Got 0.9% below prime - Broker or bank?

[psyched]

Got approved for 0.9% below prime for a 5 year variable rate both through my main bank and through a broker. I do all my banking with the bank, which is the advantage there. The lawyer we are using works with the broker and if I choose our mortgage with them, I get a few hundred dollars off our lawyer fees. I feel comfortable with both. Is there any other advantages to using either one?

[blexann]

Got approved for 0.9% below prime for a 5 year variable rate both through my main bank and through a broker. I do all my banking with the bank, which is the advantage there. The lawyer we are using works with the broker and if I choose our mortgage with them, I get a few hundred dollars off our lawyer fees. I feel comfortable with both. Is there any other advantages to using either one?


is that .9% below prime good for the 5 yr term ?

[gman]

Which bank?

[BadDrafter]

Do tell. Inquiring minds want to know ;) .

[stewpy]

Having your mortgage with your main branch could give you leverage on pricing of other loans and products.

If the broker gave you the rate first, though, and the bank matched reluctantly, might be honorable move to go with him.

What are other features? Prepayment, discharge fee, etc... Those might tip the balance one way or another.

[psyched]

Do tell. Inquiring minds want to know ;) .

TD Bank at Hurontario/Dundas. Ask to speak with Jerry.

And he matched it from the broker who is Carroll & Somers. Now these guys would give us discount on our lawyer (significant one), plus throw in $25k insurance in case of something going wrong w/ the moving, and 1 year warranty on built-in appliances.

So ..... as you see we're not sure what to do.

[charliebrown]

TD Bank at Hurontario/Dundas. Ask to speak with Jerry.

And he matched it from the broker who is Carroll & Somers. Now these guys would give us discount on our lawyer (significant one), plus throw in $25k insurance in case of something going wrong w/ the moving, and 1 year warranty on built-in appliances.

So ..... as you see we're not sure what to do.

Unless your broker is willing to share their commission (they'll get close to 1% from the originating bank), i'd say, go with the bank so you have better leverage with them down the road :)

[Audiogenic]

Some mortgage lendors (First National (TD/ING), FirstLine (CIBC), ect.) cannot offer you a line of credit as banks can. If you are looking for a unsecured line of credit, I'd stick with your bank.

[mart242]

I'd go with the broker. Banks will end up screwing you at some point and you'll get pissed at it. If you don't have a mortgage with them, you can simply move your accounts somewhere else. As for a loan, you can get a home equity line of credit and pretty much all banks should have the same rate for that (prime rate).

[monomono]

Got approved for 0.9% below prime for a 5 year variable rate

Great rate - is it open or closed?

[Ron]

Having your mortgage with your main branch could give you leverage on pricing of other loans and products.

Probably not. You can't say "give me a discount or I move the mortgage."

Go with the broker. But remember, PRIME is not the same everywhere!

[Agent_J]

Probably not. You can't say "give me a discount or I move the mortgage."

Go with the broker. But remember, PRIME is not the same everywhere!
yes they are, all banks are currently @ 5.5% (besides Bank of Canada of course @ 3.75%)

[Ron]

yes they are, all banks are currently @ 5.5%

They might be right now, but not all the major banks have the same prime at the same time all the time.

[ZxExN]

I'm sorry but a .9 below prime variable is not all that great.
Go with the company you like based on service. If the banks treat you like **** and their rate is the same as the other guy with great service, then why would you go with the bank? The big banks will always find a way to screw you in the end. The banks rates are usually the worse you'll get btw, go shopping around.

[st7860]

Probably not. You can't say "give me a discount or I move the mortgage."

Go with the broker. But remember, PRIME is not the same everywhere!

why can't you say it? do you mean you "can't" say, it, or do you mean"you can say it, but the bank will laugh at you?"

[gman]

yes they are, all banks are currently @ 5.5% (besides Bank of Canada of course @ 3.75%)

The bank of Canada is bank rate and not prime rate.

Banks can set their prime rate to whatever they want. Usually, in the news, you heard, Bank of Canada raises its rate to 4%. CIBC and Bank of Montreal follow and adjust their prime rate to 5.75%. It does not mean TD has to follow although usually the day after, TD announces they raise their rate to match the other bank.

There are more than just big 5 bank lending you money for mortgage. It can be some smaller credit union, etc. A broker can potentially find you a lender whose 'prime' rate is not main stream.

[gman]

why can't you say it? do you mean you "can't" say, it, or do you mean"you can say it, but the bank will laugh at you?"

He means one already has a mortage with the bank. It is in the middle of term such as the first year of a 5 year mortgage. He wants another loan with better discount. The threat of moving the mortgage 'now' is not that powerful in that situation.

[gman]

I'm sorry but a .9 below prime variable is not all that great.
Go with the company you like based on service. If the banks treat you like **** and their rate is the same as the other guy with great service, then why would you go with the bank? The big banks will always find a way to screw you in the end. The banks rates are usually the worse you'll get btw, go shopping around.
Did you see anything which is much better? Of course, we are talking about Canada with the time line is 'now' and not a place like Hong Kong.

[Droog99]

Unless your broker is willing to share their commission (they'll get close to 1% from the originating bank), i'd say, go with the bank so you have better leverage with them down the road :)

The broker is not getting 1% from the bank. Probably had to buy down the rate and getting .6%. The broker is probably also the one that is paying out of his pocket the discount to the lawyer for referring the business.

[Droog99]

TD Bank at Hurontario/Dundas. Ask to speak with Jerry.

And he matched it from the broker who is Carroll & Somers. Now these guys would give us discount on our lawyer (significant one), plus throw in $25k insurance in case of something going wrong w/ the moving, and 1 year warranty on built-in appliances.

So ..... as you see we're not sure what to do.

If you go with the Bank's offer, be careful of the terms and conditions of the mortgage contract. I know of someone getting their bank to undercut a broker for a mortgage at their own bank, they then changed the variable rate mortgage from being open for 5 years with 3 months interest penalty to closed for 5 years with only the option to convert to fixed term. Less than a year later he wanted to sell the house and rent. Because of the change in the contract, he ended up getting dinged with a penalty three times as much as it would have been before the deal was changed.