Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Aug 16th, 2018 6:56 pm
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B Prime wrote:
Oct 16th, 2017 12:12 pm
Hi Looking for some advice:

Current Mortgage: RBC - $350000, HELOC $35000. Looking to refinance. Renewal date is November 30th. Best RBC is offering is 3.24 and am looking for a good 5-year fixed rate or a lesser term if the rate is worth it. Will amortize over 20 or 25 years pending upon the payment. House is worth at least $500000. What is the equation for calculating if it worth it to switch mortgages also?
Thanks in advance
You can get 3.14% 5-year fixed, but keep in mind, you have to cover legal and possibly appraisal fees for a refinance (about $1000 - $1300).
Kevin Somnauth, CFA
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GreenMortgages wrote:
Oct 16th, 2017 1:14 pm
Hello,

Since your mortgage was already insured, the best rates in the market will be available to you! As low as P-1.15% variable for 5 years, and 2.84% fixed.

Regards,

Connor
Oh sorry I miss read one of the questions. I did pay 20% down. So I guess I am not insured. How will that differ. THanks.
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wasape wrote:
Oct 16th, 2017 1:51 pm
Oh sorry I miss read one of the questions. I did pay 20% down. So I guess I am not insured. How will that differ. THanks.
Oh, no problem. The rates available in this case are a tad higher. You can get 2.94% to 2.99% 5 year fixed, and p-0.85% - p-0.90% variable!

Regards,

Connor
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Connor Green
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the_norm wrote:
Oct 6th, 2017 11:44 am
I wanted to give a quick shout out to Paul Meredith and his team for handling my recent mortgage. I was able to get a great rate and my many questions were answered very quickly and professionally. The entire transaction went off smoothly without a hitch and I cannot thank Paul and his team enough for guiding me through the process and providing valuable advice.
Thanks for the kind words! It was a pleasure to serve you. :)
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GreenMortgages wrote:
Oct 16th, 2017 9:35 am
Hi there,

For a rental property, you would be looking at 3.39% 5 years fixed. As I'm sure you're aware, mortgages for rental properties are not eligible for the best rates in the market as single unit rentals are no longer considered "insurable" by mortgage default insurers. The best rates are for those mortgages which are already insured, or are insurable in nature, which unfortunately, rental properties no longer are.

Regards,

Connor
Glad I converted my variable rate mtg to a 5 yr fixed at 2.59% for one of my rental properties ~3 months ago. 30 yr amortization too.
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For those looking for variable rates, there is now a great P-90 available for conventional deals. Insured mortgages may get P-1.15% still.
Andre Oliveira - Mortgage Agent
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need some guidance. details about current situation are in the 5 points below.
TD (collateral mortgage) recently suggested I can lock-in my rate at around 2.8% (could have been 2.9%) for the balance of the term (2 years left)....
Should I be seriously considering this? Or leave it as it is...
I'm ususally pretty risky with my investments and hence chose variable 3 years ago...

1. How much is your property worth? $480k when bought 3 years ago, likely $680-700k now.
2. What is the balance of the mortgage? $340k
3. Was your mortgage ever insured i.e. did you have less than 20% as a down payment initially? we did 20%
4. Who is your current mortgage with? TD - TD Mortgage Prime - 0.6% = Currently at 2.75% Variable with 2 years left in term
5. Where is the property located (approximately)? Mississauga
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Speedy1 wrote:
Oct 16th, 2017 4:32 pm
Glad I converted my variable rate mtg to a 5 yr fixed at 2.59% for one of my rental properties ~3 months ago. 30 yr amortization too.
For sure! That sort of rate has completely evaporated from the market in the last few months. You picked a good time to switch.

Regards,

Connor
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Anyone knows if the new stressed test will be confirmed? If so, I assume it will put additional downward pressure on pricing?
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DPR2017 wrote:
Oct 16th, 2017 6:37 pm
Anyone knows if the new stressed test will be confirmed? If so, I assume it will put additional downward pressure on pricing?
Not yet, but possible something could be announced as soon as tomorrow. I would not count on it to have any downward pressure on pricing whatsoever.
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PaulMeredith wrote:
Oct 16th, 2017 6:45 pm
Not yet, but possible something could be announced as soon as tomorrow. I would not count on it to have any downward pressure on pricing whatsoever.
how come? doesn't that further reduce the buying power?
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Oct 15, 2017
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Hi all,

I'm currently purchasing my first house in northern BC (Prince George) and was wondering if I could get some advice on rates.

