Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Jan 17th, 2018 2:12 am
Deal Addict
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Dec 1, 2015
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Etobicoke, ON
In many cases, we offer lower rates than those a bank can offer. But not only that, often the products available through brokers have huge advantages, in terms of flexibility and overall terms and conditions. For example, banks have a very punitive formula to calculate penalties, when you break the mortgage. I have seen cases where clients had to pay $30k in penalties to break a fixed rate mortgage, because banks intentionally use inflated posted rates in their calculations. Monoline lenders, on the other hand, use discounted rates, so the result of the same type of calculation tends to be considerably lower than what a bank would charge.

In your case, with the building about to register, you can lock a rate now for up to 90 days. Has the builder indicated a firm date they can complete the registration?
Andre Oliveira - Mortgage Agent
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BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
Apr 28, 2015
26 posts
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East York, ON
PaulMeredith wrote:
Jan 10th, 2018 5:21 am
You're still pretty early to be shopping. At 6 months to maturity, there would be nothing available for you as maximum rate hold for a switch is 90 days. This is when you would want to start your shopping.

5 year fixed rates have been on an upward trend for at least the past 6 months. 3.09% for a 5 year fixed is actually an excellent rate from a big bank these days. If you were within 90 days right now, there would be rates as low as 2.89%. If the upward trend continues, they could very well be higher than the 3.09% your being offered now. The question is, how comfortable do you feel waiting to find out?
What options does someone six-months out have other than to wait til the 90-day period?
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Sep 13, 2011
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jeff316 wrote:
Jan 10th, 2018 1:44 pm
What options does someone six-months out have other than to wait til the 90-day period?
You could renew with your current lender or do the switch to close 90 days from now and pay the penalty to your current lender to break your mortgage early.

Those are basically the only options.
Paul Meredith
Mortgage Broker
CityCan Financial Corp (lic. 10532)
Newbie
Dec 15, 2006
5 posts
My mortgage is coming up for renewal March 1. I'm in the process of holding a rate from First National at 2.99% for a five-year fixed term. My current mortgage is with TD. I was wondering if it's worth negotiating with my current bank to see if they can match the First National rate? Or would I just be wasting my time? The early renewal offer I received from TD for a five-year fixed was 3.24%, but this was several months ago. What would be the lowest they could feasibly offer if I go to negotiate with them?
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Feb 2, 2014
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medlerman wrote:
Jan 10th, 2018 2:22 pm
My mortgage is coming up for renewal March 1. I'm in the process of holding a rate from First National at 2.99% for a five-year fixed term. My current mortgage is with TD. I was wondering if it's worth negotiating with my current bank to see if they can match the First National rate? Or would I just be wasting my time? The early renewal offer I received from TD for a five-year fixed was 3.24%, but this was several months ago. What would be the lowest they could feasibly offer if I go to negotiate with them?
You're just wasting your time. Big Banks won't go below 3% right now on a 5-year fixed mortgage.

Rates start at 2.79% 5-year fixed if the mortgage insured and 2.89% 5-year fixed if not (not via big bank).
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
May 3, 2013
14 posts
Ontario
So if the current value of your home upon renewal is greater than 1M, the mortgage is not insurable? Even if the equity you have in the home is higher than 35%?
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Dec 1, 2015
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Correct. The moment you cross the 1 million mark, regardless how much equity you have the mortgage is uninsurable. You can get a mortgage, but because most monoline lenders only offer the best rates for insured or insurable deals, you dont get the best rates.
slahaz wrote:
Jan 10th, 2018 4:48 pm
So if the current value of your home upon renewal is greater than 1M, the mortgage is not insurable? Even if the equity you have in the home is higher than 35%?
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
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BTW = I'm the former "Laptop-tech" member here. Just changed the username.
Newbie
May 3, 2013
14 posts
Ontario
valuemortgage wrote:
Jan 10th, 2018 5:15 pm
Correct. The moment you cross the 1 million mark, regardless how much equity you have the mortgage is uninsurable. You can get a mortgage, but because most monoline lenders only offer the best rates for insured or insurable deals, you dont get the best rates.
I don't get it, it makes no sense to me. The more equity the lower the risk. How does the house value affect the risk?
And why does it matter if the house is valued today at 999k or 1.01M. Who determines the value?? Why wouldn't a 1.01M house with 90% equity be insured but a 999k house with 20% equity be insured??
Newbie
Feb 29, 2016
6 posts
1 upvote
Can someone explain what happens when porting a mortgage? More specifically,
- if I need to borrow more, am I limited to the current lender so wouldn't get the best rate? What are the fees (legal for the additional amount or discharge and legal for total amount)?
- if I get the new house with my spouse vs only myself previously, can I still port?
Deal Addict
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Jul 5, 2005
2079 posts
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Toronto
Looking for a 1yr fixed or 2yr fixed mortgage renewal around $360K

