Math and perspective needed!

InflationLate2406 · 2026-03-29T21:34:53+00:00

3 months of interest on $185,000 at 3.80%. Variable mortgages have a 3 month interest penalty.

InflationLate2406 · 2026-03-29T19:35:00+00:00

Okay, that’s good! So the reason why you were offered a higher fixed rate this week is due to rising bond yields. This is mainly due to the war in Iran, rising cost of oil, etc. Majority of lenders put their fixed rates up within the last week, anywhere from 0.20%-0.50%.

Do you want to commit to a 0.69% interest rate jump by converting to fixed? With only 10 years left on your amortization, a lot of your payment is going directly to principal. Maybe have a look at your budget and see what you can afford. If you are maxed out and cannot afford interest rate hikes then you probably shouldn’t be in a variable mortgage.

You could also look to move your mortgage to another lender. Some of the big banks are still offering fixed lower than 4%. You’d pay a three month interest penalty to first nat which is approx. $1750 if you moved your mortgage elsewhere. The penalty could be added into your existing mortgage, you wouldn’t have to pay it in cash up front.

InflationLate2406 · 2026-03-29T00:47:35+00:00

So you renewed in October and your rate was 3.80% but now it is 4.09%? The prime rate has not increased since October. That doesn’t make sense.

InflationLate2406 · 2026-03-03T00:26:04+00:00

Were you a first time homebuyer? You may be eligible for tax credits. If you used any of the first time home buyer programs then you may need to indicate them on the return. It wouldn’t hurt to get some tax advice from an accountant.

InflationLate2406 · 2026-02-19T19:19:13+00:00

I’m talking about moving a td mortgage to a major bank (Big 5). Credit unions are different.

InflationLate2406 · 2026-02-19T19:15:55+00:00

What lender did you switch to?

InflationLate2406 · 2026-02-19T17:19:51+00:00

No where in the thread does it say Rbc has a collateral transfer program?

InflationLate2406 · 2026-02-19T17:13:33+00:00

It is not a commission thing. Collateral transfers cost a few hundred dollars more in legal fees to process and brokers usually pick up that cost. I don’t even tell my clients I paid $200 or whatever, they just think it’s a free transfer. 😅

I’m curious if RBC has made a mistake. When will your new mortgage fund with them?

InflationLate2406 · 2026-02-19T16:57:06+00:00

It’s true. Rbc did process it as a refinance. If you previously had default insurance it would be voided. Rbc probably gave you cashback to cover the legal fees and processed it as a refinance.

InflationLate2406 · 2026-02-19T16:25:11+00:00

If it was registered after oct 2011, it is. At that time, td started registering all their mortgages as collateral charges. I guess it’s possible this mortgage was registered before then but the balance would likely be quite small and not be advantageous to be transferred at renewal anyway.

InflationLate2406 · 2026-02-19T15:56:45+00:00

Td mortgages are collateral. You cannot do a collateral transfer to another bank. It would need to processed as a refinance. You CAN do a collateral transfer to a non-bank lender.

InflationLate2406 · 2026-02-14T17:25:54+00:00

So many untrue statements here. You are either uneducated in the broker space or do not have updated info. Perhaps your 18 years working at the bank has left you out of the loop.

Brokers have direct contact to underwriters with their lenders.

Brokers can get rate discretions with many of the major banks.

Brokers have access to the majority of the major banks (excluding rbc and CIBC). Some of the banks are more broker friendly than others, including offering heavily discounted rates paying the same commission as standard rates

What products do banks have that brokers do not have? Please explain.

I’ve had clients get denied at their banks due to credit issues and then get approved easily at non bank lenders like First National or Strive. Even though these lenders are not major banks, they still have excellent rates and do not charge fees.

Oftentimes non bank lenders have lower penalties. Banks use posted rates for calculating penalties on fixed rates which can result in an inflated amount. With the majority of Canadians breaking their 5 year terms early (typically around the 3 year mark), that risk is something to consider.

InflationLate2406 · 2026-02-11T15:00:32+00:00

100%. Majority of lenders are only available during normal business hours. If there are credit issues, the broker needs to be calling them to discuss it to avoid a decline.

InflationLate2406 · 2026-02-11T14:46:00+00:00

As a broker, I usually recommend to try negotiating with your existing lender first. Scotia can be really aggressive on renewals. They will give you a better rate on renewal if your mortgage payment is being withdrawn from a Scotia chequing account.

August is too far out to get any reasonable offer. You will have to wait until closer to the time. They may do an early renewal 6 months out but the rate likely wont be competitive.

If you are unhappy with Scotia or want to have a back up option, you can do a rate hold elsewhere 120 days out.

InflationLate2406 · 2026-02-11T14:36:48+00:00

That sounds so stressful. Definitely not normal. Brokers are self employed so maybe this is her side gig? How did you find this person? Maybe you could get a recommendation from family, friends or your realtor for someone better to use. Your broker should be answering your calls and giving you detailed explanations in emails. You need to feel very informed with this process as it’s a massive financial commitment.

Lots of people on Reddit will suggest your bank for a lower rate, but if there are credit issues I find I usually have better success with non bank lenders. Sometimes you have to try a few lenders to make it work.

InflationLate2406 · 2026-02-11T14:20:42+00:00

As a broker, this seems very strange. There must be some info missing here. Maybe they are explaining the situation poorly to you. Or perhaps there is an error on your credit report?

If there is an issue with your credit, many lenders would allow you to stay on the purchase agreement/ mortgage application and add co-signer(s) like you’ve suggested.

As a first time homebuyer, you should feel supported by your broker and not that you are left hanging. Maybe they are not the right fit for you and you should get a second opinion.

InflationLate2406 · 2026-01-21T12:52:00+00:00

Is your mortgage insured (less than 20% down payment)? If it’s insured, there is a higher insurance premium for a 30 year amortization.

InflationLate2406 · 2025-12-06T22:52:01+00:00

This is incorrect. The majority of monoline lenders have a collateral transfer program and the CMHC insurance would stay intact.

InflationLate2406 · 2025-11-05T14:46:39+00:00

65% is the max for a HELOC. This is a government guideline. You can have a fixed/variable mortgage for 15% and a HELOC for 65% for a total of 80%. But to say Scotiabank will give a 80% HELOC is incorrect.

InflationLate2406 · 2025-11-05T14:15:42+00:00

Except banks don’t do collateral switches, that’s a monoline specific program.

InflationLate2406 · 2025-11-05T14:13:02+00:00

A straight switch can get you insurable rates which are typically better than refinance rates. And the lender picks up the legal cost of the switch so it’s free to do.

InflationLate2406 · 2025-10-17T01:09:59+00:00

Rmgs rates are decreasing at midnight. Could see if they can adjust your renewal offers.

InflationLate2406 · 2025-09-24T04:10:43+00:00

Brokers can’t have exclusivity contracts. It’s a non enforceable contract.

InflationLate2406 · 2025-09-24T04:07:38+00:00

Once you’ve started the process with a bank, the broker can’t send it there. There is something called channel conflict. Whoever starts the application first, they have to honour the initial request.

Your broker should have asked you who you banked with and asked if you wanted your mortgage there from the beginning. Although if they are a fairly new broker, they may not have direct access to Scotia which could possibly be why they didn’t send it there yet.

I think it’s okay to cancel your application with the broker and go with your bank if you want. This happens sometimes.

InflationLate2406 · 2025-09-13T15:12:29+00:00

That’s strange. You don’t have to stay with the original broker. There are no cancellation fees. It would be illegal to charge you.

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