Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Dec 17th, 2017 11:37 am
Newbie
Jan 20, 2016
23 posts
4 upvotes
Toronto, ON
Question regarding standard vs collateral mortgages.

If I had a standard mortgage and wanted to add a HELOC either with the same bank or another lender, what would the costs be to add this HELOC?

Sounds like with a collateral mortgage, I will already have the ability to borrow more with a HELOC right away, however I need to pay legal fees (~$1k) to discharge at the end of the term if i leave.

Trying to determine if the total costs are the same if the intent is to get a HELOC down the road.
Member
User avatar
Jul 1, 2005
417 posts
6 upvotes
Hello, what's the best fixed-rate (2,3,4,5 yrs) out there right now for renewal in July, (> 1mil purchase price), 30 yr amortization, w/ >60% equity ?
Deal Addict
User avatar
Dec 1, 2015
1306 posts
727 upvotes
Etobicoke, ON
If you add a Heloc with the same lender, they may discharge the current charge and register a collateral one to cover the mortgage and Heloc together. At the end of the term, you will have to pay legal fees + discharge + appraisal to move the mortgage (and the Heloc has to be discharged as well) to the new lender. As this is treated as a refinance, on top of the costs mentioned above, you would also incur higher mortgage rates with the new lender, in the majority of the cases.

If you add a Heloc with a different lender, only the Heloc gets attached to a collateral charge. So, when the mortgage matures you can still move the mortgage alone without legal fees, while keeping the Heloc. In most cases, you pay a fee now (around $500.00 or so) to have that Heloc setup. Sometimes, depending who you talk to at the new lender with the Heloc (likely a major bank) they may or may not waive those costs.
ShyGuy69 wrote:
Mar 20th, 2017 2:05 pm
Question regarding standard vs collateral mortgages.

If I had a standard mortgage and wanted to add a HELOC either with the same bank or another lender, what would the costs be to add this HELOC?

Sounds like with a collateral mortgage, I will already have the ability to borrow more with a HELOC right away, however I need to pay legal fees (~$1k) to discharge at the end of the term if i leave.

Trying to determine if the total costs are the same if the intent is to get a HELOC down the road.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Deal Addict
User avatar
Sep 13, 2011
3378 posts
1087 upvotes
Toronto
napoleonz wrote:
Mar 20th, 2017 2:17 pm
Hello, what's the best fixed-rate (2,3,4,5 yrs) out there right now for renewal in July, (> 1mil purchase price), 30 yr amortization, w/ >60% equity ?
You're still too far away to be able to quote rates as the maximum rate hold for switches is 90 days. If you were within 90 days now, with a value greater than $1 million, the lowest 2 year fixed is 2.29%, lowest 3 year is 2.59% and lowest 5 year is 2.69%.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
Jan 20, 2016
23 posts
4 upvotes
Toronto, ON
Thanks for the response valuemortgage.

Does it make sense to register the full amount of the home on a collateral mortgage?
Seems like I have the option to register an amount between the mortgage loan and the appraised cost of the home.

Trying to determine the pitfalls of doing this.
Newbie
Mar 19, 2017
1 posts
valuemortgage wrote:
Mar 20th, 2017 12:51 pm
High ratio still gets P-90 (1.80%) with excellent terms.
Are p-90 and 5 year fixed @ 2.39 still available nation-wide? Or only in specific provinces/markets?
Deal Addict
User avatar
Dec 1, 2015
1306 posts
727 upvotes
Etobicoke, ON
Registering the full amount or not will have no impact on the product itself... it will be a collateral charge either way. If you understand you will loose the ability to switch out to other lenders at no cost and likely be subject t higher interest rates later on, and still want a collateral charge, I guess it would make sense to register it at the max amount allowed, so that at least you have access to a large Heloc.
ShyGuy69 wrote:
Mar 20th, 2017 2:37 pm
Thanks for the response valuemortgage.

Does it make sense to register the full amount of the home on a collateral mortgage?
Seems like I have the option to register an amount between the mortgage loan and the appraised cost of the home.

Trying to determine the pitfalls of doing this.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Deal Addict
Apr 26, 2004
1885 posts
50 upvotes
GTA
napoleonz wrote:
Mar 20th, 2017 2:17 pm
Hello, what's the best fixed-rate (2,3,4,5 yrs) out there right now for renewal in July, (> 1mil purchase price), 30 yr amortization, w/ >60% equity ?
You could get 2.55% on a 5 year fixed and transfer costs paid for if your closing was within 30 days.

Your better bet might be variable, you can get 2.2% with transfer fees paid for as well.

Both scenarios are on 30 year amortization, you should probably start looking within 60 days prior to your renewal date.
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
wilyam wrote:
Mar 19th, 2017 12:47 pm
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.
That's not really a mortgage questions, but yes, it is common. Make sure there is a condition in the offer that addresses the severe and protects you.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
SamS2016 wrote:
Mar 19th, 2017 8:48 pm
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.
With no proof of income, you're looking at 50% down for the most part.

If you can prove income via non-traditional means (ie bank statements...), you're looking at possibly 20% down.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
spdewan wrote:
Mar 20th, 2017 12:20 am
Paul, I spoke to you while ago. Looks like 1.80% rate is gone now? I am putting more than 35% down
1.90% is now the best rate with 35%+ down.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
martydxb wrote:
Mar 20th, 2017 12:43 pm
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)
1.80% 5-year variable and 2.39% 5-year fixed are the best rates for high ratio mortgages. NOT a collateral charge.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Member
Sep 9, 2008
457 posts
67 upvotes
Mississauga
CdnRealEstateGuy wrote:
Mar 20th, 2017 3:57 pm
1.80% 5-year variable and 2.39% 5-year fixed are the best rates for high ratio mortgages. NOT a collateral charge.
I originally purchased with less than 20% down, upon next renewal is it still considered high ratio? House value increased and my equity is ~ 40-45%.
Deal Addict
User avatar
Dec 1, 2015
1306 posts
727 upvotes
Etobicoke, ON
If the original purchase was insured and you have not refinanced yet, the insurance certificate can be transferred and you get the same rate as a new insured purchase (high ratio rates).
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
Oct 14, 2014
3 posts
4 upvotes
Thornhill, ON
I have TD collateral mortgage we took 3 years ago, that was registered as the twice of amount of mortgage, even exceeded a house appraisal value.
However when I opened HELOC 2 years ago, it was registered separately, the legal cost was waived by TD bank, back at the time.
A few months ago I asked to increase HELOC and application was approved for small additional amount.
The issue now that bank is claiming legal fees again $550, to increase registration of original HELOC by this additional amount, and which is still less than the old initial appraisal value of the house, and overall, include HELOCs and mortgage, it is less than 60% of house value.
I thought all legal fees covered by initial registration 3 y ago.
Can anybody to clarify? It seems rip off
Thank you
Last edited by Sungate on Mar 20th, 2017 10:32 pm, edited 1 time in total.

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