Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Dec 17th, 2017 10:49 am
Deal Addict
Feb 2, 2014
4224 posts
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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
If you do want to assign it, make sure you ask the developer if you are allowed to, if you can list on MLS and what the assignment fee is.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Sr. Member
May 1, 2017
615 posts
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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?
Hello,

With a purchase price over $1m, 2.5% variable is a fairly aggressive rate, and so is 3.09% fixed.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Nov 10, 2014
19 posts
PaulMeredith wrote:
Dec 6th, 2017 10:00 am
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.
GreenMortgages wrote:
Dec 6th, 2017 10:10 am
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
Thanks Paul.
Thanks Connor.
Newbie
Dec 5, 2017
2 posts
Assignment can be potentially arranged for $40K with the builder (we don't have this option in purchase agreement). If we cannot find a suitable buyer for the assignment option before the closing date what mortgage product would work the best for us? i.e. to sell within 3-6 months hopefully
Fixed / Variable / LOC, considering penalties, etc.?

Thanks.
Sr. Member
May 1, 2017
615 posts
140 upvotes
jeme3d wrote:
Dec 6th, 2017 10:28 am
Assignment can be potentially arranged for $40K with the builder (we don't have this option in purchase agreement). If we cannot find a suitable buyer for the assignment option before the closing date what mortgage product would work the best for us? i.e. to sell within 3-6 months hopefully
Fixed / Variable / LOC, considering penalties, etc.?

Thanks.
You would want to look into a variable rate closed mortgage or a open mortgage (or LOC) to avoid early discharge penalties. If you plan to sell within 3 months I suggest you look into open mortgage and fully open loc options.

Regards,

Connor
Last edited by GreenMortgages on Dec 6th, 2017 10:44 am, edited 1 time in total.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
jeme3d wrote:
Dec 6th, 2017 10:28 am
Assignment can be potentially arranged for $40K with the builder (we don't have this option in purchase agreement). If we cannot find a suitable buyer for the assignment option before the closing date what mortgage product would work the best for us? i.e. to sell within 3-6 months hopefully
Fixed / Variable / LOC, considering penalties, etc.?

Thanks.
$40k? This does mean they will find the buyer? Are you able to find your own buyer and assign it for cheaper?

Closed vs open. It all comes down to how fast you're going to sell. You can get a closed mortgage for as low as Prime-1.25%. An open mortgage rate is Prime +.50%...so there is a 1.75% spread. If you sell right away, then go open. If you're going to hold on to if to a bit, then you have to do a breakeven calc. to see which is better based on the holding period.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Mar 28, 2007
90 posts
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My wife and I are looking to purchase a home. Both of us currently have our names on 2 seperate mortgages. I am on the mortgage for my parents house and she is on the mortgage for her parents house. At the time it was probably beneficial to both our parents but we are now realizing it was probably not in our best interest.

In getting our own house and mortgage how will the current mortgages be held against us? Will the entire amount of the current mortgages be considered when qualifying or only the amount of percentace we own in each house.

What about principle residence vs rental how would the property be classified.
Sr. Member
May 1, 2017
615 posts
140 upvotes
phantom_911 wrote:
Dec 6th, 2017 11:26 am
My wife and I are looking to purchase a home. Both of us currently have our names on 2 seperate mortgages. I am on the mortgage for my parents house and she is on the mortgage for her parents house. At the time it was probably beneficial to both our parents but we are now realizing it was probably not in our best interest.

In getting our own house and mortgage how will the current mortgages be held against us? Will the entire amount of the current mortgages be considered when qualifying or only the amount of percentace we own in each house.

What about principle residence vs rental how would the property be classified.
Hi there,

If your names are on the mortgages, you will have to be able to carry all three (your parents houses and the subject property) properties/mortgages for qualifying, unfortunately. Your new mortgage would be classified as an owner-occupied mortgage. There are some things you could do to lessen the impact of your parents homes on your qualifying, but they would still factor in heavily.

If possible, it would likely be in your best interest have your parents restructure their mortgages to take yourselves off to increase your borrowing capacity. Of course this is only if you can't qualify for what you want to buy factoring in all of the properties/mortgages.

