Real Estate

The Official Mortgage Rates Thread

Newbie
Dec 21, 2009
16 posts
2 upvotes
Hinterland
Clarification question about amortization: if at the beginning of a two year term the amortization is 13 years, is it 11 years after the term is done regardless of how much extra prepayments were added? Asking because we've been paying extra every month and the current amortization table on our lender's site says 8.x years remaining.
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Aug 8, 2012
10198 posts
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BC
thecdnhammer wrote: Clarification question about amortization: if at the beginning of a two year term the amortization is 13 years, is it 11 years after the term is done regardless of how much extra prepayments were added? Asking because we've been paying extra every month and the current amortization table on our lender's site says 8.x years remaining.
Excellent question and interested to hear answers from brokers.

My guess would be it stays 11, when you renew it would have a much LOWER payment even if you had the same rate because the inputs into the calculator for 11yrs + lower principle = lower payment.

Then if you want to continue on your path to 8.x years remaining to mortgage-freedom you can increase your payments again.

I can see how this could eventually become a problem where you are renewing again in 2 years for 9-year amortization, but your payments are so low from prepaying that even with doubled payments you can't achieve the payment rate you want. This is a good problem to have :)
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Jr. Member
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Jul 29, 2008
117 posts
25 upvotes
Niagara Falls
Hello everyone,

Just wanted to leave a comment saying how thankful and grateful we are to CdnRealEstateGuy (Kevin). We were in a tricky financial situation and felt hopeless about getting a mortgage, but after posting on here and being told by quite a few that there was no way I'd be able to get one with the low income situation I was in, Kevin messaged me to try and help. He managed to get us a great mortgage at a fantastic rate and really worked hard for us to make this dream become possible. He walked us through the process and answered any and every question we had...which was many! He worked so hard for us and made the process so much less stressful than we imagined and we're truly thankful.

I can't recommend him enough!

Thank you so much Kevin, you helped us secure our first home :)
Jr. Member
Aug 4, 2014
197 posts
62 upvotes
Burnaby, BC
ahlaker wrote: You can get a full-frills conventional variable rate mortgage with ThinkFinancial (TrueNorth broker's lender). Just google TrueNorth and you should find it. If you have an insured mortgage you can get 1.95%. This was current as of last week when I chatted to a broker at their storefront. Good luck!
Chatted with someone at TrueNorth today. So the 1.95% is only if you put less than 20% down (consider high ratio). It is 2.05% if you put 20% downpayment. In our situation i'm looking for a low rate 5 year variable (2% or less ideally) with traditional 20% downpayment and 30 year amortization.

Does anyone know if there's any lender that can beat TrueNorth/Think Financial 2.05% or is this the best out there right now?
Jr. Member
Aug 21, 2012
107 posts
49 upvotes
Winnipeg
Currently with a national mortgage lender for conventional mortgage with 15/15 and double up. Looking to renew and keep payments the same acc b/w (reducing amortization period from 17 years). Have been offered 2.54 5 y/f, and 2.35 5 y/v. They also post a 2.24 fixed rate for 2 years.

Mortgage renewal is around 190k, in MB. Great credit, minimal debt. Renewal Date Aug 25.

Should I be trying to negotiate better with my current lender, or trying to find a new lender/go with my credit union? Not currently with a big bank/RBC to get the 1.99%
Deal Fanatic
Jun 29, 2007
6041 posts
2749 upvotes
Vancouver
tincantuna wrote: Is the mortgage and HELOC with the same bank?
Yes.

By the way, a friend just got offered 2.09% for 2 yrs fixed from BMO.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
gshrfd wrote: There is no such thing.
From the context, I'm guessing they meant closed variable (vs. open variable).
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User avatar
Feb 2, 2014
11231 posts
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Toronto
thecdnhammer wrote: Clarification question about amortization: if at the beginning of a two year term the amortization is 13 years, is it 11 years after the term is done regardless of how much extra prepayments were added? Asking because we've been paying extra every month and the current amortization table on our lender's site says 8.x years remaining.
So if everything were to stay the same, you would have your mortgage paid off in 8.x years. However, the registered scheduled amortization according to the system is 11 years.

