Real Estate

The Official Mortgage Rates Thread

Sr. Member
User avatar
Dec 2, 2008
828 posts
343 upvotes
It's hard to answer that really. Your theory could be correct or it could be that they were quoting 2 totally different products and features.

There are around 50 lenders that a given broker can choose to work with and each have totally different quirks, features, options and commissions. To top it off these rates and promos often change daily! Just over an hour ago, TD released a new cashback promo for example. So in your scenario, the first broker may not have known (or chosen not to work with the lender) that the second broker quoted you and vice versa. Edited to add: In this same scenario, Broker A could have access to better rates than Broker B.

In addition, each broker may have different strategies or principles when it comes to both cutting their commission for clients and what value they attach to their work.

So I guess what I am trying to say in a very round about way is that its not as simple as 2 people quoting on the same product. Make sense?
Last edited by canadian gal on Sep 6th, 2019 5:21 pm, edited 2 times in total.
Newbie
Sep 5, 2019
40 posts
68 upvotes
The brokers were talking about the same lender that's why I assumed it was the same product. Thank you for your explanation.
Member
Feb 2, 2011
273 posts
57 upvotes
Lets say u are buying a 3rd house...and plan to change it to your principal residence, but will be doing renovations for a year...so not owner occipied for a yr.

Would u get owner occupied rate for this new house even tho ur current house has 3 yrs left in owner occupied mortgage?

Any advice or real talk here
Sr. Member
User avatar
Apr 7, 2007
852 posts
474 upvotes
Calgary, AB
Hi Mortgage Broker gurus. Looking for a mortgage refinance:

-Roughly, what is the current market value of the property? $550K
-What is the current mortgage owing? $260K
-How much do you want to borrow (refinance)? $380K (I'd like to borrow an additional $120K on top of the $260K mortgage balance).
-Is the property owner-occupied or a rental? Rental
-Where is the property located? Nanaimo, BC
-When do you want to close on the refinance? Oct 31, 2019

Currently with Scotia but I didn't like the number they offered on the refi. I'm located in Calgary but the prop is in BC. Looking to move forward with the refi now.

Thanks!
Last edited by cheapmother on Sep 7th, 2019 11:10 am, edited 1 time in total.
Deal Addict
Nov 10, 2018
4735 posts
5331 upvotes
Luckyinfil wrote: What happens to a mortgage during divorce or separation where one person gets the property?
This should be in its own thread IMHO but the house's property value (at date of marriage and date of separation) and the corresponding mortgage (date of marriage and date of separation) both get 'calculated' during NFP maths. From there, the sky is the limit when it comes to what possibilities lay ahead.

Equalization is the name of the game here.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Newbie
Jul 17, 2015
8 posts
Toronto, ON
Hi,

I am looking for a rate advice. Yesterday, my broker called me offering an early renewal with the following options:
1. 5 years fixed, 2.54% with the current lender, no penalty
2. 5 years variable P - 1% at 2.95% with the current lender, no penalty
3. 5 years variable P - 1.2% at 2.75% with different lender with $1742 penalty to break the current term, no porting feature.

What are the best rate on the market currently with my situation below?

-How much is the mortgage owing?
$209K

-Roughly, what is the current market value of the property?
800K

-Which city is the property located in?
Toronto

-Is the property owner-occupied or a rental?
owner-occupied

-Who is your current lender?
Think Financial

-Do you have a HELOC tied to the mortgage?
No

-Is the mortgage CMHC insured?
No

-When did you buy the property?
2010

-When is your renewal date?
December 2021
Newbie
Dec 17, 2018
34 posts
17 upvotes
If I get a HELOC, is it possible to make interest only payments or is each payment like a mortgage where it's principal and interest?
Newbie
Sep 6, 2019
1 posts
Hi brokers! Looking for some assistance buying my first home.

