Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Aug 14th, 2018 3:40 pm
Newbie
Oct 31, 2012
81 posts
9 upvotes
Toronto
GreenMortgages wrote:
Feb 14th, 2018 3:33 pm
Hi there,

It's going to be difficult to get qualified for a $397,000 mortgage with $58,000 in income as qualifying has gotten tighter as of recent. Did you have a pre-approval before purchasing? If so what amount were you pre-approved for and which institution is it with?

Best,

Connor
Do have a pre approval with TD n Scotiabank for 375k was looking for a bttr rate n around 390k mortgage.
Thx
Sr. Member
May 1, 2017
920 posts
195 upvotes
sdanny wrote:
Feb 14th, 2018 3:37 pm
Do have a pre approval with TD n Scotiabank for 375k was looking for a bttr rate n around 390k mortgage.
Thx
I would first check to see if Scotiabank and TD will honour the pre-approvals if they were obtained prior to Jan 1 as regulations changed and some pre-approvals were rendered null and void. TD was honouring the old pre-approvals at the old guidelines last I heard, though.

Given the information that you've provided, the rates available to you more than likely won't be attractive as you stretched fairly thin qualifying-wise. Probably around 3.69% if you can get qualified.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Oct 31, 2012
81 posts
9 upvotes
Toronto
GreenMortgages wrote:
Feb 14th, 2018 3:49 pm
I would first check to see if Scotiabank and TD will honour the pre-approvals if they were obtained prior to Jan 1 as regulations changed and some pre-approvals were rendered null and void. TD was honouring the old pre-approvals at the old guidelines last I heard, though.

Given the information that you've provided, the rates available to you more than likely won't be attractive as you stretched fairly thin qualifying-wise. Probably around 3.69% if you can get qualified.
Pre approval for both were done early Feb. Thx for the response.
Sr. Member
May 1, 2017
920 posts
195 upvotes
sdanny wrote:
Feb 14th, 2018 3:52 pm
Pre approval for both were done early Feb. Thx for the response.
No problem at all - best of luck with your financing.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Fanatic
User avatar
Feb 2, 2014
5097 posts
1071 upvotes
Toronto
erexa wrote:
Feb 14th, 2018 2:22 pm
We may end up selling this place in 2-3 years. I would still think variable is a better choice than locking ourselves.
Agreed.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Fanatic
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Feb 2, 2014
5097 posts
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Toronto
slahaz wrote:
Feb 14th, 2018 2:43 pm
I am still not able to understand why a house that is valued over 1 Million would have a higher rate or higher risk even if the LTV is lower.

a. Home A valued at 1.2Million LTV 30%
b. Home B valued at 900k LTV 75%
Short answer, it doesn't make sense @slahaz.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Apr 3, 2016
2 posts
Hi all,

A bit of a complicated renewal so looking for suggestions on rates/terms.

1. 3 season cottage: 290k, Maturing in April
2. Home. RBC homeline setup. 1st segment 110k matures in April, 2nd segment 140k renews June 7.

Bank is offering 5 fixed year at 3.29% but I'm not sure if I want to commit for 5 years. Perhaps I should do 1 or 2 year rate and then shop around with other lenders.

Note: I do write off about 40% of mortgage interest (business income) so it's important to keep the cottage mortgage interest separate from the home in this case.

Option 1 is to do a straight renewal on all 3 mortgages and have the same maturity dates. No fees involved.
Option 2 is to refinance the home and transfer the cottage under the home. Fees involved for the new title registration and processing fee. Prepayment charges as well if I do it before April. Note: I can save $200/year on cottage insurance without a mortgage. If I wait until April, then my maturity dates will be staggered which I do want and different interest rates will apply.
Option 3 is the straight renewal on all 3 mortgages and refinance home and transfer the cottage in the future.

Any other ideas or suggestions?

Thanks
Sr. Member
User avatar
Nov 25, 2003
917 posts
31 upvotes
Hi friendly mortgage experts - I'm looking for advice on a mortgage for a new (first!) home purchase with the wife.

