Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Sep 25th, 2018 11:15 am
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Dec 1, 2015
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As already mentioned (I just want to add some details) it often makes sense to have the Heloc in 2nd position to keep some flexibility to move the mortgage around at the time of renewal. This is particularly interesting given the new mortgage rules (since last Oct year) that made all these transfers be subject to higher rates, if the client is trying to move a collateral charge. So this is not only a matter of potentially paying fees to move a collateral charge around, but also the fact that in most cases you end up with higher interest costs. If you dont convert the existing mortgage into a collateral charge you still get access to the equity, while preserving the ability to shop around for your main mortgage. As the balance goes further down over time, this is more and more important as a lower balance will reduce your ability to move a collateral charge around since the cost (legal fees, etc) is essentially the same, but with a lower balance the weight those costs will have will negatively impact your choices.

The "trouble" with that scenario is that banks are terrible in providing adequate information regarding a Heloc in 2nd position. You may be lucky and get the right person at your bank, but often the employees at some of the branches simply have no idea how their own products work. I currently have a Heloc with CIBC behind my mortgage with a monoline lender, paid zero dollars in fees or appraisal.. and still got P+.50%. But had to talk to several people from different branches until I found the right person. Someone else, at the same branch where I eventually got the deal done, even told me "CIBC does not offer Helocs..." The amount of misinformation is just absurd, but it can be done. Just requires some leg work.
bestbuy00 wrote:
Oct 24th, 2017 12:43 pm
I have a conventional mortgage now. I need to access HELOC for cashflow. My two options are discharge the conventional mortgage and put a collateral change over the mortgage and HELOC together OR leave the conventional mortgage alone and put a second charge that's collateral for the HELOC.

What are the advantages and disadvantages of each option? Are there otber options for cheaper access to capital that im missing? (Not going to refinance the moetgage) Thanks.
Andre Oliveira - Mortgage Agent
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Hi RFD,

Details as follows:
Purchase price: $361,000 with 20% down located in BC
Looking for 5 year fixed rate, 30 year amortization and a non-collateral charge mortgage. What kind of rate can I expect? Thanks in advance!
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CinnamonX wrote:
Oct 24th, 2017 2:53 pm
Hi RFD,

Details as follows:
Purchase price: $361,000 with 20% down located in BC
Looking for 5 year fixed rate, 30 year amortization and a non-collateral charge mortgage. What kind of rate can I expect? Thanks in advance!
Hi there,

For a 30 year amortization, the best rate you can expect to receive is 3.14% for a 5 year fixed mortgage! It's with a national lender with excellent terms and conditions. 30 year amortizations now have a small rate premium attached, as they are no longer considered insurable by mortgage default insurers. The best 5 year rate in your situation for a 25 year amortization would be around 2.94%-2.99%.

Regards,

Connor
_________________________________
Connor Green
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Concierge Mortgage Group
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CinnamonX wrote:
Oct 24th, 2017 2:53 pm
Hi RFD,

Details as follows:
Purchase price: $361,000 with 20% down located in BC
Looking for 5 year fixed rate, 30 year amortization and a non-collateral charge mortgage. What kind of rate can I expect? Thanks in advance!
Try to qualify for the 25-year am...interest rate will be 20bps cheaper.
Kevin Somnauth, CFA
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canoek wrote:
Oct 23rd, 2017 6:55 pm
I am looking to buy a property. Spouse earns well, I earn really well, but I am on contract and haven't taken out money (stupid, I know) from the company account. Now I wanna buy, and banks are like WTF?? I looked at places like Hatch Online, Canwise and True North, someone told me they can probably arrange a mortgage and are more flexible than banks.

My question is, their rates are really low, so are they legit, or am I missing something?
You can still get a mortgage and a great rate without declaring the income from your business. Very doable.
Kevin Somnauth, CFA
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The Bank of Canada announced this morning that they will be maintaining their overnight right, which is what prime rate is based off of. This means that prime rate will remain unchanged. It has been widely predicted that there will be one more rate increase before the end of the year, which could have come as soon as today. Fortunately, that wasn't the case.

