Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Nov 18th, 2017 12:04 pm
Newbie
Sep 10, 2017
11 posts
Hi,

Im looking for 5 year fixed rate on a 670k purchase price with 20% down payment on 30 years amortization period. Currently, im getting a rate of 2.94. Can anyone please let me know a better rate

Thanks
Deal Addict
Feb 2, 2014
4107 posts
818 upvotes
Toronto
cag_73 wrote:
Sep 11th, 2017 12:04 pm
Thank you for the info. I have put around 35% down. (not insured).
Prime -90bps 5-year variable and 2.69% 5-year fixed are the best rates right now.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4107 posts
818 upvotes
Toronto
dealfinder85 wrote:
Sep 11th, 2017 2:10 pm
Hi,

Im looking for 5 year fixed rate on a 670k purchase price with 20% down payment on 30 years amortization period. Currently, im getting a rate of 2.94. Can anyone please let me know a better rate

Thanks
Can you do a 25-year AM? If so, you can get 2.74% 5-year fixed with 20% down.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Sep 10, 2017
11 posts
CdnRealEstateGuy wrote:
Sep 11th, 2017 2:43 pm
Can you do a 25-year AM? If so, you can get 2.74% 5-year fixed with 20% down.
im not eligible for 25 years AM(checked with banks). I believe the debt ratios are very high.
Deal Addict
Sep 13, 2011
3321 posts
1073 upvotes
Toronto
dealfinder85 wrote:
Sep 11th, 2017 2:46 pm
im not eligible for 25 years AM(checked with banks). I believe the debt ratios are very high.
In your situation, the 2.94% you are being quoted is about the best you will get unfortunately. Still a pretty decent rate compared to what else is out there.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
Sep 10, 2017
11 posts
PaulMeredith wrote:
Sep 11th, 2017 2:58 pm
In your situation, the 2.94% you are being quoted is about the best you will get unfortunately. Still a pretty decent rate compared to what else is out there.
Thanks for the info Paul
Newbie
Sep 27, 2015
83 posts
23 upvotes
Pickering, ON
Looking to get a better rate (3 or 5 year fixed rate)... I am currently on variable closed on 2.74% and 3 years 5 months left... (I understand that I will have to pay the penalty) so want to know if jumping ships would be worthwhile. thanks
Deal Addict
Sep 13, 2011
3321 posts
1073 upvotes
Toronto
Cutevampire wrote:
Sep 11th, 2017 3:10 pm
Looking to get a better rate (3 or 5 year fixed rate)... I am currently on variable closed on 2.74% and 3 years 5 months left... (I understand that I will have to pay the penalty) so want to know if jumping ships would be worthwhile. thanks
How much do you currently owe on your mortgage now and how much is your home worth? How much time is left on your amortization? It's possible you could be eligible for a 3 year fixed at 2.39%.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Sep 19, 2012
411 posts
247 upvotes
Calgary
valuemortgage wrote:
Sep 11th, 2017 11:02 am
I really have no idea where that absurd idea of "getting commission from the insurance" came from ... Can you provide any evidence to such outrageous claim?
My understanding is that brokers generally get larger commissions when originating insured deals - isn't that correct? There is quite a bit of opacity around broker commissions, which IMO should be improved. It's been discussed in this thread before that different terms come with different commissions - surely it wouldn't hurt the broker community if their fee structures were open for everyone to see. Just my 2 cents.
Deal Addict
Apr 26, 2004
1866 posts
49 upvotes
GTA
dg00 wrote:
Sep 11th, 2017 10:21 am
Looking for some mortgage advice.

Currently we have a mortgage with TD that is up for renewal on Jan 1 (i.e. within 120 days, but not yet within 90 days). The remaining mortgage is about $130K plus a HELOC balance of about $40K. Upon renewal, we would like to merge them into a mortgage of $170K. The house is worth about $2M.

Any suggestions on getting the best 5 year fixed rate? TD offered us 2.99%, but I’m not sure that is still available.

Would lenders cover the cost of the switch?

I presume it is a collateral mortgage that is more expensive to switch. How would I estimate the cost of the switch? Obviously that is part of the calculation.

Having a HELOC is very convenient, but am I correct in understanding that we would not have access to our TD HELOC if we move the mortgage? Would a new lender offer a HELOC?

Any and all suggestions appreciated.
There are options available where you can get a lower rate and have all fees covered.

Would you prefer also getting a larger heloc?
Mortgage Specialist in the GTA here to answer all your questions.
Newbie
Sep 27, 2015
83 posts
23 upvotes
Pickering, ON
$330k approximately... 17 years left on amortization....
Newbie
Sep 10, 2017
22 posts
2 upvotes
Current amount owing - 300K
Current rate - 3.59%- RBC (5yr fixed since 2013)
Renewal date- Sep 2018
Current value of house (primary and the only residence)- 650K (detached in gta bungalow)
Prepayment penalty to break mortgage- 6500$
Sr. Member
User avatar
Mar 9, 2012
591 posts
194 upvotes
valuemortgage wrote:
Sep 11th, 2017 11:02 am
As there is some misinformation here, I thought I would clarify these comments a bit.

