Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Jul 16th, 2018 1:58 am
Newbie
Jan 21, 2011
22 posts
CdnRealEstateGuy wrote:
Sep 14th, 2017 6:03 pm
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.
5 year @ 3.06% fixed
Also 3 year prime minus 0.60 variable
Deal Addict
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Dec 1, 2015
1600 posts
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Etobicoke, ON
It is fairly normal for a lender to request an appraisal (normally some $300.00 but rush orders and properties over $750k may carry additional costs) but most agents would refund those fees to the client.
desaib wrote:
Sep 14th, 2017 6:32 pm
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 :)
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Jr. Member
Feb 20, 2006
147 posts
2 upvotes
Toronto
For getting an approval the first time, I wanted to ask what weighs more from the lender's point of view - the overall amount of debt, or the TDS/GDS ratio? Reason I ask, is because if I utilize my unsecured LOC to pay off a car loan, it will bring down my TDS/GDS ratio to acceptable levels due to lower monthly payments on the LOC, whilst keeping the same amount of debt.

However, the interest on the LOC is little bit higher, and it will look like I have a pretty high amount of debt on my LOC - which might not be good on the lender's eyes.
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Dec 1, 2015
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GDS/TDS ratios are very tough to get around, as they are enforced by the insurer, so getting approved on higher debt ratios will be limited to a few lenders and carry higher interest rates. If you need to pay off the car using the LOC, make sure you are calculating the loc liability properly as most lenders will use at 3% (not just interest payments).
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
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Feb 2, 2014
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ste0250 wrote:
Sep 14th, 2017 7:18 pm
5 year @ 3.06% fixed
Also 3 year prime minus 0.60 variable
I would switch lenders then. You're within 120 days, so get an approval elsewhere for a lower rate.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Jr. Member
Feb 20, 2006
147 posts
2 upvotes
Toronto
valuemortgage wrote:
Sep 15th, 2017 10:34 am
GDS/TDS ratios are very tough to get around, as they are enforced by the insurer, so getting approved on higher debt ratios will be limited to a few lenders and carry higher interest rates. If you need to pay off the car using the LOC, make sure you are calculating the loc liability properly as most lenders will use at 3% (not just interest payments).
My line of credit's minimum payment is 2%, which is more than interest only. Does this mean that the lender will calculate on 3% vs. 2%? If so, it still puts me in a better place with regards to GDS/TDS ratio. If I do this, I'd have a 10K balance on my line of credit at 2% minimum payment a month ($200) vs. paying $400 a month I'm currently paying for my car.
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Sep 13, 2011
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jay_sison wrote:
Sep 15th, 2017 11:27 am
My line of credit's minimum payment is 2%, which is more than interest only. Does this mean that the lender will calculate on 3% vs. 2%? If so, it still puts me in a better place with regards to GDS/TDS ratio. If I do this, I'd have a 10K balance on my line of credit at 2% minimum payment a month ($200) vs. paying $400 a month I'm currently paying for my car.
It unfortunately doesn't matter what the minimum payment is on the loan. Any unsecured debt, be it a line of credit or a credit card, will get factored into the debt service ratios using a payment of 3% of the outstanding balance, regardless of what your minimum payment actually is.

Even at 3%, that still puts you at $300 vs. $400 per month, which will make a big difference in the debt service ratios.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
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Dec 1, 2015
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As already stated, regardless what your LOC requires you to pay, because it is an unsecured revolving credit we must use a 3% minimum liability. But that might be just enough to bring debt ratios in line.

This is exactly why I mentioned "proper calculation". I often see people carrying very high balances on their credit cards, sometimes taking advantage of "0% interest for 1y", but they dont realize how that affects their ability to qualify for a mortgage. Same with unsecured LOCs.
jay_sison wrote:
Sep 15th, 2017 11:27 am
My line of credit's minimum payment is 2%, which is more than interest only. Does this mean that the lender will calculate on 3% vs. 2%? If so, it still puts me in a better place with regards to GDS/TDS ratio. If I do this, I'd have a 10K balance on my line of credit at 2% minimum payment a month ($200) vs. paying $400 a month I'm currently paying for my car.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Member
Sep 5, 2016
277 posts
81 upvotes
One general advice, what are the review & comments about getting mortgage from MCAP. and any suggestion from experts about the things to be taken in consideration while getting loan from them. The reason for asking is because, I got 2.59% five year fixed rate from them last week. So in current scenario it is looking good to me. But I have little hesitation because nobody in my friend circle took loan from them in past. thanks
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Dec 1, 2015
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Etobicoke, ON
MCAP is an excellent lender in my books. A large company, backed by one of the banks, with over $60 billion dollars under their management. Great pre-payment flexibility, online portal, standard and fair penalty calculations, etc.
You likely got approved for the ValueFlex product, which carries all regular terms and conditions but has 1 difference : it is a closed term, meaning you cannot simply walk way from the mid term. So if you win the lottery next year you cannot pay the loan entirely, you would have to wait until the end of the 5y. If you sell the house, you can break the term (subject to the penalty). You can also break it to refinance with MCAP.

