Grasshopper said:
Yes. I have the same understanding too. It's cap to prime rate. The rate could be 4-5% when closing. But there is no obligation. We can always shop around and get the best rate before closing.
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I see, so they are willing to cap the rate on prime rate. Do they have option on fixed rate ?
 
Grasshopper said:
I believe not but there is no harm to ask. Do you want me to give Albert a call tomorrow?
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Sure if you can. I guess it will benefit for all of us.
Capping the rate at prime sounds sweet right now. But in the next 2 or 3 years, I am not sure if the prime rate will sounds sweet as now.
 
newbuyer said:
Sure if you can. I guess it will benefit for all of us.
Capping the rate at prime sounds sweet right now. But in the next 2 or 3 years, I am not sure if the prime rate will sounds sweet as now.
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Will do. I will try to ask for "volume discount" too. My coworker and his friends were able to negotiate a better "group rate".
 
newbuyer said:
I see, so they are willing to cap the rate on prime rate. Do they have option on fixed rate ?
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Hi newbuyer, According to Albert, fixed rate mortgage will be available around mid-2010 or end-2010. He will contact me when this option becomes available. Please see the attached for the latest rate.
 

Attachments

  • Rate Sheet Emerald City Jan 24 2009 only[1].doc_new 09 Oct 09.zip
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Grasshopper said:
Hi newbuyer, According to Albert, fixed rate mortgage will be available around mid-2010 or end-2010. He will contact me when this option becomes available. Please see the attached for the latest rate.
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Hi Grasshoper, sorry to ask again, but on the flyer it doesn't say that the rate will be capped on prime rate for 4 years. It just says Variable rate for 4 years at prime. Are you sure that RBC is capping the rate for 4 years at prime?
 
newbuyer said:
Hi Grasshoper, sorry to ask again, but on the flyer it doesn't say that the rate will be capped on prime rate for 4 years. It just says Variable rate for 4 years at prime. Are you sure that RBC is capping the rate for 4 years at prime?
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No problem, my future neighbour. It says "48 months rate guarantee". My understanding is the rate is capped to prime rate for 48 months but prime is a variable rate. Let's say closing will be 3-year from now. Case 1) prime rate at 2012 will be 2%, my mortgage rate will be 2%. Case 2) prime rate at 2012 will be 5%, it doesn't mean that my mortgage rate will be 5%. I will have 2 options: (a) re-negotiate with Albert to get a better rate; (b) shop around as there's no obligation.
 
That sounds like a very good option for all of us! I've heard that most mortgage brokers are only willing to cap the rate for 6 to 8 months in most cases.
 
Grasshopper said:
No problem, my future neighbour. It says "48 months rate guarantee". My understanding is the rate is capped to prime rate for 48 months but prime is a variable rate. Let's say closing will be 3-year from now. Case 1) prime rate at 2012 will be 2%, my mortgage rate will be 2%. Case 2) prime rate at 2012 will be 5%, it doesn't mean that my mortgage rate will be 5%. I will have 2 options: (a) re-negotiate with Albert to get a better rate; (b) shop around as there's no obligation.
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Just curious, should this group be only of the people who have bought in emerald City, might be a stupid question, but i was wondering if there could be other who could join the gang, who might have occupancy around the same timelines. Does any one think, my thought here makes any sense and does that sound possible !@?
 
it's only for Emerald City's buyers.

I still think the best bet is try to secure a fixed rate if you can. Who knows what the prime rate will be in the next 2-3 years.
 
Are there any banks offer fixed rate mortage for 2+ years later? I checked with the mortgage specialist with TD. Here is her reply, "For builder deals, we can usually book rates 1.00% off the posted fixed rates for up to 2 years if they are on our builder’s list. I don’t see El-Ad as an approved builder on our list. I will send an email to ask for you to see if this is an approved builder for us to book the rate for you."
 
Grasshopper said:
Are there any banks offer fixed rate mortage for 2+ years later? I checked with the mortgage specialist with TD. Here is her reply, "For builder deals, we can usually book rates 1.00% off the posted fixed rates for up to 2 years if they are on our builder’s list. I don’t see El-Ad as an approved builder on our list. I will send an email to ask for you to see if this is an approved builder for us to book the rate for you."
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I'm not sure. I assumed that you haven't gotten a reply back from her.
Can you please let us know as soon as you get a reply from her, Grasshopper?
 
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