The house price is 312k and I'll be putting 20% down. I'm looking at 3 year fixed and variable, and 5 year variable. I've checked with multiple local brokers and their rates are quite a bit higher than anything I've seen on here. The best rates I've been given from 3 brokers are 3.04% 3-year fixed, 2.7% 3-year variable, and 2.7% 5 year variable. I've been told I could get a better rate with an insured mortgage but my understanding is it's always better to avoid paying CMHC.

I feel like I should be able to do better than those rates, but I'm not completely sure. I have a quick close of Nov 10th so I'm not sure what's possible at this point.

Any advice from the experts would be greatly appreciated.
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Not necessarily. Financing limitations only adversely affect those who need financing and/or that are trying to qualify for higher amounts. If I cannot get approved for a 800k purchase and need to purchase something up to 600k, I will look for a 600k property. It does not mean the person selling the 800k property will need to reduce the price now to 600k, as there will be someone who will qualify for that 800k purchase or simply buy it and pay cash.

1y ago, the government introduced the new mortgage rules currently in place, and those were some really tough new rules. Did that impact the markets as intended? The controversy is out there. I saw a marginal reduction is selling prices in the markets I monitor, and it already looks like they are moving up in some of those markets. There are days I see 2 different news articles, 1 reporting a decline in prices and the other reporting price increases. Some realtors are telling me of bidding wars already, although not as fierce as before.
DPR2017 wrote:
Oct 16th, 2017 9:00 pm
how come? doesn't that further reduce the buying power?
Andre Oliveira - Mortgage Agent
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My new condo will be built in a month and I need a morgage. Never had one before. I am looking for a potential 5 years, probably around 150k morgage out of 200k. I made a downpayment of 40k plus will do an extra 10k.

I can also pay the whole condo with cash, I have enough assets. But I prefer to use morgage.

What is my best option for a fixed? HSBC at 3.04%? Can I get Tangerine to match it (is Tangerine morgage even good?)? Can I negociate even lower than 3.04%?

And what is the CMHC? What is APR? Do I even need any of them for a newly built condo and will be delivered to me this December 2017?

Looking for fixed, conventional.
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Yesterday I mentioned that new mortgage regulations could be announced as early as today, and sure enough, today is the day. There are three notable changes to the B-20 regulation:

OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages.
Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

This was expected. This means that all mortgages regardless of down payment size will need to qualify on the higher of the benchmark rate, which is currently 4.89%, or 2% above the contract rate. With the market 5 year fixed mortgages being at 3.39%, this means that they would have to qualify based on a rate of 5.39% (there are still 5 year fixed rates as low as 2.94% for conventional mortgages). This is going to significantly reduce what many will qualify for.

OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk.
Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

(I'll post the details on this below)

OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits.
A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.

I personally did not see much of this going on, so I don't foresee it to be a major issue for most. I do see it having more of an issue for those needing B lenders as it's not uncommon for 2nd mortgages to be used when borrowers need to exceed the LTV limits set by the lender. This is not something that is uncommon, so this could have an impact on the B lending side. (A B lender can be defined as a lender servicing borrowers with non-qualifying credit or income, or one who caters to those who don't qualify through an A lender).

Here's a bit more info taken right from the guidelines:

Property Value used for the LTV Ratio (Loan to Value)
Property value for FRFIs should assess and adjust, as appropriate, the value of the property for the purposes of calculating the LTV and determining lending thresholds within LTV limits, including limits for conventional mortgage loans, non-conforming mortgage loans and HELOCs (see sub-sections below), by considering relevant risk factors that make the underlying property more vulnerable to a significant house price correction or that may significantly affect the marketability of the property. These factors include, but are not limited to:

The location, type, and expected use of the property for which the loan is granted;
The property’s current market price, recent price trends and housing market conditions; and
Any other relevant risk that may affect the sustainability of the value of the underlying property.
In markets that have experienced rapid house price increases, FRFIs should use more conservative approaches to estimating the property value for LTV calculations and not assume that prices will remain stable or continue to rise.

For the purposes of incorporating property value risk and determining appropriate lending thresholds for mortgage loans, FRFIs have flexibility to apply valuation adjustments to specific properties when calculating LTV and/or by setting LTV ratio framework limits that consider and incorporate the property valuation risk factors described in this sub-section.


It's undetermined how lenders will do this at this time and this is still up to interpretation by the lenders. As we know more information, we'll provide it. You can read more about the new regulations here:

http://www.osfi-bsif.gc.ca/Eng/osfi-bsi ... ft_nr.aspx
http://www.osfi-bsif.gc.ca/Eng/fi-if/rg ... 0_dft.aspx

These changes will be taking effect on January 1st, 2018
Last edited by PaulMeredith on Oct 17th, 2017 9:37 am, edited 1 time in total.
Paul Meredith
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CityCan Financial Corp (lic. 10532)

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