Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Oct 23rd, 2017 7:27 am
Newbie
Mar 14, 2009
9 posts
Richmond
My mortgage is up for renewal in December. Details as follows:

- $385,000 remaining (home value ~$850,000)
- Combined annual income of ~$180,000; both have good credit and no other debt
- Location: Fraser Valley, BC

I am being offered a 3.04% 5YF from my current lender. I have been leaning towards renewing with a variable. I have been offered a good 5YV from a broker: 2.35% (prime – 0.85%). I have the choice of Equitable or First National.

Questions:

- How do both the 5YF and 5YV look? Can I do better?
- Should I have any concerns borrowing from either Equitable or First National?

Any other suggestions or recommendations would be appreciated. Thank you in advance.
Deal Addict
Feb 2, 2014
3963 posts
768 upvotes
Toronto
khushez wrote:
Oct 11th, 2017 8:05 am
600k purchase price with 20% down.
Closing next month
2.94% 5-year fixed is the best rate with 20% down.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
3963 posts
768 upvotes
Toronto
KAN wrote:
Oct 11th, 2017 11:30 am
I want to do a HELOC with my duplex. (no mortgage right now). What is the best rate (and where ?) for a 2 or 3 years term ? I am also open to 1 y fixed or 5 year variable.
Just want a great rate.
I am with TD for my banking
Sounds like you want a mortgage and not a HELOC.

Is the property in QC? Best rates are different there.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
3963 posts
768 upvotes
Toronto
It's happening.

You can't qualify under contract rates after it takes effect.

For long-term fixed mortgages (5-years or higher) that are non-insured (20% or more down usually), you will have to qualify at the contract rate +200bps now.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Oct 9, 2017
2 posts
CdnRealEstateGuy wrote:
Oct 11th, 2017 7:01 pm
2.94% 5-year fixed is the best rate with 20% down.
Sorry the question was if one had a very good 2yr fixed rate in current situation should I take it or 5yr even if it’s way more makes more sense. I am hearing mixed news on whether rates will keep on going up or not so not sure whether to take shorter or longer fixed mortgage
Deal Addict
Feb 2, 2014
3963 posts
768 upvotes
Toronto
jheb wrote:
Oct 11th, 2017 6:12 pm
My mortgage is up for renewal in December. Details as follows:

- $385,000 remaining (home value ~$850,000)
- Combined annual income of ~$180,000; both have good credit and no other debt
- Location: Fraser Valley, BC

I am being offered a 3.04% 5YF from my current lender. I have been leaning towards renewing with a variable. I have been offered a good 5YV from a broker: 2.35% (prime – 0.85%). I have the choice of Equitable or First National.

Questions:

- How do both the 5YF and 5YV look? Can I do better?
- Should I have any concerns borrowing from either Equitable or First National?

Any other suggestions or recommendations would be appreciated. Thank you in advance.
You can get 2.88% 5-year fixed and 2.25% 5-year variable at that LTV...even lower if it's insured.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
User avatar
Apr 10, 2010
1301 posts
144 upvotes
PaulMeredith wrote:
Oct 11th, 2017 5:21 pm
If your current mortgage is a collateral charge, and we do a collateral switch as some lenders are now accepting, then the mortgage will be converted from a collateral charge to a standard charge mortgage (non-collateral).

If you were to refinance, and at the end of the term you wanted to switch, then you would be eligible for the switch rates. You would not pay the refinance rate unless you were once again refinancing at that time.
It would not make sense to take a shorter term for the sole reason being so you can proceed as a straight switch at the end of the term. The difference really isn't that much and we have no idea where rates will be in a year. You could end up taking a 1 year term for example with the intention of switching in a year just so you can save 25bps at that time. But who is to say that rates won't be 1% higher at that time? I'm not saying they will be, but i'm saying that we have no idea. Would be a pretty big gamble.
Thank you very much. It's very clear.
Deal Addict
Sep 13, 2011
3300 posts
1061 upvotes
Toronto
khushez wrote:
Oct 11th, 2017 7:10 pm
Sorry the question was if one had a very good 2yr fixed rate in current situation should I take it or 5yr even if it’s way more makes more sense. I am hearing mixed news on whether rates will keep on going up or not so not sure whether to take shorter or longer fixed mortgage
No one can really say for sure where rates are going to be in a couple of years. One thing that we do know for sure today as that today's rates, even with all the increases, are still at historically low levels. Rates starting with a 2, or even a 3 for that matter are not typical. We have however become accustomed to these rates having had access to them for more than 5 years now. I think it was about 8 years ago when 5 year fixed rates first dipped below 4%, and at that time, it was a huge breakthrough. I remember then when rates hit 3.79%, many thought that they couldn't get much lower than that. As long as the economy continues to grow, rates will likely continue to increase. Again, no one can say for sure here and anything can happen. If you like the idea of the low rate of the 2 year fixed, and are comfortable with a bit more risk, then you could always go with the 2 year fixed with the intent to switch to variable at the end of the two years. I predict that fixed rates will be higher at that time then they are right now. All is speculation of course.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Dec 27, 2011
1012 posts
476 upvotes
Vancouver
Helloooooo everyone.


