Interest rates can go up down or stay sideways. The blanket assumption in all your scenarios is interest rate will go down by 2% in 2 years. Most likely case is interest rates will stay the same in which case breaking a fixed will have same penalty as breaking a variable.
We got a fixed rate of 4.3% for 5 years and decided to go with it. Since the all time average is 4% we don't think we will be at a great loss in 5 years. Not unless the rates come down to 2-3% in 4 years
@@SS-sv4gg Wow. You're lucky to have secured a good rate so early. We secured ours in June at 5.19%. It was followed by 3 interest rate hikes. So, had to settle for the same pre-approval rate for our approval. We couldn't secure a better rate, even after plenty of shopping around.
Thank you Nav. Your videos have been amazing and helping us a lot in understanding our first house purchase. I am getting pre approval for FN for 4.87 at 5 years fixed. I am getting approval for 3 years fix as well but it's relatively higher (yet to know the rates but probably it will be around 5.2-3%) catch is though I might need to put more down if I go with 3 years fixed . What are your thoughts?
The penalty on a variable mortgage is calculated based on either your existing contracted rate or prime rate at the time of breaking the mortgage (prime lenders are notorious in this..they will calculate based on the prime rate and not the contracted rate) basically lender will try to recoup as much loss as possible.
Very informative video. Thank you. What I dont understand though about the penalties of Variable mortgage is when the interest rate goes down, then because it is a variable mortgage, the actualy interest amount would also go down. So why would anyone break a variable mortgage when interest is going down? Thoughts?
What is your opinion to invest in a property for short-term rental like AirbnB in BC for example? Is it the right time or it would be better to let the interests go down? Thanks and great content on you video.
Great video, what about now, December 2023, have to close on a new built, variable at 7.15% or 6.5 Fixed for 3 years ? Or 1 year fixed at 7.25% - worst timing but had no choice 2.5M mortgage 😢
Hmmm… it’s tough one for sure. Depends on your income as well. But if you are cutting it close, then 3 year fixed with a monoline might be a better option (lower penalties with monolines if you break early). On a separate note, 6.5 sounds high if you are closing now if going with A lending
Thank you for such informative video, ❤which is better option, 3 year fixed or variable at current situation where interest rates are high? What’s your advice for first time home buyers in this market?
My Variable mortgage rate was - 6.69%, in July I got the offer to convert it to 5.74% fixed for remaining term of 4 years. I took it, bit the start date of contract is Sept 1, 2023. Now, after watching your video I’m confused about my step to get it fixed. Now questions is - Can I still cancel it before start dat of Sept 1, 2023? - Is getting fixed to 5.74% is a good option till 2027? Please advise
Your mission to retire your clients with 5 million dollars is an interesting pov. Keep up the good work Navjot. I don't think there will be many people in the market with such a vision.
Hi…thanks for sharing such an important information. I’m very new to real estate, planning to start or have a house in my means. What will be the best way to reach out to you for your assistance. Thanks you 🙏
At which point in the time of mortgage we will know about rip-off mortgages - at preapproval or at the mortgage application? If we want to book a meeting with you what is the best point of time we should be in contact with you right after pre-approval time or after we get the actual mortgage contract (before signing it)?
You can start working with us from day 1 😀 link to book a call in the description. You will know it’s a rip off if the interest rate is much lower that the standard.
Hey, had a question about penalty for breaking mortgage. In your example you’ve said they’ll calculate on 700K but that’s the original mortgage Amt 5:17 . Wouldn’t they calculate it on the current outstanding amount which would be less than 700K?
![[MV] A leap of faith...ความเชื่อใจครั้งสุดท้าย (From "Petrichor the series")](http://i.ytimg.com/vi/U1piZH2CNXA/mqdefault.jpg)
This is the most thorough, extensive and real breakdown with examples any channel has. You're amazing, keep up the good work!
Interest rates can go up down or stay sideways. The blanket assumption in all your scenarios is interest rate will go down by 2% in 2 years. Most likely case is interest rates will stay the same in which case breaking a fixed will have same penalty as breaking a variable.
Done 4 mortgages and refinances in 3 years, my mortgage agent never mentioned these. You're the best. Thank you for this eye opener
Thank you 😊
We got a fixed rate of 4.3% for 5 years and decided to go with it. Since the all time average is 4% we don't think we will be at a great loss in 5 years. Not unless the rates come down to 2-3% in 4 years
May I ask, when did you apply for your pre-approval?
I agree… around 4% maybe a good spot
When did you got pre approval?
We got our mortgage approval in feb 2023.
@@SS-sv4gg Wow. You're lucky to have secured a good rate so early.
We secured ours in June at 5.19%. It was followed by 3 interest rate hikes.
So, had to settle for the same pre-approval rate for our approval. We couldn't secure a better rate, even after plenty of shopping around.
Each word matters! It's literally like that beautiful lecture my engineering professor gave and I enjoyed it to the most!
Thank you 😊
Excellent explanation backed by numbers! You are amazing Nav! Keep such great ones coming!
You're the best!! You really have a great skill of explaining mortgages by putting down numbers. My favorite so far !!! Loved it 🤩
Thank you 😊
Bro! You are the best! Never will I go anywhere for my mortgages other than you…
Thank you 😊
I can’t wait to go back on this video in 5 years. People thinking interest rates will go down will be in a massive shock.
