Real Estate

The Official Mortgage Rates Thread

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Jun 24, 2020
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Kumakuma44 wrote: For a mortgage transfer/renewal:

-How much is the mortgage owing? $390,000
-Roughly, what is the current market value of the property? $600,000
-Which city is the property located in? Calgary
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? MCAP
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? Nov 2016
-What was the purchase price? $580,000
-When is your renewal date? Nov 2021
1.10% five year variable, 1.64% 4 year fixed, or 1.74% five year fixed available in your scenario.
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raomanoj2004 wrote: Is 5 year variable mortgage for owned vs rental are different? I mean I am getting 1.3% for rental but I see people are quoting 1.10% here
Yes, rates are higher for rentals. 1.30% 5-year variable is good.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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S5 wrote: ISTM mortgage brokers should be careful quoting savings when suggesting refinancing a fixed rate mortgage into a variable rate. These “savings” assume no bank of Canada rate change for years which is highly improbable. As of right now, expectations are for 4 rate hikes by end of 2023. At the very least a warning should be included for the uninitiated(You would save X if the prime rate remains constant over the remaining term of your mortgage rather than You will save X over the remaining term of your mortgage).

No such issue when quoting fixed to fixed or variable to variable but it seems quoting large “savings” generates commissions, even if said savings are highly unlikely to materialize.
BoC is conservatively (as of 3 weeks ago) estimating
the 2 percent inflation target is sustainably achieved come the second half of 2022. One could make the argument the market could/would absorb several minor increases regardless of other contributors as opposed to a single major increase over the same period (the major banks have hinted as much). Still…whether several increases happen starting in 2022 into 2023 is too soon to say. Personally I’ve taken the position rates will rise in 2023 and very comfortable with my variable until then when I will reevaluate.
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Aug 8, 2013
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For a mortgage transfer/renewal:

-How much is the mortgage owing? $650,000
-Roughly, what is the current market value of the property? $1,100,000
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? HSBC
-Do you have a HELOC tied to the mortgage? No, but would like to have a HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Sep 2017
-What was the purchase price? $1,100,000
-When is your renewal date? Sep 2022 (am on the 5 yr variable and can get out by 3rd year)
-extra notes: am on a 30 yr amortization

Currently on the P-0.99% on HSBC

Thanks
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Arrow123 wrote: For a mortgage transfer/renewal:

-How much is the mortgage owing? $650,000
-Roughly, what is the current market value of the property? $1,100,000
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? HSBC
-Do you have a HELOC tied to the mortgage? No, but would like to have a HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Sep 2017
-What was the purchase price? $1,100,000
-When is your renewal date? Sep 2022 (am on the 5 yr variable and can get out by 3rd year)
-extra notes: am on a 30 yr amortization

Currently on the P-0.99% on HSBC

Thanks
You would have 1.30% five year variable available for a 25 year amortization in your scenario.
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Arrow123 wrote: For a mortgage transfer/renewal:

-How much is the mortgage owing? $650,000
-Roughly, what is the current market value of the property? $1,100,000
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? HSBC
-Do you have a HELOC tied to the mortgage? No, but would like to have a HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Sep 2017
-What was the purchase price? $1,100,000
-When is your renewal date? Sep 2022 (am on the 5 yr variable and can get out by 3rd year)
-extra notes: am on a 30 yr amortization

Currently on the P-0.99% on HSBC

Thanks
1.30% 5-year variable would be the lowest rate.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Looking to renew. Best rates?

--How much is the mortgage owing? $540k
--Roughly, what is the current market value of the property? $2.3m
--Which city is the property located in? Etobicoke, ON
--Is the property owner-occupied or a rental? Owner-occupied
--Who is your current lender? Meridian
--Do you have a HELOC tied to the mortgage? No
--Is the mortgage CMHC insured? No
--When did you buy the property? 2009
--What was the purchase price? $550k (underwent extensive renovation)
--When is your renewal date? Oct 2021
Newbie
Nov 18, 2018
13 posts
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For a mortgage transfer/renewal:

Currently have a mortgage on my house with Scotia under their STEP program. The mortgage is in 2 parts because one part was ported over from a previous property, as such they have different rates/renewal terms. One part is coming up for renewal in 6 months and I was wondering what interest rates I'd be eligible for and if it would be worth cancelling both mortgages and moving to a new lender.