What would be the best rate out there and who with?

Thx
Member
Nov 28, 2010
287 posts
126 upvotes
I'm currently with TD at 2.09% 2y term and will have to renew in April. I have been offered 5y variable 2.11% or 5y fixed 2,89%. Can someone get better rates? I'm located in Quebec province.
Thanks for any help!
Deal Addict
Feb 2, 2014
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Toronto
slahaz wrote:
Jan 10th, 2018 5:34 pm
I don't get it, it makes no sense to me. The more equity the lower the risk. How does the house value affect the risk?
And why does it matter if the house is valued today at 999k or 1.01M. Who determines the value?? Why wouldn't a 1.01M house with 90% equity be insured but a 999k house with 20% equity be insured??
Don’t ask. It makes zero sense.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Feb 2, 2014
4336 posts
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Toronto
Mudstrap wrote:
Jan 10th, 2018 8:08 pm
I'm currently with TD at 2.09% 2y term and will have to renew in April. I have been offered 5y variable 2.11% or 5y fixed 2,89%. Can someone get better rates? I'm located in Quebec province.
Thanks for any help!
Depends on the value of the property and the mortgage amount.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Jun 2, 2006
12 posts
1 upvote
Oakville
Hello all,

I have to renew my mortgage on April 1st

Location: Burlington
Mortgage amount: $275,000
Property valued at: $850,000
Credit Rating: Excellent

Current lender is TD collateral mortgage a 2-yr fixed at 2.20. They made me an offer for 2.70% for 5-yr variable. 5 year at 3.24 and 2 year at 2.90

Looking to find the best rate. Not sure whether to go with variable or fixed.

Thanks

Ian
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Dec 1, 2015
1346 posts
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Etobicoke, ON
I know.... makes zero sense. This is the result of some of the changes that happened to mortgage regulations in 2016 (not even the most recent ones last year) when certain criteria were introduced. In a way, I get it that mortgage insurance may not make a lot of sense for expensive properties, but the end result was that the government decided that 1 million dollar was the cut off point, while in the real world these prices are "everyday reality" in markets like GTA/GVA. So, you CAN get mortgage insurance to purchase a townhouse valued at $999k with as little as 7.50% down, and you get the absolute best rates... but buying a $1.001000.00 property with 80% down means the mortgage is uninsurable and you dont get the best rates.

About the "who determines the value?" question - most lenders require an appraisal, and if the appraisal report comes back supporting a value over 1 million, then it is not insurable. I had a deal last year where the client purchase a property under 1 million, lender asked for an appraisal and appraised value came in higher than 1 million, resulting in the client having to get a higher interest rate, and even a different product.
slahaz wrote:
Jan 10th, 2018 5:34 pm
I don't get it, it makes no sense to me. The more equity the lower the risk. How does the house value affect the risk?
And why does it matter if the house is valued today at 999k or 1.01M. Who determines the value?? Why wouldn't a 1.01M house with 90% equity be insured but a 999k house with 20% equity be insured??
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
.
BTW = I'm the former "Laptop-tech" member here. Just changed the username.

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