Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Nov 18th, 2017 12:04 pm
Deal Addict
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Dec 1, 2015
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Etobicoke, ON
Skunk - plenty of choice to see posted rates by monolines: (and the reason you dont see posted rates by Canwise or Truenorth is becasue those are NOT lenders.. those are brokerages).

http://www.cmls.ca/residential-mortgages/mortgage-rates
http://www.icicibank.ca/personal/credit ... gages.page
https://www.alterna.ca/Rates/Mortgages/

Now compare that to banks that heavily inflate their posted rates (such as RBC for example)... and then understand the formula that the banks manipulated in order to punish clients trying to leave them.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Member
Sep 19, 2012
411 posts
247 upvotes
Calgary
valuemortgage wrote:
Sep 11th, 2017 5:35 pm
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.
Interesting. I had heard that brokers generally got a bonus for originating an insured deal. Must be a lender-by-lender basis. Are commissions from lenders fairly standard or is there a wide distribution? As I said and @skunkyjosh alluded to, transparency around broker commissions could be improved.
skunkyjosh wrote:
Sep 11th, 2017 4:57 pm
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.
Insured mortgage carries significantly less risk than an uninsured one, so that's why the lender offers a lower rate. That said, when you factor in the cost of the insurance premium (which the borrower pays), the effective rate is often worse for an insured deal than for an uninsured one. Could brokers be more transparent in terms of how they are compensated, sure, but I don't think you can generalize and say that brokers push clients to certain lenders or certain products because of commission structures.
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Dec 1, 2015
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Unrelated to the discussion, but I think you have the unusual nickname in all RFD...lol
Cutevampire wrote:
Sep 11th, 2017 4:20 pm
$330k approximately... 17 years left on amortization....
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
Sep 10, 2017
22 posts
2 upvotes
Current amount owing - 300K
Current rate - 3.59%- RBC (5yr fixed since 2013)
Renewal date- Sep 2018
Current value of house (primary and the only residence)- 650K (detached in gta bungalow)
Prepayment penalty to break mortgage- 6500$

Should i break it early and get another 5yr fixed ?

I dont want to be renewing come sep 2018 @ 3.50 or more
Deal Addict
Apr 26, 2004
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GTA
Eaglyeye wrote:
Sep 11th, 2017 6:28 pm
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$

Should i break it early and get another 5yr fixed ?

I dont want to be renewing come sep 2018 @ 3.50 or more
If you're willing to get a heloc and take a 3 or 4 year rate you may be able to get a much lower rate and have your fees and penalty paid for.
Mortgage Specialist in the GTA here to answer all your questions.
Sr. Member
Apr 23, 2014
670 posts
189 upvotes
Toronto, ON
I hope the mortgage experts out here can help me out.

I took a mortgage with Scotia 2 years back (20% down payment, 5 year fixed, 30 years amortization)- the purchase cost was about 350k.

My mortgage balance is now about 265k, and the market price of the town house is about 500k. (based on a couple of my neighbours sale price over the last 3 weeks).

I wanted to pay off a couple of loans- Honda Finance and another medical loan which is high % interest - total 15k.

I also wanted to borrow another 35k apart from the 15k mentioned above. (50k in total).

Based on the estimated market price (500k)- would it be possible for me to approach Scotia for another 50k? This would make my borrowed portion (265k+50k)=315k.
i.e approximately about 60% of the market price.

1. I am confused whether my ceiling is 65% of house value or 80% of house value. Which one is the correct %

2. I would prefer going for another mortgage whose term (3 years) would coincide with the 5 year maturity period of my primary mortgage. And then I can renew or refinance both into a single mortgage for 315k (or whatever is my combined balance) during the renewal time.

3. I know that i have another option of LOC with scotia based on my home equity- but i thought i would avoid it since the interest % is higher than the 3 year fixed term mortgage. Or did i get that wrong?

4. To sum it up- can i ask Scotia for another 50k (paid to my chequing account) as another mortgage with a term whose maturity coincides with my 1st mortgage maturity date.

I would greatly appreciate if experts can suggest if it's doable. Thanks in advance!
Newbie
Sep 4, 2015
41 posts
14 upvotes
Calgary, AB
I've had two mortgage brokers I asked about locking in rates for me.