-How much is the mortgage owing? $244k + $256k = $500k
-Roughly, what is the current market value of the property? $950k
-Which city is the property located in? Mississauga
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? Scotia
-Do you have a HELOC tied to the mortgage? Yes, mortgages are part of STEP program, but have never once used the HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Jul 2018
-What was the purchase price? $680k
-When is your renewal date? Jul 16, 2023 and Feb 16, 2022
-Current terms/rates: Variable 1.45%, Fixed 2.34%
-Also, I believe both were originally on 30 year amortization periods. Currently the remaining amortization periods are 15.5yrs and 18yrs respectively (I've increased monthly payments each year)

Scotia is offering 1.33% 5 yr variable for the upcoming renewal via their online mortgage renewal offer (haven't spoken to an advisor yet).

Based on my calcs, cost to cancel the variable mortgage is ~$900 + any additional fees.

Let me know your thoughts. Thanks!
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100Pacer wrote: BoC is conservatively (as of 3 weeks ago) estimating
the 2 percent inflation target is sustainably achieved come the second half of 2022. One could make the argument the market could/would absorb several minor increases regardless of other contributors as opposed to a single major increase over the same period (the major banks have hinted as much). Still…whether several increases happen starting in 2022 into 2023 is too soon to say. Personally I’ve taken the position rates will rise in 2023 and very comfortable with my variable until then when I will reevaluate.
Just to be clear, the part you bolded are market expectations, not my or any other individual’s opinion. Currently showing a 72% chance of +100 move by June 2023, time will tell.
https://www.m-x.ca/marc_terme_bax_rate_ ... ons_en.php
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liverpoolrocks wrote: For a mortgage transfer/renewal:

Currently have a mortgage on my house with Scotia under their STEP program. The mortgage is in 2 parts because one part was ported over from a previous property, as such they have different rates/renewal terms. One part is coming up for renewal in 6 months and I was wondering what interest rates I'd be eligible for and if it would be worth cancelling both mortgages and moving to a new lender.

-How much is the mortgage owing? $244k + $256k = $500k
-Roughly, what is the current market value of the property? $950k
-Which city is the property located in? Mississauga
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? Scotia
-Do you have a HELOC tied to the mortgage? Yes, mortgages are part of STEP program, but have never once used the HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Jul 2018
-What was the purchase price? $680k
-When is your renewal date? Jul 16, 2023 and Feb 16, 2022
-Current terms/rates: Variable 1.45%, Fixed 2.34%
-Also, I believe both were originally on 30 year amortization periods. Currently the remaining amortization periods are 15.5yrs and 18yrs respectively (I've increased monthly payments each year)

Scotia is offering 1.33% 5 yr variable for the upcoming renewal via their online mortgage renewal offer (haven't spoken to an advisor yet).

Based on my calcs, cost to cancel the variable mortgage is ~$900 + any additional fees.

Let me know your thoughts. Thanks!
Thanks for the info! It's the fixed that is coming up for renewal in February, correct? The 1.33% they are offering you for renewal of your first component is not bad, but there are 5 year variable rates as low as 1.15%. Scotia will allow you to switch away from them within 30 days of your maturity date with no penalty at all. You could then look at beginning to transfer over the entire amount to a new lender as early as mid to late September.

As for your savings, you cannot compare a fixed rate with a variable rate is they are two different things and therefore not an apples to apples comparison. You can only compare fixed with fixed and variable with variable, so it's impossible to determine how much potential savings you would see in this case.

The 1.15% 5 year variable (prime -1.30%) is a bit more restrictive as it has a bonafide sale clause. What this means is that you can't pay the mortgage off in full at any time during the term unless you sell your home. It also means you cannot switch or refinance mid-term with a different lender, however you can do so with the same lender. This restriction does not prevent you from selling your home. At the end of your term, the restriction is meaningless.

