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I went back to TD with True North's 2.25% (2.1% doesn't apply to assignments). TD says they can't match private brokers, but submitted a request for 2.3% for me for 5 year closed variable, and another request for 2.1% for a 2-year fixed.

Again I don't need to hear about the theory lol, can someone simply tell me if this is the best I can get? Is anyone getting better elsewhere? Would you do the 2 year or 5 year, given the above rates? I don't think it'll matter to me whether I can prepay 15% or 20% each year (doubt I'll have that extra dough for the next few years anyway). I'll most likely prepay 5-10% per year.
If rates are your priority, shop enough and you will find a better rate but will most likely be stripped of all benefits. What you save in rate, you will pay in privileges. Personally, I value the benefits more than the rate. A good balance is optimal.

20bps make no difference. If TD is the lender you want to stick with, then accept their offer because they are within the norm. If you want even lower, opt for a 2 year fixed. But again, we're talking small bps difference and has no real impact.

Mortgage brokers have the ability to buy-down the rates through their commissioned kick-back so the search for the lowest rate possible is endless.
 

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If you feel like you don't have time to make an informed decision then sign up for a new mortgage with your current lender using an open mortgage. The rate will be a little higher for the next couple weeks or months until you make a decision and want to lock in for a longer time period, but it will buy you time to make the best possible decision.
 

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Discussion Starter #23 (Edited)
So I keep hearing that TD only does collateral charge mortgages, but in the email I got from my TD person clarifying terms/conditions specifically says "standard charge". Is it a lie? If not, screw everything, I'm doing all my business with one bank instead.

Just a recap, here's all my options:

5 year variable closed
TD: 2.3%
True North: 2.25%

2 year fixed
TD: 2.2%
True North: 2.09%
RBC: 2.149%

Every 0.1% difference is about $1300 in interest over 5 years

I plan to live in it for at least 1 year, but the possibility is there that I might sell before 5 years is up, not sure if that would make a particular option more favourable

Edit: Anyone heard of Sigma Mortgage? They offer 5 year variable closed @ 2.01%??
 

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Collateral or not, I would not be too concerned. Collateral mortgages are usually registered when mortgage is a HELOC. Industry is changing and more and more are going to a collateral charge for all mortgages. So to answer your question, it is very possible that they will register a standard charge if that's what they confirmed to you.

Back to my original point, you're chasing the lowest rate but in my opinion, you should be chasing the best mortgage benefits since you are already planning to make a change within 1 years time. Penalty fees are astronomical when the banks calculate it.

Sigma Mortgage is simply another brokerage house, similar to True North. They are a group of brokers who will place you with a regular lender. Same thing with True North - don't go thinking you will end up with a 'True North' mortgage....To compare apples with apples, find out which lender True North is placing you with. Then you can properly assess.
Don't fall for advertised rates from brokerage firms. They always pitch low rates which very few people can benefit from. Once they have your attention, they up-sell you to rates which everyone else offers.

Since you are planning to make a change after 1 year, your best option is a variable rate (with any lender) because when you break that mortgage, penalty is a standard 3 month interest. If you can 'time' your move (highly unlikely), opt for a 1 year or 2 year fixed. Rate will be slightly lower but penalty can be higher should you break it at the wrong moment.
 

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So I keep hearing that TD only does collateral charge mortgages, but in the email I got from my TD person clarifying terms/conditions specifically says "standard charge". Is it a lie? If not, screw everything, I'm doing all my business with one bank instead.

Just a recap, here's all my options:

5 year variable closed
TD: 2.3%
True North: 2.25%

2 year fixed
TD: 2.2%
True North: 2.09%
RBC: 2.149%

Every 0.1% difference is about $1300 in interest over 5 years

I plan to live in it for at least 1 year, but the possibility is there that I might sell before 5 years is up, not sure if that would make a particular option more favourable

Edit: Anyone heard of Sigma Mortgage? They offer 5 year variable closed @ 2.01%??
Here is a link re TD and collateral mortgages. http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2013/01/td-takes-heat-for-its-collateral-mortgages.html

I have dealt with TD twice for personal mortgages. In both cases the persons we were dealing with were not licensed mortgage agents.

