Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • May 26th, 2017 4:41 pm
Deal Fanatic
User avatar
Jul 14, 2008
7312 posts
924 upvotes
Ontario
Paul, if you have a collateral mortgage and a HELOC balance, what is involved with transferring to another bank but as a conventional instead?
Deal Guru
Mar 23, 2009
13560 posts
2121 upvotes
Toronto
Emilio06 wrote:
May 18th, 2017 1:59 pm
Scotiabank offered me a 2.21% 5 year variable rate on an uninsured mortgage worth about 300k for my renewal. 30 year amortization, 10/10 prepayment, standard charge (no STEP/collateral)... However the mortgage is not "portable". What does that mean? I can't move it to another lender without paying a penalty?
Portable mortgage means you can move to a different property and take your mortgage with you.

BTW, would they match a 2.39% 5-year fixed? It's up to you of course, but some might prefer that over a 2.21% 5-year variable.
Jr. Member
Dec 14, 2011
100 posts
39 upvotes
OTTAWA
EugW wrote:
May 18th, 2017 2:07 pm
Portable mortgage means you can move to a different property and take your mortgage with you.

BTW, would they match a 2.39% 5-year fixed? It's up to you of course, but some might prefer that over a 2.21% 5-year variable.
No, but they offered a 2.35% 3 year fixed, same terms. The penalty fees on fixed rate mortgages really make me uncomfortable though.

So with a non-portable mortgage, if we ever sell and buy a new house, I'm stuck paying the penalty regardless if I stay with Scotiabank or go to another lender?
Deal Addict
Sep 13, 2011
2976 posts
865 upvotes
Toronto
onlineharvest wrote:
May 18th, 2017 2:00 pm
Paul, if you have a collateral mortgage and a HELOC balance, what is involved with transferring to another bank but as a conventional instead?
Anytime you have a collateral mortgage, it would proceed as a refinance, meaning you would pay the usually higher refinance rates, plus legal, discharge and appraisal fees. Sometimes, these fees can be covered for you. If it's already a collateral charge, then it doesn't matter if there is a HELOC attached to it or not as it's the same process.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Sep 13, 2011
2976 posts
865 upvotes
Toronto
Emilio06 wrote:
May 18th, 2017 2:38 pm
No, but they offered a 2.35% 3 year fixed, same terms. The penalty fees on fixed rate mortgages really make me uncomfortable though.

So with a non-portable mortgage, if we ever sell and buy a new house, I'm stuck paying the penalty regardless if I stay with Scotiabank or go to another lender?
Kind of odd that it wouldn't be portable. Also 10/10 prepayment is also unusual for Scotia. Scotia is a little different when porting as they don't do blended rates and would just add another component to your mortgage when you purchase a new home mid-term. Perhaps either you, or the person at Scotia misunderstood something, as the mortgage should still be portable.

Providing the value of your property is under $1 million, there are lower variable rates out there with much better prepayment privileges and no 'odd' portability restrictions.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Sr. Member
Oct 3, 2005
790 posts
23 upvotes
EugW wrote:
May 18th, 2017 1:00 pm
It's advertised, but it's Home Trust. Hahah. :)

http://www.hometrust.ca/mortgagerates.aspx

However, for the 2.36% 3-year rate it's TD, and advertised.

https://www.tdcanadatrust.com/products- ... -rates.jsp

And for the 2.39% 5-year rate it's HSBC, and also advertised.

https://www.hsbc.ca/1/2/personal/borrow ... age-offers
Thanks.

RBC offered 2.19% on a 2 year fixed and 2.15% for a 5 year variable. This is a renewal...not sure if I'm going to shop around to change banks as it is a collateral mortgage and will cost me to change banks. This is for a rental.
Newbie
May 1, 2017
66 posts
14 upvotes
Emilio06 wrote:
May 18th, 2017 1:59 pm
Scotiabank offered me a 2.21% 5 year variable rate on an uninsured mortgage worth about 300k for my renewal. 30 year amortization, 10/10 prepayment, standard charge (no STEP/collateral)... However the mortgage is not "portable". What does that mean? I can't move it to another lender without paying a penalty?
Portability refers to your ability to take your mortgage with you when you move houses. Since you're mortgage isn't portable, yes you would have to discharge the mortgage and pay the penalty if you were to move. If the mortgage is assumable, the person buying your house may assume the mortgage, and you wouldn't have to pay the penalty.

This is strange of Scotiabank to not allow you the portability option. In the broker channel, the Flex Value Variable Rate Mortgage is portable, I just read the standard charge terms to be sure. The pre-payment options are also not great. They will usually offer a 20/20.