The lowest 5 year variable rate without this restriction would be 1.25%. Very close to the 1.33% Scotia is offering you. The difference between these two rates works out to roughly $1,900 over the 5 year term. I'm not considering any penalties into this number. Just pure rate vs. rate. If Scotia is able to offer you 1.33% to early renew the entire amount, and without penalty on the first component renewing in February, then this is a viable option. It should be as simple as you signing a form. No application process or documents required. There would also be no added costs other than the penalty on your second component (they likely won't charge you a penalty on your first component, and should be able to do this for you fairly quickly. I would definitely discuss this with them.

Let me know if you have any questions, or if there is anything I can clarify for you.

Paul
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Miguel wrote: Looking to renew. Best rates?

--How much is the mortgage owing? $540k
--Roughly, what is the current market value of the property? $2.3m
--Which city is the property located in? Etobicoke, ON
--Is the property owner-occupied or a rental? Owner-occupied
--Who is your current lender? Meridian
--Do you have a HELOC tied to the mortgage? No
--Is the mortgage CMHC insured? No
--When did you buy the property? 2009
--What was the purchase price? $550k (underwent extensive renovation)
--When is your renewal date? Oct 2021
Question... did you refinance your mortgage at any time since you purchased the property in 2009? for example, taking out additional funds to pay for your reno? If so, when did you refinance? This is important information that can influence the rates quoted.

Thanks!

Paul
Paul Meredith
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Arrow123 wrote: For a mortgage transfer/renewal:

-How much is the mortgage owing? $650,000
-Roughly, what is the current market value of the property? $1,100,000
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? HSBC
-Do you have a HELOC tied to the mortgage? No, but would like to have a HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Sep 2017
-What was the purchase price? $1,100,000
-When is your renewal date? Sep 2022 (am on the 5 yr variable and can get out by 3rd year)
-extra notes: am on a 30 yr amortization

Currently on the P-0.99% on HSBC

Thanks
p-1.15% available 1.30% major bank
Phil Cragg
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Topher86 wrote: Haven’t had a chance to talk to them. The email just said
“I wonder if you have time to chat today. I can find a great variable rate for you to switch into with no penalty.”
Find out more and repost no penalty or penalty being covered is highly unusual
Phil Cragg
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Arrow123 wrote: For a mortgage transfer/renewal:

-How much is the mortgage owing? $650,000
-Roughly, what is the current market value of the property? $1,100,000
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? HSBC
-Do you have a HELOC tied to the mortgage? No, but would like to have a HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Sep 2017
-What was the purchase price? $1,100,000
-When is your renewal date? Sep 2022 (am on the 5 yr variable and can get out by 3rd year)
-extra notes: am on a 30 yr amortization

Currently on the P-0.99% on HSBC

Thanks
Sorry, I had misread your original post as if you had a rate of 0.99%. With prime -0.99% (1.46%), the lowest rate if you were to switch early is 1.30% as other brokers have quoted. The penalty to break your mortgage early would be roughly $2,700 (including discharge fee). With such a small difference in rate, and only a little over a year left on your current term, you'd only make up a small fraction of the penalty between now and the end of your current term. For this reason, it would not be cost effective to make a move at this stage.

If you need to add the HELOC now, then I would speak to HSBC about adding one separately from your mortgage. Or, you could reach out to Simplii Financial, who would likely be able to add the HELOC for you with lower set up costs. Rate on the HELOC would likely be the same either way, prime +0.50% (2.95%)

Hope you find this helpful.

Paul
Last edited by PaulMeredith on Aug 5th, 2021 3:04 pm, edited 1 time in total.
Paul Meredith
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PaulMeredith wrote: Question... did you refinance your mortgage at any time since you purchased the property in 2009? for example, taking out additional funds to pay for your reno? If so, when did you refinance? This is important information that can influence the rates quoted.

Thanks!