So basically, if you were to switch the mortgage today, you can choose an amortization UP TO 11 years (which is what is registered on the system). If you choose an amortization longer than 11 years, then it will be a refinance and new charge will have to be registered on the system (with the longer amortization period).

Hope that makes sense.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Feb 2, 2014
11231 posts
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Toronto
TamedReckless wrote: Hello everyone,

Just wanted to leave a comment saying how thankful and grateful we are to CdnRealEstateGuy (Kevin). We were in a tricky financial situation and felt hopeless about getting a mortgage, but after posting on here and being told by quite a few that there was no way I'd be able to get one with the low income situation I was in, Kevin messaged me to try and help. He managed to get us a great mortgage at a fantastic rate and really worked hard for us to make this dream become possible. He walked us through the process and answered any and every question we had...which was many! He worked so hard for us and made the process so much less stressful than we imagined and we're truly thankful.

I can't recommend him enough!

Thank you so much Kevin, you helped us secure our first home :)
My pleasure :)
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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User avatar
Feb 2, 2014
11231 posts
3350 upvotes
Toronto
tincantuna wrote: Is the mortgage and HELOC with the same bank?
Who is your main bank? If you have enough business with them, you may be able to get Prime +0% on a 2nd position HELOC.

Obviously if you have a mortgage with them too, that is considered a lot of business, so you would have an easier time getting Prime +0%.

I personally have an unsecured loc with TD, and I have a pretty competitive rate because they have a lot of my money. But others (my family members) weren't able to get a low rate on their LOC because they don't have that much with them.

Start with your main FI for the HELOC.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
May 31, 2007
5 posts
Richmond Hill
Quick question for the pro's re: Mtg & HELOC's as one product... if appraisal comes in over 1 million how do the big 5 deal with any value over the 1 million mark for the heloc portion? For example, I was told TD applies 50% to anything over 1 million. So if the appraisal comes in at 1.2 mill, TD would apply 80% to first 1 mill. (800,000) and 50% to the 200,000 (100,000) for a total of 900,000 mtg and heloc combined).
Jr. Member
Aug 4, 2014
197 posts
62 upvotes
Burnaby, BC
gshrfd wrote: There is no such thing.
Sorry I've fixed the typo. Low 5 yr variable rate is what it should read originally. Any out there that's less than 2.05%?
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Feb 2, 2014
11231 posts
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Toronto
suprateacher wrote: Quick question for the pro's re: Mtg & HELOC's as one product... if appraisal comes in over 1 million how do the big 5 deal with any value over the 1 million mark for the heloc portion? For example, I was told TD applies 50% to anything over 1 million. So if the appraisal comes in at 1.2 mill, TD would apply 80% to first 1 mill. (800,000) and 50% to the 200,000 (100,000) for a total of 900,000 mtg and heloc combined).
Each lenders has different rules. Some have sliding scales and each lender's sliding scale is different. And some lenders don't have any sliding scale at all.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
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Aug 7, 2007
4795 posts
3847 upvotes
GTA
According to RateHub...Butler Mortgage has a 1.92% 5-year variable rate. Compared to 2.28% 5-year Fixed at CanWise Financial, 0.36% rate difference.

As a single guy with no kids and could handle the fluctuation that could arise, I wonder is that 0.36% is worth it...
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Sep 13, 2011
7036 posts
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Toronto
ADRiiAN` wrote: According to RateHub...Butler Mortgage has a 1.92% 5-year variable rate. Compared to 2.28% 5-year Fixed at CanWise Financial, 0.36% rate difference.

As a single guy with no kids and could handle the fluctuation that could arise, I wonder is that 0.36% is worth it...
You can't believe every rate you read about online unfortunately. I can pretty much guarantee the variable rate you are referring to is not the rate you will be paying. Meaning, the rate your payments are based on would be higher and they are quoting an 'effective' mortgage rate after a cash back*from the broker. This is also likely a rate offered for high ratio mortgages only, that is, mortgages with LESS than 20% down only. Often these advertised rates come with broker implemented restrictions such as high mortgage amounts, or the requirement to obtain a line of credit with it as well.