For a purchase of a property:

-What is the purchase price? $477,000
-How much is the down payment? 5%, insured cmhc
-Where it the property located? Sherwood Park, AB
-When is the closing date? Oct 30
-Will the property be owner-occupied or a rental? Yes

Thanks!
Matt
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
CreateAnAccount wrote: If I get a HELOC, is it possible to make interest only payments or is each payment like a mortgage where it's principal and interest?
HELOCs are almost always interest only payments. You can of course choose to pay as much as you want over and above the interest, or just continue making the interest only payments.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
cheapmother wrote: Hi Mortgage Broker gurus. Looking for a mortgage refinance:

-Roughly, what is the current market value of the property? $550K
-What is the current mortgage owing? $260K
-How much do you want to borrow (refinance)? $380K (I'd like to borrow an additional $120K on top of the $260K mortgage balance).
-Is the property owner-occupied or a rental? Rental
-Where is the property located? Nanaimo, BC
-When do you want to close on the refinance? Oct 31, 2019

Currently with Scotia but I didn't like the number they offered on the refi. I'm located in Calgary but the prop is in BC. Looking to move forward with the refi now.

Thanks!
Thanks for the info! The lowest rates on rental properties these days are generally with the big banks. However, you'll find Scotia fairly high, but I would still get a quote from them considering this is where your mortgage is. Most lenders have rate premiums on rental properties, including some of the big banks (such as Scotia). I would check with RBC and CIBC and see what they would be willing to offer you. Brokers do not have access to these lenders so you would need to check with them directly.

Let us know what you were able to work out or if you have any questions :)
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Newbie
Dec 17, 2018
34 posts
17 upvotes
PaulMeredith wrote: HELOCs are almost always interest only payments. You can of course choose to pay as much as you want over and above the interest, or just continue making the interest only payments.
Thanks.

If I'm making interest only payments, when do I have to pay back the entire principal?
Newbie
Sep 6, 2019
3 posts
hi guys, looking for guidance here

Have 2 properties, any suggestions if its worth it to jump ship? I see rates < 2.5% posted online and on this forum

property 1: currently w/ TD at 3.02% 5 year fixed

-How much is the mortgage owing? 265k
-Roughly, what is the current market value of the property? 360k
-Which city is the property located in? ottawa
-Is the property owner-occupied or a rental? owner occupied
-Who is your current lender? TD
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? may 2019
-When is your renewal date? may 2024

property 2: currently w/ CMHC at 3.34% 5 year fixed

-How much is the mortgage owing? 265k
-Roughly, what is the current market value of the property? 380k
-Which city is the property located in? ottawa
-Is the property owner-occupied or a rental? rental
-Who is your current lender? CMLS
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? june 2018
-When is your renewal date? june 2023
Newbie
Sep 14, 2003
50 posts
5 upvotes
Scarborough
What is the best HELOC rate out there? To get the best rate do you have to have the mortgage with same lender too? Are all HELOCs collateral?
Newbie
Jul 17, 2019
50 posts
35 upvotes
Hi mortgage gurus, first time home buyer here. Looking for some advice! Electric Light Bulb Please PM me.