Location: Stouffville
Purchase: 800k
Downpayment: 20% min, could be as high as 25%
Credit/employment: excellent

Currently looking at Tangerine as the best among the banks, at 3.34% 5yr fixed, 2.95% 5yr variable, both with 25/25 prepayments.

Via RateHub, CanWise and Butler are pulling in much better rates:
CW Variable: CW 2.75% (P-0.7), with 15/100 pp
B Variable: 2.5% (P-0.95), 20/20 pp
CW Fixed: 3.04%, 20/20 pp

The larger down payment does not seem to affect the rate offered, so I'm inclined to hang onto it instead of draining funds, drip it out via pre-payments.

CanWise listing says regular payment prepayments can be up to 100% - this seems crazy to be able to double up. Whats the catch?

Any advice is appreciated, and help finding the best rates is welcome.

Cheers!
Deal Fanatic
User avatar
Feb 2, 2014
5097 posts
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Toronto
TheRequiem wrote:
Feb 15th, 2018 12:23 am
Hi friendly mortgage experts - I'm looking for advice on a mortgage for a new (first!) home purchase with the wife.

Location: Stouffville
Purchase: 800k
Downpayment: 20% min, could be as high as 25%
Credit/employment: excellent

Currently looking at Tangerine as the best among the banks, at 3.34% 5yr fixed, 2.95% 5yr variable, both with 25/25 prepayments.

Via RateHub, CanWise and Butler are pulling in much better rates:
CW Variable: CW 2.75% (P-0.7), with 15/100 pp
B Variable: 2.5% (P-0.95), 20/20 pp
CW Fixed: 3.04%, 20/20 pp

The larger down payment does not seem to affect the rate offered, so I'm inclined to hang onto it instead of draining funds, drip it out via pre-payments.

CanWise listing says regular payment prepayments can be up to 100% - this seems crazy to be able to double up. Whats the catch?

Any advice is appreciated, and help finding the best rates is welcome.

Cheers!
You can get 2.99% 5-year fixed with 20/20 pp :)
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Jun 24, 2008
22 posts
Toronto
This thread has been so helpful...thank you for this information. I also wanted to share our situation and get the advice of some of the experts here:

We are with TD Bank (have all our business with them). We have 3.5 years left on our mortgage and are up for renewal. Our original mortgage amount was $430K and we have $150K to go. We've always gone with a variable rate mortgage and our current rate is 2.09%. Our bank rep is offering us: 1- 3.29% for a 3 year amortization or 2- 3.39% for a 4 year amortization. The biweekly payment for the 3 year mortgage will be really challenging for us.

We know we want to have a mortgage with a big bank but I wanted hear your opinions on the term we should go for (fixed, variable, 1 year, 2 year, 3 year, etc). I'm leaning towards a 4 year mortgage where our payments are less but we save up and make lump sum payments whenever we can (hoping we don't get penalized for ending the mortgage earlier than term if we go with lump sum payments!).

Many thanks for reading this!
Member
Jan 31, 2018
364 posts
55 upvotes
TheRequiem wrote:
Feb 15th, 2018 12:23 am
Hi friendly mortgage experts - I'm looking for advice on a mortgage for a new (first!) home purchase with the wife.

Location: Stouffville
Purchase: 800k
Downpayment: 20% min, could be as high as 25%
Credit/employment: excellent

Currently looking at Tangerine as the best among the banks, at 3.34% 5yr fixed, 2.95% 5yr variable, both with 25/25 prepayments.

Via RateHub, CanWise and Butler are pulling in much better rates:
CW Variable: CW 2.75% (P-0.7), with 15/100 pp
B Variable: 2.5% (P-0.95), 20/20 pp
CW Fixed: 3.04%, 20/20 pp

The larger down payment does not seem to affect the rate offered, so I'm inclined to hang onto it instead of draining funds, drip it out via pre-payments.

CanWise listing says regular payment prepayments can be up to 100% - this seems crazy to be able to double up. Whats the catch?

Any advice is appreciated, and help finding the best rates is welcome.

