Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Dec 17th, 2017 10:49 am
Sr. Member
User avatar
Dec 4, 2007
639 posts
216 upvotes
Toronto
Hello everyone! Just wanted to take this opportunity to thank Kevin (CdnRealEstateGuy) for helping me get a great rate on my new mortgage. My new construction closed just last week and we've been very busy with moving in. This is my first time getting a mortgage outside the big 5 banks and applying completely online (never having met in person) so I was hesitant at first, but Kevin made the process very simple and convenient. He was knowledgeable and very responsive to all my questions, and he really earned my trust. I will without a doubt recommend Kevin to anyone looking for a new mortgage / renewal! Thanks Kevin for all your help!
Sr. Member
May 1, 2017
615 posts
140 upvotes
JugaJatt wrote:
Dec 4th, 2017 6:44 pm
HI All,

i'm looking for mortgage rate hold for 6-8 months, safe to say 1 year.

Current situation
Selling the house and hope to have closing by end of this month

New Home
Supposed to be built by April but it will be delayed, another words past normal rate hold grace period

It would be great if there is lender that can hold the rate for me for 1 year, can someone guide me the right way?

Thanks
Hi there,

You can get a new build rate hold from a few institutions that can be held for an extended amount of time, but the rate will reflect that, and won't be competitive in any way. It's essentially an extended pre-approval, and in most cases, the rate will be reset once you reach 120 days from closing, so the rate you get on it won't really matter.

You should speak to someone to ensure that you'll qualify for the mortgage once you're within 120 days, but otherwise trying to lock something in now won't be very effective.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Sr. Member
May 1, 2017
615 posts
140 upvotes
DealEcstatic wrote:
Dec 4th, 2017 6:33 pm
Hi guys

I'm Just wondering if you guys could comment about the Home Power Plan Mortgage at CIBC?

How does the HELOC work? Can I easily borrow money up to what it was set at the contract date?
For example, the house is worth 1 million, the mortgage amount is 800k. After some time, the payment reduces the mortgage to 790k, it is easy to borrow 10k out. At what rate will it be? Same as the mortgage rate?

What is ratio for these types of HELOC mortgage? 80%/20% or 65%/35%?
What is the difference between "HELOC" mortgage and "a line of credit + a standard mortgage" as these are the 2 options offered? What are the pros and cons?
Would that HPP be a collateral mortgage?

It is the first time that I'm considering going for that type of mortgage.
I just want some feedback before I commit to such a big financial decision.

Thanks
DealEcstatic
Hi there,

Just wanted to chime in to insist that if you take an all-in-one product, make sure up front that the line of credit will be readvanceable (meaning the loc limit increases as you pay down the mortgage balance). There are plenty of all in one products in the market, but not all are readvanceable. Some have static loc limits for which you need to apply for limit increases, which is a pain, and sort of defeats some of the purpose of the products.

All 'all-in-one' combination products are collateral charge mortgages. The benefit to these types of products is that you can remain leveraged up to 80% of the value of the property for extended periods of time should you need to for your borrowing purposes.

Your other option is to get a 1st mortgage, with a heloc in second position. The benefit to this arrangement is that the first mortgage will be a standard charge mortgage, and can remain that way. The products would operate essentially independently, meaning the LOC will not be readvanceable, but it would protect the standard charge nature of the primary mortgage.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
silverferrari wrote:
Dec 5th, 2017 8:53 am
Hello everyone! Just wanted to take this opportunity to thank Kevin (CdnRealEstateGuy) for helping me get a great rate on my new mortgage. My new construction closed just last week and we've been very busy with moving in. This is my first time getting a mortgage outside the big 5 banks and applying completely online (never having met in person) so I was hesitant at first, but Kevin made the process very simple and convenient. He was knowledgeable and very responsive to all my questions, and he really earned my trust. I will without a doubt recommend Kevin to anyone looking for a new mortgage / renewal! Thanks Kevin for all your help!
Thanks for the kind words!
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Jr. Member
Aug 5, 2011
105 posts
2 upvotes
NORTH YORK
Thanks Connor for your input.

I'm a bit confused with the benefit of having a first mortgage as a standard mortgage and a heloc in second position that is not advanceable? Can you please explain?