Super helpful and nicely explained! :) ❤
Amazing video, coincidentally we just booked a call with you today just before this video came out.
Talk soon 🙌
Love your videos Navjot! Thank you for making them so informative. Very helpful!
Your video came at the perfect moment, providing clear explanations for all the questions i had. It greatly aided my understanding. Thank you!
🙌👏
Excellent explanation 👌
Great stuff! Love your content.
Very timely video! Thanks Navjot :)
🙌
Very well articulated. As always great content. Thanks Navjot
🙌👏
Learnt alot. Thank you.. Maninder this side. Hope you remembered.
100% I do 🙌
Thank you Nav. Your videos have been amazing and helping us a lot in understanding our first house purchase. I am getting pre approval for FN for 4.87 at 5 years fixed. I am getting approval for 3 years fix as well but it's relatively higher (yet to know the rates but probably it will be around 5.2-3%) catch is though I might need to put more down if I go with 3 years fixed . What are your thoughts?
The penalty on a variable mortgage is calculated based on either your existing contracted rate or prime rate at the time of breaking the mortgage (prime lenders are notorious in this..they will calculate based on the prime rate and not the contracted rate) basically lender will try to recoup as much loss as possible.
Which is why credit unions and monolines are better with variable .
Thank you great knowledge lots too learn👍
Thank you 😊
Your're just amazing, thanks for this informative video :)
Thank you 😊
Love it!!!
Amazing video. Very nice explanation. Thanks
What is close Mortgages?
Can you make a video on close Mortgage
Very informative video. Thank you. What I dont understand though about the penalties of Variable mortgage is when the interest rate goes down, then because it is a variable mortgage, the actualy interest amount would also go down. So why would anyone break a variable mortgage when interest is going down? Thoughts?
Upgrade the home, downsize, leave canada, better interest rate - lots of different reasons.
Very useful video. Thanks nav
🙌🙌🙌
As always amazing content
Thanks 😊
Make a video on Monthly payments vs bi weekly payments
Soon
Very helpful 👏🏻
🙌
EXCELLENT
Really helpful video😃
🙌🙌
Will any bank offer a good interest rate on a 5-year fixed mortgage without the 125% collateral?
What is your opinion to invest in a property for short-term rental like AirbnB in BC for example? Is it the right time or it would be better to let the interests go down? Thanks and great content on you video.
Great video, what about now, December 2023, have to close on a new built, variable at 7.15% or 6.5 Fixed for 3 years ? Or 1 year fixed at 7.25% - worst timing but had no choice 2.5M mortgage 😢
Hmmm… it’s tough one for sure. Depends on your income as well. But if you are cutting it close, then 3 year fixed with a monoline might be a better option (lower penalties with monolines if you break early).
On a separate note, 6.5 sounds high if you are closing now if going with A lending
So Zero penalty if someone Took 5 Year Fixed @ 3 or 5 % earlier but now if breaks the mortgage In current market
Thank you for such informative video, ❤which is better option, 3 year fixed or variable at current situation where interest rates are high? What’s your advice for first time home buyers in this market?
It’s very much dependent on your situation. Don’t want to give blanket advise that might go wrong for you.
My Variable mortgage rate was - 6.69%, in July I got the offer to convert it to 5.74% fixed for remaining term of 4 years. I took it, bit the start date of contract is Sept 1, 2023. Now, after watching your video I’m confused about my step to get it fixed. Now questions is
- Can I still cancel it before start dat of Sept 1, 2023?
- Is getting fixed to 5.74% is a good option till 2027?
Please advise
Your mission to retire your clients with 5 million dollars is an interesting pov. Keep up the good work Navjot. I don't think there will be many people in the market with such a vision.
What do You think on new FHSA tool is it worth it as per the housing market In Canada
Hi…thanks for sharing such an important information. I’m very new to real estate, planning to start or have a house in my means. What will be the best way to reach out to you for your assistance. Thanks you 🙏
Thanks you.
You can book the call from the link in the description.
At which point in the time of mortgage we will know about rip-off mortgages - at preapproval or at the mortgage application? If we want to book a meeting with you what is the best point of time we should be in contact with you right after pre-approval time or after we get the actual mortgage contract (before signing it)?
You can start working with us from day 1 😀 link to book a call in the description.
You will know it’s a rip off if the interest rate is much lower that the standard.
Do you have any mentorship program for new mortgage advisors?
I do, limited to the 4 people I am coaching right now.
@@growwithnav Any plans to mentor few more agents sooner or later?
Hey, had a question about penalty for breaking mortgage. In your example you’ve said they’ll calculate on 700K but that’s the original mortgage Amt 5:17 . Wouldn’t they calculate it on the current outstanding amount which would be less than 700K?
Depends on the lender… most banks peg it to the original mortgage amount.
Oh wow, another way for the banks to make bank
What are the reasons first-time home buyers break their mortgage?
Biggest is upgrading a home.
🎉😮
Why do you speak so fast?
Thanks Dear. Please make a video for Muslim brothers. I think variable is not allowed in Islam. Thanks once again
Hi, how can i contact you for my mortgage
Link in the description.