Great point! Especially now, when the stress test no longer applies when you switch lenders at renewal. Also, just found out a fun fact, that I wish I'd known earlier. For those that renewed at the hight of the rates, and are stuck in the 3 or 4 year terms, if you break the term, in order to enter a new term at more favourable rates, ask your lender for a discount on the penalty, if you stay with them for the new term. Scotia gave us 3k discount on the 5k penalty, to get us to enter the new term with them.
Good advice. My motto is Always ask! You have nothing to loose and you might surprise yourself. It's a very competitive environment out there for these banks trying to retain your business.
Hey Owen thank you so much for your videos! My sister is renewing her mortgage soon and I’ve referred her to watch this video. I’ve been watching your videos for years and you’ve changed my life. Appreciate all that you do! I was wondering if I could get the contacts for your TD and RBC rep. My sister would really appreciate that. Thanks so much!
Very good to point out that a passive approach at mortgage renewal is costly. Banks count on people not putting in the effort to get better rates. However, I've also tried to negotiate with big banks in the past and there was such limited wiggle room. in some cases, they would not even match broker numbers who are obviously getting paid a substantial fee by the banks. Going direct is not as easy if you don't have a substantial portfolio I have found.
Sorry... fixed rates will continue to fall over the next 12 months. Next BOC meeting is Dec 11 looks like we will have another .25-.50 basis point cut. First quarter of 2025 there are calling for 1 or 2 more cuts. Lot more to interest rate policy than bond yields.
Owen, one must understand that a mortgage is very much like a publicly traded bond. As such, mortgage rates are forward looking. When mortgage rates are substantially higher than the Bank of Canada overnight rates, then the market is anticipating higher for longer interest rates in the foreseeable future. Since you've been in the real estate and stock market for decades, you probably are well aware that the spreads between bond yields and interest rates can accurately predict interest rates trajectory.
I'm well aware. The message in this video is to never accept the first set of rates the bank gives you even with their relationship discounts. Update this renewal with RBC was just done yesterday. I locked in another 3 year fixed at 4.14% after i pushed them to give me a better rate and telling them the rate i got from TD last month. There absolute best rate they gave prior to this was 4.51% Banks have the ability to give further discounts and offer special rates on certain term form week to week. It's competitive use it to your advantage
Mortgage renewing first week of Feb, I wanted to wait to renew until after the Jan.31 announcement but that's cutting it close. The mortgage broker at the bank said she'd prefer I make an appointment to renew mid Jan... we didn't use rbc or td. A few weeks ago she quoted me 3 yr fixed 4.7% and 3 yr variable 6.8%
On the topic of TD... If you have a TD mortgage, TD insurance will give you an additional discount. I was shopping around last year for condo insurance (we have a one bedroom). Everyone was quoting me 1k or over. TD insured me for 860. Still crazy compared to the late 2010s but in today's environment I think that was good. And now I distracted myself from your video (commenting before I finished watching) lol. Time to watch your video again!
Yes i have many clients who use TD insurance. I have been tempted myself to give them a try i have had all my properties insured with Co-operators for the past 20 years but i should probably be shopping things around more.
Owen when are you gonna rock that ice-blue sport coat again?? That was slick very Madmen / Palm Springs 1962 Frank Sinatra Thanks for the update my variable is dropping like a rock. Business picking up!
Thanks Jay...Haha. Yeah that was a nice sport coat unfortunately it was not a custom fit so was a bit tight in the back. I ended up tearing the entire back out incredible hulk style!
Always 25 no idea if there is a difference in rates the Liberals just re-introduced the 30. Stay tune for a video on this and why people should avoid the 30 year
Great video! Thanks for sharing, the never ending debate between fixed and variable is confusing a lot of buyers right now. You mentioned you just got a fixed rate mortgage on your principal residence few weeks back. Curious why did you choose fixed when variable is expected to go down further? Some are estimating it may go down by another 150 bps. Your response would be appreciated. Thanks
I still have several variables currently they are both down to 4.92% I have been enjoying a new 3 year fixed at 4.1 from TD for almost 5 weeks now. Sure that variable will go down further over the next 12 months.. how low? who knows? Maybe it starts to go up again in 2026? Why guess i prefer to spread my mortgages out into variable and fixed i also take the opinions of my mortgage reps and what kind of special deals i can get at time of renewal but at the end of the day were all just guessing. Fortunately all my mortgages are all fairly small and all the interest is deductible anyway on my investment homes. I don't really sweat the guess work too much these days.
TD offered us 4.09 on a big mortgage on a principal residence closing early Dec, RBC guy is trying to get prime minus 1.1, wife and I have been in dilemma about what to choose. We have other investment properties and have a mix of fix and variable. Appreciate you sharing your perspective. So many unknowns right now. Some are saying with 4M mortgages up for renewal over in 25-26, BOC will keep rates low to avoid catastrophe as fixed rates seem to have bottomed out and settled in the 4.1-4.25 range.
