Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • May 22nd, 2018 9:56 am
Deal Addict
Apr 26, 2004
1954 posts
54 upvotes
GTA
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?
If you can wait until June, you may be able to get 2.1% and have all fees paid for in the transfer (if you keep the heloc)
Mortgage Specialist in the GTA here to answer all your questions.
Newbie
May 19, 2017
2 posts
1 upvote
If someone can provide me with the best current mortgage rate fixed and variable for a home purchase (non-rental) valued at just under 1 million and with more than a 35% down payment. I see that a 1.85% variable rate with MCAP was available earlier in May. Is this still the best rate and is it still available? Is MCAP the only lender offering this rate? Thanks.
Newbie
May 12, 2017
29 posts
5 upvotes
Geese_Howard wrote:
May 20th, 2017 5:07 pm
If you can wait until June, you may be able to get 2.1% and have all fees paid for in the transfer (if you keep the heloc)
Just wondering why waiting till June is expected to result in lower variable rates compared to now?
Newbie
Aug 23, 2010
33 posts
Kincardine
Geese_Howard wrote:
May 20th, 2017 5:07 pm
If you can wait until June, you may be able to get 2.1% and have all fees paid for in the transfer (if you keep the heloc)
Thanks for the tip.
Newbie
Jun 1, 2003
2 posts
I'm looking to do a refinance for a reno in the next couple of months. Currently about $350K outstanding on a TD mortgage at 2.89% with 11 months remaining on term. Collateral charge. House is worth about $750K. We'd be adding about $175K to the mortgage, to bring it up to $525K.

On a 5-year term, what are the best fixed/variable rate offers for this scenario, including any cash back/appraisal coverage?
Deal Addict
User avatar
Sep 13, 2011
3644 posts
1174 upvotes
Toronto
ahlaker wrote:
May 20th, 2017 12:40 am
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".
There might be nothing 'legally' preventing them from allowing a switch, so why do you think zero lenders will, and the lenders who will cover the costs still proceed as a refinance? It's because there is a cost difference. Do you not think that if a lender could do a free switch then they would in order to get more business? What a great opportunity for a lender to gain an advantage over their competition. However, no one does it because of the cost involved. So while there maybe nothing legally preventing a lender from allowing a free switch, there is also nothing legally preventing a lender from offering up rates at 1%. They don't because of the cost involved.

You really hit the nail on the head with the line I bolded above. Whether they are legally able or not legally able, if no lenders will do it then it's really quite irrelevant.

All that being said, it's still great information posted. :-)
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Sep 13, 2011
3644 posts
1174 upvotes
Toronto
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.
If your original mortgage was from a purchase with 20% down then your mortgage would not be CMHC insured, so unfortunately lowest rates would not apply.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Sep 13, 2011
3644 posts
1174 upvotes
Toronto
ValueConscious3 wrote:
May 20th, 2017 7:21 pm
If someone can provide me with the best current mortgage rate fixed and variable for a home purchase (non-rental) valued at just under 1 million and with more than a 35% down payment. I see that a 1.85% variable rate with MCAP was available earlier in May. Is this still the best rate and is it still available? Is MCAP the only lender offering this rate? Thanks.
Yes, the 5 year variable rate of 1.85% is still available and it is still the lowest rate available for your situation. In additional to MCAP, RMG offers this rate as well, however the penalty is 3% of the mortgage amount as opposed to the standard 3 months interest. The MCAP option is definitely the better of the two for the vast majority of situations.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Guru
User avatar
Aug 8, 2012
10198 posts
3905 upvotes
BC
ahlaker wrote:
May 20th, 2017 12:40 am
  • 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.
It seems contradictory to say the amount can be "a good indicator" and af the same time say it "is irrelevant".

It CAN be irrelevant if the amount is equal to the mortgage amount.
It's not irrelevant if the amount is larger than your mortgage ;)

Quoted for context for below response to Paul:
ahlaker wrote:
May 20th, 2017 12:40 am
  • 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.
PaulMeredith wrote:
May 21st, 2017 12:06 pm
There might be nothing 'legally' preventing them from allowing a switch, so why do you think zero lenders will, and the lenders who will cover the costs still proceed as a refinance? It's because there is a cost difference. Do you not think that if a lender could do a free switch then they would in order to get more business? What a great opportunity for a lender to gain an advantage over their competition. However, no one does it because of the cost involved. So while there maybe nothing legally preventing a lender from allowing a free switch, there is also nothing legally preventing a lender from offering up rates at 1%. They don't because of the cost involved.

