Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Dec 15th, 2018 6:53 pm
Newbie
Sep 10, 2017
68 posts
6 upvotes
Seeking advise on to renew now as the rates are set to rise or wait till september ? To avoid prepayment penalty... also wanted to see what rates would i be looking at if wanted to move to different lender

Location: GTA
Mortgage Balance: 295000 (down from 350k original amount)
Property Value: 650,000+ ( detached bungalow )
Current Lender : 5 yr fixed at RBC @ 3.59
Renewal Date: Sep 15 2018
Insured by CMHC- Yes (i.e.- paid less than 20% at initial signing)
Prepayment charges~ 3500$
Deal Fanatic
User avatar
Feb 2, 2014
5615 posts
1214 upvotes
Toronto
Eaglyeye wrote:
Jan 15th, 2018 11:51 am
Seeking advise on to renew now as the rates are set to rise or wait till september ? To avoid prepayment penalty... also wanted to see what rates would i be looking at if wanted to move to different lender

Location: GTA
Mortgage Balance: 295000 (down from 350k original amount)
Property Value: 650,000+ ( detached bungalow )
Current Lender : 5 yr fixed at RBC @ 3.59
Renewal Date: Sep 15 2018
Insured by CMHC- Yes (i.e.- paid less than 20% at initial signing)
Prepayment charges~ 3500$
1.95% 5-year variable and 2.79% 5-year fixed are the best rates available to you.

What is the penalty to break the mortgage now?
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Sep 10, 2017
68 posts
6 upvotes
CdnRealEstateGuy wrote:
Jan 15th, 2018 12:04 pm
1.95% 5-year variable and 2.79% 5-year fixed are the best rates available to you.

What is the penalty to break the mortgage now?
3500$
Newbie
Jan 14, 2018
1 posts
Wanted to get advice from the experts here on whether I should renew my mortgage now...

Details:
-Condo is in Vancouver
-2-year fixed mortgage at 2.29% with one of the big 6 banks is up for renewal in 5 months
- early renewal rate is 3.24% for 5 year fixed after negotiation
- Mortgage balance 290k
- Value of property 650k
-uninsured

Feel free to send me PM.
Newbie
Jan 14, 2018
1 posts
Hi,

My TD mortgage is up for first renewal on May 1st (current mortgage is a 5yr fixed @ 2.89%). I've been reading a bit about the increases in mortgage rates, so I called in to see about early renewal. TD initially offered me 3.49% on a 5 year renewal, then dropped to 3.39% shortly after me asking about shopping around. They said that rate would stand for the day, but if the overall rates increased (ie. tomorrow or later this week), the offer of 3.39% would no longer be available.

I'm just looking for some advice as I'm worried that if I wait, the rate will increase further. Should I accept the 3.39%? Should I 'haggle' with them for a better rate? Should I wait?

Initial mortgage was $350k (5% down), renewal will now be at $280k.

Thanks in advance.
Deal Addict
User avatar
Dec 1, 2015
1675 posts
814 upvotes
Etobicoke, ON
I think it is worth waiting another 2 weeks, as you will be in the 90 days time frame to lock a rate elsewhere. The rate TD offered you is quite high, since you can get (in today's numbers) a 2.89% on a 5y fixed rate. As TD registers their mortgage using collateral charges, you will have to spend some money on fees, around $1000.00 or so, but with a balance around $280k that means you would save around $7000.00 in interest by going to another lender.
Airdrie2015 wrote:
Jan 15th, 2018 1:44 pm
Hi,

My TD mortgage is up for first renewal on May 1st (current mortgage is a 5yr fixed @ 2.89%). I've been reading a bit about the increases in mortgage rates, so I called in to see about early renewal. TD initially offered me 3.49% on a 5 year renewal, then dropped to 3.39% shortly after me asking about shopping around. They said that rate would stand for the day, but if the overall rates increased (ie. tomorrow or later this week), the offer of 3.39% would no longer be available.

I'm just looking for some advice as I'm worried that if I wait, the rate will increase further. Should I accept the 3.39%? Should I 'haggle' with them for a better rate? Should I wait?

Initial mortgage was $350k (5% down), renewal will now be at $280k.

Thanks in advance.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
Sep 12, 2008
74 posts
6 upvotes
Brampton
Need Help.

I have 2 mortgages with my current property along with HELOC with RBC.

Mortgage # 1: $260,00 @ 2.09% fixed Renewal Nov 2018
Mortgage # 2: $120,00 @ 2.19% fixed Renewal Mar 2018
Total Mortgage is around $420,00.

One of my mortgage is coming up for renewal around end of March 2018. Current RBC rate given are 3.05 (2 yr fixed), 3.44 (5 yr fixed) and 2.65% ( 5yr closed variable).
My plan is to pay the penalty and combine both into one mortgage either in March 2018 or Nov 2018 at renewal of one of the mortgage.

