Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Jul 18th, 2018 12:39 am
Deal Addict
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Apr 16, 2009
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Vancouver
Eaglyeye wrote:
Sep 14th, 2017 1:22 pm
Not sure if its that much straight forward ... or is it ?
Yep, it is.
Using my excel calculator I put in a $100,000 mortgage at 2% interest.

Three separate cases:
  • One with a 20-year amortization, monthly payment.
  • One with a 15-year amortization, monthly payment.
  • One with 20-year amortization, but extra payments to match the payment amount of the 15-year amortization.


You'll see that with the extra payments, it turns the 20-yr mortgage into the 15-yr mortgage. People will usually do this to give them extra flexibility if they have to stop making extra payments.

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Newbie
Apr 23, 2017
7 posts
Hi

I have a detached new build home closing Nov. 21 and looking to find a mortgage broker.
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Dec 1, 2015
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mnkrsh wrote:
Sep 14th, 2017 2:17 pm
Hi

I have a detached new build home closing Nov. 21 and looking to find a mortgage broker.
Time to get started as rates are moving fast these days. Pm on its way.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
Jan 21, 2011
22 posts
Live in Winnipeg MB
Home worth $520k
Mortgage remaining $277k
Maturity Date Jan 12, 2018
17 year remaining amortization

CIBC offered 2 year 2.69% for early renewal, is that a good deal?
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Sep 13, 2011
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ste0250 wrote:
Sep 14th, 2017 3:07 pm
Live in Winnipeg MB
Home worth $520k
Mortgage remaining $277k
Maturity Date Jan 12, 2018
17 year remaining amortization

CIBC offered 2 year 2.69% for early renewal, is that a good deal?
Yes, in today's market, it's an excellent rate.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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Apr 21, 2004
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Sounds like if (most likely it's a matter of when) that >=20% uninsured mortgage stress test comes around, many borrowers/investors on the edge may not be able to easily switch to another lender (like in the past few years), especially if they are with Big Banks with higher posted rates. Won't these borrowers become captive and accept renewal every term-end?

The helpful mortgage brokers have warned about this quite a few times already.

An old but still relevant article:
New mortgage rules could make switching or refinancing tougher
https://beta.theglobeandmail.com/globe- ... le4389044/
Last edited by alanbrenton on Sep 14th, 2017 3:19 pm, edited 1 time in total.
Member
Jul 19, 2007
200 posts
68 upvotes
Guelph
Eaglyeye wrote:
Sep 14th, 2017 1:22 pm
Not sure if its that much straight forward ... or is it ?
Agree with DefconZero. Adding $250 extra biweekly to the 20yr term results (option 1) in the same effect as just opting for the 15 yr term (option 2).

If it is unlikely you could want to add even more extra payment to the principal in the first year of your mortgage (I would guess this is unlikely given you state Option 2 leaves you with no extra money), then I would suggest going with Option 1. As previously noted, it is essentially the same as choosing Option 2, but you have the flexibility of opting out of your extra $250 biweekly payment throughout the term. This is a nice safety net in the case of unexpected circumstances like job loss, etc. If you go with Option 2, you are committed to the full payment.
Newbie
Sep 10, 2017
46 posts
4 upvotes
DefconZero wrote:
Sep 14th, 2017 1:51 pm
Yep, it is.
Using my excel calculator I put in a $100,000 mortgage at 2% interest.

Three separate cases:
  • One with a 20-year amortization, monthly payment.
  • One with a 15-year amortization, monthly payment.
  • One with 20-year amortization, but extra payments to match the payment amount of the 15-year amortization.


You'll see that with the extra payments, it turns the 20-yr mortgage into the 15-yr mortgage. People will usually do this to give them extra flexibility if they have to stop making extra payments.

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Well looks like you are right . would actually want to thank you for introducing me to the excel calculator :) .
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May 6, 2007
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HSBC Mortgage Specialist told me that their variable rate is not compounded? Can this be true?
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Sep 13, 2011
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Toronto
Lexi wrote:
Sep 14th, 2017 4:00 pm
HSBC Mortgage Specialist told me that their variable rate is not compounded? Can this be true?
I highly doubt it.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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Feb 2, 2014
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exhaust wrote:
Sep 13th, 2017 8:40 pm
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.
What is the purchase price and how much are you putting down exhaust?
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
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Feb 2, 2014
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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,
If you can qualify for an insurable mortgage, then 2.79% 5-year fixed.

If income is tight, then you're looking at 2.99% 5-year fixed.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
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Feb 2, 2014
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Toronto
ste0250 wrote:
Sep 14th, 2017 3:07 pm
Live in Winnipeg MB
Home worth $520k
Mortgage remaining $277k
Maturity Date Jan 12, 2018
17 year remaining amortization

CIBC offered 2 year 2.69% for early renewal, is that a good deal?
What 5-year rate are they offering?

You can get 2.89% 5-year fixed right now in MB, but you will have to wait a bit to get an approval.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Member
Jul 1, 2008
235 posts
47 upvotes
Brampton, ON
I just got approved for mortgage on the new construction by credit union and it says they will be charging for the Appraisal.
Did spoke to my agent who seems to be fair as the rate is lower than bank currently.

Is it normal that bank does not charge Appraisal to the client directly but lenders like Alterna, First National and others do charge their client or is this something I need to tell my agent to get it waived by lender.

Appraisal is done by lenders and they might not provide copy to the client so why should the client even pay for it.
Client is already paying the interest :)

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