Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Aug 16th, 2018 6:56 pm
Sr. Member
May 1, 2017
920 posts
195 upvotes
Hey everyone,

Hearing some whispers of possible rate increases for uninsurable mortgages. If your looking to refinance, or need a 30 year amortization and the contract rate to qualify, or are looking to buy a property with a value over $1m, etc, you may want to get a pre-approval locked in sooner rather than later!

Cheers,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Jan 20, 2017
7 posts
Hello Experts,

I'm thinking of moving from variable rate to fixed rate, My original rate was 2% with TD, now it moved up to 2.6 % and I guess it will keep moving more.
Do I need to contact the Bank directly or Should I contact the old broker or what?
and what do you think about the rate that I might get?

Since I did not do that before and have no clue, any guidelines will be appreciated.
Deal Addict
User avatar
Sep 13, 2011
3736 posts
1216 upvotes
Toronto
HFMSSA wrote:
Oct 13th, 2017 4:33 pm
Hello Experts,

I'm thinking of moving from variable rate to fixed rate, My original rate was 2% with TD, now it moved up to 2.6 % and I guess it will keep moving more.
Do I need to contact the Bank directly or Should I contact the old broker or what?
and what do you think about the rate that I might get?

Since I did not do that before and have no clue, any guidelines will be appreciated.
They rate you can expect from them will likely be around 3.39%. If you want to proceed with this, then you would contact the bank directly.

Also, are you SURE this is what you want to do? Converting your fixed to variable is not really a strategy I suggest. For starters, the rate your lender will convert you to would rarely (if ever) be lowest market rate, as you can see. By converting to a fixed rate, you're also taking a gamble that prime rate will continue to increase further since your new rate and payment would still be much lower than it would be if you just accepted the increase on your variable.

But will it continue to increase? There is speculation that it will. Possibly one more time this year, or possibly early next year. Or both. Maybe this will happen or maybe it won't. Or maybe it will increase again and then drop again next year. Anything can happen, and these fluctuations are all part of having a variable rate.

Many with variable rates will ask if it's a good time to lock in at the first word of a potential rate increase. When taking a variable rate, it's understood that you have a floating rate, and this rate can change in either direction over your 5 year term. Many have become complacent over the past several years considering we have not had an increase to prime rate from September 2010 until July of 2017. For this reason, many have become comfortable with thinner spreads thinking that the rates will not be increasing any time soon.

The truth is, if you don't like being exposed to market fluctuations, or if the thought of your rate or payment increasing, then variable rate was likely not the best product choice for you. If you are in a variable rate mortgage now, then i would stay in it and ride it out for the term. However, if you are having a tremendous amount of anxiety to the point where you are fraught with worry and having trouble sleeping at night, then you'll want to do what will set your mind at ease.

You also have to consider just how much of a spread you have on your variable. If the jump is only 0.25% or 0.30% from where your variable rate is now to the fixed rate they are offering you, then thats a bit of a different situation and locking into a fixed might not be a bad idea in that case. If you really want to play it safe that is. You would still be betting on another increase to prime by doing so however, so it really depends on the person. Anyone taking a variable with a very thin spread could potentially consider this, but in these cases, fixed rates would have likely been the better choice for them to begin with. As mentioned, when taking a variable rate, you're accepting market fluctuations. Your expecting your rate and payment to be 'variable'. No one knows for sure what is going to happen. Like i said, maybe the rate will increase again later this year or maybe it won't. Maybe it will drop next year. No one knows for sure.

Also, keep in mind that variable rate as consistently out performed fixed rate mortgages over the past 30 years.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
Jan 7, 2013
292 posts
20 upvotes
Kitsilano
complainfromme wrote:
Oct 13th, 2017 12:59 pm
Thanks Paul !
May I ask where I can find 2.94% for 5yrs fixed uninsured? You can pm me if you want. thanks
Also interested in this!
“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.”
Deal Fanatic
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Feb 2, 2014
5102 posts
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Toronto
Just a note, with 25% down, you can get 2.84% 5-year fixed.

With 20% down, 2.94% 5-year fixed is the best rate as Mr.Meredith mentioned.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Member
Jan 7, 2013
292 posts
20 upvotes
Kitsilano
Condo closing end of October.

Looking for best rates for 474k price, 20% (can do 25% if better rate) down - interested in 5 year fixed or variable, non collateral, flexible repayment, if possible 30 year amortization.

PMs welcome

Thanks
“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.”
Sr. Member
May 1, 2017
920 posts
195 upvotes
nnelly wrote:
Oct 13th, 2017 5:27 pm
Condo closing end of October.