1 - Credit check. Im not sure why you mention this as a "negative" thing, since credit checks (contrary to popular belief) are not bad for one's credit rating. Credit agencies such as Equifax understand that people shop around these days ad will group together inquires made for the same purpose as if they were a single hit. Not to mention that out of the formula used to determine credit scores, only 10% relates to inquires made to the credit profile.

Whenever a credit check can be avoided, it is something to consider. Inquiries will lower your credit score temporarily and it's well known across the board. Don't try to minimize it.

2 - The absolute majority of lenders will use FCT or FNF for their switches, and both title companies include what they call "remote signing". That means a representative will come to the client's house (including evening and weekends) at no cost, to collect signatures. No visit to lawyer/notary required. Banks are the ones that often require visits to a branch, as that opens up a possibility for the bank to try and sell bank accounts, insurance, loans, investments, etc. Monoline lenders dont offer those additional products.

No appointments required to renew your mortgage with the same bank, most banks will let you do it online. That's pretty fast.

3 - Posted rates are something that truly separates banks and monolines, as all big banks have terrible (and heavily inflated) posted rates, meant to hurt consumers when they break their mortgages. A quick look at a posted rate with all 6 big banks show a silly inflated posted rate such as 5y fixed at 4.94%, while monoline lenders will always have discounted rates (around 3% mark at this point). I recommend reading this article to understand the dangers of breaking a mortgage with a big bank (https://beta.theglobeandmail.com/globe- ... e15774375/).

An example of posted rates comparaison between the big 5 & monoline lenders. I tried to get all their posted rates... but I encountered some issues as you will see.

http://www.scotiabank.com/ca/en/0,,1112,00.html#a1
POSTED RATES // 1 yr fixed: 3.49% // 2 yrs fixed: 3.09% // 3 yrs fixed: 3.39% // 4 yrs fixed: 3.89% // 5 yrs fixed: 4.84%

https://www.multi-prets.com/en/Choose-Y ... /Our-rates
POSTED RATES // 1 yr fixed: 3.84% // 2 yrs fixed: 3.44% // 3 yrs fixed: 3:44% // 4 yrs fixed: 3.89% // 5 yrs fixed: 4.94%

https://www.truenorthmortgage.ca/rates/quebec
TRUE NORTH seems to hide their posted rates...

https://www.mcap.com/residential-mortga ... gage-rates
MCAP seems to hide their posted rates as well, they refer you to a mortgage broker...

http://www.canwise.com/rates
CANWISE seems to hide their posted rates as well, they refer you to a mortgage broker.

I love how transparents these monoline lenders are.


4 - I really have no idea where that absurd idea of "getting commission from the insurance" came from. This is like saying a doctor get paid commission from oil refineries when a patient drives to a hospital. Can you provide any evidence to such outrageous claim?

Why can you get better rates for insured mortgage vs down payments of 20%? then? Something to do with the conditions maybe? What are the conditions on insured mortgage that allows you to get your clients a better rate? They MUST take 30 years amortization? What is it? Tell us, it's your chance to be transparent.

5 - This is a tactic that bank employees often try. They threaten clients with fees, should the client decide to leave them. Now, why on Earth would someone pay thousands of dollars for in mortgage interest, only to save $9.95 a month in (unnecessary) banking fees? Not to mention that banks such as RBC do NOT require you to have a mortgage with them. I actually have an account with RBC and pay no fees, as I qualify for the multi product rebate without any mortgage with them. I have a savings account, VISA and TFSA.

http://www.rbcroyalbank.com/products/de ... ebate.html
I was referring to the No limit banking, Signature no limit banking and VIP banking that requires the mortgage product for the multi product rebate.

Last edited by skunkyjosh on Sep 11th, 2017 4:57 pm, edited 2 times in total.
Deal Addict
Sep 13, 2011
3321 posts
1073 upvotes
Toronto
Cutevampire wrote:
Sep 11th, 2017 4:20 pm
$330k approximately... 17 years left on amortization....
Is that the home value or the mortgage amount? We need both numbers. Is 17 years the remaining amortization based on years passed? Or is this an effective amortization taking prepayment or accelerated payments into consideration?
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Dec 1, 2015
1265 posts
719 upvotes
Etobicoke, ON
Not necessarily. Lenders will save on the cost of funding those insured mortgages but that does not necessarily mean they will pay more. And even if the lender paid more for an insured deal, the insurer (CMHC/GE/CG) are not paying any commission to anyone. If anything, the client is the only one really benefiting from this, since he/she has already paid mortgage insurance and can keep that insurability and not have to cover the costs the lender would have to put into that rate.
ahlaker wrote:
Sep 11th, 2017 3:28 pm
My understanding is that brokers generally get larger commissions when originating insured deals - isn't that correct? There is quite a bit of opacity around broker commissions, which IMO should be improved. It's been discussed in this thread before that different terms come with different commissions - surely it wouldn't hurt the broker community if their fee structures were open for everyone to see. Just my 2 cents.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.

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