Mortgage Coming up for Renewal

**mom2three** · 06-13-2008, 08:44 PM

We're in Canada and are buying a new house at the end of the month. We will do variable at the moment - prime - 0.625% I think - works out to 4.325% I think. We can lock in at any time during the next three years and pay 20% extra each year if we want. After that, it is an open mortgage. I've had a bad experience with a lender through a mortgage broker so went with a nak this time.

Amanda

**Wendy99** · 06-13-2008, 09:59 PM

This was the first time I was going to try a broker & found I could do better on my own with the way the banks compete against one another I mean I went from 6.65% to 5.20% !! Yeah I get stressed out each time we renew (it's not a refiance - refiance is where you add money on to your mortgage), this is just a renew of the term and yes the interest rate part is what stressed me out, it can go way up or way down. I'm a lot less stressed now with it having gone up so little from what we were.

**Wendy99** · 06-13-2008, 10:03 PM

Originally Posted by mom2three

We're in Canada and are buying a new house at the end of the month. We will do variable at the moment - prime - 0.625% I think - works out to 4.325% I think. We can lock in at any time during the next three years and pay 20% extra each year if we want. After that, it is an open mortgage. I've had a bad experience with a lender through a mortgage broker so went with a nak this time.

Amanda

Wow thats an awesome interest rate!! Way to go

.. I'm much too chicken to do a variable rate mortgage lol .. I just like knowing where I stand and not having to worry again for 5 years. But good job!! We get the extra payments and increasing our payment by 100% too, but we won't be taking advantage of that for a bit anyways ... too much to save up, now that we have smartened up .. FINALLY

... but maybe after a bit we'll be able to pay some extra on it, just not a goal right now.

**heartofmine** · 06-13-2008, 10:13 PM

Originally Posted by Wendy99

They did it .. our bank beat the rest - found out today. We just renewed our mortgage for 5 years at 5.2%. Signed the papers and everything is set to go !!

Congratulations!! Thats just wonderful. I know that takes a load off you.

**ConnieD** · 06-14-2008, 08:57 AM

Great job guys on negotiating and getting good rates.

I hope I can do as well in a few months. We had a regular variable rate mortgage for years (I think around 6 years) and it worked out great. The rates stayed nice and low. When we had to renew our term 3 years ago, the rates looked like they were rising a bit, so we went a little safer with a variable that locked in though at a certain percentage (I think it was 5.6%) so we were able to take advantage of the lower fluctuating rates, but still be safe if rates climbed.

I didn't realize that in the States when you got a 30 year mortgage that your rate stayed the same for all of those 30 years. We just don't have those in Canada. It used to be the longest term you could get was 5 years. Then it went to 7 and now I think you get get a 9 year term, but not sure. If rates are really low, of course a longer term would be best.

I'm just anxious for when this flipping mortgage is paid in full, LOL!!

**Wendy99** · 06-14-2008, 12:21 PM

Originally Posted by ConnieD

It used to be the longest term you could get was 5 years. Then it went to 7 and now I think you get get a 9 year term, but not sure. If rates are really low, of course a longer term would be best.

I'm just anxious for when this flipping mortgage is paid in full, LOL!!

Now the longest term is 10 years!! wow eh? I can't wait until my mortgage is paid in full too!! If we had been frugal earlier in our life we would have had it paid off most likely 5 years from now (or even now), but because we screwed up in the past we have another 15 years to go ugh!!!! But ahhh learned from our mistakes a couple times & this time I've learned more than ever.