Looking for best rates for 474k price, 20% (can do 25% if better rate) down - interested in 5 year fixed or variable, non collateral, flexible repayment, if possible 30 year amortization.
PMs welcome

Thanks
Hi there,

If you're looking for a 30 year amortization, the rates above (2.84% and 2.94%) will not be available as 30 year amortizations are no longer considered "insurable" mortgages, and those are insurable rates. This also means that you must qualify at the benchmark rate of 4.94% and a max amortization of 25 years.

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Jan 20, 2017
7 posts
Thank you, Paul,

I have one more question, we are looking for second property as an investment, can you tell me more about the second mortgage? best available rates for that.

Thank you again. :)
Member
User avatar
Jul 28, 2008
309 posts
55 upvotes
what are the best rates for 1.2 mln mortgage in Pickering? 20% down. please pm me
Newbie
Mar 17, 2009
83 posts
1 upvote
Scarborough, ON
Hi Guys,

I need your input. I have listed my house for sale and my mortgage is set mature end of this month and wondering what would be best option. Bank has offered two option: Auto renew as an open mortgage or get variable 5 years @2.75. I was advised that if I break variable I will only have to pay 3 months of interest where as open mortgage might be more.

your input is very much appreciated.
Newbie
Oct 9, 2007
36 posts
3 upvotes
Canada
GreenMortgages wrote:
Oct 8th, 2017 1:39 pm
Hello,

The 'catch' is that the mortgage must have had mortgage default insurance on it at some point. Was your mortgage previously insured? What amount of down payment did you have when you purchased? if you had less than 20% of the purchase price, then it will be insured.

If the mortgage is uninsured, you could be looking in the 2.45% - 2.40% variable range.

Connor
Thanks Connor,
HSBC offered me 2.29 http://www.hsbc.ca/1/2/personal/borrowi ... loan-rates
Its the rate they advertise on their site as well. Do you think its possible to get lower or should I go with them. I checked my mortgage was never insured.

Thank you,
Deal Addict
Jun 29, 2007
4083 posts
964 upvotes
shiyam25ca wrote:
Oct 14th, 2017 11:55 am
Hi Guys,

I need your input. I have listed my house for sale and my mortgage is set mature end of this month and wondering what would be best option. Bank has offered two option: Auto renew as an open mortgage or get variable 5 years @2.75. I was advised that if I break variable I will only have to pay 3 months of interest where as open mortgage might be more.

your input is very much appreciated.
You were misinformed or you heard wrong.
Yes, generally 3 month interest penalty for paying off a variable mtg before it's due.
For open mtg where it's usually a higher rate, there is no penalty for paying it off early. That's why it's an open mtg. Will likely have to pay a mtg discharge fee (~$150 to $300 depending which province you are in) though.

Another option is porting the mtg to your new place if you will be buying a new place. Ask your bank about mtg portability.

Also consider how long you think it will take you to sell your property and buy your next property, if you are buying.
Newbie
Mar 17, 2009
83 posts
1 upvote
Scarborough, ON
Speedy1 wrote:
Oct 14th, 2017 12:05 pm
You were misinformed or you heard wrong.
Yes, generally 3 month interest penalty for paying off a variable mtg before it's due.
For open mtg where it's usually a higher rate, there is no penalty for paying it off early. That's why it's an open mtg. Will likely have to pay a mtg discharge fee (~$150 to $300 depending which province you are in) though.

Another option is porting the mtg to your new place if you will be buying a new place. Ask your bank about mtg portability.


Also consider how long you think it will take you to sell your property and buy your next property, if you are buying.
Thanks a lot Speedy1! I will ask about the mortgage portability .
Newbie
Oct 13, 2017
2 posts
Hi mortgage experts,

We currently have the mortgage for our townhouse with TD, fixed rate @2.69% for 5 years and 2.5 years more to go. We are buying an apartment in Surrey BC and will make it a rental property. The purchase price is 318k and we will do 20% down payment.
We got pre-approved from TD with the 5 years variable rate at 2.75% P-0.6. I personally prefer fixed rates for shorter terms like 1-3 years because Idk if we keep the apartment for a long time and I don't want to pay the mortgage break fees.

Is 5 yr variable 2.75% a good rate? What is the lowest fixed rate that we could get for a rental property?

Thank you!
Newbie
Nov 14, 2007
70 posts
22 upvotes
GTA
Would like your input. I can do an early renewal on my mortgage and was offered 3.29 on 5 yr fixed or 2.65 on 5 yr variable. Are these good or should I wait till 90 days before renewal?

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