I heard so many bad things mentioned about collateral mortgages that I'm concerned going that route.
  • I need to reborrow money without refinancing (readvanceable) during the mortgage term. Does that mean, the mortgage or LOC or combination will always be collateral?
  • I read that there is an extra charge at discharging the mortgage (I think $1000?). Does this charge vary with the size of the mortgage?
  • I also read that at the end of the mortgage term, I will be constrained to lenders who offer collateral charge switch products if the existing mortgage is collateral. I'm not sure how bad this is.
Thank you all for your input and feedback.
DealEcstatic
GreenMortgages wrote:
Dec 5th, 2017 10:07 am
Hi there,

Just wanted to chime in to insist that if you take an all-in-one product, make sure up front that the line of credit will be readvanceable (meaning the loc limit increases as you pay down the mortgage balance). There are plenty of all in one products in the market, but not all are readvanceable. Some have static loc limits for which you need to apply for limit increases, which is a pain, and sort of defeats some of the purpose of the products.

All 'all-in-one' combination products are collateral charge mortgages. The benefit to these types of products is that you can remain leveraged up to 80% of the value of the property for extended periods of time should you need to for your borrowing purposes.

Your other option is to get a 1st mortgage, with a heloc in second position. The benefit to this arrangement is that the first mortgage will be a standard charge mortgage, and can remain that way. The products would operate essentially independently, meaning the LOC will not be readvanceable, but it would protect the standard charge nature of the primary mortgage.

Regards,

Connor
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User avatar
Sep 13, 2011
3377 posts
1086 upvotes
Toronto
DealEcstatic wrote:
Dec 5th, 2017 12:31 pm
Thanks Connor for your input.

I'm a bit confused with the benefit of having a first mortgage as a standard mortgage and a heloc in second position that is not advanceable? Can you please explain?

I heard so many bad things mentioned about collateral mortgages that I'm concerned going that route.
  • I need to reborrow money without refinancing (readvanceable) during the mortgage term. Does that mean, the mortgage or LOC or combination will always be collateral?
  • I read that there is an extra charge at discharging the mortgage (I think $1000?). Does this charge vary with the size of the mortgage?
  • I also read that at the end of the mortgage term, I will be constrained to lenders who offer collateral charge switch products if the existing mortgage is collateral. I'm not sure how bad this is.
Thank you all for your input and feedback.
DealEcstatic
A HELOC or mortgage with a HELOC together, or any multiple component mortgage such as a 50/50 fixed and variable, would be a collateral charge, 100% of the time, regardless of lender. Also, any new mortgage with TD, National Bank or Tangerine would also be a collateral charge, regardless of whether you add a second component or not.
There is ALWAYS a discharge fee, regardless of whether the charge is collateral or not. Usually this fee is around $250 - $400 depending on the lender. To switch a collateral charge at the end of the term, you typically need to proceed as a refinance, meaning you would also incur legal and appraisal fees (around $1,100 together). However, some lenders are now offering switches on collateral charge transfers which allow you to get lowest rates (as refinances are often priced higher than switches). Some lenders will cover these fees for you. Either way, options are limited here.

You won't necessarily be limited to lenders who offer collateral switch products. You can always proceed as a refinance and go to any lender you want, however for lowest rates, you'll likely be limited to the lenders to offer collateral charge switches yes. Fortunately, there are some lenders offering collateral charge switches that have some great rates. I predict that we will start seeing more and more lenders offering these products in years to come.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Jr. Member
Aug 5, 2011
105 posts
2 upvotes
NORTH YORK
Hi

I'm just wondering if banks offer readvanceable mortgages that allows you to reborrow the principal paid off at the Mortgage Rate rather than the typical prime rate + 0.5%.

Is prime rate + 0.5% a good HELOC rate?

I prefer payment certainty and was wondering if such mortgage exists.

The other option would be to have a standard mortgage and refinance it mid way (5yrs) to reborrow money (which we will need). Does that sound like an "ok" alternative?

Thanks
DealEcstatic
Deal Addict
Jun 27, 2005
1027 posts
124 upvotes
Oakville, ON
Hi, wanted to get a quick rate check on a property closing in 60 days.

