Real Estate

The Official Mortgage Rates Thread

Deal Addict
Dec 22, 2008
2162 posts
965 upvotes
Victoria
md324 wrote: Quick question guys. Would you do a 5 year variable 2.84% from HSBC or Scotia (current lender) for 4 year fixed at 2.79%? I'm trying to figure out whether it's worth taking the 2.84% when the prime rate might go down.

Any comments or thoughts would be appreciated. Thanks in advance!
Neither! Brokers can get you like 2.6 and the service is way better.
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Feb 2, 2014
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Toronto
Houdini354 wrote: Looking to renew my mortgage. What is a good rate I can get?

-How much is the mortgage owing?
$300,000

-Roughly, what is the current market value of the property?
$750,000

-Which city is the property located in?
Waterloo

-Is the property owner-occupied or a rental?
Owner-occupied

-Who is your current lender?
Xceed Mortgage

-Do you have a HELOC tied to the mortgage?
No

-Is the mortgage CMHC insured?
No. Paid 20%down when buying

-When did you buy the property?
August 2014

-When is your renewal date?
August 1, 2019

Thanks
2.59% 5-year fixed is the best rate out there! Legal and appraisal fees covered!
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Jan 31, 2018
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cil254 wrote: Thank you. The value is about 1M.
Then 2.59% would now apply

Phil
Phil Cragg
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Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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md324 wrote: Quick question guys. Would you do a 5 year variable 2.84% from HSBC or Scotia (current lender) for 4 year fixed at 2.79%? I'm trying to figure out whether it's worth taking the 2.84% when the prime rate might go down.

Any comments or thoughts would be appreciated. Thanks in advance!
I would do potentially lower rates thru any of the brokers on the forum 2.59% 5 yr fixed or 2.70% 5 yr variable

Phil
Phil Cragg
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Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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bosoxfanx wrote: My client has a mortgage with CIBC, 350k left for his condo.
If he sells his condo for 550k (Toronto) and buys a property with secondary rental income, how much mortgage can he get on a 150k/yr income? Would he be able to put less than 20% down with insured mortgage?
If there is a secondary unit and they will live in the property yes less than 20% down can be done (50% of rental income can be added to income)

Lots of variables at play but total mortgage obligations cannot exceed 58.5k annually - payment at stress test + Property taxes + heat

EG 700k mortgage at the stress test would be $50484 annually

Other debt obligations come into play and cant exceed 44% relative to income when combined with the aforementioned

Reach out to any of the brokers to do a full analysis


Phil
Phil Cragg
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Dec 26, 2004
710 posts
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Toronto
Does anyone out there have contacts @ CIBC? Looking to do a straight renewal on two mortgages. Looking for 3-4 year fixed rates...would also consider variable.
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Jan 31, 2018
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cil254 wrote: Are there any costs switching lenders?
Only if you are in a collateral situation

Phil
Phil Cragg
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Jun 10, 2019
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Mississauga
Wonderdollar wrote: Since your main purpose is to acquire Non Registered investments which you sold and buy some more, you would be better off taking a HELOC and then buy non registered investments using the HELOC. Of course, the HELOC interest would be more than the mortgage interest, but you would only pay interest on the amount you use. However, if you do a refinance and take mortgage at a lower rate, you would have to start paying interest on the total amount, whether or not you use the whole money for buying the investments. Secondly, keeping track record of interest deductibility is easier than in HELOC rather than in mortgage.

And yes, when you take equity out it would be called a refinance and there are costs involved, such as appraisal and legal costs. Same costs would also be applicable for HELOC but it would be better in record keeping, ease of use and you save cash flow and interest costs in HELOC than in mortgage.
Thanks for confirming that we're looking at a refinance-type of transaction. As for using a HELOC for investment purposes instead of a traditional mortgage, I don't agree that's better. You're right that the revolving nature of a credit line is one advantage over a fixed loan, but that doesn't make up for the significant disadvantages. True story, here's why:

1. We had established a HELOC in 2007, and at that time qualified for a rate of prime + 0%.
2. In September 2009, the bank informed us our rate was being raised to prime + 1%, citing "higher borrowing costs" and "conditions in the marketplace haven't returned to normal".
3. Years passed. The bank never re-priced the HELOC rate back to the original one negotiated. I eventually noticed (rather late) that competitive offerings were advertised at prime + 0.5%.
4. We called our bank about fixing what we saw as their mistake, one that we presumed was an innocent oversight. Phone call, easy fix? No. Told to visit branch.
5. Despite paper in hand showing our prime + 0% originally negotiated, branch said they'd have to request a "rate exception", and that it was unreasonable for us to expect prime + 0% again.
6. The bank came back with prime + 0.45%. That felt like an insult given our very healthy financials, good credit history, and 22 years nearly "all-in" with that bank (credit cards, investments, etc.)
7. Feeling like an idiot and knowing that I had missed something, I looked back at all the paperwork from when we took on the HELOC in 2007:
-- The nice agreement cover page we had showing our negotiated variable annual interest rate as prime + 0% really didn't mean much, because:
-- In attached schedules, the bank reserved the right to charge up to prime + 5%, and had already shown they'd charge more as they saw fit, and worse, no lowering adjustment upon improved conditions.
-- The collateral charge made meant the bank had locked up 100% of our home equity, while we only had a line for 25% of it. They knew going elsewhere would be a hassle for us and wagered we'd stay (we didn't).
-- The kicker is that the HELOC is a demand loan: "At our [the bank's] option we may demand payment in full of the Outstanding Balance even if you have made each Minimum Monthly Payment". I anticipate it's the same thing with every home equity revolving line product that's out there (right?)