You really hit the nail on the head with the line I bolded above. Whether they are legally able or not legally able, if no lenders will do it then it's really quite irrelevant.

All that being said, it's still great information posted. :-)
It's not accurate to say "zero lenders will" when he just gave an example of a lender that DID.

He also said there's nothing preventing a switch. He didn't say FREE switch.

It's probably the case it is so rare because it is a headache and easier to just say no ... like a broker taking on a client to switch a $50k mortgage is probably not worth the headache for $50 of commission :)

There are other examples where a "clear" competitive advantage would 'certainly' be exploited and yet ... it is not. I'm thinking of 0% FX fees on Canadian credit cards. Rogers touted this as a competitive advantage until they realized not enough of the target market understood what an advantage this was and just changed to charge 2.5% like everyone else and increase the cashback to a "better sounding" 4% on foreign transactions.

I imagine any lender saying "we'll take all collateral charges" won't have much luck with that advertising campaign as the vast majority of the public don't even know what a collateral charge is to begin with. It could make a difference in the broker channel, but the brokers are already so well trained to bash collateral charges and set expectations of fees involved ... so why bother rocking the boat.

Perhaps FCT and their like are to blame. It shouldn't actually cost any more to assign the collateral mortgage.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Newbie
Jan 19, 2015
3 posts
Guelph, ON
First time buyer here, waiting to hear back on an offer closing July 22. If accepted, I will have five days to get a commitment letter from a lender. A couple questions:

1. Is this usually enough time to get an unconditional commitment letter? I've already been pre-approved for the amount of the purchase (although I understand the pre-approval probably doesn't make much of a difference).
2. How often/when is an appraisal required?
Newbie
May 6, 2008
50 posts
7 upvotes
Toronto , Etobicoke
Just wanted some feedback.

Looking for a mortgage $700K-$800K.

20% downpayment.

Broker offered 5 year fixed @ 2.49% and 5 year variable @ 2.39%.

Rates seem high for me.

Any advice?
Deal Addict
User avatar
Dec 1, 2015
1528 posts
778 upvotes
Etobicoke, ON
You should be able to get 5y fixed at 2.39% or the 5y variable at 2.05% (P-65).
sundawner wrote:
May 22nd, 2017 8:09 pm
Just wanted some feedback.

Looking for a mortgage $700K-$800K.

20% downpayment.

Broker offered 5 year fixed @ 2.49% and 5 year variable @ 2.39%.

Rates seem high for me.

Any advice?
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
May 21, 2017
1 posts
Hello

Another request from a "lurker": my 5-year term ends in July. It is with RBC, and unsure if it is collateral or not.
Balance is 275,000, and house is estimated at 1,150,000.
750 credit.
Toronto property.
I am curious about what are some my options away from RBC, variable or fixed rates.
Sr. Member
May 1, 2017
847 posts
184 upvotes
user6249 wrote:
May 22nd, 2017 1:28 pm
First time buyer here, waiting to hear back on an offer closing July 22. If accepted, I will have five days to get a commitment letter from a lender. A couple questions:

1. Is this usually enough time to get an unconditional commitment letter? I've already been pre-approved for the amount of the purchase (although I understand the pre-approval probably doesn't make much of a difference).
2. How often/when is an appraisal required?
Hi there,

1. Yes that's plenty of time - should only take a MAX of 3 days or so. Just make sure your broker knows you have a financing condition. Also, the commitment likely won't be unconditional - there will be conditions in the commitment that have to be satisfied before closing. So long as you know the conditions are reachable, you can waive the financing.

2. The higher the loan-to-value, the more likely you'll need an appraisal. That is of course until the loan-to-value is over 80%, then there's usually some variety of an appraisal completed by the insurer, which will be at no cost to you. Think of it this way, the lender needs to be certain that they can sell the house and recoup their investment if you we're to default on the mortgage. At 50% LTV, its reasonable to assume that there is enough room to recoup the mortgage should you default. At 80% LTV, there is much less certainty. Between 80-95% LTV, the insurer takes the brunt of the responsibility at default, so the onus is on the insurer to assess the value.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
May 22, 2017
7 posts
Looking for best 2 year fixed rate in Quebec with 60 day rate hold for new purchase. $270K with 20% down.

Top

Thread Information

There are currently 6 users viewing this thread. (3 members and 3 guests)

Nexus777, mikek33, brigmohan