Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Jul 16th, 2018 1:58 am
Deal Fanatic
User avatar
Jun 7, 2001
6852 posts
710 upvotes
Alberta
GreenMortgages wrote:
Sep 13th, 2017 10:27 pm
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
HSBC site was advertising 5 year fixed closed at 2.79%....now at 2.94%. Unfortunately, they only hold the rate for 60 days.

Dave
Jr. Member
Jun 24, 2012
115 posts
27 upvotes
TORONTO
True North is advertising prime -1.05% variable (2.15%) and 2.69% 5-year fixed. They seem to be well reviewed. Would love to hear from the experts if this is realistically possible.

And if I would qualify. Please PM me.
Jr. Member
Aug 19, 2007
158 posts
85 upvotes
Toronto
Looking for a broker to help me with a 4 year fixed mortgage on a rental property. PM me if you can help. thanks
Sr. Member
May 1, 2017
886 posts
189 upvotes
Richhy wrote:
Sep 14th, 2017 10:22 am
True North is advertising prime -1.05% variable (2.15%) and 2.69% 5-year fixed. They seem to be well reviewed. Would love to hear from the experts if this is realistically possible.

And if I would qualify. Please PM me.
Hi there,

Those rates are for high-ratio mortgages only, meaning that they're only available if you put less than 20% down. It may seem appealing, but when you put less than 20% down, you pay an insurance premium that gets tacked on to the mortgage which negates any savings you would have by getting the lower rate. It would be a net negative to decide to have less than 20% down. It's never a god idea to put less than 20% down if you have the option.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Jr. Member
Jun 24, 2012
115 posts
27 upvotes
TORONTO
GreenMortgages wrote:
Sep 14th, 2017 10:54 am
Hi there,

Those rates are for high-ratio mortgages only, meaning that they're only available if you put less than 20% down. It may seem appealing, but when you put less than 20% down, you pay an insurance premium that gets tacked on to the mortgage which negates any savings you would have by getting the lower rate. It would be a net negative.

Regards,

Connor
I see it says "High Ratio Purchase and Transfer Only" what does Transfer mean?
Sr. Member
May 1, 2017
886 posts
189 upvotes
Richhy wrote:
Sep 14th, 2017 10:57 am
I see it says "High Ratio Purchase and Transfer Only" what does Transfer mean?
A transfer/switch is when you move your mortgage to a new institution either during the term, or at the end of your term, without changing the dollar amount of the mortgage. In the case you're quoting, it means that the mortgages would have had to be high-ratio or insured at some point, so it still carries the insurance, so the transfer is technically a "high-ratio transfer."

Was your mortgage originally insured? i.e did you put less than 20% down on your purchase?

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Jr. Member
Jun 24, 2012
115 posts
27 upvotes
TORONTO
GreenMortgages wrote:
Sep 14th, 2017 11:00 am
A transfer/switch is when you move your mortgage to a new institution either during the term, or at the end of your term, without changing the dollar amount of the mortgage. In the case you're quoting, it means that the mortgages would have had to be high-ratio or insured at some point, so it still carries the insurance, so the transfer is technically a "high-ratio transfer."

Was your mortgage originally insured? i.e did you put less than 20% down on your purchase?

Regards,

Connor
No it was always over 20%
Sr. Member
May 1, 2017
886 posts
189 upvotes
Richhy wrote:
Sep 14th, 2017 11:04 am
No it was always over 20%
Then those rates would not be available to you, unfortunately.
Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
User avatar
Dec 1, 2015
1600 posts
799 upvotes
Etobicoke, ON
Just to try and help clarify a bit the "high ratio" transfer...

A lot of the mortgages arranged through monolines and even the banks are insured "behind the scenes", when the client has 20% down payment or more at the time of the purchase, and the bank/lender pays that insurance cost. When such purchase is made with less than 20% downpayment, the client is the one required to pay the insurance premium, so the lender does not need to factor that in the transaction costs and can offer lower rates to the client.
If a client purchase a property in this scenario (less than 20% downpayment) that mortgage will be insured by CMHC/Genworth/Canada Guaranty and that insurability can be transferred from lender to lender, so in the case of a transfer between 2 financial institutions, the new lender will not have to purchase bulk insurance for the loan, and as a result the lender can offer the same rates a client purchasing a property today with less than 20% D/P (called a "high ratio" mortgage) would get.

So, client purchased a condo with 10% 5y ago (so his mortgage had default insurance with CMHC/GE/CG). Now he can transfer that mortgage to another bank/lender and if the new lender has a better rate for insured mortgages, he will qualify for that lower rate.
If the same client had 20% down payment or more (therefore the mortgage did not require default insurance) and the client wants to move to a new lender, the lender may want to insure that loan (they are not required, but often prefer to do so) and as a result the client may not qualify for "insured" or "high ratio" rates.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
Sep 10, 2017
46 posts
4 upvotes
My mortgage is up for renewal next year 2018. I am paying an extra 250$/biweekly towards the principal. I wanted to know when it comes time for renewal should i be :

1- signup for a 20-yr term and pay extra payments like i do now towards the principal or
2- signup for a 15-yr term and not pay any extra amount towards my principal (as i wont have any extra money left :) ) .

How do we calculate what will be the better option which will save me some interest and also help me pay-off the mortgage faster .

My current amount owing- 300k @ 3.59% with RBC (mortgage started 2013 )
Deal Addict
User avatar
Apr 16, 2009
1114 posts
353 upvotes
Vancouver
Eaglyeye wrote:
Sep 14th, 2017 11:42 am
My mortgage is up for renewal next year 2018. I am paying an extra 250$/biweekly towards the principal. I wanted to know when it comes time for renewal should i be :

1- signup for a 20-yr term and pay extra payments like i do now towards the principal or
2- signup for a 15-yr term and not pay any extra amount towards my principal (as i wont have any extra money left :) ) .

How do we calculate what will be the better option which will save me some interest and also help me pay-off the mortgage faster .

My current amount owing- 300k @ 3.59% with RBC (mortgage started 2013 )
So as an example (fictitious numbers):

20-yr mortgage, payment = 1500. But, you add on extra payments making it 2000/mo

15-yr mortgage, payment = 2000. No extra payments.

End result is the same. 20-yr mortgage now becomes 15 due to the extra payments.
Deal Addict
Feb 7, 2006
1913 posts
278 upvotes
Just strictly out of curiosity, what would be the "best" 5-year fixed rate available for someone who was doing a live deal in the next few weeks (with over 20% DP, around $300-$325k mortgage)?
Deal Addict
User avatar
Sep 13, 2011
3699 posts
1201 upvotes
Toronto
winner2000 wrote:
Sep 14th, 2017 12:52 pm
Just strictly out of curiosity, what would be the "best" 5-year fixed rate available for someone who was doing a live deal in the next few weeks (with over 20% DP, around $300-$325k mortgage)?
Lowest 5 year fixed rate right now would be 2.89%. right now.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
Sep 10, 2017
46 posts
4 upvotes
DefconZero wrote:
Sep 14th, 2017 11:53 am
So as an example (fictitious numbers):

20-yr mortgage, payment = 1500. But, you add on extra payments making it 2000/mo

15-yr mortgage, payment = 2000. No extra payments.

End result is the same. 20-yr mortgage now becomes 15 due to the extra payments.
Not sure if its that much straight forward ... or is it ?

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)