Should I combine and pay penalty at my March renewal with other lender, or get the variable rate for now wait till Nov 2018, pay less penalty and combined both around Nov 2018. I want to switch with other lender as RBC is giving ridiculous rates on their renewal.

Alll the suggestions are welcomed. Thanks is advanced.
Newbie
Oct 14, 2010
39 posts
12 upvotes
Toronto
looking at rate hub i see 5 year variable down to 1.89%; is that a real rate or bait and switch? It even states 20/20 prepayment privileges...
Sr. Member
User avatar
May 1, 2017
959 posts
205 upvotes
budwizestest wrote:
Jan 15th, 2018 4:47 pm
looking at rate hub i see 5 year variable down to 1.89%; is that a real rate or bait and switch? It even states 20/20 prepayment privileges...
Hi there,

That rate will only be available to a very, very small subset of borrowers, if at all. It will also very likely be restricted in some way, even if it is 20/20.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
May 3, 2013
20 posts
Ontario
GreenMortgages wrote:
Jan 15th, 2018 9:04 am
Hello,

You're a little bit too early to lock in to the absolute lowest rates available, as those rates are only available for 90 days (you're 103 days until maturity) but you should certainly start looking. There are still excellent rates available for 120 days which would be available to you now, though.

You could have some excellent rates available to you depending on the remainder of your qualifying, and some of the specifics of property. In order to know what kind of rates will be available to you, we will need to know the following:

Current property value:
Current lender:
Original mortgage balance:

All things considered you will likely have under 3% 5 years fixed available (which you could lock into now), and around prime minus 1.09% available on the variable side.

Regards,

Connor
Conner,
I renewal cases how do lenders determine if the house value is over 1M? We all know what we paid for when we purchased it. My understanding is that can affect the rate
Deal Addict
User avatar
Dec 1, 2015
1675 posts
814 upvotes
Etobicoke, ON
Policies vary. Some lenders require an appraisal on every deal, others wont ask for appraisals. Some will use "drive by" appraisals, some may accept a municipal assessment, etc. But if the lender decides to ask for a full appraisal and it comes in over 1 million it does affect the deal.
slahaz wrote:
Jan 15th, 2018 5:35 pm
Conner,
I renewal cases how do lenders determine if the house value is over 1M? We all know what we paid for when we purchased it. My understanding is that can affect the rate
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Sr. Member
User avatar
May 1, 2017
959 posts
205 upvotes
slahaz wrote:
Jan 15th, 2018 5:35 pm
Conner,
I renewal cases how do lenders determine if the house value is over 1M? We all know what we paid for when we purchased it. My understanding is that can affect the rate
Hi there,

In the case of a renewal, the lender will disregard the value and offer standard renewal rates in most cases. If were to switch the mortgage to a new lender, the lender will order an appraisal on the property to see what the value is. If the value comes in over $1m, then the best rates (insurable rates) will not be available. There have been cases where the appraisal came in slightly over $1m, and have still gone through at insurable rates, but it is extremely rare.

There are also lenders who do not insure their mortgage portfolio, so the value of the property is inconsequential.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Sr. Member
User avatar
May 1, 2017
959 posts
205 upvotes
Hey everyone,

Just a heads-up about rates. Another major institution increased their rates this afternoon and more are expected to follow suit. If you're leaning towards getting pre-approved, or are thinking about switching you mortgage at maturity or otherwise, you may want to consider acting sooner rather than later.

Only a couple lenders remain with extremely attractive rates across the board.

Cheers,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
May 3, 2013
20 posts
Ontario
valuemortgage wrote:
Jan 15th, 2018 5:42 pm
Policies vary. Some lenders require an appraisal on every deal, others wont ask for appraisals. Some will use "drive by" appraisals, some may accept a municipal assessment, etc. But if the lender decides to ask for a full appraisal and it comes in over 1 million it does affect the deal.
Thank you.
Jr. Member
Nov 4, 2004
105 posts
42 upvotes
I have two TD mortgages in Ottawa as follow:

Mortgage 1: Condo Investment Rental Property
$160K left in mortgage. Property valued at about $430K with expiry on July 1, 2018. I want to withdraw some equity of about $100K from this to invest in another investment property.

Mortgage 2: Principle Residence Detached House
$300K left in mortgage. Property valued at about $800K with expiry on September 1, 2018. I want to have a HELOC so that I can do the cash damming strategy from my rental unit(s) to save on my income taxes.

Family Income of $200K plus with excellent credit. Is it too early to start the process now but I do see the rates going up? What are the best rates available know both fixed and variable?

Top

Thread Information

There are currently 2 users viewing this thread. (2 members and 0 guests)

pwxgao, tommyle