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Discussion Starter #1
Good evening,

I'm currently on the hunt for a new mortgage. Current mortgage is with TD @ 3.89% with a $197,000 balance and $30,000 on the HELOC portion @ 3.5%. I'm currently doing the Smith manoeuvre.

Here's my dilemma:

RBC is offering me 2.35% variable rate and 3.5% on the HELOC

CIBC (going through a broker) is offering me less than 2.35% but are not willing to tell me how much but they said it was considerable but would not be under 2% but the HELOC would be at 4%.

Suggestions?

Sean
 

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CIBC (going through a broker) is offering me less than 2.35% but are not willing to tell me how much but they said it was considerable but would not be under 2% but the HELOC would be at 4%.
It'll probably be 2.25% (P-0.75).
Not much to choose between the two offer.
Try negotiating with RBC with the competing offer that you have from CIBC.
I'd probably go with the RBC package in this case.
 

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One thing with TD mortgages is you can change your amortization rate anytime.

So in my case we had seasonal overtime, I would cut my amortization by the amount of overtime. Then when OT went away just move it backup. Also from time to time strikes were possible I would just move back to 25 years ect.
 

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Discussion Starter #5
One thing with TD mortgages is you can change your amortization rate anytime.

So in my case we had seasonal overtime, I would cut my amortization by the amount of overtime. Then when OT went away just move it backup. Also from time to time strikes were possible I would just move back to 25 years ect.
My normal mortgage payments are $300/week (accelerated weekly) and my Smith Manoeuvre enables me to put an additional 1300$/month. I don't really worry about my amortization all that much. I originally signed up for a 20 year amortization.
 

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Is your current term coming up for renewal, or are you looking to break your mortgage which has some time left on it?
If the latter, then watch the fees.
If the former, then go with the option you think will be the cheapest. I'm not sure from reading your post, but it seems like a debate between fixed and variable. I assume your current mortgage is a fixed rate, and it appears you are being tempted by low variable rates.
 
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