Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • May 20th, 2018 7:48 pm
Deal Addict
Jun 29, 2007
3979 posts
914 upvotes
PaulMeredith wrote:
Mar 22nd, 2017 10:15 am
A $2,000 cash back doesn't even offset the cost of switching to another lender at the time of maturity due to TD's collateral mortgage unfortunately. Not a very good deal at all.
You are saying the cost (discharge fee, new appraisal fee and new legal fee) of transferring from TD's collateral mortgage to a new lender exceeds $2,000?
Deal Addict
Feb 2, 2014
4737 posts
968 upvotes
Toronto
Speedy1 wrote:
Mar 21st, 2017 1:31 pm
2.04% for 2 yrs is a great rate if it's true. I would double check that though since their website is advertising 2.29%. Also double check what fees you have to pay. Your current mortgage line of credit is with scotiabank or a different lender?

http://www.canwise.com/rates
Yes, I can get 2.29% from them as well....2.04% is a pretty good deal (but I do believe the broker is not giving you correct rates).
Last edited by CdnRealEstateGuy on Mar 22nd, 2017 2:03 pm, edited 1 time in total.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4737 posts
968 upvotes
Toronto
PaulMeredith wrote:
Mar 21st, 2017 3:16 pm
Just wanted to add a bit more to Andre's comment about the 1.75% variable being only available on insured deals (that is, purchases with LESS than 20% down) and NOT available on refinances. It also has a ridiculously high penalty of 3% of the mortgage amount. Substantial considering that the standard penalty to break a variable rate mortgage is only 3 months interest.
It's not through RMG (so penalty is not 3% of balance).

But yes, HR deals only.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
User avatar
Sep 13, 2011
3642 posts
1174 upvotes
Toronto
Speedy1 wrote:
Mar 22nd, 2017 1:55 pm
You are saying the cost (discharge fee, new appraisal fee and new legal fee) of transferring from TD's collateral mortgage to a new lender exceeds $2,000?
Not at all. Those charges usually are around $1,300. The problem lies with the fact that refinances are now priced differently from switches and purchases. Lowest rate on a switch right now is 2.44%. Lowest rate on a refinance is 2.69%. That's where the expense lies. On a $500,000 mortgage, this would represent an additional cost of over $6,000.... on top of the refinance fees. This is why a $2,000 rebate given by the bank on a collateral mortgage is really not as great of a deal as it may seem.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Sep 13, 2011
3642 posts
1174 upvotes
Toronto
Maximus_ wrote:
Mar 22nd, 2017 1:50 pm
I'm looking for a new mortgage on a $600K property with 20-25% down, potentially looking to see whats the best out there for a no-collateral 3 year fixed. My plan is to pay approx 35% lump sum at the end of 3 years and switch lenders to reduce my monthly payments. Please advise which lender and rate.
If you can come up with 30% down payment, you can get a 3 year fixed for as low as 2.34%. With 20 down, rate would be 2.54%. With 25% down, 2.49%.

You are still limited by your prepayment privileges at the end of your term. So if your maximum prepayment privilege is 20%, then this is the maximum you can do at the end of your term. You could however put down 20% (for example) with the current lender at the end of the first term, and then put down the additional 15% with the new lender at the start of your 2nd term.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
User avatar
Sep 5, 2015
25 posts
3 upvotes
Winnipeg, MB
Just signed a 2 year fixed term with Scotiabank at 2.29% (was also offered a 5 year fixed @ 2.69%). I know it isn't great as HSBC and its 5 year 2.35% term, but as a first home buyer I'm quite happy with the one I got.
Deal Addict
Jun 29, 2007
3979 posts
914 upvotes
PaulMeredith wrote:
Mar 22nd, 2017 2:40 pm
Not at all. Those charges usually are around $1,300. The problem lies with the fact that refinances are now priced differently from switches and purchases. Lowest rate on a switch right now is 2.44%. Lowest rate on a refinance is 2.69%. That's where the expense lies. On a $500,000 mortgage, this would represent an additional cost of over $6,000.... on top of the refinance fees. This is why a $2,000 rebate given by the bank on a collateral mortgage is really not as great of a deal as it may seem.
The refinance cost (i.e. higher rate) you are referring to only applies if you are leaving a collateral mortgage? i.e. it doesn't apply if you are leaving a non-collateral mortgage?
By refinance, you are referring to borrowing a higher amount? i.e. Leaving a collateral mortgage but not increasing borrowed amount is considered a refinance thus higher mortgage rate?

About 6 months ago, I was looking to transfer out my collateral mortgage to 2 of the big 5 banks and I was told the legal cost of doing that was about $500 (they use title insurance and have their own staff or notary, if I remember correctly) plus $300 appraisal. Both banks offered to cover the legal cost and appraisal fee so my cost of leaving a collateral mortgage would be $0.
Deal Addict
Apr 26, 2004
1954 posts
54 upvotes
GTA
For anyone that's refinancing with a heloc, has a house valued at over 1 million or purchasing a property for over a million there are some really low rates available.