Purchase price over 1 million
20% downpayment
Current approval 5-year variable @ 2.5%

Any rates/products I might be eligible for that is better than 2.5% for 5-year variable or better than 3.09% for 5-year fixed?
Newbie
Nov 10, 2014
19 posts
Just a quick question, if some of my down-payment is coming from outside canada from my parents, do I have to get the funds in my own account 90 days before closing, or do i just need a 90 days statement from my parents account?
Deal Addict
Apr 26, 2004
1885 posts
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GTA
2heaven wrote:
Dec 5th, 2017 10:15 pm
Hi, wanted to get a quick rate check on a property closing in 60 days.

Purchase price over 1 million
20% downpayment
Current approval 5-year variable @ 2.5%

Any rates/products I might be eligible for that is better than 2.5% for 5-year variable or better than 3.09% for 5-year fixed?
You should be able to get lower rates with cash back. Which lender is that?
Mortgage Specialist in the GTA here to answer all your questions.
Newbie
Dec 5, 2017
2 posts
Hi there!

I am in GTA and bought a new construction home 2 years ago for my in-laws (living with us in our house now). The new house is expected to close in Feb. 2018 and we will be looking to sell it as our situation has changed. The new house is $1.1 mil and we (myself and my wife) are on the title. What will be the best mortgage product / rate for our situation? Putting 20% down + have HELOC on the existing house $300K at prime + 0.5. So looking for ~$600K mortgage assuming fully qualified.
Thank you
Deal Addict
User avatar
Sep 13, 2011
3377 posts
1086 upvotes
Toronto
jeme3d wrote:
Dec 6th, 2017 8:40 am
Hi there!

I am in GTA and bought a new construction home 2 years ago for my in-laws (living with us in our house now). The new house is expected to close in Feb. 2018 and we will be looking to sell it as our situation has changed. The new house is $1.1 mil and we (myself and my wife) are on the title. What will be the best mortgage product / rate for our situation? Putting 20% down + have HELOC on the existing house $300K at prime + 0.5. So looking for ~$600K mortgage assuming fully qualified.
Thank you
Why don't you consider selling it on assignment? This is where you sell the home before you take ownership to it. Something to consider speaking to a realtor about. You would also have to check with the builder to ensure they are okay with this as some are not.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Sep 13, 2011
3377 posts
1086 upvotes
Toronto
cadtor wrote:
Dec 5th, 2017 11:01 pm
Just a quick question, if some of my down-payment is coming from outside canada from my parents, do I have to get the funds in my own account 90 days before closing, or do i just need a 90 days statement from my parents account?
You'll most likely just need to show a Canadian bank statement showing the deposit, a gift form completed by your parents, and a copy of the wire transfer. The money does not need to be in your account for 90 days, and it's unlikely your parents would have to show their bank statements also.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Sr. Member
May 1, 2017
615 posts
140 upvotes
jeme3d wrote:
Dec 6th, 2017 8:40 am
Hi there!

I am in GTA and bought a new construction home 2 years ago for my in-laws (living with us in our house now). The new house is expected to close in Feb. 2018 and we will be looking to sell it as our situation has changed. The new house is $1.1 mil and we (myself and my wife) are on the title. What will be the best mortgage product / rate for our situation? Putting 20% down + have HELOC on the existing house $300K at prime + 0.5. So looking for ~$600K mortgage assuming fully qualified.
Thank you
Hi there,

I agree with Paul here, you should definitely consider selling it on assignment so you don't have to deal with mortgage financing for a property you're going to sell right away. If you plan to hang on to it for a while, or rent it, then you should then consider mortgage financing. For a secondary home (home for in-laws), you can get a 5 year fixed rate around 3.14%.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Sr. Member
May 1, 2017
615 posts
140 upvotes
cadtor wrote:
Dec 5th, 2017 11:01 pm
Just a quick question, if some of my down-payment is coming from outside canada from my parents, do I have to get the funds in my own account 90 days before closing, or do i just need a 90 days statement from my parents account?
Hi there,

It really depends on the lender, but generally speaking you won't need it in your account for 90 days. In some cases it helps if the funds are in your account for 90 days, like if the money were coming from a country with sanctions, or a country known for money laundering - it would help mitigate some headaches associated with tracking the funds. If it's simply a gift from parents from country that isn't on a 'black-list' most of the time you can just produce a gift letter, proof of deposit into your account, and in some cases confirmation of the wire transfer showing the funds transferred from bank to bank.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179

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