Prime -90bps 5-year variable and 2.69% 5-year fixed are the best rates right now.
Mortgage Agent and Real Estate Sales Representative
Sep 11th, 2017 2:37 pm
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.
Sep 11th, 2017 2:46 pm
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.
Sep 11th, 2017 3:01 pm
Sep 11th, 2017 3:10 pm
Sep 11th, 2017 3:18 pm
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%.
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.
Sep 11th, 2017 4:17 pm
There are options available where you can get a lower rate and have all fees covered.dg00 wrote: ↑Sep 11th, 2017 10:21 amLooking 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.
Sep 11th, 2017 4:20 pm
Sep 11th, 2017 4:39 pm
Sep 11th, 2017 4:57 pm
valuemortgage wrote: ↑Sep 11th, 2017 11:02 amAs 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.
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%
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...
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.
Sep 11th, 2017 4:57 pm
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?
Sep 11th, 2017 5:35 pm
ahlaker wrote: ↑Sep 11th, 2017 3:28 pmMy 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.
Sep 11th, 2017 5:43 pm