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Variable rate war…*YAWN*

Mortgage Tips Robert Ganzhorn 17 May

If you’ve been watching the news you’ll notice the big lenders are pulling out all the stops with a variable mortgage rate war to try to offset the lack of mortgages being funded this spring.

A few thoughts on this….

My brokerage has had these rates for weeks now. We can offer the big lender mortgages to you as well but those are likely more restrictive (fine print) than what we already have in our toolbox

For those of you that took a variable rate mortgage before this announcement and are stuck at a higher rate I feel badly for you. But you’re not really stuck – YOU SHOULD LOOK INTO BREAKING THAT MORTGAGE REGARDLESS OF HOW LONG YOU’VE HAD IT. Standard breakage for a variable mortgage is three months interest which may not be a huge penalty depending on the facts surrounding the mortgage. To top it all off there are lenders that offer no charge transfers and allow you to capitalize up to 1% of the mortgage balance to a maximum of $3,000 to cover those breakage fees. It’s almost found money in some situations.

Finally if you have a mortgage renewing within a 90/120 days hurry up and get a pre-approval or just break it now and execute on these offers.