Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Mar 28, 2005
8978 posts
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Cornwall, Ontario
rateconnect wrote: On a renewal your best rate will be in the 2.69% range

For the refinance option 2.89%

Based on a value of 770k max refi allowed is 616k

Both 5 yr fixed terms

Phil
Talking about renewal rate vs refinancing rate.

Would the difference in rate still be the same regardless of the additional funds requested?

Say the mortgage owing is $115,000 but I want to refinance at $155,000? (ie Mortgage $115,000 + $40,000)
Property value 350K
Jr. Member
Mar 31, 2015
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Cambridge
OMG, this is beyond helpful! AMAZING Paul, thank you. :)
Sr. Member
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Dec 2, 2008
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callmebob wrote: I am looking to buy a $1.5M home in Oakville, ON. Best rate I am able to get is 2.9% for a 5 yr fixed. The rationale is homes with purchase price over $1M are not eligible for the rock bottom rates.

Help me understand why the best rate is dependent on the home purchase price and not the amount borrowed. I could put $1.4M down on a $1.5M home and get a worse rate than if I put $100K on a $900K home. Why is this?
Short answer, risk.

Houses that cost more than $1million. and cannot be default insured fit into the uninsurable mortgage category

Uninsurable mortgages apply to any of the following:
Purchases of $1 million or more
Refinances (e.g., when replacing your existing loan with a new loan of higher risk, like one where you’re increasing your mortgage size)
Non-owner-occupied single-unit rental properties
Amortizations over 25 years
Require no insurance premiums (obviously)

Therefore from the lenders perspective they would rather lend to someone who put down very little but had their loan guaranteed by the Canadian Mortgage and Housing Corporation (CMHC), than lend to someone borrowing $300,000 on a $1.5 million house with no insurance or guarantee on the payment of that mortgage.
Sr. Member
Mar 4, 2008
796 posts
332 upvotes
BC
-What is the purchase price? $385,000
-How much is the down payment? 20%
-Where it the property located? Victoria, BC
-When is the closing date? January 31st 2020
-Will the property be owner-occupied or a rental? Owner-occupied

New home buyer, 25 or 30 year amortization

Thanks in advance!
Newbie
Apr 14, 2016
17 posts
11 upvotes
Hello,


-What is the purchase price? 250k to 400k
-How much is the down payment? up to 150k if necessary for best rate
-Where it the property located? Nova Scotia, Annapolis Valley
-When is the closing date? Between Feb 15th and 25th
-Will the property be owner-occupied or a rental? Owner Occupied

Main concern is best rate, prepayment privileges, amortization, breaking fees come second.

Please feel free to PM me directly, I would like to get started on process.
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Jan 31, 2018
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JimboD wrote: -What is the purchase price? $385,000
-How much is the down payment? 20%
-Where it the property located? Victoria, BC
-When is the closing date? January 31st 2020
-Will the property be owner-occupied or a rental? Owner-occupied

New home buyer, 25 or 30 year amortization

Thanks in advance!
Best rates below on 5 yr fixed terms

2.75% 25 yr am
2.94% 30 yr am

You will need to move very quickly given the closing date

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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MrRoboto69 wrote: Hello,


-What is the purchase price? 250k to 400k
-How much is the down payment? up to 150k if necessary for best rate
-Where it the property located? Nova Scotia, Annapolis Valley
-When is the closing date? Between Feb 15th and 25th
-Will the property be owner-occupied or a rental? Owner Occupied

Main concern is best rate, prepayment privileges, amortization, breaking fees come second.

Please feel free to PM me directly, I would like to get started on process.
5 yr fixed 2.69%
20/20 prepayments
regular 3 months or the IRD penalty (greater of)
25 yr amortization

30 yr 2.94%

Phil
Phil Cragg
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Aug 16, 2011
372 posts
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OTTAWA
Hi all,

Looking for a mortgage for a purchase in Ottawa as a buddy of mine and I want to jointly invest for rental.

Purchase Prices: $375,000
Location of Property: Ottawa, Ontario
Owner Occupied / Rental: Rental
Closing Date: March 15, 2020
Downpayment: 20% with option to increase if needed.

Will need to work with a broker who can assist with various options / lenders as we already both have mortgages on our principal residences, but this rental should be cash flow positive. Let me know by pm'ing me.

