Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • May 22nd, 2017 11:30 pm
Newbie
May 12, 2017
4 posts
3 upvotes
chrischris84 wrote:
May 16th, 2017 8:45 pm
I'm on the same promo and thought the same thing...until my IG rep said it wasn't a collateral mortgage! Double check your current status

FYI, the IG rate offers I got are a petty:
2.54% 5 year fixed
2.35% (p-0.5%) Variable
Really? Wow, everyone has been saying that IG's mortgages are collateral for a long time. I looked through the mortgage terms and did not find anything that jumped out as 'collateral charge', but I'm not sure what to look for either.

Were you (or anyone else) able to confirm that you can indeed switch lenders easily?
Newbie
Jul 19, 2016
10 posts
3 upvotes
Thank you Paul.
I'm still a year away so who knows where rates will be. It's good to know my options though.
Newbie
Dec 23, 2014
30 posts
26 upvotes
Vancouver, BC
I'm looking to refinance 600k (value of house is 1.3m). The lowest I could find for a 2yr fixed is 2.19 through scotiabamk via true north. Is this the best rate? How low does variable go? I'm also good with a 5 yr if it's a better deal.
Deal Addict
Feb 29, 2008
4158 posts
480 upvotes
mrthwap wrote:
May 16th, 2017 10:06 pm
If you ever had to break the mortgage, the IRD penalty with TD would be much higher than with a non-bank lender.
As it would with any big bank.

For me that's reason enough to stay away from the big banks for fixed rate products. If you're sure you won't break
the mortgage, then comparisons are easier.
Can't stress this enough. They will take you to the cleaners. I learned the hard way.
Member
Jan 13, 2012
232 posts
31 upvotes
PaulMeredith wrote:
May 16th, 2017 8:06 pm
If it's a high ratio collateral mortgage, it can be transferred without any fees to you, and you will get lower rates than what you would get if it were just a straight refinance, just not as low as what you would get if you were not in a collateral charge. Lowest 5 year fixed would be 2.49%. Lowest variable would be 1.90% (prime -0.80%). Also, the new mortgage would NOT be a collateral charge.
Even though I follow this thread near daily,I somehow missed this. The info I have learned I'm here is invaluable...its amazing how complicated this can all be. No wonder the general population is so lost...I still am after following this thread for years.

Anyway, as I've posted, I'm up for renewal in Sept 2017, so I'm almost able to start searching for rates. I was originally an insured mortgage with 5% down, back in 2008. Refinanced in 2012, but sneakily got put in a collateral mortgage. I assumed I'd have fees to get out this September, but because I was originally insured, this means less fees?? I think that's what I'm reading, so this is great news.

Anyway, as I've said, I'll PM ppl in about a month to represent me.
Deal Addict
Sep 13, 2011
2969 posts
858 upvotes
Toronto
mrthwap wrote:
May 16th, 2017 10:06 pm
If you ever had to break the mortgage, the IRD penalty with TD would be much higher than with a non-bank lender.
As it would with any big bank.

For me that's reason enough to stay away from the big banks for fixed rate products. If you're sure you won't break
the mortgage, then comparisons are easier.
JayLove06 wrote:
May 17th, 2017 6:47 am
Can't stress this enough. They will take you to the cleaners. I learned the hard way.
We've been discussing this on here for years, yet so many people insist on going with a big bank for their mortgage. It's easy at the time of arranging your mortgage to think that you won't be breaking the mortgage for the term. Circumstances change, things happen, and life can throw you curveballs. There are many reasons why someone might break their mortgage early:

- purchasing a new home mid-term and bank isn't giving you a competitive rate (probably most common)
- refinancing to a lower rate (new mortgage regulations will pretty much eliminate this from happening again).
- loss of job
- disability
- divorce
- transfer out of city / province / country
- failed business venture
- personal financial crisis

The list can go on and on. Most of the items on the list are less than pleasant, but life isn't always pleasant and sometimes it throws curveballs. Especially with the size of mortgages today, going with a major bank for a fixed rate mortgage can end up being a costly choice.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
May 1, 2017
47 posts
12 upvotes
andre83 wrote:
May 16th, 2017 11:41 pm
Really? Wow, everyone has been saying that IG's mortgages are collateral for a long time. I looked through the mortgage terms and did not find anything that jumped out as 'collateral charge', but I'm not sure what to look for either.

