Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Oct 17th, 2018 11:00 pm
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SalinaH313741 wrote:
Dec 6th, 2017 5:58 pm
Purchased house closing date Jan 31st, price $1115000


Downpayment came from old house if sold ( condition offer now) can be flexiable ,pay up to 24%

Bmo approved mortgage rate is 3.29% 5yrs fixed.

Any better rate I can get? Thanks. Pls feel free to pm me.
Pm sent!

Since you’re house value is over 1 million there are only a few lenders than can give you really low rates.

You can get 3.04% with 1000-1500$ cash back.
Mortgage Specialist in the GTA here to answer all your questions.
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Sep 13, 2011
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tantype wrote:
Dec 7th, 2017 10:13 am
I'm looking for rate options. I'm leaning toward closed variable but am open to fixed.

House value is $425,000
Mortgage balance is $305,000
Mortgage term ends Feb 1, 2018.
Not looking for HELOC or anything else beyond regular mortgage.

I'm also looking for a 15 year amortization, I'm not sure if that impacts rates at all.

I'm currently at 3.09% fixed with TD.

Thanks!
When did you get your mortgage with TD? If it was after October 18th, 2010, then you would have a collateral mortgage. Since that date, TD has been registering ALL their new mortgages as collateral charges. Normally at the end of your term, you can submit to another lender at no cost to you. This isn’t as easy with a collateral mortgage and changing lenders at the end of the term will sometimes require a refinance (as opposed to a simple switch). To change lenders at the end of your term, you would need to pay legal fees (approximately $800), appraisal (approximately $300) as well as discharge fee (also around $300). These are all 3rd party costs.

On top of that, refinances often come with higher rates than purchases.

Fortunately, there are now some lenders who are offering collateral charge switches, which will protect you from paying higher refinance rates, however it may not get you out of the legal fee. This also limits your options, but fortunately there are some low rate lenders that are offering this.

In order to quote you, can you confirm when you got this mortgage with TD, how long ago you purchased your home (if different), and what was the amount of your original down payment. With answers to those questions, we'll be able to provide you with some quotes.

For future reference, if you want to avoid a collateral charge, then avoid lenders such as TD, Tangerine and National Bank. All three lenders register all new mortgages as a collateral charge.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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tantype wrote:
Dec 7th, 2017 10:13 am
I'm looking for rate options. I'm leaning toward closed variable but am open to fixed.

House value is $425,000
Mortgage balance is $305,000
Mortgage term ends Feb 1, 2018.
Not looking for HELOC or anything else beyond regular mortgage.

I'm also looking for a 15 year amortization, I'm not sure if that impacts rates at all.

I'm currently at 3.09% fixed with TD.

Thanks!
I would also call TD and confirm if you have a collateral charge mortgage (as Mr.Meredith was alluding to).
Kevin Somnauth, CFA
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CdnRealEstateGuy wrote:
Dec 7th, 2017 11:32 am
I would also call TD and confirm if you have a collateral charge mortgage (as Mr.Meredith was alluding to).
This doesn't always get the client the right answer unfortunately. Too many times, a client will contact their bank to find out if their mortgage is a collateral charge and they are told that they don't... when in fact they do. One of my clients was speaking with someone at a TD branch who told them that TD no longer registers their mortgages as collateral. Totally false information. It's things like this that led up to this article: http://www.cbc.ca/…/td-bank-employees-a ... eaking-law

If someone got their mortgage with TD after October 18th, 2010, then they would have a collateral charge. There is really only one exception to this. That would be if the borrower switched their non-collateral mortgage to TD from another lender. Hence the questions I asked the poster. If the mortgage was not switched in from another lender, then it would be a collateral charge... regardless of what the bank might tell them.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Dec 6, 2017
2 posts
PaulMeredith wrote:
Dec 7th, 2017 11:28 am


In order to quote you, can you confirm when you got this mortgage with TD, how long ago you purchased your home (if different), and what was the amount of your original down payment. With answers to those questions, we'll be able to provide you with some quotes.

The mortgage is from 2013. As Paul pointed out, I've had experience with this line of questioning at TD and in my experience no one in the branch even knows what a collateral charge mortgage is.

TD is currently offering 2.7% on a 5 year closed variable for renewal. I'm willing to take the $1,000+ refinance hit to switch to another lender if the rate differential is great enough to offset the costs over the term of the mortgage.
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tantype wrote:
Dec 7th, 2017 1:05 pm
The mortgage is from 2013. As Paul pointed out, I've had experience with this line of questioning at TD and in my experience no one in the branch even knows what a collateral charge mortgage is.
They know quite well.. they just pretend they dont know, or intentionally provide evasive answers. When a client "confronts" those banks with collateral charges (like TD, National Bank, Tangerine) asking if they have one, that means the client just found out elsewhere and will now be upset. So, the bank employee will avoid a direct answer, or provide a vague answer to avoid the situation.

