Real Estate

HELOC - No fees/best rate?

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  • Mar 22nd, 2017 1:48 pm
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[OP]
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Oct 24, 2004
5291 posts
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Toronto (Central)

HELOC - No fees/best rate?

I know I'm looking for the best of everything in a HELOC but does anyone have something that will work for me?

My mortgage is currently with MCAP.
They are offering me a HELOC of $600K @ Prime+0.5.

They told me that I would have to pay legal/appraisal fees (around $1 to $1.5K).

- Can I have these fees waived? If so, how or with which bank?
- Is the rate good? According to RateHub it seems right.

Thanks!
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Deal Addict
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Oct 20, 2008
1107 posts
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Coquitlam, BC
newt_101 wrote:
Jan 30th, 2017 3:43 pm
I know I'm looking for the best of everything in a HELOC but does anyone have something that will work for me?

My mortgage is currently with MCAP.
They are offering me a HELOC of $600K @ Prime+0.5.

They told me that I would have to pay legal/appraisal fees (around $1 to $1.5K).

- Can I have these fees waived? If so, how or with which bank?
- Is the rate good? According to RateHub it seems right.

Thanks!
My bank (Scotiabank) paid for the appraisal (not sure the price, something like $300) and our rate is P + 0.5.
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Jan 17, 2002
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Toronto
That is the going rate. Most of what we owe in the HELOC is in locked in to mortgages with a lower rate than P+0.5.
Deal Addict
Jul 6, 2005
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Toronto
I recently inquired with my lender, CIBC; and was quoted $775 for the legal and appraisal to be done. I currently have a HELOC with CIBC at P+0.1

I only inquired because my neighbour sold his house last week for $300,000 more than what I paid in November 2015. Figured it would be good to unlock some of that HELOC headroom.
Sr. Member
Dec 19, 2010
512 posts
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Toronto, Ontario
newt_101 wrote:
Jan 30th, 2017 3:43 pm
I know I'm looking for the best of everything in a HELOC but does anyone have something that will work for me?

My mortgage is currently with MCAP.
They are offering me a HELOC of $600K @ Prime+0.5.

They told me that I would have to pay legal/appraisal fees (around $1 to $1.5K).

- Can I have these fees waived? If so, how or with which bank?
- Is the rate good? According to RateHub it seems right.

Thanks!
i literally just went through this about a month ago with MCAP.
the rate is the same generally speaking.
both legal and appraisals are not covered by MCAP. appraisal was about $300 and $1000 for legals.
Deal Addict
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Feb 16, 2004
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York Region
Im going through it right now with BMO. They want $300 appraisal and $480 for legal fees.
We have a mortgage with First National $301k left, house value of $750k now. Want to borrow around $150k and buy a 1-2 year old Highlander under $40 and then have the money just "there".
BMO is offering prime + 1% which i find is a bit too high. Needless to say we have all the banking with them including business.
Deal Addict
Feb 2, 2014
3296 posts
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Toronto
newt_101 wrote:
Jan 30th, 2017 3:43 pm
I know I'm looking for the best of everything in a HELOC but does anyone have something that will work for me?

My mortgage is currently with MCAP.
They are offering me a HELOC of $600K @ Prime+0.5.

They told me that I would have to pay legal/appraisal fees (around $1 to $1.5K).

- Can I have these fees waived? If so, how or with which bank?
- Is the rate good? According to RateHub it seems right.

Thanks!
Yes, you will likely have to pay the cost with MCAP.
Yes, rate is right.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
[OP]
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Oct 24, 2004
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CdnRealEstateGuy wrote:
Jan 31st, 2017 12:10 pm
Yes, you will likely have to pay the cost with MCAP.
Yes, rate is right.
I had a follow-up call with MCAP and told them I don't want to pay the fees, so they are reviewing my request with a manager.
If they meet me half-way, I'll consider it.

If I'm not planning on borrowing money right now, but want to perhaps look into it in the future, is it a good idea to still pay the fees for a 'what if' scenario? Or do people just usually save money for repairs and upgrades?

I'm new to this so I'm wondering what my best course of action would be to take - much appreciated.
Deal Addict
Feb 2, 2014
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Toronto
If it' a separate charge and not an all-in-one product, you should be fine.

If it's an all-in-one product, then it will be a collateral charge and you will have to pay additional fees if you ever want to switch lenders.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Apr 6, 2008
84 posts
25 upvotes
TO
Any one know if TD will have a promo where they waive the fees similar to last year?
[OP]
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Oct 24, 2004
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Toronto (Central)
Update: MCAP provided me with a credit of up to $1000 to cover legal/appraisal fees.

Anyone have Toronto-area contacts who are affordable/accredited who I can reach out for legal/appraisal?
Deal Addict
Feb 2, 2014
3296 posts
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Toronto
newt_101 wrote:
Feb 1st, 2017 10:22 am
Update: MCAP provided me with a credit of up to $1000 to cover legal/appraisal fees.

Anyone have Toronto-area contacts who are affordable/accredited who I can reach out for legal/appraisal?
MCAP has to order the appraisal or you have to use an appraiser from their list of approved appraisers....you can't just get it done by anyone.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
[OP]
Deal Fanatic
User avatar
Oct 24, 2004
5291 posts
592 upvotes
Toronto (Central)
CdnRealEstateGuy wrote:
Feb 1st, 2017 3:13 pm
MCAP has to order the appraisal or you have to use an appraiser from their list of approved appraisers....you can't just get it done by anyone.
Thanks. That's what they told me too.
A large list is going to be provided to me and then it's up to me to reach out to them to figure out who to use.
That being said, how do I determine which one is going to give me a good price without taking the vast amount of time to contact each one individually?
Is there some sort of list of affordable appraisers I can use to compare to the list that MCAP provides?
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