Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Dec 17th, 2017 11:37 am
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MidnightOverlord wrote:
Mar 16th, 2017 5:00 pm
Yeah, I know. Still doesn't change the fact that the effective rate is 5 bps lower than the quote. And that's not the lowest TD goes on rental- the rest is up to the advisor/MMS/broker

So the fact that the"lowest" quote on rentals is 2.5 is 🦈

Edit: that was supposed to be a fishy emoji, not jaws reincarnated
I can only quote what I see. I cannot quote rates or deals that 'may' be given by certain banks or branches. I stopped dealing with TD ever since they started registering all their mortgages as collateral. But from what I see, TD's rate on rentals is also 2.50%.
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PaulMeredith wrote:
Mar 16th, 2017 6:14 pm
I can only quote what I see. I cannot quote rates or deals that 'may' be given by certain banks or branches. I stopped dealing with TD ever since they started registering all their mortgages as collateral. But from what I see, TD's rate on rentals is also 2.50%.
Okay, sure. I don't have access to broker channels but if any RFDer walks into their branch, the quoted rate on rentals is 2.45 before the advisors SR or the MMS commission is impacted. It can go as low as TD MTG prime - 50 = 2.35 if your volume is good and/or the deal is simple. The fact that you don't deal with TD doesn't excuse the fact that those rates are not what the market is lending at.
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PaulMeredith wrote:
Mar 13th, 2017 1:49 pm
Thats no different than what I mentioned in my post, so it sounds like you are misunderstanding here. Yes, you can go up to 80% on the HELOC providing that the HELOC portion alone does not exceed 65% of the property value.
Hi Paul

I am good with the percentages now.

Do you think I could get better then prime on my line of credit. I was told it was not going to expire or up for renewal at the end of my term. The rep mentioned he could likely increase the amount of the line of credit and still do prime. Does this seem realistic?

Thank you
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GenX wrote:
Mar 16th, 2017 7:01 pm
Hi Paul

I am good with the percentages now.

Do you think I could get better then prime on my line of credit. I was told it was not going to expire or up for renewal at the end of my term. The rep mentioned he could likely increase the amount of the line of credit and still do prime. Does this seem realistic?

Thank you
Anytime you can prime on a HELOC you are doing really well. Really hard to get these days and only one or two lenders will offer it, and only to certain types of professional borrowers (doctors, engineers, etc.). As far as better than prime? Never heard of anyone getting lower. You an always ask your lender, but just know that you are doing pretty good as it is with prime :-).
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MidnightOverlord wrote:
Mar 16th, 2017 5:00 pm
Yeah, I know. Still doesn't change the fact that the effective rate is 5 bps lower than the quote. And that's not the lowest TD goes on rental- the rest is up to the advisor/MMS/broker

So the fact that the"lowest" quote on rentals is 2.5 is 🦈

Edit: that was supposed to be a fishy emoji, not jaws reincarnated
I was only replying to the "??" which I interpreted as possibly questioning why a doubled "discount" of 40bps was only beating the other rate by 5bps.

The fact it starts 5bps lower is kind of meaningless since TD can just willy nilly change their "mortgage prime" to whatever they feel like. I would NEVER take a variable rate from a bank using a "mortgage prime" when the others are still using the same one as for all their customer products. I think IG has a mortgage prime too, not just TD. All those people who jumped on P-1.01 a while back actually got "mortgage prime" minus 1.01%.

Shady. Blowfish Dunno if there's an emoji for that, so I'll go with a fish too. Didn't see a shark :)
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Parps wrote:
Mar 16th, 2017 3:00 pm
Following the same line of questions, what would be the lowest fixed rate (anything from 1-5 years) available on a rental property? (20% down, no insurance premium). Thanks!
Anyone?
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Mar 16, 2017
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Hello,

My wife and I are first time home buyers. We recently visited a mortgage broker who told us the best 5 year variable rate she could get us was prime -0.5 (2.2%) with first national. I saw earlier that someone mentioned a 5 year variable rate of prime -0.85 was possible with another lender with the right profile. I just want to make sure our current broker is not giving us false information to maximize their own commission. Our profile is as follows:

35% down payment
Purchase price of roughly 350K
Mortgage of 228K
No other debts, excellent credit, good stable jobs, combined income roughly 140K a year

Does anyone think it is possible to get a 5 year fixed rate of less than 2.5% with our profile? Should I be contacting a different mortgage broker? Any help would be appreciated.

Thanks
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Bdport wrote:
Mar 17th, 2017 9:45 am
Hello,

My wife and I are first time home buyers. We recently visited a mortgage broker who told us the best 5 year variable rate she could get us was prime -0.5 (2.2%) with first national. I saw earlier that someone mentioned a 5 year variable rate of prime -0.85 was possible with another lender with the right profile. I just want to make sure our current broker is not giving us false information to maximize their own commission. Our profile is as follows:

35% down payment
Purchase price of roughly 350K
Mortgage of 228K
No other debts, excellent credit, good stable jobs, combined income roughly 140K a year

Does anyone think it is possible to get a 5 year fixed rate of less than 2.5% with our profile? Should I be contacting a different mortgage broker? Any help would be appreciated.

Thanks
Up until yesterday, you could have got prime -0.85% (1.85%). These rates have unfortunately increased now and the lowest is now prime -0.65% (2.05%) So, yes, you can still do better than what the other broker is quoting you.

