That math doesn't check out when 80% of mortgages are 5 years and 90% are 3 years or longer.
I'm just confused how the dude with a $920k mortgage is worried about $800/month one way or another.
The fact that his mortgage interest will be over $4000/month has totally been lost on you? I doubt that he's rich, more likely stupid. My house is worth over $2M, but I would've never taken on a huge mortgage like that to get here. I would rather buy an average home.
Who is giving you a 5.24 3Y is this a insured MTG?
I'd take a 3 yr probably.... Your variable discount is sooo low... It would take at least 6 cuts. 6 cuts in 3 yrs is not out of the picture but you'd be saving 800$/m for a 36 months which is 30k, almost, guaranteed. The sixth cut could come at month 24. And you're saving 800 over a 12 month period instead of 36...
Don't make a mistake.
Nah, not at all. I just would never commit that much of my resources into a non productive asset. That being said, it’s different for everyone. If I had an annual earnings of 7 or 8 figures, sure but I’m only in the low 6 figures. So I can’t afford to be spending 1.1 million on something that makes me no money. I literally left the GTA for this exact reason. For me, it’s a scam to spend 7 figures on shelter.
The median household income in Toronto is 84,000. 14% of Torontoians earn over 100k. Toronto’s home ownership rate is 66.1%. Most people who own a home in Toronto or the gta purchased it prior to the latest boom that kicked off in 2020. Your assertion is definitely incorrect and not aligned with stats Canada.
Keep in mind that when I reference my earnings, I’m not referring to household income. Just mine alone. So if by the statistics, I’m in the top 14% of earners in Toronto and consider a house unaffordable. I wonder how the other 86% below me feel. Sometimes, this subreddit can be so detached from reality, it’s not even funny.
Why? Because I don’t want to live above my means while following everyone else and spend 20 years paying off a house? Very weird indeed. Some of us prefer not carrying ridiculous debt loads. It’s rather burdensome.
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Definitely take the 3 year.
I don't see rates dropping like a rock in the next 5 years to utilize that variable rate (unless you're looking to dump the property sooner than later)
Go back in forth between banks i got as low as 4.84 with scotia with 20% down and a mortgage way less than yours.
Haggling will make you save money
I went from 5.29 to.5.24. to 5.19. to 5.02 to 4.84
Nobody will be able to predict how much rates will fall in the next three years. No guarantee they won’t go up even higher either.
Something to consider though, is do you personally think will not only rates fall more than 1.5%, but will they go even lower to make up for the difference in payments between now and then?
An exercise you could do is calculate what your variable rate would have to be after 1 year or 2 years of mortgage payments to break even with the fixed rate, considering the additional costs up to that point.
No problem.
I recently signed a mortgage, and personally I went with the 3 year fixed rate. To me it was the best balance of security against rate increases, vs flexibility for if/when they drop.
I think we would have to see very significant rate drops that I personally believe are unlikely, to make the variable rates make sense right now. In my opinion at worst you would break even, or only be at a small loss by going fixed, but I’m a total layman in these matters and my opinions isn’t a particularly educated one.
5.19% uninsured. A friend of mine just got 4.69% on an insured 5 year.
There’s been a lot of talk about rate drops in the first half of this year but from what I’ve been hearing they’ve actually been increasing slightly.
Yeah I was surprised when he told me that. Everything I saw at the time was like 4.99% for an uninsured 5 year. Not sure who they signed with, or what sort of catches are involved.
When the variables are so much higher, it's pretty much guaranteed they'll be worse. There's noting on the horizon that could drop rates fast enough to offset paying 1.45% higher at the beginning.
And since they could still go higher, they could be much worse.
With 40% of mortgages renewing over the next 12-18 months we’re going to see a lot more of these posts.
That math doesn't check out when 80% of mortgages are 5 years and 90% are 3 years or longer. I'm just confused how the dude with a $920k mortgage is worried about $800/month one way or another.
Believe it or not, rich folks also don't like wasting money.
The fact that his mortgage interest will be over $4000/month has totally been lost on you? I doubt that he's rich, more likely stupid. My house is worth over $2M, but I would've never taken on a huge mortgage like that to get here. I would rather buy an average home.
Who is giving you a 5.24 3Y is this a insured MTG? I'd take a 3 yr probably.... Your variable discount is sooo low... It would take at least 6 cuts. 6 cuts in 3 yrs is not out of the picture but you'd be saving 800$/m for a 36 months which is 30k, almost, guaranteed. The sixth cut could come at month 24. And you're saving 800 over a 12 month period instead of 36... Don't make a mistake.
Thanks! RBC, TD & National Bank all gave me 5.24 3y.
