# Am I too early for rate freeze?



## dcaron (Jul 23, 2009)

*Am I too early for a rate hold?*

Is 8 months too early to get a rate hold for my mortgage renewal? I think the standard is 60-120 days max.
I would like to break my mortgage 7-year term, at year #5, due in Feb 2013. (Mortgage Rate is 5.22%, HELOC rate is 3.16%)
The penalty fee will only be 3 month interest at that time, instead of IRD.
I will be looking for a portable & assumable mortgage, and HELOC ~of $30K

We got our house built in 2008 for $455K. It was appraised by our lender (National Bank) for $435K.
This year's municipal appraisal for our house is $405K.
On Feb. 2013, we will owe $263K on our house, and $0K on our HELOC.

Im thinking of dealing with Multi-Pret, as they are one of the more popular mortgage broker here in Quebec.
Also considering "Dominion Lending Centre", but they have opened their offices in Quebec, only a year ago.
Is RateSupermarket.ca the ideal place to find lenders?

As of today, Dominion Lending Centre offers 2.90% on 5 year variable term in Quebec.
True North Mortgage offers 3.08% on 5 year closed term.

http://www.ratesupermarket.ca/best_m...rovince=Quebec


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## Just a Guy (Mar 27, 2012)

It is never, technically, too early...the question should be does it make sense financially. You've got your numbers, do the math and you'll know. Usually a 2% rate differential is a no-brainier, but penalties vary all the time. 

Some helocs also allow you to lock in portions like a mortgage, at mortgage rates.


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## dcaron (Jul 23, 2009)

Just a Guy said:


> ...the question should be does it make sense financially. You've got your numbers, do the math and you'll know. Usually a 2% rate differential is a no-brainier, but penalties vary all the time ...


IRD penalty has been hovering in the $20-28k area, so it makes more financial sense to wait for my bank's IRD policy to expire when I reach the 5 year mark in my term (Feb 2013).

Once you sign up with a mortgage broker, I assume you also commit to closing the deal with them within that rate hold period, or risk paying a small penalty? It probably does not make sense to engage another broker until the rate hold period ends, even if they offer a better deal, correct?


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## marina628 (Dec 14, 2010)

Blend and extend maybe an option for you ,there is no fee for that.Best to sit down with your bank and let them work things out right to the penny.


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## dcaron (Jul 23, 2009)

Marina, I dont think this would be beneficial as I would likely get stuck with another mediocre rate for a while. I would rather pay 5.22% for another 8 months, then give my bank an ultimatum to try to match a 3'ish rate, and jump ship if they wont.


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## Just a Guy (Mar 27, 2012)

dcaron said:


> Once you sign up with a mortgage broker, I assume you also commit to closing the deal with them within that rate hold period, or risk paying a small penalty? It probably does not make sense to engage another broker until the rate hold period ends, even if they offer a better deal, correct?


Technically, no. Ethically, well that's another story. They get paid by the lender if you sign a loan, you could get more than one broker working for you, but if they hit the same lenders, the lender may think you're shopping and reject you. Also they both pull your credit score, which will effect your score.

Not all brokers have the same lenders though...


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## dcaron (Jul 23, 2009)

Thanks for you reply JAG. That makes sense. Wouldn't want a double-whammy on my credit score. Sounds like I first need to start shopping for a broker, rather than conditions & rate ...


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