Mortgage Broker needed?

[Observer Walt]

City Lover, your loyalty to your broker is great, and it does sound like she has worked in your best interests in looking beyond just one institution. But you will not be signing any mortgage as soon as December, and as already mentioned, for purposes of your financial planning, you should not be counting on this rate holding. Not trying to be negative, just hope you are aware of this.

Best wishes.

 

[Torontotony]

Hello City Lover. You should make an effort to revisit your mortgage rate situation, as mortgage brokers do not have access to special "capped rate" programs offered by the banks, to buyers of new construction homes/condos. As such, your interest rate hold period is a maximum of 120 days, whereas on site bank representatives can offer rate holds up to 36 months in some cases. Typically, however, the longer the interest rate is guaranteed for, the higher the interest rate will be, but given we will shortly be entering a rising interest rate market scenario, today's "capped rate", albeit higher than the current best broker rate, may seem like a bargain when your condo eventually registers.
Best bet is to hedge. You already have an exceptional rate, that is being held, but you would be best served approaching the on site lender and getting yourself approved under their capped rate guarantee as well. When the closing date eventually arrives, you will then have the option of choosing the lowest interest rate of the two.
As a broker in Toronto, I would gladly review your current approval for you and clearly define the terms therein ( I would not be looking to "poach" you from your current broker). By the way, Ms. Zanay is a registered mortgage agent registered with Mortgage Intelligence in Guelph and not an employee of TD canada Trust.
Congratulations on your purchase and best of luck.

 

[ducati0000]

Im looking for a broker that can hold a rate for 9 months.I prefer dealing with a mortgage advisers at the charter banks though.Please PM me thanks!!!

 

[Torontotony]

Hello Ducati,

Most of the Big 5 banks have mobile mortgage specialists, who do have the capacity to provide you with a 9 month rate hold. I deal with a number of these specialists from time to time and would be happy to make a recommendation. Drop me a PM telling me what bank you prefer to deal with.
Also, if you are purchasing a new construction you can approach the onsite lender who will be able to provide you with the same service.
Independant mortgage brokers can provide you with a 120 day rate guarantee and renew it prior to expiry for another 120 days. Given we are in a time whereby interest rates are not forecasted to increase until the middle of 2010, you may not be taking a big risk by opting for an independant, but my professional advice would be to lock yourself into today's low interest rates for the 9 months and shop the market when the closing date approaches.

Best of luck.

 

[CityLover]

Already been preapproved by on-site lender

I've already been preapproved by the on-site lender which is Royal Bank but they are offering 4% for 5 years....

 

[Torontotony]

Citylover,
One thing that annoys me most with capped rate programs is the fact the lenders do not always automatically float the rate down, whenever mortgage rates fall. But if you approach the lender and ask them to reset the interest rate to today's lower rates, they should not have a problem doing it for you. 4% is not a bad "capped rate"(it's actually pretty good), but is a little high based on today's best available 5 year fixed rates. Just make sure you get a revised approval certificate, or something in writing from the lender confirming the new rate and the length of time it's being held for.

Continued good luck.