Back in 2010, we saw three rate hikes in a row, which is not something that will be repeating in 2017. These three rate hikes were the last increases we would see until the middle of 2017... almost 7 full years later. As mentioned, it's still expected that there could be another increase, however we'll have to wait and see what happens.

The prime rate remains at 3.20%

These interest rate announcements typically only affect variable rate mortgages, however they can have an indirect influence on fixed rates as well. Fixed rates are primarily determined by bond yields, which a rate announcement can have an impact on, which would then in turn have an impact on fixed rates. The bond yields have been fairly stable since mid-September. This mornings announcement could very likely start pushing them downwards, which could lead to lower fixed rates.

You can follow the bond yields here: https://www.investing.com/rates-bonds/c ... bond-yield

Discounts on variable rate mortgages have now increased to as low as prime -1.15% (2.05%). This is the largest discount we have seen on variable rates mortgages is over 10 years. As with most of the lower rates these days, this is for high ratio purchases or switches only. Meaning, purchases with LESS than 20% down payment or switches where your original purchase was made with less than 20% down.

You can read the full announcement here:
https://www.bankofcanada.ca/2017/10/fad ... 017-10-25/

The next interest rate announcement will be on December 6th, which will be the last announcement of the year.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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bestbuy00 wrote:
Oct 24th, 2017 12:43 pm
I have a conventional mortgage now. I need to access HELOC for cashflow. My two options are discharge the conventional mortgage and put a collateral change over the mortgage and HELOC together OR leave the conventional mortgage alone and put a second charge that's collateral for the HELOC.

What are the advantages and disadvantages of each option? Are there otber options for cheaper access to capital that im missing? (Not going to refinance the moetgage) Thanks.
Szharkov wrote:
Oct 24th, 2017 1:45 pm
I was in the same situation and went with the 2nd option. I had a second charge placed and got P+0.5 HELOC from PCF. This way when it is time to renew my mortgage it is still a conventional charge and not collateral. No need to pay legal fees if I want to switch financial institutions.
Do you pay a monthly fee for your heloc at PCF?
Mortgage Specialist in the GTA here to answer all your questions.
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bestbuy00 wrote:
Oct 24th, 2017 12:43 pm
I have a conventional mortgage now. I need to access HELOC for cashflow. My two options are discharge the conventional mortgage and put a collateral change over the mortgage and HELOC together OR leave the conventional mortgage alone and put a second charge that's collateral for the HELOC.

What are the advantages and disadvantages of each option? Are there otber options for cheaper access to capital that im missing? (Not going to refinance the moetgage) Thanks.
There are a couple things to consider.

Are you looking to maximize how much you can borrow?

Do you want your heloc available funds to increase as you pay down your mortgage?

Is your house worth over 1 million?
Mortgage Specialist in the GTA here to answer all your questions.
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Hi Group. Excellent thread happening here. I am going to be purchasing a home in approx. 3-6 months so I thought I would list my mortgage criteria here and get some feedback from the group please. I see a 2.05% / 5yr variable with Canwise but only 15/15. Credit score is well north of 800. I am located on Van Isle BC TIA!

* Purchase price will be $7-800K
* DP will be $625k
* funds required $175K max
* looking for a 20/20 lump and bump
* 120 day hold
* 5yr variable
* prefer "conventional" mortgage
* no heloc or any other " add-on" stuff.......mortgage only
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katwittfan wrote:
Oct 25th, 2017 2:58 pm
Hi Group. Excellent thread happening here. I am going to be purchasing a home in approx. 3-6 months so I thought I would list my mortgage criteria here and get some feedback from the group please. I see a 2.05% / 5yr variable with Canwise but only 15/15. Credit score is well north of 800. I am located on Van Isle BC TIA!

