Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Jun 24th, 2017 6:23 am
Newbie
Jun 28, 2016
41 posts
8 upvotes
Hi Guys, I am looking for some advice on mortgage with 35% down payment. Read somewhere that there is no income verification with 35% down for self employed. Is that correct? If there is a solution what kind of rate and where?

Thanks for your advice.
Sr. Member
User avatar
Dec 1, 2015
982 posts
494 upvotes
Etobicoke, ON
It is not really that 35% down means no income verification is needed. Income is always an important consideration, however when the income is not easily verifiable, any options available will be much easier to work on your favor when you have a higher down payment.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
Aug 16, 2011
34 posts
8 upvotes
OTTAWA
PaulMeredith wrote:
Mar 16th, 2017 10:41 pm
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 :-).
Hey paul what lenders have you seen offer p for heloc.
Newbie
Dec 1, 2008
38 posts
7 upvotes
PaulMeredith wrote:
Mar 19th, 2017 7:45 pm
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, I spoke to you while ago. Looks like 1.80% rate is gone now? I am putting more than 35% down
Sr. Member
Dec 8, 2009
556 posts
97 upvotes
MidnightOverlord wrote:
Mar 16th, 2017 6:26 pm
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.
"TD has mortgage prime 2.85% where other banks have 2.70%" ( when TD raised the rate last yr news reported other banks will follow suit but not happened yet? )
"TD register mortgage as collateral "
Are these just fear mongering tactics by competitors or really impacting issue for customer looking for better mortgage rate for new home?
Is it possible advise on RFD more biased since more mortgage brokers presence?
Deal Fanatic
User avatar
Aug 8, 2012
8747 posts
3105 upvotes
BC
echo_jey wrote:
Mar 20th, 2017 12:22 am
"TD has mortgage prime 2.85% where other banks have 2.70%" ( when TD raised the rate last yr news reported other banks will follow suit but not happened yet? )
"TD register mortgage as collateral "
Are these just fear mongering tactics by competitors or really impacting issue for customer looking for better mortgage rate for new home?
Is it possible advise on RFD more biased since more mortgage brokers presence?
Yes, more biased. I'm not a broker. I can tell you "mortgage prime" == massive rip-off for customers.

Their mortgage prime is subject to them changing it as they please separately from their actual prime ... which is much more likely to stay in sync with other bank's prime rate because they compete on prime customer business.

Collateral charges are only good if you need to borrow more money from the same bank down the road.

Otherwise they just cost you money when you want to switch lenders due to the new lender asking for a new mortgage registration (legal fees).

Over-simplified example:
1) "switching" = paying discharge fee and paying someone to cross out your old bank's name on the mortgage and write your new bank's name instead. This is cheap. So cheap it's factored into the cost of doing business and often (usually?) not even charged to the customer.
2) you can't switch a collateral if the new lender won't accept the collateral mortgage charge => you need to "refinance" pay discharge at old bank and pay legal fees to draw up a brand new mortgage (more expensive ~$1k and *not* factored as cost of doing business and so the new lender doesn't cover this for you)

Which is better?

Of course there are exceptions where you may find a lender who takes the collateral charge or covers the extra cost but this may be rare and limits your choices.

A standard charge mortgage gives you the freedom to shop.

A good analogy might be a car lease with brand X. Say you have a Ford. If it is collateral, when your lease term is up you are allowed to get another Ford. If you see a Toyota you like better you won't be able to get it without incurring extra costs.

I don't know why anyone would voluntarily choose a collateral charge unless they need the benefit it bestows (which is to borrow more money later without extra legal fees).
POLL: How many credit cards do you CARRY?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Newbie
Nov 27, 2011
6 posts
MISSISSAUGA
PaulMeredith wrote:
Mar 19th, 2017 10:10 am
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.
Thanks Paul for quick response.
can bridge financing be a realtsic option?

i may need up to 2 months....do they need a confirmed sales and purchase agreement of my existing house? or can that be done based on intent and commitment but actual sale may occur after closing of my new house?
Deal Addict
Sep 13, 2011
3023 posts
887 upvotes
Toronto
luxvisitor wrote:
Mar 20th, 2017 3:01 am
Thanks Paul for quick response.
can bridge financing be a realtsic option?

i may need up to 2 months....do they need a confirmed sales and purchase agreement of my existing house? or can that be done based on intent and commitment but actual sale may occur after closing of my new house?
Bridge financing is only an option if your home has sold unconditionally, but the closing date is after the closing of the new property. Commitment to sell is not enough, nor is it even being listed. Nor is it even being sold with conditions. Sale must be unconditional.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Sep 13, 2011
3023 posts
887 upvotes
Toronto
echo_jey wrote:
Mar 20th, 2017 12:22 am
"TD has mortgage prime 2.85% where other banks have 2.70%" ( when TD raised the rate last yr news reported other banks will follow suit but not happened yet? )
"TD register mortgage as collateral "
Are these just fear mongering tactics by competitors or really impacting issue for customer looking for better mortgage rate for new home?
Is it possible advise on RFD more biased since more mortgage brokers presence?
Do we as brokers want you to do business with us? Of course we do. But at the same time, we aren't going to make stuff up or twist the truth in order to get business. I don't think that helps anyone, me included. It's a fact that TD registers all their mortgages as collateral charges. It's a fact that this can be quite costly switching lenders at the end of your term. It's a fact that major banks have much harsher penalty calculations than most of the non-bank lenders. It's also a fact that most brokers also have access to products at banks like TD and Scotiabank where as banks only have access to their own products. It's also a fact that we would be torn apart if we were posting information that isn't true, or anything contrary to whats in the best interests of the borrower. It's not uncommon for us to suggest for people take the offer from the their bank or from another broker when it's the best option for them. I think we know we can't win 'em all, and it certainly wouldn't reflect very well on us if we were to try to. But of course, i'm biased :-)
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Expert
User avatar
Apr 21, 2004
37517 posts
7838 upvotes
Good morning. I forgot to ask, for HELOC (2nd in position and not with the mortgage lender), what kind of debt ratios / income do the lenders look at when reviewing an application? Thank you

