Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Apr 19th, 2019 3:45 pm
Newbie
Dec 17, 2012
90 posts
7 upvotes
GTA
What are the implications as being a guarantor to a mortgage or LOC?
Does it show in the credit report?
Does it affect the guarantor's future ability to get his own mortgages?
Is the role "guarantor" forever until the LOC is paid off?
Newbie
Dec 28, 2014
10 posts
1 upvote
ON
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
Member
Oct 18, 2006
289 posts
63 upvotes
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.
Penalty Box
User avatar
Feb 2, 2014
6170 posts
1392 upvotes
Toronto
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
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Jr. Member
Dec 21, 2010
174 posts
90 upvotes
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/
Sr. Member
Sep 19, 2012
540 posts
363 upvotes
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!
Sr. Member
Apr 1, 2005
643 posts
16 upvotes
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
1 upvote
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%.
Deal Addict
User avatar
Dec 1, 2015
1812 posts
852 upvotes
Etobicoke, ON
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
122 posts
25 upvotes
Toronto
I am Looking at the HELOC rate? What is the standard Admin cost for this? Thanks
Newbie
Feb 14, 2015
60 posts
5 upvotes
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?
Penalty Box
User avatar
Feb 2, 2014
6170 posts
1392 upvotes
Toronto
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
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Deal Addict
User avatar
Dec 1, 2015
1812 posts
852 upvotes
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
86 posts
12 upvotes
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?

Top

Thread Information

There are currently 6 users viewing this thread. (4 members and 2 guests)

rateconnect, elronF, JakeBD, hoob