@@OwenBigland just want to thank again for starting this channel and giving a platform for people to share opinions, concerns and ask you questions and get your POV. This is very meaningful. Cheers to you
Someone like Owen should at least get prime - 1.2% on variable so that's 4.75% right now. I'm just an employee and even I got prime - 0.95% which is 5.0% right now and yes about to go down to probably 4.5% in a few weeks for me. Same with my investment property. I'm thinking 5 - 6 months before my mortgages need to be renewed I'll contact my big bank and tell them something along the lines of "I'm considering renewing my mortgage with you, however I did looked around saw that I could get prime - 1.2% on variable like some of my co-workers with their banks, or whatever a good fixed rate for 5 years is at the time. Please open with the best rates so we don't need to go back and forth .... " If they still insist on starting with high rates I guess I'll need to make the call like Owen but it's just a waste of time and not good for anyone.
@@OwenBigland 4.14% is a great rate. My coworker got 4.69% on a 3 year fixed mortgage but that was 6 months ago so at the time it was good. I'm still on variable and rode the wave up and now down. Obviously I should have locked in previously but too bad. Better than renting either way haha
No.. but my mortgages are fairly small. It can make sense in some situations for sure.. so probably worth checking into if you are locked in to apoor rate.
Often these bank push certain fixed rates. The longer the better for the banks. They love to charge you heavy penalties to break a mortgage early. I always advise owners if they think they might want to sell in the next few years lock in a 1 or max 2 year fixed. Breaking a 5 yr fixed after a few years can be costly.
Thanks for this, Owen. Any thoughts on True North? Their rates are always so good and I’ve heard good things about them, but it almost seems too good to be true?
I don't know anything about them. Make sure you read the fine print some of these too good to be true rates can come with a lot of restrictions and heavy penalties if you sell with term still remaining
I have always found RBC and TD superior especially if you want to start buying investment properties. In the past i have seen buyers on my listings get declined from credit unions and trust companies like Vancity.. not sure if that's still the case but generally the big banks are more receptive to investors.
Great point! Especially now, when the stress test no longer applies when you switch lenders at renewal.
Also, just found out a fun fact, that I wish I'd known earlier. For those that renewed at the hight of the rates, and are stuck in the 3 or 4 year terms, if you break the term, in order to enter a new term at more favourable rates, ask your lender for a discount on the penalty, if you stay with them for the new term. Scotia gave us 3k discount on the 5k penalty, to get us to enter the new term with them.
Good advice. My motto is Always ask! You have nothing to loose and you might surprise yourself. It's a very competitive environment out there for these banks trying to retain your business.
Hey Owen thank you so much for your videos! My sister is renewing her mortgage soon and I’ve referred her to watch this video. I’ve been watching your videos for years and you’ve changed my life. Appreciate all that you do!
I was wondering if I could get the contacts for your TD and RBC rep. My sister would really appreciate that. Thanks so much!
Sure drop me an email owen@owenbigland.com and would be happy to provide. Thanks for watching
Very good to point out that a passive approach at mortgage renewal is costly. Banks count on people not putting in the effort to get better rates. However, I've also tried to negotiate with big banks in the past and there was such limited wiggle room. in some cases, they would not even match broker numbers who are obviously getting paid a substantial fee by the banks. Going direct is not as easy if you don't have a substantial portfolio I have found.
Bought , read your book, 👍
Awesome, thank you!
Fixed rates are going up because bond yields are going up
Sorry... fixed rates will continue to fall over the next 12 months. Next BOC meeting is Dec 11 looks like we will have another .25-.50 basis point cut. First quarter of 2025 there are calling for 1 or 2 more cuts. Lot more to interest rate policy than bond yields.
Owen, one must understand that a mortgage is very much like a publicly traded bond. As such, mortgage rates are forward looking. When mortgage rates are substantially higher than the Bank of Canada overnight rates, then the market is anticipating higher for longer interest rates in the foreseeable future. Since you've been in the real estate and stock market for decades, you probably are well aware that the spreads between bond yields and interest rates can accurately predict interest rates trajectory.
I'm well aware. The message in this video is to never accept the first set of rates the bank gives you even with their relationship discounts. Update this renewal with RBC was just done yesterday. I locked in another 3 year fixed at 4.14% after i pushed them to give me a better rate and telling them the rate i got from TD last month. There absolute best rate they gave prior to this was 4.51% Banks have the ability to give further discounts and offer special rates on certain term form week to week. It's competitive use it to your advantage
Mortgage renewing first week of Feb, I wanted to wait to renew until after the Jan.31 announcement but that's cutting it close. The mortgage broker at the bank said she'd prefer I make an appointment to renew mid Jan... we didn't use rbc or td. A few weeks ago she quoted me 3 yr fixed 4.7% and 3 yr variable 6.8%
On the topic of TD... If you have a TD mortgage, TD insurance will give you an additional discount. I was shopping around last year for condo insurance (we have a one bedroom). Everyone was quoting me 1k or over.
