Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Jul 16th, 2018 1:58 am
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Sep 13, 2011
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Richhy wrote:
Sep 13th, 2017 3:07 pm
Is it silly to look at variable at this time?

Most people are talking about fixed.
Not at all! Whether to go fixed for variable really depends on the person, and there is no right or wrong answer here. In the past, homeowners have typically come out ahead with variable rate mortgages over fixed, but this doesn't necessarily mean that variable is always the way to go.

When choosing between fixed and variable, one borrower may not feel comfortable with any sort of risk at all while another may have a very high risk tolerance. Your choice really comes down to where on the spectrum you fall, and your mortgage professional should take the time to discuss this with you. Sometimes I’ll suggest for a client to go fixed, but then I may suggest variable to the very next client I speak with. Just because a specific mortgage is right for one person doesn’t mean it’s right for another. If you aren’t comfortable with the fact that your rate and payment could increase at any time, then a variable rate mortgage probably isn’t for you, regardless of how big the spread is.

There is one additional benefit to variable over fixed. If you found yourself in a position where you needed to break your mortgage early, then the penalty may be lower… in some cases, substantially lower.

The Bank of Canada has increased their overnight rate twice this year (which is what prime rate is based on). These were the first increases in almost 7 years. There are predictions that there could be one more before the year is out. Last time we saw rate increases back in 2010, we saw the prime rate increase three times in as many announcements. But then we didn't see another increase for the next 7 years. It's possible it could increase one more time. I don't think we'll see it, but time will tell. Whether this happens or not is speculation... but considering how strong the predictions are that it will increase, it's something that you need to be prepared for and factor into your decision.

Anything can happen and there is nothing to say however that the rate won't start to settle back down later in 2018... or it could flat line like it did last time. These fluctuations are to be expected when taking a variable rate mortgage and is something you would need to feel comfortable with.

Hope you find this helpful. :)
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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May 1, 2017
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Richhy wrote:
Sep 13th, 2017 3:07 pm
Is it silly to look at variable at this time?

TD is advertising 2.75% 5 year closed variable vs 3.09% fixed

Most people are talking about fixed, but maybe that ship has sailed.
Hi there,

I think Paul answered your question about variable rates more than adequately - but in regards to the rates posted at TD, you can certainly do better in most situations from other lenders. Keep in mind that TD offers exclusively collateral charge mortgages and their penalty calculations are not the most consumer friendly.

Cheers,

Connor
Last edited by GreenMortgages on Sep 13th, 2017 3:40 pm, edited 1 time in total.
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Connor Green
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Concierge Mortgage Group
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Jun 24, 2012
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TORONTO
Thanks for the info.

What rate can I get for a renewal?

approx. 26 year $347,000 remaining

Current mortgage matures mid Nov.
Sr. Member
May 1, 2017
886 posts
189 upvotes
Richhy wrote:
Sep 13th, 2017 3:58 pm
Thanks for the info.

What rate can I get for a renewal?

approx. 26 year $347,000 remaining

Current mortgage matures mid Nov.
No problem. For a switch at maturity, you can get as low as 2.74%-2.84% five year fixed, and prime minus 0.75% - prime minus 0.85% variable. If your mortgage was originally insured, meaning you put less than 20% down when you purchased, there may be even better rates available.

Regards,

Connor
Last edited by GreenMortgages on Sep 13th, 2017 4:06 pm, edited 2 times in total.
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Connor Green
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Concierge Mortgage Group
#12179
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GreenMortgages wrote:
Sep 13th, 2017 4:06 pm
No problem. For a switch at maturity, you can get as low as 2.74%-2.48% five year fixed, and prime minus 0.75% - prime minus 0.85% variable. If your mortgage was originally insured, meaning you put less than 20% down when you purchased, they may be even better rates available.

Regards,

Connor
A lot of people will ask for that 2.48%...
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
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May 1, 2017
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valuemortgage wrote:
Sep 13th, 2017 4:09 pm
A lot of people will ask for that 2.48%...
Oops! Amended.
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Connor Green
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Concierge Mortgage Group
#12179
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Jun 24, 2012
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GreenMortgages wrote:
Sep 13th, 2017 4:11 pm
Oops! Amended.
Sorry, excuse my ignorance, but what does that mean? An amended mortgage or you amended your post?
Sr. Member
May 1, 2017
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Richhy wrote:
Sep 13th, 2017 5:21 pm
Sorry, excuse my ignorance, but what does that mean? An amended mortgage or you amended your post?
I amended my post from 2.48% to 2.84%.
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Connor Green
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Concierge Mortgage Group
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Richhy wrote:
Sep 13th, 2017 3:58 pm
Thanks for the info.

What rate can I get for a renewal?

approx. 26 year $347,000 remaining

Current mortgage matures mid Nov.
If your mortgage is insured, you can go as low as 2.10% 5-year variable.

Is your mortgage insured? What is the value of the property?
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
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Jun 24, 2012
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CdnRealEstateGuy wrote:
Sep 13th, 2017 6:00 pm
If your mortgage is insured, you can go as low as 2.10% 5-year variable.

Is your mortgage insured? What is the value of the property?
Uninsured

Market value or assessment value? I'd say around $7-800 market value
Sr. Member
Dec 15, 2008
569 posts
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Vancouver, BC
For a new purchase that I'll very likey live in for over 5 years, I was presented these options:
1. Variable Prime - 0.59% = 2.61%
2. Fixed 2.99%

I will go with Fixed. I predict the 38 basis difference is not enough buffer over 5 years.
Newbie
Dec 27, 2011
35 posts
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AMHERSTBURG
Just signed my documents at HSBC today. Applied online July 15th. Received a call for follow up 10 days later, even though online states I would receive a call within 24-48 hours. Submitted the documents they requested the next day, then took about a full week to continue calling to get basically nowhere. Think it took about 3 weeks to get preapproval which I became scared as by that time I already had an agreement for purchasing a house. I constantly called to try to move the process along. Finally about 2.5 weeks ago appraiser came out, took another 1.5 weeks for the underwriter to review. One additional week to arrange the in bank signing. Thank goodness it is done with 1 week left to spare. I did not think it was going to get done. Rate of 2.39 which I almost missed out on as they took so long to process I almost missed the 90 day preapproval rate. Did I mention over the phone they tried changing to 2.69? Going to the local branch was totally different, very straight forward and quick. I would never use online/phone services ever if you can avoid.
Newbie
Dec 6, 2016
6 posts
Hi guys,

Got an accepted offer for a townhouse in Vancouver:

Purchase price: 954k
DP: 20%
Closing date: Dec 4 (but it's flexible for any time in between from now)

What rate for 5 yr fixed I can get?

Thanks,
Sr. Member
May 1, 2017
886 posts
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mansoorix wrote:
Sep 13th, 2017 10:10 pm
Hi guys,

Got an accepted offer for a townhouse in Vancouver:

Purchase price: 954k
DP: 20%
Closing date: Dec 4 (but it's flexible for any time in between from now)

What rate for 5 yr fixed I can get?

Thanks,
Hi there,

For a 20% down purchase in BC, you can get as low as 2.84%-2.94% 5 year fixed, and potentially slightly better, depending on your qualifying and closing date! Fixed rates are on the rise, and the 5 eyar Canada bond rate (which heavily influences fixed mortgage rates) is still rising, indicating that fixed rates could continue to rise. Better to get something locked in sooner rather than later to protect yourself against rate increases.

Regards,

Connor
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Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
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May 15, 2016
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What are some good rates for Edmonton?

550k
20% down

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