It's also a good idea to Google the name of the broker or brokerage you are dealing with to see if there are any reviews about them. The person you hire to arrange your mortgage for you should be given just as much consideration as the rate itself.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
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Aug 7, 2007
4795 posts
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GTA
PaulMeredith wrote: You can't believe every rate you read about online unfortunately. I can pretty much guarantee the variable rate you are referring to is not the rate you will be paying. Meaning, the rate your payments are based on would be higher and they are quoting an 'effective' mortgage rate after a cash back*from the broker. This is also likely a rate offered for high ratio mortgages only, that is, mortgages with LESS than 20% down only. Often these advertised rates come with broker implemented restrictions such as high mortgage amounts, or the requirement to obtain a line of credit with it as well.

It's also a good idea to Google the name of the broker or brokerage you are dealing with to see if there are any reviews about them. The person you hire to arrange your mortgage for you should be given just as much consideration as the rate itself.
You are 100% right Paul.
Major Financial Institution, PURCHASES with less than 20% down ONLY.
Owner Occupied ONLY. NO Rentals/Pre Approvals/Second Homes
This is an effective rate which incorporates cash back. A higher contract rate applies, upon which the actual payment is based. You will receive a lump sum of cash back upon closing, equal to the interest savings of the advertised rate.
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Feb 9, 2013
1912 posts
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Mississauga
Hi,

I'm very new to mortgage and just purchased my new home.
What is the difference between lower tier mortgage vs. going to the big banks?

I spoke to a colleague, he said National Bank and CIBC typically offered them lower rates. So I plan to check out those banks this weekend.

What are the type of questions I should be asking? What is considered a good rate now?
Deal Addict
Mar 1, 2014
2363 posts
3541 upvotes
jdu0ng wrote: Hi,

I'm very new to mortgage and just purchased my new home.
What is the difference between lower tier mortgage vs. going to the big banks?

I spoke to a colleague, he said National Bank and CIBC typically offered them lower rates. So I plan to check out those banks this weekend.

What are the type of questions I should be asking? What is considered a good rate now?
Congratulation on purchasing your new home.

Mortgages from non-bank lenders are not "lower tier". Each lender, bank or non-bank, is unique and serves different people's needs differently.

A mortgage is far more than just a rate, so you would be starting off on the wrong foot if rate is the only thing on your mind.
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Feb 6, 2006
156 posts
1 upvote
Toronto
Thought I'd share since there are a lot of general mortgage questions being asked. I swear by this spreadsheet... it's bang on with it's calculations and give you a very clear picture of how all the components of a mortgage affect you. I'm also no finance expert but here's how I view mortgages (this works for me, it may not work for you).

- Interest rate is hugely important. A fraction of a percentage point could equate to thousands of dollars in or out of your pocket.
- Amortization mainly affects your monthly/bi-weekly payment amount. Play with this to get your payment amount to your level of comfort. It's more complicated than that, but that's how I use it and suspect that thinking will work for most people.
- I look at profitability at term. What I mean by that is, I want to be paying more principal than interest at the end of my term. Currently, 65% of my total payments at term are going to principal vs. 35% to interest (this does not include any additional prepayments).
- If you set your payment low (ie. longer amortization) and you are disciplined in making consistent prepayments, you will end up paying way more toward principal at the end of term than interest. Remember, prepayments go directly to principal.
- Term is completely unrelated to the rate/amortization/payment and has mainly to due with the length of time you will maintain your rate, in a sense. This is somewhat less true with a variable rate mortgage as it has potential to fluctuate with the economy. That said, you will almost always certainly be better off in the long run with a variable rate mortgage. The ideal situation would be to get a super low rate for a super long term. This is unheard of, don't try looking for it. But this is important to know for context in your search.

Here's the link to the spreadsheet... very handy: http://www.vertex42.com/Calculators/Can ... tgage.html

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