GTA's Getting Old...Time to Settle Down In Calgary
I really love Calgary and my job and am going to buy a house. Likely a newly built inner city home (an infill for those familiar with the AB lingo). Other than liking the place and the location is there anything I should watch out for?
PS -- finished basement = possible home games/non-raked event satellites in the future if we can get enough Calgary peeps with interest.
PS -- finished basement = possible home games/non-raked event satellites in the future if we can get enough Calgary peeps with interest.
Comments
Must be there 90 days before purchase closes.
Home Buyers' Plan (HBP)
Don't buy mortgage insurance (scam).
I already have money in my RRSP for that
Which way? I'm tired of traveling right now;) I may be interested in a custom table sometime in the distant future if the possibility of a home game/satellites to events materializes.
What kind of mortgage rate are you looking at?
Me to Calgary. I'm always up for a nice relaxed home game.
A variable mortgage rate is better if you keep an eye on rising interest rates. When the variable rate inches up, just play poker moar!
I was probably going to get a 10yr fixed...I doubt the current rates will stay this low for more than 3-4 years at best?
You can rent everything out in Calgary...vacancy is currently <1%. But, I wouldn't be buying and would not have moved back to Canada if I wasn't ready to stay put long term.
what was your fixed rate 10yr ago? I can't see rates going anywhere but up over 10 years with the current state of the housing market and economy, but I'm not a financial expert
I did a 5 year fixed for the peace of mind of not needing to worry about rates all the time, but found anything beyond 5 years and the rates went disproportionately high... I would have preferred to go with 5 year var, but my wife would have driven me insane as she tends to worry her little head off.
Around 4% locked in for 10 years is not bad though, I don't see the rates staying so low for a whole lot longer.
Pretty safe bet they can't go "anywhere but up" seeing as they're at historical lows. Question is how much and how fast they will rise. I just renewed at a 5 year variable closed for 2.7%. They guy said he feels they will stay low for at least the term of the mortgage, and that I can always lock in if they go up quickly.
So, I think they will rise slowly. I would be surprised if prime hit 5% within the next 5 years.
Low interest rate party may be ending | Toronto Star
You always have the option of chopping up your mortgage into different components with a portion of the mortgage variable and a portion fixed. You can also have different maturity terms if you wish. If you like the 10 year rate, you could always lock in and then pre-pay the maximum (usually up to 15% per year) and turn this 15% into a variable mortgage for any term you like. That way you effectively reduce the overall mortgage rate by reducing the higher fixed rate, and converting it into a variable mortgage with a lower rate. So if you can get a 10 year fixed for 4%, and a five year variable for 2.7%, you basically convert 15% of the 4% mortgage to a 2.7% variable, reducing the overall rate. What I sometimes do is make the variable short-term (1 year) so you get the best rate possible, and then after the year you revaluate and can always convert the 15% variable mortgage into a fixed mortgage if you like the fixed rate better after the one year. There are many different things you can do to keep the overall mortgage rate lower.
I have two properties and four mortgages in total. Each property has a variable and fixed mortgage. I would suggest looking at the Scotia Total Equity Plan as it allows you a lot of flexibility and as you pay down the mortgages, your line of credit increases, which often comes in handy.
CanadaMortgage.com
One other thing, the best thing is to find the Bank you like their mortgage products best and then just show them the rates being offered by the other banks, and they will definitely match them. I have always had my mortgages at Scotia and I like their prepayment terms and the flexibility in changing between products and the total equity plan where you can borrow on the line of credit component any time without having to worry about approval, etc.
Fixed your typo . . .
Thanks for the info...btw ING 10yr fixed is 4.19 on their website
Milton Slim