# Prime -0.9 mortgage with Prime +.5 HELOC. Is better available?



## deal_king (Dec 28, 2010)

We have an offer from CIBC (bank) for Prime -0.9 mortgage with Prime +.5 HELOC.

Does anyone know if better is available and from who? I have heard of people getting Prime -0.9 mortgage with Prime + 0 HELOC with Firstline, but I have no idea who can offer me this rate.

Any tips or contact names/numbers?

I'm also wondering whether I should lock in now, because of the recent housing boom and the likelihood that rates will rise when it crashes. Usually fixed is for people without much equity in their homes, but we have 50% equity.


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## marina628 (Dec 14, 2010)

I went to a fixed 3.49% a couple months ago on our investment and three weeks ago we got 3.69% for five years on our personal home.Within a month or so the fixed rate cahnged a bit.We were paying 2.75% variable but I feel more comfortable with the 5 year fixed.I have had variable for past 8 years on my home ,just think that ride may be over shortly.
Both rates seem to be a good deal though and I would not sleep on it too long.


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## deal_king (Dec 28, 2010)

marina628 said:


> I went to a fixed 3.49% a couple months ago on our investment and three weeks ago we got 3.69% for five years on our personal home.Within a month or so the fixed rate cahnged a bit.We were paying 2.75% variable but I feel more comfortable with the 5 year fixed.I have had variable for past 8 years on my home ,just think that ride may be over shortly.
> Both rates seem to be a good deal though and I would not sleep on it too long.


Actually Ratesupermarket.ca is now showing a 5 yr variable at P-0.95%! I wonder which bank it is with.

The CIBC HELOC has a $499 "setup" fee.  I wonder if Firstline charges for setup??


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## houska (Feb 6, 2010)

I'm not up on the best rates, but your config of mortgage + HELOC suggests you value repayment flexibility at least in part. If so, make sure you also investigate prepayment options / open vs closed mortgage in the different choices you are exploring.

When we did this 2 years ago, we first thought our best option was a closed mortgage at P-0.85 plus a HELOC at P (these were good rates at the time). But the closed mortgage only allowed 15% prepayment per year. We ultimately went with another bank through which we set up several mortgage accounts, each fully open at P-0.75. The 0.1% penalty was worth it for us and we were able to avoid the higher rate HELOC altogether (your mileage may vary - I'm just raising the question). We've since fully paid off some of the accts.


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