Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • May 22nd, 2018 9:05 pm
Sr. Member
May 1, 2017
847 posts
184 upvotes
Geese_Howard wrote:
May 19th, 2017 1:51 pm
After 90 days the money is the clients and the client will get this in writing.
Good to know. I know a few lenders recall the cash back if they break mid term.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Nov 28, 2013
22 posts
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WEST VANCOUVER
valuemortgage wrote:
May 17th, 2017 7:10 pm
Depending on the specifics, this may not be a decent rate... 5y fixed rates with excellent pre payment and standard terms and conditions are available as low as 2.24%.
thanks for the advise, we are getting a 2M mortgage so dont have any cash to pre-payment,.....
Sr. Member
May 1, 2017
847 posts
184 upvotes
bingcga wrote:
May 19th, 2017 2:10 pm
thanks for the advise, we are getting a 2M mortgage so dont have any cash to pre-payment,.....
The prepayment options he was referring to are options to pre-pay portions of your mortgage (often up to 20% of the original balance per year) in lump sums, penalty free during the term. So, if you ever get a large inflow of cash, and don't want to invest it, you can put it towards your mortgage. The benefit of doing this is that your mortgage balance is instantly reduced, meaning you'll pay less interest long term. Typically you can increase your mortgage payment by 20% as an alternative to lump sum payments.

Not sure if that was clear to you.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Aug 23, 2010
33 posts
Kincardine
I have a renewal coming up at the end of August.

I currently have ~200K left in my Scotiabank STEP collateral mortgage on a place worth approx 500K.
I don't use the HELOC part of the mortgage, so I'm open to switching to a conventional mortgage.

Looking around, 2.2 is the lowest variable rate I seem to be able to find. Is that a decent offer?

Is there an advantage to waiting until closer to the renewal date?
Deal Addict
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Sep 13, 2011
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Toronto
willemk wrote:
May 19th, 2017 4:13 pm
I have a renewal coming up at the end of August.

I currently have ~200K left in my Scotiabank STEP collateral mortgage on a place worth approx 500K.
I don't use the HELOC part of the mortgage, so I'm open to switching to a conventional mortgage.

Looking around, 2.2 is the lowest variable rate I seem to be able to find. Is that a decent offer?

Is there an advantage to waiting until closer to the renewal date?
Considering you have a collateral mortgage, options will be quite limited for you. I would say unlikely you will find a lower rate than the 2.20%, and if you do, it's unlikely your fees would be covered for you (around $1,300 approximately).

Your also a little early to be shopping as the maximum rate hold for refinances (and switches) is 90 days with the vast majority of lenders. Other than being within the 90 day window, there would be no benefit to waiting until closer to closing for your situation.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Sep 19, 2012
493 posts
339 upvotes
Calgary
Here we go again - lots of discussion on collateral charges so as always I'll chime in (and hopefully not get flamed for my comments!).

Firstly, here are some links where you'll get all the data you need:

https://www.canada.ca/en/financial-cons ... .html#toc5
http://www.cba.ca/information-on-mortgage-security
https://www.fin.gc.ca/n14/data/14-115_1-eng.asp

Secondly, some key points taken from the above links:
  • A collateral charge is defined only by the fact that the charge/lien/hypothec secures more than just the "mortgage loan". Can't stress that point enough - if the charge secures only one specific loan, then it is not a collateral charge.
  • The amount that the charge is registered for, while often a good indicator of whether the you have a collateral charge, is irrelevant. I had a collateral charge mortgage from National Bank that was registered for the total amount of my mortgage; however, it didn't change the fact that it was a collateral charge.
  • There is nothing legally preventing a collateral charge from being assigned from one lender to another. If you can find a lender willing to play ball, a collateral charge can be moved without a discharge/new charge being issued. I found such a lender: TransCanada Credit Union. Sadly, only current/former employees of TransCanada can be members of that CU.
  • Default insurers (Genworth/CMHC/Canada Guaranty) don't consider a collateral charge switch from one lender to another to be a refinance unless you take additional funds or extend the amortization. The mortgage insurance survives if you don't trip those factors.

