Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Nov 18th, 2017 12:04 pm
Deal Addict
User avatar
Dec 1, 2015
1265 posts
719 upvotes
Etobicoke, ON
PM on the way.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
Jan 30, 2014
15 posts
1 upvote
Victoria
Currently finishing up RBC 2.99% 5 yr fixed with 30 yr ammortization.
Term ends Dec 7, 2017
Victoria, BC
House value now assessed at 837K
Mortgage amount ~ 290K

I'm starting approval process through HSBC (2.79% on hold for 5yr/ fixed)

I've been reading some very negative experiences with HSBC. Is this a bank I should stay away from? I've talked to two big banks that won't go lower than 3.19, haven't tried RBC yet because I'm looking for ammunition for my negotiation.
I'd be willing to go smaller lender route. Looking for advice/PM. Thanks!
Jr. Member
Dec 12, 2007
199 posts
17 upvotes
Richmond Hill
Just to let you guys that London Life still has 2.69% 5 year fixed rates with 25 year amortization as of Sept. 12, 2017 with standard mortgage terms:
15% privilege payment

The only way to secure this rate is to submit a complete application with all supportive documents.
Deal Addict
Feb 2, 2014
4107 posts
818 upvotes
Toronto
ahlaker wrote:
Sep 11th, 2017 5:45 pm
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.



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.
You're not correct on both accounts.

For the most part, we don't get any extra compensation if the mortgage is high ratio or not.

Secondly, the main reason lenders give better rates for insured mortgages isn't due to risk. It's because the borrower pays for the mortgage default insurance for high ratio deals and the lender doesn't have to pay for it. As a result, they pass the savings on to the borrower via a lower rate.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4107 posts
818 upvotes
Toronto
vicdealseeker wrote:
Sep 12th, 2017 3:49 pm
Currently finishing up RBC 2.99% 5 yr fixed with 30 yr ammortization.
Term ends Dec 7, 2017
Victoria, BC
House value now assessed at 837K
Mortgage amount ~ 290K

I'm starting approval process through HSBC (2.79% on hold for 5yr/ fixed)

I've been reading some very negative experiences with HSBC. Is this a bank I should stay away from? I've talked to two big banks that won't go lower than 3.19, haven't tried RBC yet because I'm looking for ammunition for my negotiation.
I'd be willing to go smaller lender route. Looking for advice/PM. Thanks!
2.74% 5-year fixed is the best rate you can get out in BC.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
User avatar
Oct 2, 2006
1425 posts
231 upvotes
rates have been changing in the last few weeks, so im not sure how valid any of these quotes are that are a few pages old.

Ontario
House valued at 600k
owe 420
30 year

Term ends at end of Oct.

was quoted
2 year: 2.79
5 year 3.08

can i do better?
Deal Addict
User avatar
Dec 1, 2015
1265 posts
719 upvotes
Etobicoke, ON
If this is a switch, yes.
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
Oscar11 wrote:
Sep 12th, 2017 8:11 pm
rates have been changing in the last few weeks, so im not sure how valid any of these quotes are that are a few pages old.

Ontario
House valued at 600k
owe 420
30 year

Term ends at end of Oct.

was quoted
2 year: 2.79
5 year 3.08

can i do better?
Hello,

For a switch you can get as low as 2.74% for a 5 year fixed mortgage. If you're looking to refinance, the rates would be closer to those that you've posted. Are you coming up to the end of your term that began at 30 years(thus you'd be around 25 years remaining if you took a 5 year term initially), or are you looking for a new mortgage with a 30 year amortization?

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Sep 11, 2017
2 posts
Hello,

I have a mortgage that is up for renewal on January 1st. Mortgage amount = $260k. Home value = $450k. Could a broker please PM me with rates on a 3-, 4-, or 5- year fixed mortgage that is not a collateral charge?

Thanks!
Deal Addict
Jun 29, 2007
3669 posts
797 upvotes
gphammer wrote:
Sep 11th, 2017 1:57 pm
Here is what I got from my lender for rental in BC
3 yr--2.69
4 yr--2.74
5 yr--2.89

Since my variable is currently at 2.60%, doesn't the 3 yr at 2.69% sound like a no brainer??

Overall my avg rate works out be 2.49..which I can live with. The goal is to pay the least to the bank.
No brainer?? LOL. Not according to a couple of so called mortgage professionals here.
Member
Sep 19, 2012
411 posts
247 upvotes
Calgary
CdnRealEstateGuy wrote:
Sep 12th, 2017 5:15 pm
For the most part, we don't get any extra compensation if the mortgage is high ratio or not.
So to be clear, a typical broker dealing with typical broker-channel lenders will not earn a higher commission if the originated deal is insured? That's fine if it's true, I just have data from Paradigm Quest suggesting otherwise (ie: a rate sheet suggesting that a x bps premium is paid on insured deals).
CdnRealEstateGuy wrote:
Sep 12th, 2017 5:15 pm
Secondly, the main reason lenders give better rates for insured mortgages isn't due to risk.
On second thought, I'm not sure lenders actually offer "better rates" on insured deals versus uninsured deals. Lenders are offering a lower contractual interest rate, but when the cost of the insurance is factored in, those loans are more expensive on an effective basis to the borrower (at least over the initial term). Over the full 25 year amortization I think the effective rate is better (insured v uninsured). Bah - too much for my puny brain to process at 1130pm!
Newbie
Sep 11, 2017
2 posts
Does anyone have experience with CMLS? They're offering a good variable rate through a mortgage, but are there high discharge and other fees? Thanks!
Deal Addict
Sep 13, 2011
3321 posts
1073 upvotes
Toronto
ahlaker wrote:
Sep 13th, 2017 1:29 am
So to be clear, a typical broker dealing with typical broker-channel lenders will not earn a higher commission if the originated deal is insured? That's fine if it's true, I just have data from Paradigm Quest suggesting otherwise (ie: a rate sheet suggesting that a x bps premium is paid on insured deals).
As Kevin said, for the most part we don't get any extra comp, regardless of whether it is high ratio or not. Some lenders will have an extra incentive, as Merix (Paradigm Quest) does at the moment. You never hear us talk about this product however, as they don't have the lowest rate. Only do we ever talk about lowest rates on here. The brokers on this board sell based on rate. We know our clients are extremely rate sensitive, so we have to offer the lowest rates if we want to get your business.

The rate itself is often better. However, once you add the insurance premium, it is by no means a better to go with the lower rate with a premium vs. a higher rate without a premium. We've mentioned on this board many times before that it does not make financial sense to go with a down payment of 19.99% with an insurance premium to get a lower rate vs. 20% down with no insurance premium at a higher rate.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Sr. Member
May 1, 2017
556 posts
125 upvotes
thymidine wrote:
Sep 13th, 2017 5:59 am
Does anyone have experience with CMLS? They're offering a good variable rate through a mortgage, but are there high discharge and other fees? Thanks!
Hello,

At CMLS the penalty to discharge a variable rate mortgage will be 3 months interest if you discharge early. Their discharge fee will be the same as all others; between $250 -$350. They're a great institution, very easy to deal with.

Regards,

Connor
Last edited by GreenMortgages on Sep 13th, 2017 9:15 am, edited 2 times in total.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
User avatar
Dec 1, 2015
1265 posts
719 upvotes
Etobicoke, ON
I deal with CMLS on a regular basis and my experience with them has been excellent. One of the best lenders to deal with, in my opinion.
thymidine wrote:
Sep 13th, 2017 5:59 am
Does anyone have experience with CMLS? They're offering a good variable rate through a mortgage, but are there high discharge and other fees? Thanks!
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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