Real Estate

The Official Mortgage Rates Thread

Member
Oct 18, 2006
296 posts
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Vaxine wrote:
May 10th, 2016 12:41 pm
My current mortgage sitting at 400k is up for renewal. Current lender Bmo. Was offered 2.09 for 2 yrs fixed from bmo. Should I go for it.?
Thanks to this, I was able to go back to my BMO rep and get my rate lowered to 2.09% 2yr fixed (was 2.24%). I also have a HELOC for prime + 0%.

Good rates are out there, just need to push.
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Feb 2, 2014
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SizzleChest wrote:
May 17th, 2016 4:00 pm
Are more people opting for a fixed mortgage recently? I'm up for renewal soon and from what I've been hearing/reading, the rates are too close to make the risk of choosing a variable rate worthwhile. I went variable for the past 5 years and I know that historically, variable has been the better choice *almost* always. I can afford increased payments if the variable rate goes up, but obviously would like to keep as much money in my pocket as possible.
Given the spread between fixed and variable is so thin now, it's such a tough choice. Last year I was always pushing variable as the spread was greater...now, I'm 50-50 between the two.

You can do much better than 2.49% and 2.30% btw.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Jr. Member
Dec 21, 2010
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I am on the same boat - deciding between 5-yr fixed/variable or 2-yr fixed. My offers are 5-yr fixed 2.49%, 2-yr fixed 2.14% and 5-year variable 2.25% - all come with a fee waiver of $1260 to break existing mortgage.

One thing I want to avoid is the IRD for 5-yr - runs up to $10k if I break midterm - so 5-yr fixed is off my table.

I am more leaning towards 2-yr fixed now - rates has to go up 3 times after 2 years before I lose vs. 5-yr fixed.

Here is the calculator I used:
http://www.mortgagecalculatortoolkit.co ... alculator/
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Sep 19, 2012
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Calgary
bigmutt15 wrote:
May 18th, 2016 12:44 pm
Generally speaking, which offer out of these two would you go with?

5 year variable, Prime -0.6 (currently 2.1%), 15/15 privileges
2 year fixed, 2.19%, 20/25 privileges
5 year fixed, 2.47%, 20/25 privileges
khkchan wrote:
May 18th, 2016 1:59 pm
I am on the same boat - deciding between 5-yr fixed/variable or 2-yr fixed. My offers are 5-yr fixed 2.49%, 2-yr fixed 2.14% and 5-year variable 2.25% - all come with a fee waiver of $1260 to break existing mortgage.
I am more leaning towards 2-yr fixed now - rates has to go up 3 times after 2 years before I lose vs. 5-yr fixed.
For me, right now short term fixed rates are the way to go unless you can get a discount of 70bps or more on a prime rate variable mortgage. Depending on your mortgage you could probably find a 2-year fixed rate in the 2.0%-2.1% range, and because of that you're beating most currently available variable rates (ie: those with a spread of less than 70bps).

All that said, if you are really bearish on interest rates and think a drop or two are in the cards over the next 2 years, then variable is the way to go. FWIW - I would also never sign up for a 5-year fixed rate!
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Apr 1, 2005
651 posts
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Leslieville
my mortgage is in 2 chunks for hte same property, one of them is expiring. Do I have to renew the mortgage with the same bank?
Newbie
Dec 28, 2014
10 posts
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ON
ahlaker wrote:
May 18th, 2016 2:19 pm
For me, right now short term fixed rates are the way to go unless you can get a discount of 70bps or more on a prime rate variable mortgage. Depending on your mortgage you could probably find a 2-year fixed rate in the 2.0%-2.1% range, and because of that you're beating most currently available variable rates (ie: those with a spread of less than 70bps).

All that said, if you are really bearish on interest rates and think a drop or two are in the cards over the next 2 years, then variable is the way to go. FWIW - I would also never sign up for a 5-year fixed rate!
Thanks. I think I am going to go with a 3 year fixed I was just offered. 2.24%.
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Dec 1, 2015
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silvermist99 wrote:
May 18th, 2016 3:10 pm
my mortgage is in 2 chunks for the same property, one of them is expiring. Do I have to renew the mortgage with the same bank?
Yes - Multi component mortgages like the ones by National Bank and Scotia mean that there is a single charge registered against the property by the lender (a collateral charge), so it is not possible to move one portion and keep the other. The new lender would have to register his own charge, and it would end up being in 2nd position, like a true 2nd mortgage. The rate would be obscene.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Jr. Member
May 1, 2004
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Toronto
I am Looking at the HELOC rate? What is the standard Admin cost for this? Thanks
Newbie
Feb 14, 2015
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Surrey, BC
Anyone deal with clients in the Lower Mainland? Looking to break my current mortgage with first national and refinance, but it seems like all the best rates are for CMHC insured mortgages? What are the best fixed rates going for refi's?
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silvermist99 wrote:
May 18th, 2016 3:10 pm
my mortgage is in 2 chunks for hte same property, one of them is expiring. Do I have to renew the mortgage with the same bank?
You will have to refinance and payout both mortgages if you want to switch lenders.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
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Dec 1, 2015
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Etobicoke, ON
5y again available at 2.39% for conventional or high ratio deals in pretty much any province in Canada.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Newbie
Oct 16, 2007
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valuemortgage wrote:
May 19th, 2016 6:44 pm
5y again available at 2.39% for conventional or high ratio deals in pretty much any province in Canada.
standard prepayment terms/penalties?
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Dec 1, 2015
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This is with MCAP Flex. 20%+20% pre payment and standard penalty formulas and features. The product is a fully closed term, so you cannot leave them to another lender during the 5y term. You can break it to refinance with them, and can break it when selling the house. Just cant leave for no good reason mid-term.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
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Feb 21, 2004
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valuemortgage wrote:
May 19th, 2016 9:26 pm
This is with MCAP Flex. 20%+20% pre payment and standard penalty formulas and features. The product is a fully closed term, so you cannot leave them to another lender during the 5y term. You can break it to refinance with them, and can break it when selling the house. Just cant leave for no good reason mid-term.
So the penalty is counted when?

I assume this is one of the major drawbacks from going with one of these virtual lenders?

(I'm not bashing them, just trying to understand the diff between brick and mortar banks and these guys. I don't really care who lends me money, just at the better conditions

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