3.60-3.75% is high.

I have been investing in real estate for decades and never before seen the cost of money so outrageously low. You can play russian roulette and float your rate but prudent people behave otherwise and furthermore understand that the only reason why rates are so ridiculously cheap is because your government has mandated the CMHC to backstop all risk.

Commercial rates are nowhere near this low because there's no public policy encouraging it and believe me, after the defaults start to pile up on all that NHA MBS you won't be seeing 5 year money with a 3 or 4 handle, I assure you.

The mortgage broker may be shilling his wares but he also makes a lot of sense. You can keep betting on black with your variable 'the world is ending' Prime rate loan and you'll continue to be a hero until of course the ball invariably falls on red.

I should add that Prime was 4.75% on October 8, 2008, approximately 1 year ago. If the housing market is irrationally behaving as though we are back to where we were in the Fall of 2008 how much longer will it be before the Bank of Canada follows suit?
Gamble all you want, but understand the risks. It doesn't appear that you do.
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The world is going to end...the sky is falling down...bedlem, mayhem, locusts, famine and disease....bla, bla, bla....we've heard it all before. Doom and gloomers are a dime a dozen on this forum. Nothin' new here.
 
MadMax said:
The world is going to end...the sky is falling down...bedlem, mayhem, locusts, famine and disease....bla, bla, bla....we've heard it all before. Doom and gloomers are a dime a dozen on this forum. Nothin' new here.
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and would the opposite be "rainbows and lollipoppers"?
 
On the contrary young Max, a gradual rise in % rates signals that things are actually getting better in the overall economy. The fact that it may have an adverse consequence on housing prices and particularly those who refused to fix their costs depsite prudent advice otherwise doesn't negate the broader recovery.
 
safeashouses said:
On the contrary young Max, a gradual rise in % rates signals that things are actually getting better in the overall economy. The fact that it may have an adverse consequence on housing prices and particularly those who refused to fix their costs depsite prudent advice otherwise doesn't negate the broader recovery.
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Russian roulette, risks, defaults piling up, irrational behaviour.....you said it, not me.
 
Torontotony said:
I can understand the cynicism 'Nfitz' and 'Madmax' feel towards industry professionals posting on this board. When we pros decide to participate in any such open dialogues, we sometimes come off looking like schills, and our comments or motives can sometimes be misinterpreted, but that does not negate the sincerity or validity of advice being dispensed. Simply put, if you don't want to do business with someone on this board, don't.
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It's simpler than that. You've openly violated the rule here about not advertising.

The first question that comes to my mind, is if your willing to break that rule; what other rules have you broken?
 
Where exactly would I find the comprehensive list of rules related to posting on UT? (not trying to be a smart ass, just don't want to be in contravention of board etiquette).
 
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