Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Nov 17th, 2017 11:41 pm
Deal Addict
Aug 26, 2004
1630 posts
25 upvotes
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
14109 posts
2350 upvotes
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
1630 posts
25 upvotes
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!
Deal Addict
User avatar
Dec 1, 2015
1265 posts
719 upvotes
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
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
Jul 14, 2008
36 posts
9 upvotes
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
1866 posts
49 upvotes
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.
Deal Addict
Apr 26, 2004
1866 posts
49 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
1 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
8 posts
4 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
31 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
Sep 13, 2011
3321 posts
1073 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
Sep 13, 2011
3321 posts
1073 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
Sep 13, 2011
3321 posts
1073 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)

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