Ask them why it's not portable, and ask them for 20/20.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
Newbie
May 1, 2017
66 posts
14 upvotes
onlineharvest wrote:
May 18th, 2017 2:00 pm
Paul, if you have a collateral mortgage and a HELOC balance, what is involved with transferring to another bank but as a conventional instead?
Piggybacking off of Paul here - Both the mortgage balance and the heloc balance will be paid out and consolidated into one conventional mortgage.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
Deal Addict
Apr 26, 2004
1797 posts
42 upvotes
GTA
AnnonNim17 wrote:
May 18th, 2017 12:57 am
We are shopping for a mortgage, bought house for $1.12, closing end of june. 20% down
So far, the best offer was via Scotiabank (broker channel
2.59% 5 year fixed, 30 year amortization, 20/20 prepayments, with $2.5K cashback + appraisal reimbursement Is this reasonable or can anybody here help us get a better rate? Thank you
You can do much better. 2.49% and 2600$ cash back.
Mortgage Specialist in the GTA here to answer all your questions.
Deal Fanatic
User avatar
Jul 14, 2008
7312 posts
924 upvotes
Ontario
GreenMortgages wrote:
May 18th, 2017 3:40 pm
Piggybacking off of Paul here - Both the mortgage balance and the heloc balance will be paid out and consolidated into one conventional mortgage.
PaulMeredith wrote:
May 18th, 2017 2:48 pm
Anytime you have a collateral mortgage, it would proceed as a refinance, meaning you would pay the usually higher refinance rates, plus legal, discharge and appraisal fees. Sometimes, these fees can be covered for you. If it's already a collateral charge, then it doesn't matter if there is a HELOC attached to it or not as it's the same process.
Ah ok. So if you're going to maintain a HELOC balance, it'll be a collateral charge product anyway in the new bank? Only if you take the entire balance and refinance the total are you free of the collateral type product? And then perhaps get a basic LOC instead, but it would be at a higher rate...
Newbie
May 1, 2017
66 posts
14 upvotes
onlineharvest wrote:
May 18th, 2017 3:52 pm
Ah ok. So if you're going to maintain a HELOC balance, it'll be a collateral charge product anyway in the new bank? Only if you take the entire balance and refinance the total are you free of the collateral type product? And then perhaps get a basic LOC instead, but it would be at a higher rate...
Right, any heloc is collateral, if you were to switch to a lender and maintain a heloc, it would be a collateral charge. If you consolidate into a conventional mortgage you can be free of the collateral charge. That being said, not ONLY helocs are collateral. TD and National Bank only offer collateral mortgage for example, even a standard mortgage with no heloc component.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
Deal Fanatic
User avatar
Jul 14, 2008
7312 posts
924 upvotes
Ontario
GreenMortgages wrote:
May 18th, 2017 3:56 pm
Right, any heloc is collateral, if you were to switch to a lender and maintain a heloc, it would be a collateral charge. If you consolidate into a conventional mortgage you can be free of the collateral charge. That being said, not ONLY helocs are collateral. TD and National Bank only offer collateral mortgage for example, even a standard mortgage with no heloc component.
Right, I should have said with the exception of banks that have a collateral charge for ALL mortgages, like TD.
Sr. Member
Sep 14, 2007
509 posts
56 upvotes
I've been pre-approved for the mortgage I need at HSBC.
We're paying 20% down and home is over 1m.
They have 2.39 5 year fixed and 2.19 5 year variable. I'm leaning towards variable since it's been coming out ahead of fixed, we can switch over to fixed anytime without breaking any penalty and I think rates aren't going up due to Canada's weak economy. If NAFTA gets broken and we lose our exports, it'll get worse.
Anyway, I feel the 0.2 spread isn't much and I should be able to get a better variable.
Newbie
May 1, 2017
66 posts
14 upvotes
onlineharvest wrote:
May 18th, 2017 4:06 pm
Right, I should have said with the exception of banks that have a collateral charge for ALL mortgages, like TD.
Exactly! Good luck with your financing.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
Newbie
May 1, 2017
66 posts
14 upvotes
stryder1587 wrote:
May 18th, 2017 4:08 pm
I've been pre-approved for the mortgage I need at HSBC.
We're paying 20% down and home is over 1m.
They have 2.39 5 year fixed and 2.19 5 year variable. I'm leaning towards variable since it's been coming out ahead of fixed, we can switch over to fixed anytime without breaking any penalty and I think rates aren't going up due to Canada's weak economy. If NAFTA gets broken and we lose our exports, it'll get worse.
Anyway, I feel the 0.2 spread isn't much and I should be able to get a better variable.
Hi there,

You can definitely get a cheaper variable rate than 2.19%. At least 2.10%, and likely cheaper.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
M16000729
× < >
Rotate image Save Cancel

Top