Mortgage decision made: Scotia keeps my business

Despite the fog and rain in Toronto on the weekend, the fog in my head has cleared over my mortgage options.

I’m going to give Scotia a call this morning and let them know they can keep me, but I’ll be making some changes.

Here’s the low-down:

  • Break my smaller mortgage from 4.15% to 2.15% variable (for 5 year term)
  • Use up the equity they’ll give me to drag $33k of my unsecured LoC (mortgage debt – not consumer debt) into the new traditional mortgage product (reducing the interest rate from 5.5% variable to 2.15% variable
  • Reduce the interest rate on the small balance that will remain in the unsecured LoC from 5.5% to 4.5%

There were too many issues swirling in my head when this whole scenario arose. Now I’ve had a chance to deal with each issue one by one.

I was torn about whether or not to sell the house and try and downsize a bit. I’ve decided to stick it out here.

I was delusional about living some simpler life somehow. I can do this, but not right now. So I’ll carry on.

In the near future, I saw a $15K gap in my expenses/revenue that I hadn’t prepared for, and I went into panic mode a bit. (More on that in future posts).

While CIBC did tempt me with their offer (both the cashback offer as well as streamlining my banking to one branch which helps simplify my life), it’s not the best offer financially.

In the end, I’m glad I didn’t rush this decision. I really wasn’t thinking straight for a while there. (I’m not sure I am now, but at least this option seems clear).

Thanks to all of you for listening to me wax on about it. Now it’s time to get on with it!


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