Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Oct 22nd, 2017 12:27 pm
Newbie
Feb 26, 2015
22 posts
Toronto, ON
What is the rate hold policy for mortgage renewals? Shopping around for a new mortgage I believe is 120-180 days. But if my current lender has a certain rate to extend to me leading up to my renewal, can they hold it for a period of time? Any one have any experience with RBC on this? And if so, is it in writing somewhere with RBC?

I have looked and are unable to find anything specific to renewal holds.

Thank you
Deal Addict
Sep 13, 2011
3300 posts
1061 upvotes
Toronto
complainfromme wrote:
Oct 12th, 2017 6:54 pm
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 !!!
The lowest rate for a mortgage with 20% down is 2.94%. Lower than this if it's insured. If your mortgage is insured than there may be lower rate options available for you after 5 years.
When you have the option of putting 20% down, ALWAYS put down the 20%. It never makes sense to pay the CMHC fee to get a slightly lower rate. The lowest rate mortgage is not always the least expensive.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Sep 13, 2011
3300 posts
1061 upvotes
Toronto
manhal wrote:
Oct 12th, 2017 7:44 pm
which bank provides 3 year fixed at 2.54% ?

thanks
This is available through any regular posting broker on this board. It's from a very large institution, but you won't be anywhere close to this through a bank.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Sep 13, 2011
3300 posts
1061 upvotes
Toronto
ROYinTO wrote:
Oct 12th, 2017 11:41 pm
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?
It's a competitive rate and since you have less than two years to pay off, you really have no other options anyway. Your lender is being competitive so I would definitely go for it.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
Sep 13, 2011
3300 posts
1061 upvotes
Toronto
princ3ali wrote:
Oct 13th, 2017 8:04 am
What is the rate hold policy for mortgage renewals? Shopping around for a new mortgage I believe is 120-180 days. But if my current lender has a certain rate to extend to me leading up to my renewal, can they hold it for a period of time? Any one have any experience with RBC on this? And if so, is it in writing somewhere with RBC?

I have looked and are unable to find anything specific to renewal holds.

Thank you
Maximum rate hold is 90 days with most lenders. You could always contact RBC to find out if it's possible to get a quote for early renewal as banks will sometimes offer this. As of right now, fixed mortgage rates are stable and there is no upward pressure on them.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Jr. Member
Jun 23, 2009
125 posts
22 upvotes
Toronto
PaulMeredith wrote:
Oct 13th, 2017 10:17 am
The lowest rate for a mortgage with 20% down is 2.94%. Lower than this if it's insured. If your mortgage is insured than there may be lower rate options available for you after 5 years.
When you have the option of putting 20% down, ALWAYS put down the 20%. It never makes sense to pay the CMHC fee to get a slightly lower rate. The lowest rate mortgage is not always the least expensive.
Thanks Paul !
May I ask where I can find 2.94% for 5yrs fixed uninsured? You can pm me if you want. thanks
Deal Addict
Sep 13, 2011
3300 posts
1061 upvotes
Toronto
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
PM on the way!
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Member
May 1, 2017
470 posts
109 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
Sep 13, 2011
3300 posts
1061 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
278 posts
14 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 Addict
Feb 2, 2014
3963 posts
768 upvotes
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
278 posts
14 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.”
Member
May 1, 2017
470 posts
109 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. :)

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