-What is the purchase price? 670k
-How much is the down payment? 30%
-Where it the property located? London, ON
-When is the closing date? Mid-Oct
-Will the property be owner-occupied or a rental? Owner-occupied
Banned
Sep 19, 2012
1253 posts
1867 upvotes
Calgary
CreateAnAccount wrote: If I'm making interest only payments, when do I have to pay back the entire principal?
HELOC is due on demand. The lender can call it at any time. Will they? Most likely not. It's expensive to foreclose and they'll give you plenty of leeway.
smartinvestor wrote: What is the best HELOC rate out there? To get the best rate do you have to have the mortgage with same lender too? Are all HELOCs collateral?
Best HELOC rate out there is with Motusbank at p-0.2%. Most HELOCs are at p+0.5%. If you get a HELOC in "2nd position" (meaning a mortgage exists on the property), then the best rate is again with HELOC and reportedly somewhere around p+0.05%. Sometimes you can negotiate with your bank or credit union to get prime+0%.
spicypascal wrote: hi guys, looking for guidance here
Have 2 properties, any suggestions if its worth it to jump ship? I see rates < 2.5% posted online and on this forum
property 1: currently w/ TD at 3.02% 5 year fixed
-How much is the mortgage owing? 265k
-Roughly, what is the current market value of the property? 360k
-Which city is the property located in? ottawa
-Is the property owner-occupied or a rental? owner occupied
-Who is your current lender? TD
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? may 2019
-When is your renewal date? may 2024
You're probably only paying 3 months interest penalty given how close you are to your original mortgage date. With some elbow grease I'm sure you can find a brokers to get you into RFA at 2.39% with all costs covered, except your penalty and discharge fee (which you can roll into your new mortgage). The broker pay on that is something like $225 after their brokerage split (this is why you'd need some "elbow grease").
spicypascal wrote: property 2: currently w/ CMHC at 3.34% 5 year fixed
-How much is the mortgage owing? 265k
-Roughly, what is the current market value of the property? 380k
-Which city is the property located in? ottawa
-Is the property owner-occupied or a rental? rental
-Who is your current lender? CMLS
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? june 2018
-When is your renewal date? june 2023
Talk to the big banks and see what kind of rate you can get with a rental. YMMV based on your negotiating power. One thing you could try and do is talk to TD and ask them to take on the rental mortgage and redo the rate on your owner occupied deal. That would be my approach. Best you'd get out of a broker is probably something like 2.8x%.
hypekit wrote: Hi mortgage gurus, first time home buyer here. Looking for some advice! Electric Light Bulb Please PM me.
-What is the purchase price? 670k
-How much is the down payment? 30%
-Where it the property located? London, ON
-When is the closing date? Mid-Oct
-Will the property be owner-occupied or a rental? Owner-occupied
You can get 2.34% with our friends at Meridian on a 5-year fixed. That's likely the best rate out there unless you can get True North to beat it with ThinkFinancial.

Good luck all!

Nikola Alaica, CPA, CA | Ahlaker Financial | Tax, Accounting, Mortgages
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Banned
Sep 19, 2012
1253 posts
1867 upvotes
Calgary
spicypascal wrote: Thanks Nikola!
few questions to clarify
1) RFA = https://www.rfamortgages.com/ ?
2) can the cost of breaking mortgage contract be deducted from rental income for tax purposes?
thank you!
1) Yep. That's RFA. Their loans are serviced by MCAP so you get the same fancy online portal they've got. Literally the only difference between the two is the logo on all your stuff.
2) Your filing position would be that these are interest costs and therefore you can deduct them (assuming the rest of the loan interest was deductible). CRA could potentially challenge that assumption and say that those costs are in substance "financing costs" and make you take the deduction over 5 years.

Good luck!!
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Sr. Member
Mar 1, 2008
645 posts
31 upvotes
Can you tell us which Bank/ lender offered you option #2? I am in the process of renewing and wondering if this rate is only for new purchases or renewals as well? thanks
Sr. Member
Mar 1, 2008
645 posts
31 upvotes
felixadrianto wrote: Hi,

I am looking for a rate advice. Yesterday, my broker called me offering an early renewal with the following options:
1. 5 years fixed, 2.54% with the current lender, no penalty
2. 5 years variable P - 1% at 2.95% with the current lender, no penalty
3. 5 years variable P - 1.2% at 2.75% with different lender with $1742 penalty to break the current term, no porting feature.

What are the best rate on the market currently with my situation below?

-How much is the mortgage owing?
$209K

-Roughly, what is the current market value of the property?
800K

-Which city is the property located in?
Toronto

-Is the property owner-occupied or a rental?
owner-occupied

-Who is your current lender?
Think Financial

-Do you have a HELOC tied to the mortgage?
No

-Is the mortgage CMHC insured?
No

-When did you buy the property?
2010

-When is your renewal date?
December 2021
Can you tell us which Bank/ lender offered you option #2? I am in the process of renewing and wondering if this rate is only for new purchases or renewals as well? thanks
Banned
Sep 19, 2012
1253 posts
1867 upvotes
Calgary
@spicypascal I stand corrected cause I can’t read! You’ve got LTV of 74% so you can’t get 2.39% (you need 65%!). RFA will give you 2.59% in your case but that rate sucks! Best one you could probably get is 2.49% with Motusbank.

My apologies!!!
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages

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