I would ask the person you are dealing with to forward a copy of the charge form that will be used at signing and determine yourself the status of the registration of the mortgage. Just because something is put in an email does not mean that is what you will be signing for.
 

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Discussion Starter #26
Yeah I asked him, and he corrected himself saying that it is a collateral charge mortgage. That's should be a dealbreaker unless I can get a rate that will save me at least $1k in interest a year (assuming I might sell/transfer mortgage elsewhere within 1-2 years), right?
 

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2 weeks from closing seems a bit late to be mortgage shopping. Stick with the commitment you have, or you are liable to screw up something in the deal. Most "closed" mortgages allow 5-10% principal repayments on the anniversary date. If your mortgage has that feature, that's a good way to save money in the long run.
 

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I also took a loan when I bought my house. I remember I took it from a private bank and I didn't have any issues with that. Actually, I didn't analyze all the details and aspects before taking the loan. I remember, a friend suggested applying for the loan on Fokuslån Login ® Lån fra 10000 kr op til 150000 kr ᐈ Min konto | Credit-10, because he used their services a couple of times. So, I followed his advice. I took a loan for business and I got an interest rate of 8,90%. Now, I am still paying it back, but the most important is that with the money received I set up my own business.
 

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I was warned against brokerages, but anyone got a different opinion?
Whoever gave you that advice is extremely misinformed, and you should avoid consulting them in any further financial matters. Mortgage brokers are licensed and insured, and regulated much harder than a bank rep who only gets a bit of sales training. Bank reps cannot call themselves mortgage agents or brokers because they aren't licensed, and hence call themselves advisors or the like.

Mortgage brokers offer lower rates, and more importantly professional advice, at no cost to you, and often will place you in a better product with the same bank that didn't offer you the best deal. If your credit profile is really bad, or require a very special type of mortgage, then they might charge a fee for the services, but those cases aren't the norm, or applicable in your case. Long story short, whoever warned you against brokers, is very ill informed, or works for a bank.

Don't be blinded by 0.1% difference in interest rates. There's quite a bit more to saving money on a mortgage than just the interest rate. My biggest question to you, is why the plan to move just after a 1 year or 2? Real estate acquisition costs are very high, and you'll lose a fair bit by hopping from place to place. The days of condo flipping, or AirBnb large profits on downtown condos are very likely behind us.
 

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Brokers will bash Banks.....then they place 85% of their business at the BiG 5.

brokers will get you a better rate for one reason.....they have control over their own compensation. Most Retail bank staff are only permitted to discount within a certain range, while a broker can discount a deal down to where he/she makes $0 commission. Brokers will also hype up their “expertise”. Don’t be fooled into that general statement. You’re looking for an experienced Person to deal with (if your situation is complex). I’d rather work with a retail branch advisor with 10 years of experience than a broker with 2 years experience.

I worked in TD branches for 20 years and was a TD mortgage specialists for the last part of my career. I’d personally use a broker since they do all the price shopping for you. I do however see the “comfort” in using a branch advisor if it’s someone you know and trust vs. Working with a complete stranger.

brokers also have the stereotype of “bending“ rules....which can be useful to some borrowers.
 

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Note that the OP does not appear to have posted here in years.
Also note that the thread was revived by a spammer.
Maybe it's best not to jump in ...
 

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Note that the OP does not appear to have posted here in years.
Also note that the thread was revived by a spammer.
Maybe it's best not to jump in ...
Oops, I missed that too. Good info in the thread anyways. I was hoping he/she would post why they wanted to move out so soon after buying. Maybe they'll check in and update on how they made out after all.
 
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