Buying my first home...

[Quarrior]

I advised my son to go as short as possible to get the very lowest rate and then to just watch the market. The rate seldom jumps dramatically overnight so he should have plenty of warning of a pending increase (with a little help from Dad who's in the real estate business) and can then lock in for a tiny service fee if the indicators are for a long term high interest rate. Currently the smart borrowers are taking 6 months or a year max (floating, open or fixed rate) and getting rates in the 3-4% range. For a $100 (or less) renewal fee they can lock in to whatever term they want at any time.

JF

I wish it was that easy here in the states. They really stick you on the charges for switching loans here.

 

[Groundhog246]

Good question. Go to Bankrate.com and play with the amortization program and see how it works out. Actually, you'll find my method does not result in more interest and may in fact pay off the loan faster theyrby saving your interest.

Brian

The [ayments/interest will not be accurate for a Canadian Loan. They use a different method of computing interest up here. (I don't know the details, I do know it's different).

 

[Quarrior]

The [ayments/interest will not be accurate for a Canadian Loan. They use a different method of computing interest up here. (I don't know the details, I do know it's different).

Guess that's why they have that "location" thing on the user's logon. Sorry about that all, I mistakenly thought Boogie lived in the states.

My bad.

 

[simbrooks]

Hey everyone - not that it's a big deal for you all, but I'm about to purchase our first home. It's a nice house on a big lot in the middle of the city, backing unto the forest, so we're pretty happy with it.

Congrats on the house, not in that position yet, nor probably will i be for at least another 5 years or so - but anyway.


The only thing i would worry about is if that forest might ever get earmarked for clearing and building - seems to be common practice down here, just add a new subdivision on next to the last one and clear out all those nice things you had before with your natural backyard. I dont know if Kitchener has the kind of population explosion going on in FL, i doubt it, but i would be so annoyed to have lived for years around here and see all the stuff ripped down around me and houses popping up all over the place.

 

[Groundhog246]

I wish it was that easy here in the states. They really stick you on the charges for switching loans here.

Some of the financial institutions stick it to you up here too. However, some mortgages are specifically written to allow you start with a floating rate/shorter term and then lock in to a fixed rate or longer term if you choose, with the same lender. If you wantr to switch in the middle to another lender, then you get penalized.

Since there are a lot more Americans on here, than any other nationality (except maybe in the regional forums, such as the OFWF), those of us from other countries probably look at the location info more often. In this case I have the advantage that Boogie711 is a friend. Actually finally met his wife a couple of weeks ago, after once publicly doubting her existance (suggested she was just a figment used to avoid things ). Turned out to be real and a very nice young lady (one wonders why she married him :11ztongue )

 

[Boogie711]

In this case I have the advantage that Boogie711 is a friend. Actually finally met his wife a couple of weeks ago, after once publicly doubting her existance (suggested she was just a figment used to avoid things ). Turned out to be real and a very nice young lady (one wonders why she married him :11ztongue )

I wonder that myself, all the time. :07:

I'm not worried about the forest being cleared out - actually, I'm not even sure it's City property, it may very well be owned by the Conservation Authority??? But the development in this part of town has come and gone. It's all older homes with nice mature trees and wider lots.

 

[wedivebc]

I wonder that myself, all the time. :07:

I'm not worried about the forest being cleared out - actually, I'm not even sure it's City property, it may very well be owned by the Conservation Authority??? But the development in this part of town has come and gone. It's all older homes with nice mature trees and wider lots.

Looks great man, I hope you have all the dive toys you need though cause it may be a while before you get anymore

cheers,

 

[JeffG]

Hey everyone - not that it's a big deal for you all, but I'm about to purchase our first home. It's a nice house on a big lot in the middle of the city, backing unto the forest, so we're pretty happy with it.

Anyway, here's my dilemna... mortgage rates are so low right now (albeit rising.) I can lock in for 5 years at 5.35%, or 10 years at 6.3%.

Considering the average rate for the last decade or so is closer to 8%, I would think longer is better... on the other hand, the overall picture says rates may decline.

Here's your chance to pontificate from afar... any thoughts?

What I did with TD Canada Trust is take the 5 yr term. Every time the rate drops..I re-sign for another 5 yrs at the new rate (minus the discount). I have my 5 yr term in the 4.5% range.

 

[pt40fathoms]

Amortize over 20 years, and lock it in for 5 years for now. If you can, I would lock it in for 7 years if offered. Then make the payments bi-weekly rather than monthly, and dump all your available extra cash every year to knock down that mortgage in the early years where it will do amazing things to shorten your mortgage. Remember, all extra payments made on the yearly anniversary go directly to principle. Make sure your mortgage allows those yearly top up payments though, as some mortgages are restricted in that way.

All of this is of course just my opinion, however, in just 6 short months I will be mortgage free.

Enjoy your new home, and congrats.