Cheers!
You certainly have some great rates available

20% down- 5 yr fixed 2.99% with additional cash back major credit union 120 day rate hold 20/20 prepayment

25% down variable rate - prime - 1% currently 2.45% - 90 day hold 20/20 prepayment - this product has a slight restriction in that you can't prepay in full during the 5 yr term only
through a bonafide sale (regular 3 months penalty would then apply)

20% down -variable rate prime - .85% currently 2.60% - 90 day hold 15/15 prepayment - non restrictive product

Hope this helps

Phil
Phil Cragg
Rateconnect
Broker License #12626
Sr. Member
May 1, 2017
920 posts
195 upvotes
TheRequiem wrote:
Feb 15th, 2018 12:23 am
Hi friendly mortgage experts - I'm looking for advice on a mortgage for a new (first!) home purchase with the wife.

Location: Stouffville
Purchase: 800k
Downpayment: 20% min, could be as high as 25%
Credit/employment: excellent

Currently looking at Tangerine as the best among the banks, at 3.34% 5yr fixed, 2.95% 5yr variable, both with 25/25 prepayments.

Via RateHub, CanWise and Butler are pulling in much better rates:
CW Variable: CW 2.75% (P-0.7), with 15/100 pp
B Variable: 2.5% (P-0.95), 20/20 pp
CW Fixed: 3.04%, 20/20 pp

The larger down payment does not seem to affect the rate offered, so I'm inclined to hang onto it instead of draining funds, drip it out via pre-payments.

CanWise listing says regular payment prepayments can be up to 100% - this seems crazy to be able to double up. Whats the catch?

Any advice is appreciated, and help finding the best rates is welcome.

Cheers!
Hi there,

The rate you're being offered through Tangerine is not very competitive in the market right now, generally speaking. It's a decent bank rate (and has good pre-payment privileges), but there are much better options available for full featured products elsewhere.

The rates you've seen from the online brokerages (RateHub, CanWise, and Butler), are are reasonably good rates, but can be beat.

There's no catch to the double-up. It's just another pre-payment option that some lenders have. For example, some lenders will have 20/20, some 25/25, and some 15/15+double up. Which is best depends on how much pre-payment you actually intend on making, and whether increasing your regular frequency payment of making lump sum pre-payments is more your thing. You don't want to sacrifice too much in rate for attractive pre-payment privileges if you're not confident that you'll put the privileges to use.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Sr. Member
User avatar
Nov 25, 2003
917 posts
31 upvotes
GreenMortgages wrote:
Feb 15th, 2018 9:57 am
Hi there,

The rate you're being offered through Tangerine is not very competitive in the market right now, generally speaking. It's a decent bank rate (and has good pre-payment privileges), but there are much better options available for full featured products elsewhere.

The rates you've seen from the online brokerages (RateHub, CanWise, and Butler), are are reasonably good rates, but can be beat.

There's no catch to the double-up. It's just another pre-payment option that some lenders have. For example, some lenders will have 20/20, some 25/25, and some 15/15+double up. Which is best depends on how much pre-payment you actually intend on making, and whether increasing your regular frequency payment of making lump sum pre-payments is more your thing. You don't want to sacrifice too much in rate for attractive pre-payment privileges if you're not confident that you'll put the privileges to use.

Best,

Connor
Makes sense, thanks. I don't the reduction in annual pp from 25 to 15 is going to have much practical implication. It's still a boatload of money. I am more likely to take advantage or accelerated and increasing regular payments as salary grows.

Do you have advice on the particular brokers/lenders, or specific rates and terms?
Newbie
Feb 19, 2013
18 posts
2 upvotes
Looking to see if an RFD affiliated broker is available/interested in helping with my renewal in Montreal.

Currently with RBC. mortgage amount remaining 212K. originally 20% down. no credit issues.
Looking to see if I could get a 5 year fixed rate below or around 3.19.
Deal Addict
User avatar
Dec 1, 2015
1613 posts
804 upvotes
Etobicoke, ON
Depending on the specifics (type of property, current value, etc) you may have much better options. Do you know how to check your PM?
atmel101 wrote:
Feb 15th, 2018 3:21 pm
Looking to see if an RFD affiliated broker is available/interested in helping with my renewal in Montreal.

Currently with RBC. mortgage amount remaining 212K. originally 20% down. no credit issues.
Looking to see if I could get a 5 year fixed rate below or around 3.19.
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence

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