Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • May 19th, 2018 3:53 pm
Member
Mar 20, 2016
369 posts
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tsingoo wrote:
Aug 10th, 2017 2:12 pm
Are there currently any 5 year variable rates better than HSBC's 1.99%?
same question - just realized the meridian 1.5% 15 month is over... sad.
I only need a 1-year product.
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Sep 13, 2011
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tsingoo wrote:
Aug 10th, 2017 2:12 pm
Are there currently any 5 year variable rates better than HSBC's 1.99%?
sneakerfan wrote:
Aug 11th, 2017 10:54 am
same question - just realized the meridian 1.5% 15 month is over... sad.
I only need a 1-year product.
There is as low as prime - 1.00% (1.95%) available, however this is only if you are purchasing with LESS than 20% down payment, or are switching a mortgage where the original purchase was done with less than 20% down (and therefore CMHC insured). Other than that, HSBC leads the industry on rate.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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Aug 20, 2015
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Toronto
PaulMeredith wrote:
Aug 11th, 2017 11:03 am
There is as low as prime - 1.00% (1.95%) available, however this is only if you are purchasing with LESS than 20% down payment, or are switching a mortgage where the original purchase was done with less than 20% down (and therefore CMHC insured). Other than that, HSBC leads the industry on rate.
I'm putting 20% down, so I guess I'll stick with HSBC for now. i still have a couple weeks to wait on anything better though.
Newbie
Apr 13, 2015
8 posts
Toronto, ON
Hi guys ,

i have a question to all the pros here , i have to renew 570K mortgage in OCT 2nd week , i have 2 yr fixed rate locked in at 1.98 (after cashback ) actual rate is 2.19 . But do you guys
think i should go for 5 year fixed rate since rate might start to increase. please help guys.

thanks
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May 1, 2017
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maverick6677 wrote:
Aug 11th, 2017 11:44 am
Hi guys ,

i have a question to all the pros here , i have to renew 570K mortgage in OCT 2nd week , i have 2 yr fixed rate locked in at 1.98 (after cashback ) actual rate is 2.19 . But do you guys
think i should go for 5 year fixed rate since rate might start to increase. please help guys.

thanks
Hi there,

If you're concerned that rates will move up significantly over the next couple years then it may be in your best interest to lock in for a longer period, which of course would limit your exposure for an additional 3 years. If you're concerned before your closing, it may give you additional peace of mind moving forward.

That said, a contract rate of 2.19% for two years is a very competitive rate right now.

It's tough to say whether you should change terms or not. It really comes down to your general market sentiment and your comfort level with short-term products. No one has a crystal ball - it's impossible to predict where rates will be in 3 years with any degree of certainty. Do some research, talk to your broker, and see what seems right to you.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
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maverick6677 wrote:
Aug 11th, 2017 11:44 am
Hi guys ,

i have a question to all the pros here , i have to renew 570K mortgage in OCT 2nd week , i have 2 yr fixed rate locked in at 1.98 (after cashback ) actual rate is 2.19 . But do you guys
think i should go for 5 year fixed rate since rate might start to increase. please help guys.

thanks
The answer to this is similar to the answer you would get if you were asking about fixed vs. variable. It really depends on the borrower and there is no one size fits all answer here. It really all comes down to your risk tolerance . If you are worried that fixed mortgage rates will continue to increase, then you may want to consider locking into a 5 year fixed. Providing of course you feel pretty confident that you will be in this home for at least this long. If you think rates will remain at levels where they are right now or could go lower, then the two year fixed you have would be a good choice.

If you feel it's worth paying a higher rate for the peace of mind that you have a low rate locked in for for a longer period, then you may want to consider the longer term.

When comparing the 2 year fixed at 2.19% with today's lowest 5 year fixed rate of 2.64%, the break even rate is 2.99%. This means that if at the end of 2 years, if the 3 year fixed rate is lower than 2.99%, (3 year fixed to round out the 5 years), then the 2 year fixed would have been the right choice. If it's higher than 2.99%, then the 5 year fixed would have been the better choice. I'm not factoring in the cash back here since we have no way of knowing if the effective rate of 1.98% was even calculated property, which very often it is not.

