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Discussion Starter #1
I was looking for some opinions. We have 3.5 years left on our 5 year mortgage @ 4.7% at Scotiabank. if we blend and extend it now, we could get it down to 4.5% for 5 years. Or we could skip it and see what happens in 3.5 years. Any thoughts? We extended once in the past already, reducing our rate from 5.1 to 4.7 and a further reduction is attractive, but what about future rates?

We are traditionally very conservative people but are also pragmatic and would like to go with the route that would save us the most.
 

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I was looking for some opinions. We have 3.5 years left on our 5 year mortgage @ 4.7% at Scotiabank. if we blend and extend it now, we could get it down to 4.5% for 5 years. Or we could skip it and see what happens in 3.5 years. Any thoughts? We extended once in the past already, reducing our rate from 5.1 to 4.7 and a further reduction is attractive, but what about future rates?

We are traditionally very conservative people but are also pragmatic and would like to go with the route that would save us the most.
Why not break your mortgage, pay the penalty and get a 3 year rate of 2.9%? I have done this for 8 clients this month and saved them between $3,500 - $7,500. That is guaranteed and risk free.

If you want any help with this please let me know.
 

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OP mentioned being very conservative. I'd guess that means 5 yr fixed is preferred.
That's the thing, We are conservative, but I wanted to go variable when we bought the house.

I guess the better question is this. Blend and Extend now, or wait 3.5 years and go variable?
 

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Yes, I did catch that you are conservative but blending and extending is not the answer especially if you are considering going variable at the end of your term.

I will try to explain this better. You have 3.5 years left in your term, if you break your mortgage and take a 3 year term you will save money even with paying a penalty and legal fees. You will be ahead over the next 3 years.

I have now done this for 10 families this month. It is a no brainer and totally risk free.

If you want me to tell you what you would save give me all of your mortgage info, including the penalty and I will do the math for you.
 

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Yes, I did catch that you are conservative but blending and extending is not the answer especially if you are considering going variable at the end of your term.

I will try to explain this better. You have 3.5 years left in your term, if you break your mortgage and take a 3 year term you will save money even with paying a penalty and legal fees. You will be ahead over the next 3 years.

I have now done this for 10 families this month. It is a no brainer and totally risk free.

If you want me to tell you what you would save give me all of your mortgage info, including the penalty and I will do the math for you.
I wouldn't mind seeing this scenario with some sample data - say on a 200k mortgage.
 
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