We were just offered by a mortgage broker:
2.59% w/ 15% down
2.69% w/ 20% down
Why the higher rate for more down payment? does the broker get c omission off the CAMH insurance? Also, looking at ratehub.ca , could we possibly get a better rate?
Mar 22nd, 2017 7:07 pm
Mar 22nd, 2017 8:35 pm
Mar 22nd, 2017 8:51 pm
Mar 22nd, 2017 10:13 pm
Mar 22nd, 2017 10:56 pm
Mar 23rd, 2017 8:23 am
It's best to ask this question to the bank that preapproved you. It 'should', but I would ensure you ask them to confirm.Hawk25 wrote: ↑Mar 22nd, 2017 10:13 pmI had a question about mortgage insurance. Lets say the bank pre-approves someone for a 450K purchase price with a 5% down payment. Does this purchase price usually take into account the mortgage insurance required by CMHC? Or does the pre-approval assume that you will be paying it upfront in cash, instead of adding it to the mortgage?
Mar 23rd, 2017 9:41 am
Mar 23rd, 2017 9:44 am
It's available through any regular posting broker on this board. The lender is MCAP.
Mar 23rd, 2017 10:01 am
I have a bit of trouble following the higher cost of a collateral mortgage in this case. I (laurentreit088330) was offered 2.25% var (2.35% fixed) with about 2000$ cashback. What I understand is that at the end of the term, I will not be able to have the best rate available to a non collateral refinance (or move to another lender). This would be the potential higher cost of, let's say a difference on the next term of 2.5 % for non collateral vs 2.95 % for collateral which, if I am with TD, I would forced to take.valuemortgage wrote: ↑Mar 22nd, 2017 6:44 pmAny 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.
Mar 23rd, 2017 10:16 am
Mar 23rd, 2017 10:30 am
Mar 23rd, 2017 10:45 am
Mar 23rd, 2017 12:55 pm
Again, isn't this only applicable when the mortgage is insured? If you had a 35% LTV loan today that you were looking to move, from a rate perspective it wouldn't matter if your loan was a collateral charge or not, right? Rates on uninsured refinances are the same as the rates on uninsured switches, the only difference is the legal/discharge costs of a refinance. Right?valuemortgage wrote: ↑Mar 23rd, 2017 10:16 amNot only you will incur those fees, but the rates you see posted here will not be available as a transfer of a collateral charge is treated as a refinance, so "regular" rates do not apply.. only specific refinance rates are available, and they are currently much higher than regular rates.
This is not true in Alberta. CUDGC is the CU regulator and they are not forced to abide by OSFI guidelines. HELOC LTV can be > 65% at an Alberta Credit Union.valuemortgage wrote: ↑Mar 23rd, 2017 10:45 amWhen the first bill (B20) was introduced with those limitations, it only applied to institutions regulated at the federal level... so, credit unions being under provincial regulation were not initially affected. Then, B21 came in and imposed those same rules to banks, monolines and CU as well.
Mar 23rd, 2017 12:59 pm
Yeah, I was wondering that because nothing in B21 says that. Anyway, I don't need more than 65% LTV since I won't be using it for a long term purchase and I'll pay it down with every pay cheque. I was just wondering because since I haven't applied to any, I might as well seek a CU that offers a higher LTV.ahlaker wrote: ↑Mar 23rd, 2017 12:55 pmAgain, isn't this only applicable when the mortgage is insured? If you had a 35% LTV loan today that you were looking to move, from a rate perspective it wouldn't matter if your loan was a collateral charge or not, right? Rates on uninsured refinances are the same as the rates on uninsured switches, the only difference is the legal/discharge costs of a refinance. Right?
This is not true in Alberta. CUDGC is the CU regulator and they are not forced to abide by OSFI guidelines. HELOC LTV can be > 65% at an Alberta Credit Union.
Mar 23rd, 2017 1:39 pm
Which is a collateral charge mortgage. Keep in mind, you have to pay refinancing costs (legals and appraisal) and likely a higher rate if you ever leave them (same with TD and Tangerine).