Whatever ends up happening remains to be seen. I think chances are strong that rates will be higher in 2 years, but anything can happen. The best way to make this decision is not to try to predict the future, but to predict how you're going to feel should rates continue to increase. If the thought of paying a higher rate after two years creates anxiety or scares you, then a longer term might be a better option. If you are comfortable with this risk, then stick with the two years.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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Jun 29, 2007
3977 posts
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maverick6677 wrote:
Aug 11th, 2017 11:44 am
Hi guys ,

i have a question to all the pros here , i have to renew 570K mortgage in OCT 2nd week , i have 2 yr fixed rate locked in at 1.98 (after cashback ) actual rate is 2.19 . But do you guys
think i should go for 5 year fixed rate since rate might start to increase. please help guys.

thanks
Do you have a 5 yr rate locked in as well? One consideration is what 5 yr rate you can get is.

2 yr fixed at 1.98% is a super rate.
Newbie
Aug 10, 2017
2 posts
Montreal
GreenMortgages wrote:
Aug 10th, 2017 3:58 pm
Hi there,

Mortgages brokers/agents can work inter-provincially, so yes, any broker/agent on this forum can work on your behalf!

Regards,

Connor

Hi there,

To all mortgage brookers,

À résident from Quebec looking for a morgage for a Duplex with offer accepted at 423K. I am looking for a 5 year fixe with 5% cash back and minimum down payement (5%).

Here is my current situation

Have a mortgage on a triplex with RBC, 2.89% until may 2018.
Mortgage balance is about 292K and the associated heloc balance is about 9k. Triplex value is about 500k
Living in one the appartement and renting the two other, rent is about 22.2k/year
Will keep my triplex, rent the third apartment and moved in the main apartment of the duplex
Gross salary is about 100k/year
No debt other than current mortgage & heloc

Bank ok Montreal is offering 2.79% for 5 year fixed or 4.44% for 5 year fixed with 5% cash back. What is the Brest rate l can have ? Closing date is August 24th.

Any advise Will be appreciated
Last edited by Petralemoisson on Aug 11th, 2017 9:44 pm, edited 1 time in total.
Sr. Member
May 1, 2017
847 posts
184 upvotes
Petralemoisson wrote:
Aug 11th, 2017 9:44 pm
Hi there,

To all mortgage brookers,

À résident from Quebec looking for a morgage for a Duplex with offer accepted at 423K. I am looking for a 5 year fixe with 5% cash back and minimum down payement (5%).

Here is my current situation

Have a mortgage on a triplex with RBC, 2.89% until may 2018.
Mortgage balance is about 292K and the associated heloc balance is about 9k. Triplex value is about 500k
Living in one the appartement and renting the two other, rent is about 22.2k/year
Will keep my triplex, rent the third apartment and moved in the main apartment of the duplex
Gross salary is about 100k/year
No debt other than current mortgage & heloc

Bank ok Montreal is offering 2.79% for 5 year fixed or 4.44% for 5 year fixed with 5% cash back. What is the Brest rate l can have ? Closing date is August 24th.

Any advise Will be appreciated
Hello,

The offer you have currently is fairly strong as far as "cash-back" offers go. You could get a better rate with 3% cash back given your circumstances, but it depends on what your goals/motivations are with the mortgage as to whether this would be beneficial to you.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Feb 2, 2014
4737 posts
968 upvotes
Toronto
maverick6677 wrote:
Aug 11th, 2017 11:44 am
Hi guys ,

i have a question to all the pros here , i have to renew 570K mortgage in OCT 2nd week , i have 2 yr fixed rate locked in at 1.98 (after cashback ) actual rate is 2.19 . But do you guys
think i should go for 5 year fixed rate since rate might start to increase. please help guys.

thanks
It depends on the mortgage details. For example, if it's a transferable, insured mortgage, the best rate is 2.54% 5-year fixed. If not, the rate will be higher.

Obviously the lower the rate, the more you would want to take the 5-year over the 1-year.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Aug 10, 2017
2 posts
Montreal
CdnRealEstateGuy wrote:
Aug 12th, 2017 4:23 pm
It depends on the mortgage details. For example, if it's a transferable, insured mortgage, the best rate is 2.54% 5-year fixed. If not, the rate will be higher.

Obviously the lower the rate, the more you would want to take the 5-year over the 1-year.
Is this rate of 2.54% 5 year fixed available for resident of Quebec ?
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Feb 2, 2014
4737 posts
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Toronto
Petralemoisson wrote:
Aug 12th, 2017 4:35 pm
Is this rate of 2.54% 5 year fixed available for resident of Quebec ?
Yes.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Aug 3, 2017
4 posts
Vancouver, BC
PaulMeredith wrote:
Aug 11th, 2017 12:04 pm
I'm not factoring in the cash back here since we have no way of knowing if the effective rate of 1.98% was even calculated property, which very often it is not.
Hi Paul,
Can you summarize the proper way to calculate a cash back deal, or point to an example?

Many thanks.

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