Edit:
Found the answer. Looks like best to apply when most financially flexible and use as a rainy day fund.

https://canadianmortgagesinc.ca/informa ... heloc.html

OTHER REQUIREMENTS FOR GETTING A HELOC

The lenders also run a financial background check on the home owner to assess his/her capability to repay the loan withdrawn from the home equity line of credit. The credit history plays a great role in getting such a credit line approved and in deciding the interest rate that the lender offers. Your debt to income ratio also has a part to play in assessing your risk as a borrower.

The home’s value is appraised to determine the equity value and all owner documents are verified to ascertain ownership and mortgage position on the property. Proof of steady income and ability to repay the loan is also assessed. If you are a self employed person or have an unsteady or fluctuating income, you may have to convince the lender of your ability to repay the loan liability. The lender will also seek documentation regarding previous second mortgages on the property and their repayment history.
Newbie
Mar 31, 2009
7 posts
2 upvotes
Ottawa
Wanted to post a quick review of my experience dealing with Andre Oliveira (valuemortgage here on the RFD forums). I had been reading this thread for a few months knowing that we were looking for a house. At first we went through our bank and were quoted a rate that seemed very high compared to rates posted here and that's when I thought it might be worth connecting with a broker on RFD.

We had a really great experience dealing with him from first contact through to the closing of our deal. He was very organized and quick to respond to emails. He had everything streamlined and we just completed the paperwork, sent it back to him and he followed-up on anything that we were missing. If I had not sent him something in a couple days, he would follow-up with him. As he obtained the approvals of the conditions from the lender, he let us know what was left to do. Overall, a very positive experience and would definitely use him again.
Member
Sep 19, 2012
318 posts
121 upvotes
Calgary
ace604 wrote:
Mar 20th, 2017 1:49 am
Yes, more biased. I'm not a broker. I can tell you "mortgage prime" == massive rip-off for customers.

Their mortgage prime is subject to them changing it as they please separately from their actual prime ... which is much more likely to stay in sync with other bank's prime rate because they compete on prime customer business.

Collateral charges are only good if you need to borrow more money from the same bank down the road.

Otherwise they just cost you money when you want to switch lenders due to the new lender asking for a new mortgage registration (legal fees).

Over-simplified example:
1) "switching" = paying discharge fee and paying someone to cross out your old bank's name on the mortgage and write your new bank's name instead. This is cheap. So cheap it's factored into the cost of doing business and often (usually?) not even charged to the customer.
2) you can't switch a collateral if the new lender won't accept the collateral mortgage charge => you need to "refinance" pay discharge at old bank and pay legal fees to draw up a brand new mortgage (more expensive ~$1k and *not* factored as cost of doing business and so the new lender doesn't cover this for you)

Which is better?

Of course there are exceptions where you may find a lender who takes the collateral charge or covers the extra cost but this may be rare and limits your choices.

A standard charge mortgage gives you the freedom to shop.

A good analogy might be a car lease with brand X. Say you have a Ford. If it is collateral, when your lease term is up you are allowed to get another Ford. If you see a Toyota you like better you won't be able to get it without incurring extra costs.

I don't know why anyone would voluntarily choose a collateral charge unless they need the benefit it bestows (which is to borrow more money later without extra legal fees).
+1000! This needs to be pinned as it is great summary of TD's "issues". The only thing missing is a discussion of TD's fixed-mortgage break penalties which are pretty stiff when compared to certain other lenders (monolines and CU's mostly). I know Ace is a variable mortgage guy so break fee isn't a big deal to him as it's always 3 months interest.

EDIT: I see Paul mentioned break penalties below.

Unless TDs rate is spectacularly lower than the prevailing market rates, I would find it difficult to go with them.
Sr. Member
Apr 2, 2010
890 posts
304 upvotes
GTA
Is it still possible to get 1.8% or 1.9% 5 yr variable rate mortgages for principal homes (I will live in it)? Are there some restrictions in exchange for getting these rates? E.g. No 20% per year down payment of the mortgage amount, its a collateral mortgage (so cant easily switch), etc... Bit of a beginner and need help :)

EDIT: It would be 5% to 10% down only. (High Ratio)
Sr. Member
User avatar
Dec 1, 2015
982 posts
494 upvotes
Etobicoke, ON
High ratio still gets P-90 (1.80%) with excellent terms.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.

Top