# Mortgage questions



## Fraser19 (Aug 23, 2013)

Hey,

I have some questions about my girlfriend mortgage situation. So right now its up for renewal her old rate was 2.59 with Scotia and that was a two year term. We looked into a few options because the renewal was 3.59 and that was not really all that appealing. Now none of the people we are talking too will even offer a two or three year term. They keep saying it has to be a five year term and that we cannot get the 2.79 rates that we have seen advertised because the renewal is for 129,000.00 

I think that we should be able to do better than 3.59 but none of the banks will offer anything shorter than a 5 year term and we don't want that. What I am wondering is how did she get the 2 year term in the first place? Why wont they allow anything shorter than 5 years?

Also just to clarify this is a 1 bedroom condo in Lloydminster AB built in 2007. I do not own it nor am I on the mortgage, She has good credit and a reasonable income more than she had when she originally got the mortgage.

Any tips for what moves to make for a better rate?


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## Taraz (Nov 24, 2013)

Is she going to pay it off in less than 5 years? Are there penalties for early payoff (i.e., can you apply additional payments each month to pay it off early)?

She could always just take a 5-year mortgage and pay it off faster than that. $129k isn't a big mortgage; some overtime or a second job and she could chunk away at it pretty quickly. The faster you can pay it off, the less you have to deal with the banks.


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## northernguy (Oct 19, 2013)

Have you tried calling Scotia's 1-800 number on the renewal docs they sent you? I just renewed with Scotia and negotiated 2.7% for the variable 5-year. Given that the penalty to break is so little, a 5 year rate isn't the worst thing, particularly on a small mortgage like hers.

Unless there's something you're not telling us, I don't understand why she can't access any of the advertised rate, including the current 3 yr special. I'd try the 1-800 number or another branch route.


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## Just a Guy (Mar 27, 2012)

Talk to a mortgage broker but, unless you want to go variable, 3.59 seems like a good rate right now. Banks don't have to lend you anything, there's no law that says they do. Lending has really tightened up on what they are allowing, small mortgages are tough to get.


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## Fraser19 (Aug 23, 2013)

northernguy said:


> Have you tried calling Scotia's 1-800 number on the renewal docs they sent you? I just renewed with Scotia and negotiated 2.7% for the variable 5-year. Given that the penalty to break is so little, a 5 year rate isn't the worst thing, particularly on a small mortgage like hers.
> 
> Unless there's something you're not telling us, I don't understand why she can't access any of the advertised rate, including the current 3 yr special. I'd try the 1-800 number or another branch route.


The original explanation was that we could not get the good rate from Scotia because she was already witch Scotia. Then I told her to call back the broker and ask why we couldent get the good rates from another lender they said because the loan isn't big enough.


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## northernguy (Oct 19, 2013)

Sounds like the broker doesn't think her business is worth it...I'd try another route.


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## Fraser19 (Aug 23, 2013)

northernguy said:


> Sounds like the broker doesn't think her business is worth it...I'd try another route.


The independent broker, Investors group and Scotia are all offering more or less the same stuff. Feels like were running out out routes.



Just a Guy said:


> Talk to a mortgage broker but, unless you want to go variable, 3.59 seems like a good rate right now. Banks don't have to lend you anything, there's no law that says they do. Lending has really tightened up on what they are allowing, small mortgages are tough to get.


She was originally working to get a variable then today she got a phone call saying that they wont do it because if rates go up to 6% it is not a lending condition within there acceptable risk policy. Something along those lines.

If we cannot get much further than 3.39 then I adjusted to her that we go with whatever agreement will allow us her to pre pay as much as possible per year to only the principal amount.


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## Taraz (Nov 24, 2013)

Have you checked with ING? Their 1 year fixed is advertised at 3.19%. (They are owned by Scotia now, so not sure if their policies are any different.)


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