Complete noob stepping in here (Well, I mean, I know the mortgage basics well).


Basically, wife and I have been told by our landlord he is selling (While my wife is 20 weeks pregnant) - we were going to buy in the next year or so anyway, so now we have been pushed to do so basically in the next months instead.


We live in Vancouver - but want to move to Coquitlam or that general area. What we need, is a mortgage broker, someone we can sit down with, explain what we want to borrow, have them check our credit and go over all our options and what would fit our lives...

Does anyone have a broker they recommend or have had great experiences with? We are currently right in Downtown Vancouver.


Thank you so much. Stressful stressful times.
Member
May 1, 2017
472 posts
109 upvotes
evanwier wrote:
Oct 12th, 2017 12:52 pm
Helloooooo everyone.


Complete noob stepping in here (Well, I mean, I know the mortgage basics well).


Basically, wife and I have been told by our landlord he is selling (While my wife is 20 weeks pregnant) - we were going to buy in the next year or so anyway, so now we have been pushed to do so basically in the next months instead.


We live in Vancouver - but want to move to Coquitlam or that general area. What we need, is a mortgage broker, someone we can sit down with, explain what we want to borrow, have them check our credit and go over all our options and what would fit our lives...

Does anyone have a broker they recommend or have had great experiences with? We are currently right in Downtown Vancouver.


Thank you so much. Stressful stressful times.
Hi there,

Theres nothing quite like being forced to buy! Think of it as being a bit 'ahead of schedule.'

As far as you mortgage goes - you don't technically need to use a broker that is based out of Vancouver, as most mortgage brokers/agents can work inter-provincially as all of the work can be facilitated over the phone and online. Any one of the brokers/agents on this forum can help facilitate the mortgage for you!

That said, I completely understand if you'd rather have a face-to-face meeting with someone reputable. If you like I can recommend someone in Vancouver who would be happy to help you out.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Feb 2, 2014
3963 posts
768 upvotes
Toronto
evanwier wrote:
Oct 12th, 2017 12:52 pm
Helloooooo everyone.


Complete noob stepping in here (Well, I mean, I know the mortgage basics well).


Basically, wife and I have been told by our landlord he is selling (While my wife is 20 weeks pregnant) - we were going to buy in the next year or so anyway, so now we have been pushed to do so basically in the next months instead.


We live in Vancouver - but want to move to Coquitlam or that general area. What we need, is a mortgage broker, someone we can sit down with, explain what we want to borrow, have them check our credit and go over all our options and what would fit our lives...

Does anyone have a broker they recommend or have had great experiences with? We are currently right in Downtown Vancouver.


Thank you so much. Stressful stressful times.
Let's make this painless for you @evanwier....no need to stress at all!

Just contact a bank, credit union or broker and get pre-approved. This will let you know what you can buy (specifically your price point).

After that, just contact a realtor and you can start looking at properties. It's that simple.

You can get pre-approved in less than a day. It's a fast and easy process, I promise!
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Jr. Member
Jun 23, 2009
125 posts
22 upvotes
Toronto
Hi experts, need some advice on what I should do for my first ever mortgage as I feel like my agent isnt doing a good job and is pushing for a commitment.

Background:
600k townhome prebuild, closing in 90 days, can do 20% down but do not have to, want to do 5year fixed.

What I guess I know:
I can get a rate lock from HSBC for 3.04% 5y fixed, insured or not
I can probably get a rate from nonBank lender of 2.84% for 5 yr fixed, insured

What I what to know:
1) Are those the cheapest rate I can get ( insured and uninsured) for a 90days lock? if not where can i get such info for the lowest rate?
2) From what I read, insured mortgage get a relatively better rate, is that also the case when it comes time to renew in 5 yrs?
3) If 2) is true, is it better to pay the insurance and go for the better insured rate as the insurance is probably $13K and the difference between in interest of insured and uninsured rate for 5yf is already at $10k ?


Thanks all !!!
Last edited by complainfromme on Oct 12th, 2017 6:54 pm, edited 1 time in total.
Newbie
Dec 16, 2014
65 posts
13 upvotes
Waterloo, ON
GreenMortgages wrote:
Oct 11th, 2017 3:43 pm
Hi there,

2 year fixed rates are in and around 2.89%. You can get a 3 year fixed at 2.54% if the mortgage amount is less than 70% of the value of the property! Whats the value of your property and is the purpose of the mortgage a purchase, refinance, or renewal/switch?

Regards,

Connor
which bank provides 3 year fixed at 2.54% ?

thanks
Deal Addict
Dec 12, 2009
2256 posts
692 upvotes
Toronto
GreenMortgages wrote:
Oct 11th, 2017 3:43 pm

2 year fixed rates are in and around 2.89%.
skunkyjosh wrote:
Oct 12th, 2017 9:45 pm
fixed rates going up again--
We are due for renewal in January. Will have < 2 years left to pay it off. Bank called today saying we can renew 150 days prior and offered a 2 year fixed @ 2.89%.
It seems we should accept. Any comments?

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