Given that, especially the demand loan point, we absolutely think it would be foolish to get another HELOC when the specific intention is to acquire a long-term equity porfolio and be able to weather the ups and downs of the market. We willingly accept taking on stock market risk, but we would not want to also shoulder the bank's need for certain profit margin when there's a bout of bad weather in credit markets.

Rather, establishing fixed rates and repayment terms makes more sense to us, especially with fixed rates as low as they are now. In terms of keeping track of interest for tax deduction purposes, the entire loan amount would be for acquiring income-producing assets, and an amortization schedule could provide the numbers we need for total interest paid at year-end dates. If we were to add a HELOC component, that would be reserved for the big unexpected things that might come up: new roof, leaky basement, etc.

I'm still wondering, though: could we do better than Tangerine's 5-year fixed 2.94%? :)
Last edited by HabsFanInTO on Jun 12th, 2019 11:19 am, edited 3 times in total.
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Aug 14, 2011
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Toronto
Mortgage brokers,
Please PM me your contact info and I’ll pass it on to one of my client so they can send info for full analysis.
There's Always Money in the Banana Stand
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Sep 10, 2017
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I have my mortgage renewal coming up in Oct this year and it is within the 120 days now . If i start shopping for it now , and lock in a rate can i still change it if the 5 yr fixed still goes further down ?
Newbie
Feb 27, 2014
21 posts
10 upvotes
As the cost of fixed rates keeps dropping, would those same lenders (MCAP, RMG etc.) also lower the fixed rates to people who are already clients of theirs with a variable product?

In my case we are about 4 months or so into our 5 year variable mortgage at Prime minus 1.24% so currently 2.71%. Back at the end of March I called our lender, MCAP to inquire what rate I would get if I were to convert from our variable mortgage to a 5 year fixed and they replied 3.49% - at the time, brokers here on RFDs lowest 5 year fixed was 2.94%...
a difference of 0.55%

Just to clarify, I know my lender won't offer me 2.59% (because I'm already their client), but I'm just wondering what they might offer and wanted to know what some of the experts think.

PaulMeredith wrote: It's not a typo, but its not available in Quebec unfortunately. For other provinces, 2.59% is now available for insured purchases / switches and those with 35% equity / down payment. Value of home must be under $1 million OR home must have been purchased prior to November 30, 2016.
CdnRealEstateGuy wrote: 2.59% 5-year fixed is the lowest rate with legal and appraisal fees covered!
Newbie
Jun 11, 2019
1 posts
Hey Guys,

We are a few months into our 5 year variable mortgage at 2.95% which was signed in Feb of this year. Seeing a lot of low rates especially for CMHC insured mortgages. What is the lowest high ratio rate for 5 year variable available? Our 3 months interest penalty would likely be around $4,000. Is it even worth it to shop around given that? Do some lenders absorb some of that cost to get you to switch?

Thanks
Jr. Member
Sep 10, 2017
178 posts
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Eaglyeye wrote: I have my mortgage renewal coming up in Oct this year and it is within the 120 days now . If i start shopping for it now , and lock in a rate can i still change it if the 5 yr fixed still goes further down ?
Here are the details

-How much is the mortgage owing?
$275,000

-Roughly, what is the current market value of the property?
$725,000

-Which city is the property located in?
Toronto

-Is the property owner-occupied or a rental?
Owner-occupied

-Who is your current lender?
RBC

-Do you have a HELOC tied to the mortgage?
No

-Is the mortgage CMHC insured?
Yes. Paid less than 20%down when buying

-When did you buy the property?
September 2013

-When is your renewal date?
October 1, 2019
Deal Addict
May 20, 2017
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ON
When do you guys normally start to shop around for mortgage renewal? 3 months ahead?
Deal Fanatic
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Jan 31, 2018
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Elec2016 wrote: When do you guys normally start to shop around for mortgage renewal? 3 months ahead?
Currently best rates are on a 120 day hold

Start the process now

Phil
Phil Cragg
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Oct 12, 2010
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I'm hoping someone can give me some advice. I have 2 options, renew with Scotia at 2.79 for 4 years, or move over to RFA at 2.59 for 5 years. If i go with scotia, there is no discharge fee (300), no application, credit hit, etc. Simple renewal. With RFA i'd have to pay a $300 discharge fee, do an application and all the fun stuff that comes with that..., and take a credit hit. After 4 years, taking into account the $300 discharge fee, the difference in interest paid is $900. To me, its not worth the hassle to save $900 over 4 years. What do you guys think?
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Jan 31, 2018
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Eaglyeye wrote: Here are the details

-How much is the mortgage owing?
$275,000

-Roughly, what is the current market value of the property?
$725,000

-Which city is the property located in?
Toronto

-Is the property owner-occupied or a rental?
Owner-occupied

-Who is your current lender?
RBC

-Do you have a HELOC tied to the mortgage?
No

-Is the mortgage CMHC insured?
Yes. Paid less than 20%down when buying

-When did you buy the property?
September 2013

-When is your renewal date?
October 1, 2019
you can get 2.59% 5 yr fixed now good for 120 day hold

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Newbie
May 29, 2017
17 posts
5 upvotes
Looking for 5-year fixed with 20/20 repayment option. Was quoted 2.89% from local broker.

-What is the purchase price? 184,900, but will likely get it for around 170,000
-How much is the down payment? 20%
-Where it the property located? Fort McMurray, Alberta
-When is the closing date? Looking to make the offer today.
-Will the property be owner-occupied or a rental? Owner-occupied

Thank you!
Newbie
Jun 11, 2019
2 posts
Hi there:

What is the purchase price? 410 000
-How much is the down payment? 20%
-Where it the property located?Edmonton, AB
-When is the closing date? July 18
-Will the property be owner-occupied or a rental? owner-occupied

Was just quoted 2.79% on a 4-year fixed, with $1000 cash bonus. Thoughts?

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