Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Aug 20th, 2017 3:08 pm
Deal Addict
Jun 29, 2007
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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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Nov 1, 2010
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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!
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May 5, 2007
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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)?
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.
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Feb 2, 2014
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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)?
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!
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Sep 13, 2011
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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)
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Dec 26, 2013
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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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Is the lowest HELOC interest rate in second position prime plus 0.5%?

What is the typical admin fee to set one up?
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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)
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Dec 8, 2009
574 posts
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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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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?
$150 for fees with PCF.
Newbie
Mar 18, 2017
3 posts
Looking for the best 5yr fixed or 5 yr variable with 30% down payment. The rates seem to be all over at the moment. Anyone willing to provide the best going rates? Seen 5 yr fixed at 2.39-2.44% while websites say 2.69%. Variable I have seen for 1.90-2.00% but other brokers say 2.10-2.30%. Confused!

Thank you in advance
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joestewart1 wrote:
Mar 19th, 2017 7:01 pm
Looking for the best 5yr fixed or 5 yr variable with 30% down payment. The rates seem to be all over at the moment. Anyone willing to provide the best going rates? Seen 5 yr fixed at 2.39-2.44% while websites say 2.69%. Variable I have seen for 1.90-2.00% but other brokers say 2.10-2.30%. Confused!

Thank you in advance
You'll see variable rates as low as prime -0.90% (1.80%), however these are for high ratio mortgages only (less than 20% down payment). Lowest rate available for variable with 30% down would be prime -0.60% (2.10%). Lowest 5 year fixed rate is 2.39% or potentially even lower. These rates only apply on properties with a value of under $1 million. Rates are all over the place right now as you can see.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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For HELOC proprety appraisals, will valuations be all over the place or will they look mainly at recent sales in the area?

If LTV is 65%, then valuations will likely dictate how big a limit we can get. I don't plan on not paying the amount down asap though, just wanted it as a back up since our unsecured LOC's are at 7-8% and just to temporary cover if either of us lose our jobs.

Thanks again for the helpful brokers/agents/RFD members.
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alanbrenton wrote:
Mar 19th, 2017 7:52 pm
For HELOC proprety appraisals, will valuations be all over the place or will they look mainly at recent sales in the area?

If LTV is 65%, then valuations will likely dictate how big a limit we can get. I don't plan on not paying the amount down asap though, just wanted it as a back up since our unsecured LOC's are at 7-8% and just to temporary cover if either of us lose our jobs.

Thanks again for the helpful brokers/agents/RFD members.
They are going to look at recent sales on comparable properties.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)

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