One said I had 2.7% with the chance of as low as 2.39% back in July. Now he's telling me I was never locked in because the rates were stable and the rate is now 3.09% which I am locked in at for 120 days.

The other one said I was locked in however didn't specify for how long. If it was 120 days then it would still be active. She now tells me rates are much higher and that rate is no longer available but from what I can see they are both now offering 120 day lock in periods.

I was foolish not to get an formal agreement in writing for each of these.

Do you think the brokers are lying about the rate holds or is this common to miss out on it all. I know the difference is only 3k over 5 years but that's not chump change either.
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Dec 1, 2015
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Etobicoke, ON
The only way to lock a rate is through an application being completed and submitted to the lender, and that lender approving the application. If anyone told you that he/she obtained an approval for you.. did they provide you a copy of the approval issued by the lender? Did you submit a full application?
Rates have gone up quite a bit in the recent days/weeks.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Sr. Member
May 1, 2017
556 posts
125 upvotes
canadianclub wrote:
Sep 11th, 2017 10:41 pm
I've had two mortgage brokers I asked about locking in rates for me.

One said I had 2.7% with the chance of as low as 2.39% back in July. Now he's telling me I was never locked in because the rates were stable and the rate is now 3.09% which I am locked in at for 120 days.

The other one said I was locked in however didn't specify for how long. If it was 120 days then it would still be active. She now tells me rates are much higher and that rate is no longer available but from what I can see they are both now offering 120 day lock in periods.

I was foolish not to get an formal agreement in writing for each of these.

Do you think the brokers are lying about the rate holds or is this common to miss out on it all. I know the difference is only 3k over 5 years but that's not chump change either.
If you had a true rate-hold, the rates would still be available to you. As Andre mentioned above - the only way to lock in a rate is with a full application (or a semi-full application if you are looking for a pre-approval, in which case you wouldn't have a property address, etc).

The likelihood is that you were never truly submitted if the can't offer you the rates that they offered initially.

Cheers,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Sep 13, 2011
3321 posts
1073 upvotes
Toronto
wolfpack27616 wrote:
Sep 11th, 2017 8:53 pm
I hope the mortgage experts out here can help me out.

I took a mortgage with Scotia 2 years back (20% down payment, 5 year fixed, 30 years amortization)- the purchase cost was about 350k.

My mortgage balance is now about 265k, and the market price of the town house is about 500k. (based on a couple of my neighbours sale price over the last 3 weeks).

I wanted to pay off a couple of loans- Honda Finance and another medical loan which is high % interest - total 15k.

I also wanted to borrow another 35k apart from the 15k mentioned above. (50k in total).

Based on the estimated market price (500k)- would it be possible for me to approach Scotia for another 50k? This would make my borrowed portion (265k+50k)=315k.
i.e approximately about 60% of the market price.

1. I am confused whether my ceiling is 65% of house value or 80% of house value. Which one is the correct %

2. I would prefer going for another mortgage whose term (3 years) would coincide with the 5 year maturity period of my primary mortgage. And then I can renew or refinance both into a single mortgage for 315k (or whatever is my combined balance) during the renewal time.

3. I know that i have another option of LOC with scotia based on my home equity- but i thought i would avoid it since the interest % is higher than the 3 year fixed term mortgage. Or did i get that wrong?

4. To sum it up- can i ask Scotia for another 50k (paid to my chequing account) as another mortgage with a term whose maturity coincides with my 1st mortgage maturity date.

I would greatly appreciate if experts can suggest if it's doable. Thanks in advance!
You can borrow up to 80% of the home's value. The 65% refers to the maximum on a Home Equity Line of Credit (HELOC). The 65% refers to the HELOC portion only, however when combining with a mortgage, you can go up to the full 80%. As you are aware, the rate for a HELOC is higher, and given your needs, simply refinancing the mortgage would likely be the better option for you.

