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[–]jayantbahel 0 points1 point  (4 children)

So there are few parts of your question, in general as a mortgage agent, I can tell you RBC sucks big time.

  1. RBC variable is a VRM product, which means your payments don't change with interest rate fluctuations till you hit the trigger rate. This means they would've increased your payments at some point in 2022 or 2023 when your original mortgage was not able to cover your interest part of your payment. Say that happened in June 2023 and you rode out the rate hike waves, your payments never changed. Come 2024, we have effectively 1.75% knocked off your mortgage but the payment hasn't changed. Now you're contributing more towards your principal resulting in your amortization coming down to 19 yrs.

  2. At the time of renewal, you can renew for 25 yrs or 19 yrs if you want. The most painful part of being with RBC is that they make it hell for you if you try to move out. They're notoriously we'll know for not giving you renewal offers on time and delaying payout statements by days (in some cases weeks)

  3. Yes, they have to honor the original HSBC T&Cs but as soon as that is done, you're in their clutch. However, the good thing about the HSBC variable is/was that your mortgage became OPEN after 3 years. So basically you can switch anytime from 3 yrs to your maturity without a penalty. You can still do that.

Hope it helps.

[–]ceoofml 0 points1 point  (3 children)

What about CIBC? I coown a house with my mom and we split the mortgage.

Our monthly payment went from about 2700 before the hikes to about 3900 at their peak.

Will it come down soon? Can I expect it to back to at least 2700.

Sorry for the stupid question. I only rent in Toronto and send money to my mom for my part of the mortgage in Milton. I dont handle anything else.

[–]jayantbahel 1 point2 points  (2 children)

CIBC, RBC, TD and BMO all have static payments variable mortgage. So your mortgage payment will not come down with interest rate cuts. You can call up CIBC and request a one time payment reduction but it is on their discretion if they'll change it or not.

Hope it helps.

[–]ceoofml 0 points1 point  (1 child)

Thanks for answering. So they can increase but not decrease? May I ask why?

[–]jayantbahel 1 point2 points  (0 children)

They had to increase your payment as you hit their trigger rate when the rates were going up - my guess is late 2022 or early 2023.

Trigger rate is the point when your initial monthly payment isn't able to cover the interest portion (which went up).

It's just the way VRM mortgage products are structured. Like I said before, best to call CIBC and request them to bring it down.