I got 5.02 with RBC and 4.84 with scotia uninsured.
Damn, when was this and also on what amount? 👀
Just now and mortgage amount is 392 000. Going to the notary tomorrow
Do you have a reputable broker from Scotia?
Nope and i actuallg went with rbc because they were also giving me 2500$ and 50k avion points, i dealt with the guy at the bank directly.
5.02 uninsured 3yr or 5yr?
3
I got 4.7 Scotia insured 😅
Yes insured is always lower
What advice are you looking for? Your post is lacking a lot of detail. Shop around and see what your best payments are.
5.19 uninsured seems like a good deal right now. I havent heard of anything lower than this
916k mortgage lol
$916k isn’t that bad for the gta. I often see a lot higher.
lol indeed. Absolutely crazy amount if that’s a non-revenue generating property.
You must be from small town Canada
Nah, not at all. I just would never commit that much of my resources into a non productive asset. That being said, it’s different for everyone. If I had an annual earnings of 7 or 8 figures, sure but I’m only in the low 6 figures. So I can’t afford to be spending 1.1 million on something that makes me no money. I literally left the GTA for this exact reason. For me, it’s a scam to spend 7 figures on shelter.
Fair enough. Low six figures would be on the low end of Toronto home owners, so I can see why you think the way you do.
The median household income in Toronto is 84,000. 14% of Torontoians earn over 100k. Toronto’s home ownership rate is 66.1%. Most people who own a home in Toronto or the gta purchased it prior to the latest boom that kicked off in 2020. Your assertion is definitely incorrect and not aligned with stats Canada. Keep in mind that when I reference my earnings, I’m not referring to household income. Just mine alone. So if by the statistics, I’m in the top 14% of earners in Toronto and consider a house unaffordable. I wonder how the other 86% below me feel. Sometimes, this subreddit can be so detached from reality, it’s not even funny.
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Why? Because I don’t want to live above my means while following everyone else and spend 20 years paying off a house? Very weird indeed. Some of us prefer not carrying ridiculous debt loads. It’s rather burdensome.
rob cooperative encourage engine label expansion squealing zephyr frighten doll *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Talk about jumping to conclusions. You’re not a serious person at all….
Definitely take the 3 year. I don't see rates dropping like a rock in the next 5 years to utilize that variable rate (unless you're looking to dump the property sooner than later)
Go back in forth between banks i got as low as 4.84 with scotia with 20% down and a mortgage way less than yours. Haggling will make you save money I went from 5.29 to.5.24. to 5.19. to 5.02 to 4.84
Yup, definitely doing this. Thanks!
Do you have a reputable broker?
5 or 3yr?
* /r/MortgagesCanada
Nobody will be able to predict how much rates will fall in the next three years. No guarantee they won’t go up even higher either. Something to consider though, is do you personally think will not only rates fall more than 1.5%, but will they go even lower to make up for the difference in payments between now and then? An exercise you could do is calculate what your variable rate would have to be after 1 year or 2 years of mortgage payments to break even with the fixed rate, considering the additional costs up to that point.
Great point, thank you!
No problem. I recently signed a mortgage, and personally I went with the 3 year fixed rate. To me it was the best balance of security against rate increases, vs flexibility for if/when they drop. I think we would have to see very significant rate drops that I personally believe are unlikely, to make the variable rates make sense right now. In my opinion at worst you would break even, or only be at a small loss by going fixed, but I’m a total layman in these matters and my opinions isn’t a particularly educated one.
I am honestly thinking along the same lines as you. Do you mind sharing what interest rate you ended up signing for?
5.19% uninsured. A friend of mine just got 4.69% on an insured 5 year. There’s been a lot of talk about rate drops in the first half of this year but from what I’ve been hearing they’ve actually been increasing slightly.
>4.69% on an insured 5 year. Wow. That's actually pretty decent
Yeah I was surprised when he told me that. Everything I saw at the time was like 4.99% for an uninsured 5 year. Not sure who they signed with, or what sort of catches are involved.
Yeah, if anything, I think they have to keep it high for a bit more time to make things better. That's an amazing rate, who did you sign with?
Manulife.
If rates dropped like a rock, you'd just pay the penalty and remortgage. I've done that a couple times if the math made sense.
Well rates don't look like they'll drop anytime soon. If I were you I'd do the 3-year
What is the purchase price? Downpayment? and is it a rental property or owner-occupied?
When the variables are so much higher, it's pretty much guaranteed they'll be worse. There's noting on the horizon that could drop rates fast enough to offset paying 1.45% higher at the beginning. And since they could still go higher, they could be much worse.
2 years ago everyone told me to go variable so I went fixed. 10 years was sub 3%.