2.15% on a variable
2.5% on 5 year fixed

Both also come with cash back depending on the size of your mortgage. For example if you have a 500k mortgage you will get back between 1500-2000$ Cash back.
Mortgage Specialist in the GTA here to answer all your questions.
Deal Addict
User avatar
Dec 1, 2015
1528 posts
778 upvotes
Etobicoke, ON
Any refinance is treated the way Paul explained. Collateral charges are treated as refinance, hence the higher rate. So, if you have a plain vanilla mortgage with any lender and want to refinance (that is, change the mortgage amount, extend the amortization, draw equity out or move a collateral charge to another lender) those legal fees will apply, and so will higher interest rates on the new term.
What you were told 6 months ago was accurate.... but in October last year, the new mortgage rules took effect and now leaving that collateral charge (National Bank, TD bank, Tangerine, and any integrated mortgage and Heloc solution) will cost you a fortune, under the new rules.
Speedy1 wrote:
Mar 22nd, 2017 3:04 pm
The refinance cost (i.e. higher rate) you are referring to only applies if you are leaving a collateral mortgage? i.e. it doesn't apply if you are leaving a non-collateral mortgage?
By refinance, you are referring to borrowing a higher amount? i.e. Leaving a collateral mortgage but not increasing borrowed amount is considered a refinance thus higher mortgage rate?

About 6 months ago, I was looking to transfer out my collateral mortgage to 2 of the big 5 banks and I was told the legal cost of doing that was about $500 (they use title insurance and have their own staff or notary, if I remember correctly) plus $300 appraisal. Both banks offered to cover the legal cost and appraisal fee so my cost of leaving a collateral mortgage would be $0.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Deal Addict
Feb 2, 2014
4737 posts
968 upvotes
Toronto
RATT80s wrote:
Mar 22nd, 2017 2:49 pm
Just signed a 2 year fixed term with Scotiabank at 2.29% (was also offered a 5 year fixed @ 2.69%). I know it isn't great as HSBC and its 5 year 2.35% term, but as a first home buyer I'm quite happy with the one I got.

@[olabreche] This further confirms that 2.29% on a 2-year fixed is the rate you're getting from Scotia (through brokers or branches).

Thanks for sharing RATT80s.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Aug 16, 2011
37 posts
13 upvotes
OTTAWA
Geese_Howard wrote:
Mar 22nd, 2017 3:05 pm
For anyone that's refinancing with a heloc, has a house valued at over 1 million or purchasing a property for over a million there are some really low rates available.

2.15% on a variable
2.5% on 5 year fixed

Both also come with cash back depending on the size of your mortgage. For example if you have a 500k mortgage you will get back between 1500-2000$ Cash back.
Which lenders are you talking about here.
Deal Addict
User avatar
Sep 13, 2011
3642 posts
1174 upvotes
Toronto
Speedy1 wrote:
Mar 22nd, 2017 3:04 pm
The refinance cost (i.e. higher rate) you are referring to only applies if you are leaving a collateral mortgage? i.e. it doesn't apply if you are leaving a non-collateral mortgage?
By refinance, you are referring to borrowing a higher amount? i.e. Leaving a collateral mortgage but not increasing borrowed amount is considered a refinance thus higher mortgage rate?

About 6 months ago, I was looking to transfer out my collateral mortgage to 2 of the big 5 banks and I was told the legal cost of doing that was about $500 (they use title insurance and have their own staff or notary, if I remember correctly) plus $300 appraisal. Both banks offered to cover the legal cost and appraisal fee so my cost of leaving a collateral mortgage would be $0.
Yes, it applies to refinancing only. Some lenders WILL cover the charges to switch out of a collateral mortgage, however you're never going to get lowest rates available when doing so as it still needs to proceed as a refinance. Regardless of whether you are taking out additional funds or not.

The point is, always be weary of collateral mortgages and realize how much they can potentially cost you down the road.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Sep 19, 2012
492 posts
339 upvotes
Calgary
valuemortgage wrote:
Mar 22nd, 2017 3:36 pm
Any refinance is treated the way Paul explained. Collateral charges are treated as refinance, hence the higher rate. So, if you have a plain vanilla mortgage with any lender and want to refinance (that is, change the mortgage amount, extend the amortization, draw equity out or move a collateral charge to another lender) those legal fees will apply, and so will higher interest rates on the new term.
What you were told 6 months ago was accurate.... but in October last year, the new mortgage rules took effect and now leaving that collateral charge (National Bank, TD bank, Tangerine, and any integrated mortgage and Heloc solution) will cost you a fortune, under the new rules.
PaulMeredith wrote:
Mar 22nd, 2017 4:57 pm
Yes, it applies to refinancing only. Some lenders WILL cover the charges to switch out of a collateral mortgage, however you're never going to get lowest rates available when doing so as it still needs to proceed as a refinance. Regardless of whether you are taking out additional funds or not.
I thought that if you had an uninsured mortgage (which OP said he'd have because he was putting down 35%), on rate you'd be indifferent between refinancing and switching, right? Put another way, one only sees a rate-spread on refinance vs. switch on insured deals, correct?
Deal Addict
User avatar
Dec 1, 2015
1528 posts
778 upvotes
Etobicoke, ON
Any refinance will be treated (at least at this point) the same way, regardless the LTV. What I was talking about was that the other poster (laurentreit088330) had a collateral charge which he was refinancing to move it to TD, which would again get him another collateral charge. So, any cash incentive he was getting for that deal could potentially be a wash, as the new TD mortgage would again need to be refinanced at the end of the term.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence

Top

Thread Information

There are currently 4 users viewing this thread. (3 members and 1 guest)

starmasminder, Logbangoa, PH1515