What Scotia will do is add an additional component to your mortgage for the new 3 year term, which would turn your mortgage into a collateral charge (Scotia STEP product). It's not how most lenders do it, and is a little messier. Most lenders would just do a blended rate with your existing mortgage and the new money needed, giving you a single rate, payment and maturity date for both, and therefore eliminating the need to refinance later. Scotia stopped down that a few years ago and has moved to the new method mentioned above.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
Sep 10, 2017
22 posts
2 upvotes
GreenMortgages wrote:
Sep 12th, 2017 9:17 am
If you had a true rate-hold, the rates would still be available to you. As Andre mentioned above - the only way to lock in a rate is with a full application (or a semi-full application if you are looking for a pre-approval, in which case you wouldn't have a property address, etc).

The likelihood is that you were never truly submitted if the can't offer you the rates that they offered initially.

Cheers,

Connor
What will be the difference with HELOC or without ? do i need to use the HELOC or just take it and keep for any future need ?
Sr. Member
May 1, 2017
556 posts
125 upvotes
Eaglyeye wrote:
Sep 12th, 2017 9:56 am
What will be the difference with HELOC or without ? do i need to use the HELOC or just take it and keep for any future need ?
Hi there,

I think you've replied to the wrong post. But I'll add my 2cents, If you take the heloc as a combination product, this will change the registered charge from standard to collateral, in most situations. In the case of National Bank, it will be a collateral charge regardless of what kind of product you take, as they only register collateral charge mortgages. It is not advisable to take a collateral charge mortgage unless you plan on using the heloc component since the collateral charge will limit your options when it is time to switch lenders in 5 years (at maturity). Many lenders cannot facilitate collateral charge switches at their best rates, as in many cases the collateral charge switch must be treated as a refinance, which are no longer eligible for "insurable" mortgage products. There are a few who can facilitate the switch, but there is a fairly significant cost to the borrower for doing so.

Cheers,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Sr. Member
Apr 23, 2014
670 posts
189 upvotes
Toronto, ON
PaulMeredith wrote:
Sep 12th, 2017 9:17 am
You can borrow up to 80% of the home's value. The 65% refers to the maximum on a Home Equity Line of Credit (HELOC). The 65% refers to the HELOC portion only, however when combining with a mortgage, you can go up to the full 80%. As you are aware, the rate for a HELOC is higher, and given your needs, simply refinancing the mortgage would likely be the better option for you.

What Scotia will do is add an additional component to your mortgage for the new 3 year term, which would turn your mortgage into a collateral charge (Scotia STEP product). It's not how most lenders do it, and is a little messier. Most lenders would just do a blended rate with your existing mortgage and the new money needed, giving you a single rate, payment and maturity date for both, and therefore eliminating the need to refinance later. Scotia stopped down that a few years ago and has moved to the new method mentioned above.
Thanks a lot for that clarification. I have fixed an appointment with them for next week, and it's great to go there prepared about what I need.
Much appreciated!
Newbie
Sep 10, 2017
22 posts
2 upvotes
GreenMortgages wrote:
Sep 12th, 2017 10:12 am
Hi there,

I think you've replied to the wrong post. But I'll add my 2cents, If you take the heloc as a combination product, this will change the registered charge from standard to collateral, in most situations. In the case of National Bank, it will be a collateral charge regardless of what kind of product you take, as they only register collateral charge mortgages. It is not advisable to take a collateral charge mortgage unless you plan on using the heloc component since the collateral charge will limit your options when it is time to switch lenders in 5 years (at maturity). Many lenders cannot facilitate collateral charge switches at their best rates, as in many cases the collateral charge switch must be treated as a refinance, which are no longer eligible for "insurable" mortgage products. There are a few who can facilitate the switch, but there is a fairly significant cost to the borrower for doing so.

Cheers,

Connor
Yes indeed i quoted it wrong. But good that i quoted you. Thanks for clarifying the HELOC part. Indeed i wont be willing to get a HELOC now and get into collateral mortgage. I guess collateral mortgages will be good only for someone who is wanting to pay-off the mortgage in the given fixed term .
Newbie
Oct 2, 2014
17 posts
1 upvote
Halifax, NS
Could some one please PM me for a quick closing, perhaps next week.

385k, 20% down, 5 year fixed preferred, but also open to variable. located in Halifax.

thanks!

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