Real Estate

The Official Mortgage Rates Thread

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  • Jun 17th, 2018 8:10 pm
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Eaglyeye wrote:
Sep 15th, 2017 3:18 pm
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 .
The 2.59% from MCAP was available for high ratio purchases and switches only. That is purchases, with LESS than 20% down payment, or those who are switching a mortgage at the end of their term where the original purchase was done with less than 20% down.

Everyone would of course love to get this rate now, but there is nothing even close these days. Lowest rate right now for a high ratio 5 year fixed is now 2.84%.
Paul Meredith
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Read this post:

official-mortgage-rates-thread-351105/2562/#p27999445
stagefright wrote:
Sep 15th, 2017 2:17 pm
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...
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Eaglyeye wrote:
Sep 15th, 2017 3:18 pm
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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Sep 5, 2016
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Yes, PaulMeredith all conditions you mentioned were applicable to me.

As initially I paid less then 20% down in my first mortgage term. so I paid that time CMHC Mortgage Loan Insurance (which make my mortgage insurable). If I renew my mortgage from MCAP so my mortgage will continue to insurable or its status will break & it become uninsured mortgage. When last time I talked with one big bank they told me they will do refinance so it is breaking the status of mortgage & new mortgage will be uninsured. So my question is MCAP is doing refinance or something different? they will break & make it un insurable mortgage status or it will continue as insurable mortgage. As insurable property mortgage rate is better than un insurable mortgage rate. So I want to make foundation for my next five year mortgage term.
PaulMeredith wrote:
Sep 15th, 2017 3:21 pm
The 2.59% from MCAP was available for high ratio purchases and switches only. That is purchases, with LESS than 20% down payment, or those who are switching a mortgage at the end of their term where the original purchase was done with less than 20% down.

Everyone would of course love to get this rate now, but there is nothing even close these days. Lowest rate right now for a high ratio 5 year fixed is now 2.84%.
Last edited by guru2gr8 on Sep 15th, 2017 3:28 pm, edited 1 time in total.
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stagefright wrote:
Sep 15th, 2017 2:17 pm
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...
Like you say, no one can predict the future and all is speculation. Some people just like to 'talk' to try to get a rise out of people in attempt to build ratings or interest. Not saying that this can't happen, but I would say it seems unlikely. Take a look at the link Valuemortgage posted. Also, as i've posted many times on here before, if the thought of your rate and payment increasing scares you, then variable is not the product for you. In your case, perhaps a shorter term may have been a better choice. This is one of the reasons why it is so important not to choose someone to work with based on rate alone. The quality of advice from a seasoned mortgage expert compared to what you might get elsewhere can end up being worth thousands in itself. There are a lot of people arranging mortgages (both on the bank and broker side) who are really not much more than order takers.

Either way, you are in this situation now. Have you asked HSBC about the possibility of converting to a fixed rate? This is not something that I normally suggest, nor do the other regular posting brokers on this site, but as i've mentioned before, it really depends on what you feel most comfortable with.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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PaulMeredith wrote:
Sep 15th, 2017 3:21 pm


Everyone would of course love to get this rate now, but there is nothing even close these days. Lowest rate right now for a high ratio 5 year fixed is now 2.84%.
All the conditions apply to me too with 300k owing .....

Wonder how did guru2gr8 get the 2.59 then if the best right now is 2.84?
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Eaglyeye wrote:
Sep 15th, 2017 3:36 pm
All the conditions apply to me too with 300k owing .....

Wonder how did guru2gr8 get the 2.59 then if the best right now is 2.84?
He would have got it before the rates increased. It just recently increased within the last week or so.
Paul Meredith
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Yes, I applied to them two week before..

my question for experts.

As initially I paid less then 20% down in my first mortgage term. so I paid that time CMHC Mortgage Loan Insurance (which make my mortgage insurable). If I renew my mortgage from MCAP so my mortgage will continue to insurable or its status will break & it become uninsured mortgage. When last time I talked with one big bank they told me they will do refinance so it is breaking the status of mortgage & new mortgage will be uninsured. So my question is MCAP is doing refinance or something different? they will break & make it un insurable mortgage status or it will continue as insurable mortgage. As insurable property mortgage rate is better than un insurable mortgage rate. So I want to make foundation for my next five year mortgage term.
PaulMeredith wrote:
Sep 15th, 2017 3:55 pm
He would have got it before the rates increased. It just recently increased within the last week or so.
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guru2gr8 wrote:
Sep 15th, 2017 4:04 pm
Yes, I applied to them two week before..

my question for experts.