Regards,

Connor
Last edited by GreenMortgages on Dec 6th, 2017 11:31 am, edited 1 time in total.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
phantom_911 wrote:
Dec 6th, 2017 11:26 am
My wife and I are looking to purchase a home. Both of us currently have our names on 2 seperate mortgages. I am on the mortgage for my parents house and she is on the mortgage for her parents house. At the time it was probably beneficial to both our parents but we are now realizing it was probably not in our best interest.

In getting our own house and mortgage how will the current mortgages be held against us? Will the entire amount of the current mortgages be considered when qualifying or only the amount of percentace we own in each house.

What about principle residence vs rental how would the property be classified.
Talk to a broker and get pre-approved. This will let you know what (if any) you can afford to buy given you are carrying 2 other properties.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Mar 28, 2007
90 posts
42 upvotes
GreenMortgages wrote:
Dec 6th, 2017 11:31 am

If possible, it would likely be in your best interest have your parents restructure their mortgages to take yourselves off to increase your borrowing capacity. Of course this is only if you can't qualify for what you want to buy factoring in all of the properties/mortgages.
We'd be willing to get our names off the existing mortgages but as far as I can tell there will be large penalties for doing so. There's also the situation where our parents may not qaulify if our incomes are remvoved.
Sr. Member
May 1, 2017
615 posts
140 upvotes
phantom_911 wrote:
Dec 6th, 2017 11:49 am
We'd be willing to get our names off the existing mortgages but as far as I can tell there will be large penalties for doing so. There's also the situation where our parents may not qaulify if our incomes are remvoved.
Hi,

Yes, unfortunately it would take a refinance of sorts to take your names of the mortgage, which could be a bit costly. Tough situation, you'd have to speak with a broker to see if your parents would qualify to carry their homes on their own, and to see if you'll qualify for a property if you had to continue carrying the parents mortgages as well as your own.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
User avatar
Mar 23, 2003
2974 posts
287 upvotes
Hamilton
phantom_911 wrote:
Dec 6th, 2017 11:49 am
We'd be willing to get our names off the existing mortgages but as far as I can tell there will be large penalties for doing so. There's also the situation where our parents may not qaulify if our incomes are remvoved.
Back in 2015 I removed my ex off a mortgage.
Scotiabank worked with me and kept it all the same and literally just removed her name.
All I had to pay was the legal title change through a lawyer. Ran me about 600 bucks.
So I did it in under 1k.
Talk to your bank.
Maybe see if its enough to just go off one mortgage to cover your new purchase availability of funds.
Give the bank some incentive. Offer to open a heloc with a property (prob charge you $300 for that) if they can do what you ask.
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
phantom_911 wrote:
Dec 6th, 2017 11:49 am
We'd be willing to get our names off the existing mortgages but as far as I can tell there will be large penalties for doing so. There's also the situation where our parents may not qaulify if our incomes are remvoved.
Most lenders will NOT charge you penalties to remove a borrower on a mortgage you have with them.

As @sidshock said, you just need to pay legal fees. All in, you should be able to get it done below $1,000.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4224 posts
856 upvotes
Toronto
GreenMortgages wrote:
Dec 6th, 2017 11:59 am
Hi,

Yes, unfortunately it would take a refinance of sorts to take your names of the mortgage, which could be a bit costly. Tough situation, you'd have to speak with a broker to see if your parents would qualify to carry their homes on their own, and to see if you'll qualify for a property if you had to continue carrying the parents mortgages as well as your own.

Regards,

Connor
NOT a refinance to take a borrower off a mortgage when the mortgage is already with a lender. Lenders usually charge nothing for this. But yes, they need to pay legal fees to remove from title on the property.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Member
Feb 25, 2009
298 posts
7 upvotes
Mirabel
Renewing my current 2.79% APR 5-year fixed term 250K mortgage in about 120 days.
National Bank (curent mortgage FI) called me up and offered to reserve and commit to 2.99% 5y term.
CIBC (current employer) offers 2.94% 5y rate, which is not worth moving for, especially if notary fees are to be added.
Im based in Mirabel, Quebec.

Any better deals out there than 2.99 APR with brick and mortar banks? Not sure I want to switch to e-lender ...

My credit rating is above average with no debt other other than mortgage, and decent collateral (RSP + TFSA emergency fund to cover living expense for 1 year).
Last edited by dcaron9999 on Dec 6th, 2017 2:22 pm, edited 1 time in total.

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