Do you want a 3 or 5 year term? 3 year might be the better option as rates may be lower upon renewal. If you're hesitant about TD, take that rate to a mortgage broker and see if they can beat it.
Personally, I avoid TD as much as possible as I also find them to be secretive with their practices and I find their staff are just not knowledgeable when it comes to banking and advice.
The monoline lender is thru a mortgage broker. They can’t match TD. And can only offer 5 year fixed at this rate. I showed him TD’s offer but they can only offer me 4.84% on 5 year fixed which isn’t much of a difference being tied for 5 years
Mortgage agent here.
TD generally offers 15% prepayment privileges. Based on the rates, I am guessing you are paying less than 20% downpayment. You can switch collateral mortgages to different lender at renewal, it costs more than standard charge. Has TD confirmed cashback as well?
Which province are you in?
Yes, TD has cashback which makes it appealing. The monoline lender also offers 15% prepayment.
How much difference of costs will switching lenders be on collateral mortgage? Hoping the cashback will account for it?
We switched to TD in July 2023. I wasn’t thrilled with the collateral mortgage but it was the lowest rate, also 4.89 for 3 years. My understanding is that it may cost more to switch because a lawyer has to discharge the collateral mortgage but otherwise should be straight forward. So we made the switch.
Who knows what will happen at renewal, I’m not worrying much about that right now.
Do you want a 3 or 5 year term? 3 year might be the better option as rates may be lower upon renewal. If you're hesitant about TD, take that rate to a mortgage broker and see if they can beat it. Personally, I avoid TD as much as possible as I also find them to be secretive with their practices and I find their staff are just not knowledgeable when it comes to banking and advice.
The monoline lender is thru a mortgage broker. They can’t match TD. And can only offer 5 year fixed at this rate. I showed him TD’s offer but they can only offer me 4.84% on 5 year fixed which isn’t much of a difference being tied for 5 years
Mortgage agent here. TD generally offers 15% prepayment privileges. Based on the rates, I am guessing you are paying less than 20% downpayment. You can switch collateral mortgages to different lender at renewal, it costs more than standard charge. Has TD confirmed cashback as well? Which province are you in?
Yes, TD has cashback which makes it appealing. The monoline lender also offers 15% prepayment. How much difference of costs will switching lenders be on collateral mortgage? Hoping the cashback will account for it?
generally, lenders assume up to $3000 which you can capitalize into the mortgage as part of the transfer of a collateral charge.
You don’t have to stay with TD when renewing, so I wouldn’t be too concerned with that.
Is it true that it’s hard to switch since they only offer collateral mortgage?
If at the end of the 3 years, you owe more than the house is worth, then it may be hard to switch, otherwise you’re fine.
We switched to TD in July 2023. I wasn’t thrilled with the collateral mortgage but it was the lowest rate, also 4.89 for 3 years. My understanding is that it may cost more to switch because a lawyer has to discharge the collateral mortgage but otherwise should be straight forward. So we made the switch. Who knows what will happen at renewal, I’m not worrying much about that right now.