Every week, someone from RFD contacts me (and other brokers) with a "Hi. I have a conventional mortgage with TD and want to switch lenders... my mortgage is not a collateral.. it is a conventional..." And 11 out of 10 times the deal goes nowhere because no matter what TD tells them, they have a collateral charge and eventually find out about it. Sometimes the next day, other times about 1 week from closing.
Andre Oliveira - Mortgage Agent
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PaulMeredith wrote:
Dec 7th, 2017 11:42 am
This doesn't always get the client the right answer unfortunately. Too many times, a client will contact their bank to find out if their mortgage is a collateral charge and they are told that they don't... when in fact they do. One of my clients was speaking with someone at a TD branch who told them that TD no longer registers their mortgages as collateral. Totally false information. It's things like this that led up to this article: http://www.cbc.ca/…/td-bank-employees-a ... eaking-law

If someone got their mortgage with TD after October 18th, 2010, then they would have a collateral charge. There is really only one exception to this. That would be if the borrower switched their non-collateral mortgage to TD from another lender. Hence the questions I asked the poster. If the mortgage was not switched in from another lender, then it would be a collateral charge... regardless of what the bank might tell them.
Exactly about the latter. Unless it's a purchase, I always ask the client to check with TD. Just because the borrower went to TD after the change, doesn't mean it's a collateral charge.

As for the first part, crazy eh? I have no idea how customer service is bad. It's not even "every now and then" you get wrong answers...it's like 50% of the time.
Kevin Somnauth, CFA
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All else equal....

AVOID National Bank, TD and Tangerine ladies and gentlemen.
Kevin Somnauth, CFA
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are there better 5 year fixed closed rates than 3.34% being offered from TD/Scotia?
"Shorty wanna be a thug" -2pac
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Depending on several considerations, 5y rates can be MUCH lower. Purchase? Refinance? Switch? Property value? Mortgage amount? Rental or owner occupied? Closing date?
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
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SalinaH313741 wrote:
Dec 6th, 2017 5:58 pm
Purchased house closing date Jan 31st, price $1115000


Downpayment came from old house if sold ( condition offer now) can be flexiable ,pay up to 24%

Bmo approved mortgage rate is 3.29% 5yrs fixed.

Any better rate I can get? Thanks. Pls feel free to pm me.
And just another think if you’re interested in a heloc you can get a 5 year fixed rate for 2.9-2.99% and 1000-1500$ cash back!
Mortgage Specialist in the GTA here to answer all your questions.
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2Sedins1Cup wrote:
Dec 7th, 2017 1:43 pm
are there better 5 year fixed closed rates than 3.34% being offered from TD/Scotia?
Starts at 2.69% 5-year fixed and 1.95% 5-year variable...so yes, much better rates available!
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
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Mar 3, 2012
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Montreal, QC
valuemortgage wrote:
Dec 7th, 2017 1:22 pm
They know quite well.. they just pretend they dont know, or intentionally provide evasive answers. When a client "confronts" those banks with collateral charges (like TD, National Bank, Tangerine) asking if they have one, that means the client just found out elsewhere and will now be upset. So, the bank employee will avoid a direct answer, or provide a vague answer to avoid the situation.

Every week, someone from RFD contacts me (and other brokers) with a "Hi. I have a conventional mortgage with TD and want to switch lenders... my mortgage is not a collateral.. it is a conventional..." And 11 out of 10 times the deal goes nowhere because no matter what TD tells them, they have a collateral charge and eventually find out about it. Sometimes the next day, other times about 1 week from closing.
How do you know the 'final' word ? Only when the new lender what to really do the switch ?
It's little bit weird it doesn't exist a "normal" et way to know exactly what kind of mortgage we have..
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Actually, there is. Your lawyer who closed the mortgage at the time of purchase knows what type of charge was used. But regardless, if you have a TD, Tangerine and National Bank mortgage - it is a collateral charge (rare exceptions exist to some very specific cases, mostly very old mortgages).
papycgf wrote:
Dec 7th, 2017 6:31 pm
How do you know the 'final' word ? Only when the new lender what to really do the switch ?
It's little bit weird it doesn't exist a "normal" et way to know exactly what kind of mortgage we have..
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence

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