[dpylyp]

There is an existing building in Mississauga at Rathburn and Confederation that has remaining units.

There is a new sign on the frontof the building that promotes interest free mortgage for three years.

Given that rates are as low as 3.6 on a five year term would the mortgage rate induce your interest to have a look at the building?

 

[nfitz]

Given that rates are as low as 3.6 on a five year term would the mortgage rate induce your interest to have a look at the building?

Those of us who signed up to 5-year variables just before everything blew up at the beginning of 2008, are still paying 1.35% currently. At that point there isn't much difference between 0% and 1.35%

 

[taal]

Those of us who signed up to 5-year variables just before everything blew up at the beginning of 2008, are still paying 1.35% currently. At that point there isn't much difference between 0% and 1.35%

1.35% ?? huh

 

[nfitz]

1.35% ?? huh

Bank prime is currently 2.25%. Until well into 2008, the banks were advertising variable rate mortgages of prime minus 0.75%, which is 1.5%. And that was negotiable; it wasn't difficult to push them to prime minus 0.9% if your credit history was okay; I've even heard of prime minus 1% ... though not as recently. So there's a lot of people out there currrenly paying between 1.35% and 1.5% on their mortgage. And probably a few who even have 1.25%.

 

[sup2009]

I also have a few friends/clients with very low interest rates. I believe one of them is currently paying 1.5%. I wonder if the banks will ever offer prime minus % again?

 

[taal]

wow, that's amazing - so I take it theres no way to get that now?

Isn't prime plus 0.5 - 1 typical now?

 

[nfitz]

wow, that's amazing - so I take it theres no way to get that now?

Isn't prime plus 0.5 - 1 typical now?

Royal is advertising prime plus 0.8. Ing is advertising prime plus 0.7. You may be able to negotiate down to prime plus 0.6 ... so that's 2.85%. Which is more than 1.35%, but still a lot lower than I was paying when I got the mortgage 2 years ago.

Though the real losers are those that are locked in for fixed mortgages in at 4%, 5%, and even 6%!

 

[iheartproperty]

There is an existing building in Mississauga at Rathburn and Confederation that has remaining units.

There is a new sign on the frontof the building that promotes interest free mortgage for three years.

Given that rates are as low as 3.6 on a five year term would the mortgage rate induce your interest to have a look at the building?

Just a marketing gimmick. If the average mortgage is $300,000 and assume 3.5% interest x 3 years so in effect this amounts to $31,500 discount or roughly 10% depending on the down payment.

These sort of developer/broker tricks are used to mask the underlying weakness in the new condo sales market and allow the industry to mislead the public into thinking that prices are stable when they are falling fast. Don't be fooled!

Instead, ask for or negotiate a $30k discount and go out and get a long term fixed rate mortgage. You'll never see interest rates this low again in your lifetime and if you do it won't matter because you won't have a job and won't be able to service a mortgage!

p.s. it's way better to rent now.

 

[Jarrek]

Our mortgage is at 1.5% now. Hopefully it will stay this way into 2010.

 

[cdr108]

Our mortgage is at 1.5% now. Hopefully it will stay this way into 2010.

I'm assuming you're on a variable rate mortgage.

BOC has already indicated that they are planning to hold current rates until at least Q2 2010.

 

[taal]

Royal is advertising prime plus 0.8. Ing is advertising prime plus 0.7. You may be able to negotiate down to prime plus 0.6 ... so that's 2.85%. Which is more than 1.35%, but still a lot lower than I was paying when I got the mortgage 2 years ago.

Though the real losers are those that are locked in for fixed mortgages in at 4%, 5%, and even 6%!

You hit it on the nail the 2.7-2.9 range was attainable I found. Lucky guys/gals with sub 2% ... good for you!