Paul
Nope, never refinanced. All we have now is the 1 single $540k mortgage.
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Miguel wrote: Nope, never refinanced. All we have now is the 1 single $540k mortgage.
Perfect, thanks for the info! The lowest 5 year variable rate would be 1.15% (prime -1.30%), or 5 year fixed at 1.79%. The variable rate is a bit more restrictive as it has a bonafide sale clause. What this means is that you can't pay the mortgage off in full at any time during the term unless you sell your home. It also means you cannot switch or refinance mid-term with a different lender, however you can do so with the same lender. This restriction does not prevent you from selling your home. At the end of your term, the restriction is meaningless.
The lowest variable rate without this restriction would be 0.10% higher at 1.25% (prime -1.20%).

There are also 3 year fixed rates at 1.54%, or 4 year fixed at 1.64%. Fully featured mortgages with the same full 20% prepayment privileges. Any of the regular posting brokers on this board would be able to help you out.

Paul
Paul Meredith
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PaulMeredith wrote: Perfect, thanks for the info! The lowest 5 year variable rate would be 1.15% (prime -1.30%), or 5 year fixed at 1.79%. The variable rate is a bit more restrictive as it has a bonafide sale clause. What this means is that you can't pay the mortgage off in full at any time during the term unless you sell your home. It also means you cannot switch or refinance mid-term with a different lender, however you can do so with the same lender. This restriction does not prevent you from selling your home. At the end of your term, the restriction is meaningless.
The lowest variable rate without this restriction would be 0.10% higher at 1.25% (prime -1.20%).

There are also 3 year fixed rates at 1.54%, or 4 year fixed at 1.64%. Fully featured mortgages with the same full 20% prepayment privileges. Any of the regular posting brokers on this board would be able to help you out.

Paul
Thanks Paul, I've gotten that rate with BMO, I was hopping someone could come in under 1.15%.... any options around 1.10%?
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liverpoolrocks wrote: For a mortgage transfer/renewal:

Currently have a mortgage on my house with Scotia under their STEP program. The mortgage is in 2 parts because one part was ported over from a previous property, as such they have different rates/renewal terms. One part is coming up for renewal in 6 months and I was wondering what interest rates I'd be eligible for and if it would be worth cancelling both mortgages and moving to a new lender.

-How much is the mortgage owing? $244k + $256k = $500k
-Roughly, what is the current market value of the property? $950k
-Which city is the property located in? Mississauga
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? Scotia
-Do you have a HELOC tied to the mortgage? Yes, mortgages are part of STEP program, but have never once used the HELOC
-Is the mortgage CMHC insured? No
-When did you buy the property? Jul 2018
-What was the purchase price? $680k
-When is your renewal date? Jul 16, 2023 and Feb 16, 2022
-Current terms/rates: Variable 1.45%, Fixed 2.34%
-Also, I believe both were originally on 30 year amortization periods. Currently the remaining amortization periods are 15.5yrs and 18yrs respectively (I've increased monthly payments each year)

Scotia is offering 1.33% 5 yr variable for the upcoming renewal via their online mortgage renewal offer (haven't spoken to an advisor yet).

Based on my calcs, cost to cancel the variable mortgage is ~$900 + any additional fees.

Let me know your thoughts. Thanks!
You can get 1.15% 5-year variable and we can consolidate both mortgages into the new one. Yes, you have to pay the penalty on the 2nd mortgage though.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Miguel wrote: Thanks Paul, I've gotten that rate with BMO, I was hopping someone could come in under 1.15%.... any options around 1.10%?
1.15% will be the lowest rate available for your situation. If your original mortgage was insured (meaning you put down less than 20% down and therefore payed a CMCH insurance premium), then 1.10% would be available to you. If you already have 1.15% ready to go, then you're all set with the lowest rate.
Paul Meredith
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(lic. 10532)
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PaulMeredith wrote: 1.15% will be the lowest rate available for your situation. If your original mortgage was insured (meaning you put down less than 20% down and therefore payed a CMCH insurance premium), then 1.10% would be available to you. If you already have 1.15% ready to go, then you're all set with the lowest rate.
Understood, thanks Paul.

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