* Purchase price will be $7-800K
* DP will be $625k
* funds required $175K max
* looking for a 20/20 lump and bump
* 120 day hold
* 5yr variable
* prefer "conventional" mortgage
* no heloc or any other " add-on" stuff.......mortgage only
The lowest rates you see advertised are for high ratio mortgages only, that is mortgages with LESS than 20% down payment. It looks like you're going to have a fairly small mortgage as well, which can also limit you. The lowest rate with a minimum 35% down payment would be prime -1.05% (2.15%) with full 20% prepayment privileges. Maximum rate hold is 90 days.

You mention that you are 3-6 months away from purchasing. Lowest rates cannot be locked in until you have an accepted offer in hand. In other words, they can't be locked in at the pre-approval stage.

Regarding collateral or standard charge mortgage, almost all mortgages are a standard charge. There are really only two exceptions here:
1. You have attached a second component to your mortgage such as a HELOC. Also, any mortgage that is a combination of fixed and variable, or with part of it as a 3 year fixed and part of it as a 5 year fixed (for example). These would all be collateral mortgages, regardless of the lender.
2. Any new mortgage with National Bank, TD or Tangerine would get registered as a collateral charge, regardless of whether you add a second component to it or not.

There are not very many exceptions to the situations described above.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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PaulMeredith wrote:
Oct 25th, 2017 3:06 pm
The lowest rates you see advertised are for high ratio mortgages only, that is mortgages with LESS than 20% down payment. It looks like you're going to have a fairly small mortgage as well, which can also limit you. The lowest rate with a minimum 35% down payment would be prime -1.05% (2.15%) with full 20% prepayment privileges. Maximum rate hold is 90 days.

You mention that you are 3-6 months away from purchasing. Lowest rates cannot be locked in until you have an accepted offer in hand. In other words, they can't be locked in at the pre-approval stage.

Regarding collateral or standard charge mortgage, almost all mortgages are a standard charge. There are really only two exceptions here:
1. You have attached a second component to your mortgage such as a HELOC. Also, any mortgage that is a combination of fixed and variable, or with part of it as a 3 year fixed and part of it as a 5 year fixed (for example). These would all be collateral mortgages, regardless of the lender.
2. Any new mortgage with National Bank, TD or Tangerine would get registered as a collateral charge, regardless of whether you add a second component to it or not.

There are not very many exceptions to the situations described above.
All good stuff Paul. Thx for advice.
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Mississauga
Geese_Howard wrote:
Oct 25th, 2017 1:28 pm
Do you pay a monthly fee for your heloc at PCF?
No monthly fees, but there was a $150 setup fee.
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A question for mortgage specialists here about bulk-insuring (by bank) for mortgages with LTV less than 80% (which are NOT insured by default).

did-we-just-hit-bottom-toronto-re-corre ... #p28379339
SOme papers saying about 50% are NOT insured (https://www.canadianmortgagetrends.com/ ... e-morsels/, http://ws1.osfi-bsif.gc.ca/WebApps/Temp ... lData.aspx)
however adding 650bn CMHC and 360bn by Genworth already makes ~1trn as insured??

How then this 50% of insured mortgages number appeared?
Is there any reports from bank showing the breakdown of mortgages by insurance type??
Make the Trudeau drama teacher again!
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katwittfan wrote:
Oct 25th, 2017 2:58 pm
Hi Group. Excellent thread happening here. I am going to be purchasing a home in approx. 3-6 months so I thought I would list my mortgage criteria here and get some feedback from the group please. I see a 2.05% / 5yr variable with Canwise but only 15/15. Credit score is well north of 800. I am located on Van Isle BC TIA!

* Purchase price will be $7-800K
* DP will be $625k
* funds required $175K max
* looking for a 20/20 lump and bump
* 120 day hold
* 5yr variable
* prefer "conventional" mortgage
* no heloc or any other " add-on" stuff.......mortgage only
Get pre-approved to ensure you can get the mortgage (although is sounds like a small).

After you have purchased a property, then you can start shopping around for some competitive rates. Of course, feel free to check this thread as well.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Jan 14, 2017
18 posts
Hi there, i am self employed and looking for mortgage, what are my options ?

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