As initially I paid less then 20% down in my first mortgage term. so I paid that time CMHC Mortgage Loan Insurance (which make my mortgage insurable). If I renew my mortgage from MCAP so my mortgage will continue to insurable or its status will break & it become uninsured mortgage. When last time I talked with one big bank they told me they will do refinance so it is breaking the status of mortgage & new mortgage will be uninsured. So my question is MCAP is doing refinance or something different? they will break & make it un insurable mortgage status or it will continue as insurable mortgage. As insurable property mortgage rate is better than un insurable mortgage rate. So I want to make foundation for my next five year mortgage term.
If you are simply switching your mortgage at the end of your term, your CMHC insurance stays intact and lowest rates will still be available to you. If you were to refinance at the end of the term (or before), then you would lose the insurance, and therefore lose the option at lower rates. An example of refinancing would be if you needed to take out additional funds or increase your amortization.
Paul Meredith
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PaulMeredith wrote:
Sep 15th, 2017 3:34 pm
Like you say, no one can predict the future and all is speculation. Some people just like to 'talk' to try to get a rise out of people in attempt to build ratings or interest. Not saying that this can't happen, but I would say it seems unlikely. Take a look at the link Valuemortgage posted. Also, as i've posted many times on here before, if the thought of your rate and payment increasing scares you, then variable is not the product for you. In your case, perhaps a shorter term may have been a better choice. This is one of the reasons why it is so important not to choose someone to work with based on rate alone. The quality of advice from a seasoned mortgage expert compared to what you might get elsewhere can end up being worth thousands in itself. There are a lot of people arranging mortgages (both on the bank and broker side) who are really not much more than order takers.

Either way, you are in this situation now. Have you asked HSBC about the possibility of converting to a fixed rate? This is not something that I normally suggest, nor do the other regular posting brokers on this site, but as i've mentioned before, it really depends on what you feel most comfortable with.
Thanks for the replies. I have seen the graph that valuemortgage posted, it was one of the contributing factors in me going with a variable rate. In almost all circumstances variable would outperform fixed. I'm just worried that now is one of those exceptional times.

I'm fine with a few increases but if we are talking about a 2% increase (8 increases) then I'd say that is an especially worrying circumstance.

Anyways i was just looking for opinions on the current market, trying to see if I was getting worked up about nothing. Just looking for reassurance and guidance. I appreciate the feedback.
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stagefright wrote:
Sep 15th, 2017 6:08 pm
Thanks for the replies. I have seen the graph that valuemortgage posted, it was one of the contributing factors in me going with a variable rate. In almost all circumstances variable would outperform fixed. I'm just worried that now is one of those exceptional times.

I'm fine with a few increases but if we are talking about a 2% increase (8 increases) then I'd say that is an especially worrying circumstance.

Anyways i was just looking for opinions on the current market, trying to see if I was getting worked up about nothing. Just looking for reassurance and guidance. I appreciate the feedback.
The whole point of a variable rate mortgage is to end up with an average rate that could beat an equivalent fixed rate term. So, the only way to know if these are exceptional times is at the end of the term. If one could determine at the beginning of the term what the end result would be, it would not be called variable. This is what fixed rate terms are for.
Im not criticizing your decision. Im pointing out that the strategy of a variable rate term implies there will be fluctuations along the way. Those that want to avoid a fluctuation, be it 0.25% or 5%, should opt for (and pay the price of) a fixed rate.
2y before the last major financial crisis I had a variable rate mortgage that went up, and up, and up, and up.. repeatedly. Then when the markets crashed, at one point in time I was paying something like 1.4%, and kept that for ages.
Past performances are not an indication of how the markets will behave in the next little while. But that graph I posted shows exactly why people who stick to the strategy almost always end up saving, in the long run.
Andre Oliveira - Mortgage Agent
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Which bank takes into account 100% of rental income? Looking for broker so please pm me.
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My bank is the only institution in Canada that can approve someone based on assets and not income. I know there are a lot of people have a lot of equity in their houses but don't make a lot or show a lot of income. I just wanted RFD to know there are programs out there from an A lender where you can get approved based solely on your assets and not on your income documents.
Mortgage Specialist in the GTA here to answer all your questions.
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I applied HSBC 2.39% 5yrs fixed 2 months ago, and they recently noticed me it's approved and the rate will only be locked until the end of this month. But my renewal date will be in November. Shall I pay $1000 penalty + $300 discharge fee to pay off my current mortgage and switch to HSBC? Additionally I need to pay $300 appraisal + $1000 lawyer fee with HSBC. So does it worth to pay $2600-$500 HSBC cash back = $2100 from my pocket to lock the 2.39% for 5 yrs? Btw, the renewal rate from my current bank is over 3%.

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