Real Estate

The Official Mortgage Rates Thread

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  • Nov 17th, 2017 8:04 pm
Deal Addict
Sep 13, 2011
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Toronto
A conventional mortgage is any mortgage with 20% or more down payment and has nothing to do with the way a mortgage is registered. A mortgage can be both conventional and collateral.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Jr. Member
Dec 25, 2006
166 posts
36 upvotes
Ottawa
PaulMeredith wrote:
Jun 8th, 2014 2:42 pm
A conventional mortgage is any mortgage with 20% or more down payment and has nothing to do with the way a mortgage is registered. A mortgage can be both conventional and collateral.
I guess I am confused, If the down payment is %20, what would you go with (conventional or collateral)?
Deal Addict
Sep 13, 2011
3321 posts
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Toronto
epa wrote:
Jun 8th, 2014 6:01 pm
I guess I am confused, If the down payment is %20, what would you go with (conventional or collateral)?
If you have 20% down payment then your mortgage IS conventional, regardless of weather you are dealing with National Bank, TD, or any other lender. If dealing with either TD or National Bank, and you have 20% down payment, your mortgage will be conventional and it will a be a collateral mortgage. If you want a standard mortgage (not collateral) then you will want to deal with a lender other than National Bank or TD.

Hope this helps clarify.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Sep 13, 2011
3321 posts
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Toronto
....and if you are contemplating whether to go with a collateral or non-collateral mortgage, then it is a different answer all together. A collateral mortgage can make it easier to borrow additional funds in the future IF you choose to register the mortgage for more than the face value of the mortgage. For example, if your home is worth $400,000 and your required mortgage is $320,000, you can choose to register the mortgage for up to $400,000 (or higher in some cases). This would allow you to borrow additional funds down the road as your home appreciates. Upon approval, of course. Because your home is already registered at a higher amount, there is no need to register additional security, and there would be no legal fees involved in doing so. If for some reason you are declined for the additional financing, then you have no other options as the bank as locked up all your equity. I recently had a client in this same position.

The only drawback to a collateral mortgage is that in order to switch at the end of your term, you would need to pay a legal fee to register a new mortgage and discharge the old one, typically about $900 - $1,100. With a standard or 'traditional' mortgage, there is typically no cost for the switch. The bank knows it will cost you to leave them at the end of your term, so they really don't have to be as competitive to keep your business.

So... save the legal fee to register a second mortgage now just in case you choose to borrow additional funds down the road and pay it later when you switch, or just pay the legal fee at the time IF you find yourself into a position where you need to get additional funding down the road (and even that, there are options to avoid it).

With a collateral mortgage, you are PAYING the legal fee to switch at the end of the term regardless of whether you need additional financing or not. With a traditional mortgage, you would only pay a legal fee if you needed to borrow additional funds down the road.

My verdict? I see a collateral mortgage benefiting very few borrowers and providing a large benefit to the banks who issue them.

Hope this helps clarify even further and hope this makes sense! :)
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Apr 8, 2007
481 posts
37 upvotes
hi guys: i need some help please.

I and my wife are new to the mortgage puzzle...I have a permanent job. I am able to put down at 260,000... (35% down for a property listing around 730,000)-

what options do I have in regarding 5 year fix/variable rate? I know only BMO allows us to get their mortgages as new immigrants, but are there any other brokers/banks offer other(better) deal? ( we have no debt...)

thank you all.
Living in this big world, I have a little dream.
Newbie
Dec 9, 2006
1 posts
Has anyone seen a better rate than 2.89% for a fixed 5-year in Vancouver?
Newbie
Apr 19, 2007
45 posts
2 upvotes
Montreal
tofueater wrote:
Jun 8th, 2014 12:37 pm
Hi,

I'm also looking for a rate, and had a few questions about Desjardin's rate:

1. What was the hold on this rate (60/90/120 days)?
2. Did you spend a lot of time negotiating with them to get the rate? Is there someone who you know I can speak with and just ask for this rate?


Thanks
1) I don't know what was the hold on that rate, I didn't even ask as I was less than 30 days before switching.
2) Not much time negociating, less than 5 minutes. A broker who only works for Desjardins offer me 2.79% for 50 months right off the bat, I told him I had 2.29% for 2 years with London Life and got 2.64% for 50 months. I will give you the contact in PM.
Penalty Box
Aug 11, 2005
3429 posts
887 upvotes
Is the 2.79 from True North for non-conventional mortgages only?
Member
Mar 30, 2011
259 posts
64 upvotes
PascualPitch wrote:
Jun 9th, 2014 8:27 am
1) I don't know what was the hold on that rate, I didn't even ask as I was less than 30 days before switching.
2) Not much time negociating, less than 5 minutes. A broker who only works for Desjardins offer me 2.79% for 50 months right off the bat, I told him I had 2.29% for 2 years with London Life and got 2.64% for 50 months. I will give you the contact in PM.
Thanks a lot!
Sr. Member
User avatar
Jun 1, 2006
668 posts
29 upvotes
It is in the contract of the mortgage.
Pentacool wrote:
Jun 8th, 2014 10:45 am
I don't think it is re advancable mortgage.
I'm confused. :confused:
Sr. Member
User avatar
Jun 1, 2006
668 posts
29 upvotes
A BMO rep offered me 2.69% for 4 years. Said it's a current promotion. Has anyone heard of this?
Member
User avatar
Mar 10, 2006
307 posts
3 upvotes
Hi,

My wife and I are first time buyers and looking for a broker in the Brampton area. Please PM me with details - our closing is in early July.

Thanks.
Deal Addict
Feb 2, 2014
4098 posts
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Toronto
Luckyinfil wrote:
Jun 9th, 2014 9:53 am
Is the 2.79 from True North for non-conventional mortgages only?
Purchases only
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Banned
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Jul 16, 2003
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Rdua - pm sent.
Andre Oliveira - Mortgage Agent
Mortgage Intelligence - FSCO# 10428

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