All of the above points mean absolutely nothing if the new lender doesn't want to "free switch" your mortgage or offer you the best rates (because it's a collateral charge, because they can't, because "insert reasons here"). Some (most?) lenders just don't want to break the mold so they say "no free switch for you, you had a collateral mortgage so you be punished".
Sr. Member
Oct 31, 2005
572 posts
149 upvotes
GreenMortgages wrote:
May 16th, 2017 10:09 am
Hi there,

That's an extremely competitive rate for a renewal, especially since your mortgage is collateral. You're unlikely to find a better deal as collateral switches are treated as refinances, which means your mortgage would have to be fully discharged, and re registered, which means you would incur solicitor fees.

The downside with staying with TD is that, because of the collateral charge, you can't truly compete with the best available rates at renewal because your mortgage is not eligible for typical switch products. This acts as a retention tool for TD. The idea behind getting out of a collateral as soon as possible is to give you more leverage to compete for subsequent renewals/maturities. There are lenders who cover the majority of the costs to switch out of a collateral mortgage, but their rates are not as competitive as what you've been offered (since it would be a refinance rate, not a switch rate).

Good luck with your renewal. The 2.39% is a great rate, be sure to ask about pre payment options.

Connor
Hi there,

I believe there is 15/15 prepayment options. I still have around 680K on the mtg.
Sr. Member
Oct 31, 2005
572 posts
149 upvotes
CdnRealEstateGuy wrote:
May 16th, 2017 12:48 pm
Is your mortgage CMHC insured?
I think it is. Purchase price was just under $1M. $200K down payment. That was 5 years ago. There is roughly 680K left on it.

2.39% for 5 years, I think regular TD prepayment options.
Deal Addict
Aug 26, 2004
1654 posts
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I was offered 1.98 for a two year mortgage with Scotia. I'm looking for a readvanceable mortgage with a 30 year amortization. Are there better rates?
Deal Guru
Mar 23, 2009
14852 posts
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Toronto
CDNPatriot wrote:
May 20th, 2017 2:34 am
I was offered 1.98 for a two year mortgage with Scotia. I'm looking for a readvanceable mortgage with a 30 year amortization. Are there better rates?
2-year fixed? What are the features? What are the restrictions?
Deal Addict
Aug 26, 2004
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EugW wrote:
May 20th, 2017 3:17 am
2-year fixed? What are the features? What are the restrictions?
Yes two year fixed. Not sure about restrictions and features other than it' s the readavanceable one.
Newbie
Aug 11, 2005
7 posts
Just got a 2.00% variable + 500$ cash back on my renewal with National Bank. They didn't want to follow HSBC at 2.39% 5-years fixed, but did a very decent variable for 5 year. Went ahead with variable for the first time. Hopefully the last 25 years reflects the next 25!
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Dec 1, 2015
1531 posts
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Etobicoke, ON
quik wrote:
May 20th, 2017 7:13 am
... Went ahead with variable for the first time. Hopefully the last 25 years reflects the next 25!
I personally love variable rate mortgages. They tend to outperform comparable fixed rate terms and save the clients a ton of money. Too bad most people only think "risk", instead of considering the "reward" of a variable rate mortgage. When I talk to clients, 9 out of 10 somehow believe that rates are just about to start increasing (and that they are lucky to be able and lock a fixed rate right now) but they never ask themselves "why is the bank willing to lock a low rate for 5y when we all know the rates are just about to explode?"...

Variable rates are an excellent tool to keep the interest cost down, and when the client understands the purpose this product serves, they only want variable.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
Jul 14, 2008
40 posts
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My house in Ottawa is currently mortgage free and I'm looking to take out a mortgage for $250,000 (less than 80% of the house's purchase price). I'm looking for mortgage brokers to PM me or post my best rate options.

Ideally I'm looking for:
- non-collateral
- 20/20 prepayment options
- portability to a new property
- relatively low penalty for breaking the mortgage early

I assume the best option will be a 5 year variable but I'm open to other options.
Deal Addict
Apr 26, 2004
1954 posts
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GTA
ryyeung wrote:
May 20th, 2017 1:28 am
I think it is. Purchase price was just under $1M. $200K down payment. That was 5 years ago. There is roughly 680K left on it.

2.39% for 5 years, I think regular TD prepayment options.
Just wait about 45 days closer to your renewal date. You can get 2.40 or 2.50% on a 5 year fixed and have all fees covered.
Mortgage Specialist in the GTA here to answer all your questions.

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