Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Mar 23rd, 2017 10:16 am
Penalty Box
Feb 2, 2014
3089 posts
467 upvotes
Toronto
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.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Penalty Box
Feb 2, 2014
3089 posts
467 upvotes
Toronto
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 :)
Tropical FishFishBlowfishDolphinSpouting WhaleWhale
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
Mortgage Agent and Real Estate Sales Representative
Member
Sep 9, 2008
324 posts
25 upvotes
Mississauga
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)?
Sr. Member
User avatar
Dec 1, 2015
854 posts
452 upvotes
Etobicoke, ON
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.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Member
Sep 9, 2008
324 posts
25 upvotes
Mississauga
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.
Deal Addict
Jun 29, 2007
2937 posts
495 upvotes
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.
Member
Nov 1, 2010
325 posts
36 upvotes
Szharkov wrote:
Mar 17th, 2017 5:18 pm
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.
Wow, what should we conclude here? It is either that employees are clueless, nobody wants to commit and/or the system is completely dysfunctional! Call me naive/optimistic but my inquiry with one bank had a mortgage agent (with almost 40 years there) specifically indicate the kind of discretion is available and another one at another bank with almost similar experience answering all my questions with "I'll need to ask the director". I agree with valuemortgage (A.O.) Post 36589, I've found in my dealings over the last few years depends almost entirely on the branch. Employees are either committed/career folks or "young professionals"(being polite). Finding the right branch gets frustrating but patience can be rewarded. One "adviser" even indicated that having given somebody else the green light to make a credit check for a mortgage greatly diminished the odds of getting a good offer from them (insert shock emoji).

My takeaway: Shop around. Don't hesitate to ask a mortgage broker and/or call a few places. Losing a few points on your credit score is well worth a saving thousands of dollars over the next decade. Do the same with insurance and cars!
Deal Addict
User avatar
May 5, 2007
3045 posts
331 upvotes
Torana
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)?
TD told me slightly different things which I wrote down word for word when I met. They said 50k had to be drawn in the first month I set up the HELOC, eg., draw by April 1 if setup in March. Then I had to keep it drawn for 3 months in order for them to waive the appraisal/legal which was $750 total. If I go under $50k I would have to pay the fees. They also gave me p+.5 for 100k, but as low as p+.3 for a 300k HELOC. The rep said I may have a hard time getting the HELOC in 2nd position behind my mortgage with RMG.

I've been shopping around too and will most likely go with CIBC for the promo rate they have until Nov. They seem to be more lenient with self-employed as well.
Penalty Box
Feb 2, 2014
3089 posts
467 upvotes
Toronto
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)?
I had a client recently get Prime +.50% from TD behind MCAP. Prime +125bps is way too high.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Nov 27, 2011
6 posts
MISSISSAUGA
Hi
Thanks for the informative thread.
In my case, i need 280k as down payment for new house (20%) but am falling short by 60k.
the current house wont be sold in time for closing of the new one.
for the shortfall, can i borrow the funds from my friend? he can write that as gift. are there any tax implications for him or me?

in case of relative, can one outside of Canada help by transfer of gift?

Thanks a lot!
Deal Addict
Sep 13, 2011
2861 posts
808 upvotes
Toronto
luxvisitor wrote:
Mar 19th, 2017 2:03 am
Hi
Thanks for the informative thread.
In my case, i need 280k as down payment for new house (20%) but am falling short by 60k.
the current house wont be sold in time for closing of the new one.
for the shortfall, can i borrow the funds from my friend? he can write that as gift. are there any tax implications for him or me?

in case of relative, can one outside of Canada help by transfer of gift?

Thanks a lot!
Gifts or loans from friends are not acceptable. A gift can be accepted from an immediate family member (parent or sibling) from outside Canada, so if that is an option then that is probably your best bet.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Dec 26, 2013
273 posts
46 upvotes
Is it common for a seller to ask a buyer to sign an agreement of purchase before a lot is severed? Seller wants to make sure he has a buyer committed before spending the money to have a waterfront lot severed.
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Apr 21, 2004
36155 posts
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Is the lowest HELOC interest rate in second position prime plus 0.5%?

What is the typical admin fee to set one up?
Deal Addict
Sep 13, 2011
2861 posts
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Toronto
alanbrenton wrote:
Mar 19th, 2017 12:50 pm
Is the lowest HELOC interest rate in second position prime plus 0.5%?

What is the typical admin fee to set one up?
Yes. Fee is typically around $1,000 for appraisal and legals. Manulife however has a product where they will cover all these fees for you. The only drawback is there is a monthly fee of $14.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Sr. Member
Dec 8, 2009
542 posts
96 upvotes
CdnRealEstateGuy;PaulMeredith; valuemortgage; wrote:
Mar 17th, 2017 3:10 pm
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.
Thanks, but Banks are not seeing over million purchase price as issue yet but other lenders having issue for over million purchase price. Her parents house remaining mortgage amount will be added to our new home purchase price?
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