Posted by waterland 2013-12-11 15:52:59
| Thinking of buying a house? You may want to ditch your bank for an alternative lender. Rob Carrick explains – www.theglobeandmail.co...e15774375/ It’s easy to get caught in the posted mortgage rate trap at the big banks. No, you won’t have to pay the posted rate on your next mortgage. Pretty much nobody does that any more, according to mortgage broker Robert McLister. The real danger is that posted rates will be used to calculate the penalty if you ever have to break your mortgage, probably costing you thousands of extra dollars. A mortgage penalty compensates a lender for the interest payments it loses out on when you break a mortgage contract. "That’s the intention," said Mr. McLister, who is also editor of CanadianMortgageTrends.com. "But in many cases, it overcompensates. It’s punitive in many cases." As we head into another round of quarterly bank earnings reports, it’s worth thinking for a moment about how those wonderful profits and dividends for investors are generated. One way is by using posted instead of lower discounted rates when calculating how much to penalize a client breaking a mortgage. With houses as expensive as they are today, it’s crucial to get the lowest mortgage rate you can. Keep the same level of focus when inquiring about mortgage penalties. Although it’s hard to imagine the need to break a mortgage on a house you’re just buying or living in happily, it can happen. Mr. McLister said roughly 70 per cent of people adjust their five-year fixed rate mortgage before maturity, although many do it to refinance or move to a bigger house rather than to break the mortgage outright. Mortgage penalties are straightforward if you have a variable-rate mortgage – expect to pay the equivalent of three months’ interest in most cases. With a fixed-rate mortgage, the penalty is set at the higher of three months’ interest or a calculation called the interest rate differential, or IRD. The must-ask question when negotiating a fixed-rate mortgage: Do you use discounted or posted rates to calculate these penalties? This is important because using posted rates can result in a much higher penalty. For some real world numbers, let’s use the mortgage prepayment calculators all lenders now provide on their websites. They show penalties for paying all or a portion of your remaining mortgage balance (to find them, Google your lender’s name and "mortgage prepayment calculator"). Let’s use an example of someone who, three years ago, set up a $250,000 five-year mortgage and has a balance owning of $200,000. Assuming an original mortgage rate of 3.64 per cent with a discount of 1.5 percentage points, the mortgage prepayment calculators at several big banks showed penalties ranging from $5,000 to $7,600 or so. A check with some alternative lenders found penalties ranging from $1,800 to $2,800. These are very rough comparisons because lenders differ a fair bit in what information they ask you to supply. But you get the picture – the big banks apply penalties with a sledgehammer. As well as producing revenue for lenders, inflated mortgage penalties also help trap clients who might otherwise move their business to another lender. Imagine you want to refinance your mortgage or buy a bigger home and your bank won’t come across with a competitive rate. You say you’ll change banks, only to find out how prohibitively expensive it is to break your mortgage. Mr. McLister said some banks have a stated policy of offering clients only a small discount off the posted rate if they want to add on to their mortgage to buy a more expensive house. You may be able to negotiate something better than a trivial discount, but your bank knows your leverage is limited because of the penalty you face if you go. Alternative lenders often have better rates than the big banks, and they typically have cheaper penalty fees. Why do so many people use their banks for mortgages, then? Mr. McLister speculated that some borrowers like the convenience of having their mortgage where they bank, and of being able to go into a branch to talk about their mortgage. If you prefer transacting online, some alternative lenders don’t have great websites. One thing you do not need to worry about if you borrow from an alternative financial institution is that your lender will go bankrupt. "It’s funny that people look at mortgages and think, I need a safe lender." Mr. McLister said. "If a lender goes out of business, pretty much nothing is going to change except for the name of your new lender." |
1. 我就看過小的貸款公司不行了,
到RENEW 的時候直接要求客戶PAY IN FULL!
道理很簡單, 我沒錢了, 你RENEW 我都
不要您這個客戶。 當然, 客戶經濟能力好
的沒問題可以到別的公司去貸款。 怕就怕
RENEW 的時候沒工作, 沒存款。 大銀行
沒有這個風險。 RENEW - NO QUESTION ASKED.
LENDER 倒了, 我可以說 給客戶帶來的
除了是麻煩。 別想不還款。 每一分錢
計算機都給記賬。 不能簡單的說就是名字的改變。
沒有影響, 只能希望是個SMOOTH TAKE OVER.
將影響降到最低。
2. mortgage broker 大部分生意也是BOOK
給TD, SCOTIA, CIBC, 這些不是大銀行是什麼?
(RBC BMO 沒有BROKER CHANNEL )
3. 對於實在沒能力的客戶,才給小公司
做什麼10% 的利息。 反正華人也不做。
4. 目前的情況, 那個大銀行的利息不是做到最低?
事實是, 極大部分的客戶, 優質的客戶,
銀行搞定,當然包括= 銀行自己做的 + BROKER 拉來的生意。
You may want to ditch your bank for an alternative lender.
意思是說: 假如你要是去TD 貸款的話, 就來找ROB, 反正都是
在TD 貸款, 為什麼不讓ROB 在TD 哪裡再賺一筆。