There are also 5 year fixed rates as low as 2.39% or possibly lower.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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Mar 16, 2017
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Hello to all,

Very informative thread. Thank you to all who take the time to explain and justify!

Question 1: BMO's 5 year smart fixed 10/10 and 25 years: How low can the rate go before it impacts the commission of the vendor? ( how does their commission even work for them?)
Question 2: in your opinion how much can be shaved off a rate for a 5 year fixed, 10/10 (BMO) if I offer to surrender all prepayment options?

Cheers
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echo_jey wrote:
Mar 16th, 2017 1:47 pm
My wife co-owned a home with her family and having their mortgage at Bank A. we are now seeking for mortgage for new builder home , is it better to go with the same Bank A for better rate ?
co-owned home still has remaining 230K. When I tried with different banks they are considering the old remaining mortgage of 230K to our new total. However, Bank A is willing to give mortgage to the new home since they are accepting her retired dad will take care of the remaining 230K with his own pension income. So my question is there reason for shopping around or just settle with Bank A.
Bank A offering the following rates for new home :
Best Variable closed - 2.3% ( needed to qualify for 4.* % )
Fixed 5yr - 2.69%
You won't necessarily get a better rate with Bank A (compared to other lenders) simply because you have a mortgage with them already. Best rates are currently as low as 1.80% variable and 2.39% 5-year fixed.

Having said that, lenders will include some carrying costs (mortgage, taxes, heat) of her parent's house as her liabilities when approving the mortgage for the new property.

I obviously don't know your financials, so I don't know if those carrying costs effect your ability to get the mortgage for the new home.
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ace604 wrote:
Mar 17th, 2017 3:09 am
I was only replying to the "??" which I interpreted as possibly questioning why a doubled "discount" of 40bps was only beating the other rate by 5bps.

The fact it starts 5bps lower is kind of meaningless since TD can just willy nilly change their "mortgage prime" to whatever they feel like. I would NEVER take a variable rate from a bank using a "mortgage prime" when the others are still using the same one as for all their customer products. I think IG has a mortgage prime too, not just TD. All those people who jumped on P-1.01 a while back actually got "mortgage prime" minus 1.01%.

Shady. Blowfish Dunno if there's an emoji for that, so I'll go with a fish too. Didn't see a shark :)
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I agree.

Given TD is a balance sheet lender, it's very possible they will increase their Mortgage Prime Rate again. It does feel like you're taking on an added risk for a variable rate mortgage with TD.

IG also has a Mortgage Prime Rate that is currently 2.85%.
Kevin Somnauth, CFA
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Been looking to open up a HELOC. Went to TD yesterday to inquire about their HELOC promotion (fees waived - appraisal/legal). You must pull 50k in the first 3 months in order to get the fees waived.

However the catch in my situation is that my mortgage is with with Scotia (standard charge) and TD will only offer Prime + 1.5% for HELOC in 2nd position. I said that's too high and they offer the Fixed Rate (FROA) where they lock in an amount you specify to a fixed/variable rate, sort of like a mortgage inside the heloc. You can lock in at say 2.15% at 3YR variable.

Now question is, will I have issues at mortgage renewal if I have a HELOC with TD (revolving and/or fixed rate option)?
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What you need is a different branch. One branch tells you the rate is P+1.5%, another will tell you TD does not offer Helocs, another will say P+.50... this is how banks operate.

Im applying again for a Heloc with CIBC... 1 branch told me they could do it at 80% (minus mortgage), another told me CIBC does not offer Helocs in 2nd position (lololololol), another says they do at 65% (minus mortgage).. Im waiting for the final reply.
Call 10 branches, get 10 different answers, pick the best one and give it a try. Im not kidding.
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valuemortgage wrote:
Mar 17th, 2017 4:51 pm
What you need is a different branch. One branch tells you the rate is P+1.5%, another will tell you TD does not offer Helocs, another will say P+.50... this is how banks operate.

Im applying again for a Heloc with CIBC... 1 branch told me they could do it at 80% (minus mortgage), another told me CIBC does not offer Helocs in 2nd position (lololololol), another says they do at 65% (minus mortgage).. Im waiting for the final reply.
Call 10 branches, get 10 different answers, pick the best one and give it a try. Im not kidding.
The couple branches I called, gave me a range which depends on multiple variables. I'll keep trying as I really don't want to waste time going to multiple branches trying to figure out what rate they offer in 2nd position.
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Szharkov wrote:
Mar 17th, 2017 4:44 pm
Been looking to open up a HELOC. Went to TD yesterday to inquire about their HELOC promotion (fees waived - appraisal/legal). You must pull 50k in the first 3 months in order to get the fees waived.

However the catch in my situation is that my mortgage is with with Scotia (standard charge) and TD will only offer Prime + 1.5% for HELOC in 2nd position. I said that's too high and they offer the Fixed Rate (FROA) where they lock in an amount you specify to a fixed/variable rate, sort of like a mortgage inside the heloc. You can lock in at say 2.15% at 3YR variable.

Now question is, will I have issues at mortgage renewal if I have a HELOC with TD (revolving and/or fixed rate option)?
Are you sure TD would take 2nd position behind Scotia and give you 3 yr var at 2.15%? I would double check that.

Rather than go to the different branches, I would call them. I usually ask for their most senior financial or account manager.

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