Thanks.
Newbie
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Jun 6, 2009
10 posts
6 upvotes
Hi, looking for 5 years fixed rates for my renewal:
-How much is the mortgage owing? $170,000
-Roughly, what is the current market value of the property? $600,000
-Which city is the property located in? Concord, Ontario
-Is the property owner-occupied or a rental? Owner occupied
-Who is your current lender? Industrial Alliance
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? 2009
-When is your renewal date? February 2020
Thank you!
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Jan 31, 2018
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euCC wrote: Hi, looking for 5 years fixed rates for my renewal:
-How much is the mortgage owing? $170,000
-Roughly, what is the current market value of the property? $600,000
-Which city is the property located in? Concord, Ontario
-Is the property owner-occupied or a rental? Owner occupied
-Who is your current lender? Industrial Alliance
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? 2009
-When is your renewal date? February 2020
Thank you!
Best rates would be 2.69% - 2.74% for your situation 5 yr fixed

Depending on when in Feb you should reach out to any of the brokers on the forum asap as it is a process to switch

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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Jeremyl007 wrote: Hi all,

Looking for a mortgage for a purchase in Ottawa as a buddy of mine and I want to jointly invest for rental.

Purchase Prices: $375,000
Location of Property: Ottawa, Ontario
Owner Occupied / Rental: Rental
Closing Date: March 15, 2020
Downpayment: 20% with option to increase if needed.

Will need to work with a broker who can assist with various options / lenders as we already both have mortgages on our principal residences, but this rental should be cash flow positive. Let me know by pm'ing me.

Thanks.
Rental rates are priced higher than owner occupied properties

likely in the 3.04% range for a 5 yr fixed term lower if you can do 30% down 2.99%

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Newbie
Jan 9, 2020
2 posts
What is the penalty for premature breaking of the mortgage? 3 month interest? Or remaining interest with the discounted rate? Or remaining interest with the posted rate? Thanks, --Ali
Deal Fanatic
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Sep 13, 2011
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Toronto
Lexisexy wrote: OMG, this is beyond helpful! AMAZING Paul, thank you. :)
Glad I could help! :)
Paul Meredith
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(lic. 10532)
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Jun 7, 2010
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alin212 wrote: What is the penalty for premature breaking of the mortgage? 3 month interest? Or remaining interest with the discounted rate? Or remaining interest with the posted rate? Thanks, --Ali
Its best to contact your mortgage provider for an accurate $ figure. Generally, for a ARM type mortgage, you are looking at 3 months interest penalty whereas for fixed rate products you are looking at IRD.
Deal Guru
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Feb 2, 2014
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Toronto
alin212 wrote: What is the penalty for premature breaking of the mortgage? 3 month interest? Or remaining interest with the discounted rate? Or remaining interest with the posted rate? Thanks, --Ali
Typically:

Variable mortgages - 3 months of interest.

Fixed rate mortgages - GREATER OF Interest Rate Differential or 3 months of interest. NOTE, banks use a harsher penalty that takes in account the discount you originally received when calculating IRD. Lenders such as monoline lenders, do not do this and their IRD penalty calc. is much less harsh.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Oct 5, 2014
198 posts
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Madden, AB
rateconnect wrote: 2.69% 5 yr fixed
Full featured 20/20 prepayment
120 day rate hold

You are still a few days away from being able to lock this rate

Phil
Thank you...I think today (Jan 13th) is exactly 120 days from renewal date, right? A general question, is there any fee to pay when change lender at a renewal time?
Newbie
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Mar 7, 2011
1 posts
Hi there, renewal is coming up and TD has offered me 2.89% if I lock in tomorrow. Would it be feasible to do better? Thanks in advance!

- How much is the mortgage owing? $105k
-Roughly, what is the current market value of the property? $156k
-Which city is the property located in? Edmonton, AB
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? TD Canada Trust
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? Yes
-When did you buy the property? 2010
-When is your renewal date? May 1, 2020
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Jan 31, 2018
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irislf wrote: Thank you...I think today (Jan 13th) is exactly 120 days from renewal date, right? A general question, is there any fee to pay when change lender at a renewal time?
You will have the discharge fee from your current lender likely around $300

Reach out to any of the brokers on the forum

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Sr. Member
Mar 4, 2008
796 posts
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BC
rateconnect wrote: Best rates below on 5 yr fixed terms

2.75% 25 yr am
2.94% 30 yr am

You will need to move very quickly given the closing date

Phil
Thanks Phil.

Just got a reply from our mortgage broker and she said 3.09 on 25 year and 3.19 on 30 year ….we have a very good credit score....
Deal Fanatic
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Jan 31, 2018
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JimboD wrote: Thanks Phil.

Just got a reply from our mortgage broker and she said 3.09 on 25 year and 3.19 on 30 year ….we have a very good credit score....
Well you know there are better options on the forum :)
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628

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