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Discussion Starter #1
Are we getting back to the good old days soon?

I see Resmor now offers a variable at prime

Any thoughts
 

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I just closed on my 2nd home and got a 5 yr variable rate of prime - 0.3% through ING. It was a blended rate from my mortgage on the home I just sold at prime- 0.9% rate and today's rate. I am told that this blended rate product is fairly new for ING.
 

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Even Investors Group is now offering a variable [Prime-0.10%] mortgage.

Investors Group Mortgage Rates
Beware that that the concept of prime is not necessarily consistent across all banking institutions. Many banks modify their prime rate to adjust their lending strategies, however most out there right now are 2.25%.

Take for instance, the verbiage on the link you provided from investor's group:
"* The Annual Percentage Rate (APR) for each term listed above (with a reduced rate for an introductory period, where applicable) is based on a mortgage of $100,000, with monthly payments and a 25 year amortization. The APR was calculated using Our Mortgage Prime Rate of 2.500% set on March 24, 2009, which is subject to change"

2.5% is actually higher than the prime rate for most banks right now.

While HSBC prime rate is now 2.25%.

http://www.hsbc.ca/1/2/en/personal/todays-rates/personal-mortgage-and-credit-rates

RBC is 2.25%

http://www.rbcroyalbank.com/products/mortgages/view_rates.html

Bottom line, compare the rate, not prime minus X.

Cheers
 

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Take for instance, the verbiage on the link you provided from investor's group:
"* The Annual Percentage Rate (APR) for each term listed above (with a reduced rate for an introductory period, where applicable) is based on a mortgage of $100,000, with monthly payments and a 25 year amortization. The APR was calculated using Our Mortgage Prime Rate of 2.500% set on March 24, 2009, which is subject to change"
You are quoting their "Our Mortgage Prime Rate".
However, they are also offering Special Variable-Rate Mortgage of "Prime less 0.10%" as well (under Promotions)

Special variable-rate mortgage*
> 2.15% (Prime less 0.10%)
60 month closed adjustable rate adjustable payment (ARAP) mortgage
A great, longer term option for both rate and payment.
> 2.15% (Prime less 0.10%)
60 month closed variable rate mortgage
Features a fixed monthly payment.

But I agree - Big banks (institutions) do not necessarily have to follow the Bank of Canada lending rates; thus, you actually need to look at the rates.
 

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TD sent me a letter on my two HELOCS and said they were raising their rates to prime +1% from prime. Can they do this? I have spoken to people that have prime - 1%, but they got that a while ago.

I don't have balances on them now but plan to use then in 2010 to possibly buy some real estate and want to get the best rate

What should I do?

Thanks
 
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