Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Apr 30th, 2017 9:15 pm
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
311 posts
118 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
870 posts
296 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
923 posts
474 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.
Sr. Member
User avatar
Dec 1, 2015
923 posts
474 upvotes
Etobicoke, ON
Thanks for you kind words. It was a pleasure being able to assist you regarding your mortgage needs.
Minimalist22 wrote:
Mar 20th, 2017 10:57 am
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.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
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
415 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 ?
Sr. Member
User avatar
Dec 1, 2015
923 posts
474 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
Sep 13, 2011
2924 posts
835 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?
Sr. Member
User avatar
Dec 1, 2015
923 posts
474 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
1772 posts
37 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
3226 posts
510 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
3226 posts
510 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
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