If you are concerned about the (often misconceived) idea of them being a "small lender" or "risky", there is absolutely zero reason for concern. One of the largest investors in Mcap is Bank of Montreal.

I setup my own mortgage with Mcap.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
Jan 29, 2017
82 posts
17 upvotes
Very recently bought a house, and got the HSBC -.96 variable rate (1.99% when we bought). I felt confident at the time, but within a month it seems like the conversation went from 1-2 increases a year, to 8 increases in two years? I try not to put too much stock in radio pundits but can't help feel concerned.

Going into this we were unsure if we would stay in the house for more than 3 years, so variable rate made the most sense because of the lessened penalties for breaking out of the mortgage early.

I know its all opinion and no one can predict the future, but what do the brokers in here think? Should we look at locking into a fixed rate for the remainder (essentially 4 years and 10 months left) or just ride it out till at least year 3, when the mortgage becomes fully open?

I kinda feel like I bought into variable at one of the worst times in recent history...
Member
Jul 1, 2008
235 posts
47 upvotes
Brampton, ON
Thanks Andre, will talk with my agent as well.
valuemortgage wrote:
Sep 14th, 2017 7:39 pm
It is fairly normal for a lender to request an appraisal (normally some $300.00 but rush orders and properties over $750k may carry additional costs) but most agents would refund those fees to the client.
Member
Sep 5, 2016
277 posts
81 upvotes
Thanks, Your advice give me more confidence to use there services
valuemortgage wrote:
Sep 15th, 2017 1:52 pm
MCAP is an excellent lender in my books. A large company, backed by one of the banks, with over $60 billion dollars under their management. Great pre-payment flexibility, online portal, standard and fair penalty calculations, etc.
You likely got approved for the ValueFlex product, which carries all regular terms and conditions but has 1 difference : it is a closed term, meaning you cannot simply walk way from the mid term. So if you win the lottery next year you cannot pay the loan entirely, you would have to wait until the end of the 5y. If you sell the house, you can break the term (subject to the penalty). You can also break it to refinance with MCAP.

If you are concerned about the (often misconceived) idea of them being a "small lender" or "risky", there is absolutely zero reason for concern. One of the largest investors in Mcap is Bank of Montreal.

I setup my own mortgage with Mcap.
Member
Jul 1, 2008
235 posts
47 upvotes
Brampton, ON
Hi guru2gr8,

My case is not so different, I got approved for 2.64 from Alterna.
No clue how the lender is but since I am borrowing the money, not going to care much except it has to be conventional loan.

Questions for the experts here:
1. This will be my Primary residence but down the line, if I decide to convert it into an investment property does it affect my mortgage in any way? especially with Alterna
2. How does APR actually work? I tired to calcuate it but did not get the same number.
Does it really gets used in the mortagage payments?
Loan Amount: $431457, Interest is 2.64%
Other cost includes in APR: Appraisal ($325), Lender Title Insurnace Fee ($249) and Alterna Membership Fee ($30)
Results APR: 2.663%

When I use https://www.ratehub.ca/mortgage-payment-calculator
I get same payment amount as $1963 (with just interest rate) but then how does APR % affect the mortgage?

Also looked into my parents current RBC mortgage which is 5 years variable closed and no where it does mention about APR
guru2gr8 wrote:
Sep 15th, 2017 1:43 pm
One general advice, what are the review & comments about getting mortgage from MCAP. and any suggestion from experts about the things to be taken in consideration while getting loan from them. The reason for asking is because, I got 2.59% five year fixed rate from them last week. So in current scenario it is looking good to me. But I have little hesitation because nobody in my friend circle took loan from them in past. thanks
Newbie
Sep 10, 2017
46 posts
4 upvotes
guru2gr8 wrote:
Sep 15th, 2017 1:43 pm
One general advice, what are the review & comments about getting mortgage from MCAP. and any suggestion from experts about the things to be taken in consideration while getting loan from them. The reason for asking is because, I got 2.59% five year fixed rate from them last week. So in current scenario it is looking good to me. But I have little hesitation because nobody in my friend circle took loan from them in past. thanks
If you dont mind sharing, is this a new new mortgage or a renewal and is it from GTA ? I would love to get this rate come renewal time .

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