Were you (or anyone else) able to confirm that you can indeed switch lenders easily?
I'm working on a switch for a client right now from IG and have confirmed that the mortgage is a standard charge.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
Newbie
May 1, 2017
47 posts
12 upvotes
BigBear604 wrote:
May 17th, 2017 12:53 am
I'm looking to refinance 600k (value of house is 1.3m). The lowest I could find for a 2yr fixed is 2.19 through scotiabamk via true north. Is this the best rate? How low does variable go? I'm also good with a 5 yr if it's a better deal.
Hi there,

2.19% for 2 year fixed is the going rate, and will be very tough to beat. You could get a 3 year variable at scotia @ p-0.40. Since it's a refi, with a value of 1.3m, your mortgage would be uninsurale, so for 5 years, your best rate would be around p-0.55%. 5 year fixed would come in around 2.59%- 2.54%
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
Deal Addict
Sep 13, 2011
2969 posts
858 upvotes
Toronto
vesh1717 wrote:
May 17th, 2017 8:20 am
Even though I follow this thread near daily,I somehow missed this. The info I have learned I'm here is invaluable...its amazing how complicated this can all be. No wonder the general population is so lost...I still am after following this thread for years.

Anyway, as I've posted, I'm up for renewal in Sept 2017, so I'm almost able to start searching for rates. I was originally an insured mortgage with 5% down, back in 2008. Refinanced in 2012, but sneakily got put in a collateral mortgage. I assumed I'd have fees to get out this September, but because I was originally insured, this means less fees?? I think that's what I'm reading, so this is great news.

Anyway, as I've said, I'll PM ppl in about a month to represent me.
In your particular case, since you refinanced, you would no longer qualify for a high ratio switch unfortunately since you no longer have the original mortgage from when you purchased the home. Sorry.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Jan 13, 2012
232 posts
31 upvotes
PaulMeredith wrote:
May 17th, 2017 8:58 am
In your particular case, since you refinanced, you would no longer qualify for a high ratio switch unfortunately since you no longer have the original mortgage from when you purchased the home. Sorry.
No need to be sorry. Thanks for the info. Back to what had originally thought.
Newbie
May 16, 2017
1 posts
andre83 wrote:
May 16th, 2017 11:41 pm
Really? Wow, everyone has been saying that IG's mortgages are collateral for a long time. I looked through the mortgage terms and did not find anything that jumped out as 'collateral charge', but I'm not sure what to look for either.

Were you (or anyone else) able to confirm that you can indeed switch lenders easily?
I'm with IG on the same promo from 2014 and I just received a "switch offer" - I don't recall the formal term - from MCAP (value-flex, var@1.85%, 5yr). I'm no expert but as I understand it, you need to look for the term 'subrogation' in your mortgage papers. Most likely, IG have collateral mortgages only for their AIO product.
Deal Addict
Feb 2, 2014
3289 posts
530 upvotes
Toronto
noproblem wrote:
May 16th, 2017 1:06 pm
If it is CMHC insured, then what are the implications?
As Paul touched on, if the mortgage is insured, there are lenders who will cover the transfer fees associated with collateral charges.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
3289 posts
530 upvotes
Toronto
kelvie wrote:
May 16th, 2017 3:18 pm
We are looking to refinance our home (worth $1,375,000), and we got offered a 5 year variable at 2.10% (P - 0.6) with BMO for 75% of the value.

This was last week, and reading here, it looks like the rates have lowered a bit? Would I be better off looking elsewhere for a better rate? They also offer a readvanceable mortgage, which is nice, but not if the rate difference is so much.
A couple of big lenders increased their rates today for non-insurable mortgages (refinances, properties over $1M...)...the rate you were given is very competitive now.

Yesterday I could've secured 2.05% for you, but unfortunately that ship has sailed.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
3289 posts
530 upvotes
Toronto
chrischris84 wrote:
May 16th, 2017 8:45 pm
I'm on the same promo and thought the same thing...until my IG rep said it wasn't a collateral mortgage! Double check your current status

FYI, the IG rate offers I got are a petty:
2.54% 5 year fixed
2.35% (p-0.5%) Variable
Correct, IG mortgages are NOT collateral charges.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
3289 posts
530 upvotes
Toronto
2.19% 2-year fixed is NOT the best rate for a refinance. There are better rates out there.
Last edited by CdnRealEstateGuy on May 17th, 2017 1:49 pm, edited 1 time in total.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
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