# Anyone try to do a blend lately?



## marina628 (Dec 14, 2010)

I had to go into TD today to sign for a Bank Draft and while visiting the lady at my branch I asked her what would be the rate if we did a blend on our rental with the 4.1% interest rate and renewal date April 1 ,2016.She put some numbers in her computer and she said if we did the 5 year it will be 4.67% ,higher than what we have now!
She said whatever is in her computer is all she can do but it appears they are now blending your exiting rate to the normal posted rate and will no longer blend your rate with the special offer rate.Last year we did get to blend our rate with their special rate at the time without issue.


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## Echo (Apr 1, 2011)

Sounds like a lousy deal to me.


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## My Own Advisor (Sep 24, 2012)

Did you speak with the branch manager yet?


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## marina628 (Dec 14, 2010)

I was not overly concerned to do anything as the balance is only $70,000 but seems this is brand new change at TD Bank.


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## Echo (Apr 1, 2011)

Could they be working a penalty into the rate somehow (your IRD or three month penalty)?


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## marina628 (Dec 14, 2010)

Well there is no penalty in the blend and extend usually but they are obviously doing something .She said old way there was nothing stopping people from coming in once a year to cut the interest rates,looks like they are finding ways to close the loops .I did a blend and extend last year no penaly and got a reduction and just in February my friend did hers and it dropped from 5.5 to 3.8%.Anyway just thought it could be of interest for those thinking of this option ,I am unsure of what other banks are doing but definitely a change in TD policy in recent weeks.


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## Spudd (Oct 11, 2011)

They've always charged me the penalty when I did the blend and extend in the past.


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## marina628 (Dec 14, 2010)

Spudd said:


> They've always charged me the penalty when I did the blend and extend in the past.


 Did you get extra money? Never paid anything both times I have done.


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## Echo (Apr 1, 2011)

Comment from a broker on this post - http://www.timelessfinance.com/2013/01/23/do-the-blend-and-extend/

"Blend and extend is usually just a nice way of saying your penalty got worked into your mortgage."


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## Four Pillars (Apr 5, 2009)

Echo said:


> Comment from a broker on this post - http://www.timelessfinance.com/2013/01/23/do-the-blend-and-extend/
> 
> "Blend and extend is usually just a nice way of saying your penalty got worked into your mortgage."


+1 - It's just a marketing gimmick.


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## marina628 (Dec 14, 2010)

Four Pillars said:


> +1 - It's just a marketing gimmick.


Well I kept same payment and knocked 7 years off my mortgage so I am happy to sign up with a few more gimmicks.


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## Xoron (Jun 22, 2010)

marina628 said:


> Well I kept same payment and knocked 7 years off my mortgage so I am happy to sign up with a few more gimmicks.


Sure, but that doesn't mean it was necessarily the best deal. The penalty for breaking the mortgage, and getting a new mortgage with a much lower rate MAY have have knocked even more years off.

The only way to know is to run the numbers. (or have a mortgage broker run them for you)


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## Four Pillars (Apr 5, 2009)

marina628 said:


> so I am happy to sign up with a few more gimmicks.


And that's what makes the banks happy...


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## marina628 (Dec 14, 2010)

Four Pillars said:


> And that's what makes the banks happy...


I paid no cash ,kept payment the same went from 24 years to 17 years .Don't think I need anyone running numbers , common sense kicked in and I save 7 years for nothing except a piece of paper.Anyway I think this horse is dead lol


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## sags (May 15, 2010)

Offering "discounted" mortgage rates to fewer customers will help "maximize" their profits.

Maybe the plan is not to offer.............and only give in to the customers who are more forceful.

Every customer who shrugs and says......."oh well".........is more money for the bank.


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