TD insured me for 860. Still crazy compared to the late 2010s but in today's environment I think that was good.
And now I distracted myself from your video (commenting before I finished watching) lol. Time to watch your video again!
Yes i have many clients who use TD insurance. I have been tempted myself to give them a try i have had all my properties insured with Co-operators for the past 20 years but i should probably be shopping things around more.
Owen when are you gonna rock that ice-blue sport coat again?? That was slick very Madmen / Palm Springs 1962 Frank Sinatra
Thanks for the update my variable is dropping like a rock. Business picking up!
Thanks Jay...Haha. Yeah that was a nice sport coat unfortunately it was not a custom fit so was a bit tight in the back. I ended up tearing the entire back out incredible hulk style!
@@OwenBiglandawesome!!
Are you doing a 25-year amo or a 30 year? Is there a difference between the two in rates?
Always 25 no idea if there is a difference in rates the Liberals just re-introduced the 30. Stay tune for a video on this and why people should avoid the 30 year
Great video! Thanks for sharing, the never ending debate between fixed and variable is confusing a lot of buyers right now. You mentioned you just got a fixed rate mortgage on your principal residence few weeks back. Curious why did you choose fixed when variable is expected to go down further? Some are estimating it may go down by another 150 bps. Your response would be appreciated. Thanks
I still have several variables currently they are both down to 4.92% I have been enjoying a new 3 year fixed at 4.1 from TD for almost 5 weeks now. Sure that variable will go down further over the next 12 months.. how low? who knows? Maybe it starts to go up again in 2026? Why guess i prefer to spread my mortgages out into variable and fixed i also take the opinions of my mortgage reps and what kind of special deals i can get at time of renewal but at the end of the day were all just guessing. Fortunately all my mortgages are all fairly small and all the interest is deductible anyway on my investment homes. I don't really sweat the guess work too much these days.
TD offered us 4.09 on a big mortgage on a principal residence closing early Dec, RBC guy is trying to get prime minus 1.1, wife and I have been in dilemma about what to choose. We have other investment properties and have a mix of fix and variable. Appreciate you sharing your perspective. So many unknowns right now. Some are saying with 4M mortgages up for renewal over in 25-26, BOC will keep rates low to avoid catastrophe as fixed rates seem to have bottomed out and settled in the 4.1-4.25 range.
Yes usually on a new mortgage you can get an even lower rate
@@OwenBigland just want to thank again for starting this channel and giving a platform for people to share opinions, concerns and ask you questions and get your POV. This is very meaningful. Cheers to you
Someone like Owen should at least get prime - 1.2% on variable so that's 4.75% right now. I'm just an employee and even I got prime - 0.95% which is 5.0% right now and yes about to go down to probably 4.5% in a few weeks for me. Same with my investment property. I'm thinking 5 - 6 months before my mortgages need to be renewed I'll contact my big bank and tell them something along the lines of "I'm considering renewing my mortgage with you, however I did looked around saw that I could get prime - 1.2% on variable like some of my co-workers with their banks, or whatever a good fixed rate for 5 years is at the time. Please open with the best rates so we don't need to go back and forth .... " If they still insist on starting with high rates I guess I'll need to make the call like Owen but it's just a waste of time and not good for anyone.
Just renewed with RBC yesterday 3year fixed at 4.14
@@OwenBigland 4.14% is a great rate. My coworker got 4.69% on a 3 year fixed mortgage but that was 6 months ago so at the time it was good. I'm still on variable and rode the wave up and now down. Obviously I should have locked in previously but too bad. Better than renting either way haha
Hi Owen, do you consider re financing if you are locked in at higher rates from half a year ago?
No.. but my mortgages are fairly small. It can make sense in some situations for sure.. so probably worth checking into if you are locked in to apoor rate.
obviously rbc doesn't want you to take 1 or 2 years fixed rate .
Often these bank push certain fixed rates. The longer the better for the banks. They love to charge you heavy penalties to break a mortgage early. I always advise owners if they think they might want to sell in the next few years lock in a 1 or max 2 year fixed. Breaking a 5 yr fixed after a few years can be costly.
Thanks for this, Owen. Any thoughts on True North? Their rates are always so good and I’ve heard good things about them, but it almost seems too good to be true?
I don't know anything about them. Make sure you read the fine print some of these too good to be true rates can come with a lot of restrictions and heavy penalties if you sell with term still remaining
What do you think of vancity? Same rules apply there if you have a multi decade relationship?
I have always found RBC and TD superior especially if you want to start buying investment properties. In the past i have seen buyers on my listings get declined from credit unions and trust companies like Vancity.. not sure if that's still the case but generally the big banks are more receptive to investors.