Real Estate

The Official Mortgage Rates Thread

Newbie
Feb 20, 2008
14 posts
Just starting to explore options for our first mortgage. Basic details below:

Property Value: $950K
Mortgage Balance: $760K (19.99% or 20% down payment)
Amortization: 25 or 30 year
Household Income: $170k
Credit Scores: 810+
Location: Toronto, ON

Looking for a 5 year variable or fixed, and it doesn't have to be a major bank. Curious if we would can get a substantially better rate on a 25 year amortization if we put down just under 20% to get it insured with CMHC. Also wondering what the best rate out there is on a 30 year amortization.

Thanks in advance for any and all help!
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Jan 31, 2018
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prankmunky1 wrote: Just starting to explore options for our first mortgage. Basic details below:

Property Value: $950K
Mortgage Balance: $760K (19.99% or 20% down payment)
Amortization: 25 or 30 year
Household Income: $170k
Credit Scores: 810+
Location: Toronto, ON

Looking for a 5 year variable or fixed, and it doesn't have to be a major bank. Curious if we would can get a substantially better rate on a 25 year amortization if we put down just under 20% to get it insured with CMHC. Also wondering what the best rate out there is on a 30 year amortization.

Thanks in advance for any and all help!
You are much better off putting the 20% down to avoid the 2.80% CMHC premium or 21k + see illustration below

Rates on 25 yrs for the variable/fixed are below :

Variable :

less than 20% down(insured deal) rate would be 2.21% payment & $3392/monthly

20% down rate 2.35% & $3348/monthly

You can realize $44 monthly savings on a CMHC insured deal but this does not outweigh the 21k+(2.80% premium) you would have to pay

5 yr fixed rates 3.14% full featured product

30 yr rates

5 yr variable 2.50%

5 yr fixed 3.44%

Hope this helps

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Newbie
Mar 31, 2017
28 posts
8 upvotes
Hi guys,

I am currently with RBC and my mortgage has two segments. One is $137000 with 5 year fixed rate 3.44% which I renewed in May 2018. The other one is $351000 and up for early renewal. Rbc can only offer 4 year fixed at rate 3.49% and 3 year fixed at 3.39%.

What do you guys think my opinions are? I know that I have to pay penalty if I break the just renewed one.

Thanks in advance.
Sr. Member
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Mar 12, 2006
892 posts
243 upvotes
hmm looking at getting a pre-approval to possibly buy something around Prince George. Relocating.

Do I go to my banks locally, and make appointments and see what rates they can offer me/pre-approval? and Just choose the best one pretty much? Sorry, pretty new to this all.

Some info if it helps to guage my situation,

Income 85,000, potentially up to 110k

No debt.

Excellent Credit

Downpayment will be 20%.

Looking at a mortgage for around 270k, 5 year variable.
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Sep 13, 2011
7037 posts
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Toronto
GaryC886 wrote: Hi guys,

I am currently with RBC and my mortgage has two segments. One is $137000 with 5 year fixed rate 3.44% which I renewed in May 2018. The other one is $351000 and up for early renewal. Rbc can only offer 4 year fixed at rate 3.49% and 3 year fixed at 3.39%.

What do you guys think my opinions are? I know that I have to pay penalty if I break the just renewed one.

Thanks in advance.
I would find out what your penalty would be to break your fixed component early. Being a fixed rate from a major bank, penalty will likely be a lot higher than it would be with other lenders. Fortunately, you only owe $137,000 on that component. Also, since you are in a collateral mortgage, there are additional fees such as legal, appraisal and discharge fee. In some cases, some or even all of these fees can be covered for you, depending on which product you switch to. Even with penalty, it would likely make sense to leave RBC.

Lowest 4 year fixed right now is 2.99% providing that your original purchase price was under $1 million.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
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Sep 13, 2011
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Toronto
Rifle wrote: hmm looking at getting a pre-approval to possibly buy something around Prince George. Relocating.

Do I go to my banks locally, and make appointments and see what rates they can offer me/pre-approval? and Just choose the best one pretty much? Sorry, pretty new to this all.

Some info if it helps to guage my situation,

Income 85,000, potentially up to 110k

No debt.

Excellent Credit

Downpayment will be 20%.

Looking at a mortgage for around 270k, 5 year variable.
Definitely no need to apologize for being new! RFD is a great resource for finding all the information you need. Not just about rates, but about mortgages in general. You can either go to a bank, or you can speak with a mortgage broker. At this stage, you're really just trying to find out how much you will qualify for. You can also lock in a rate at this stage as well, although there are usually significantly lower rates that become available to you once you have an accepted offer in hand.

When dealing with a bank, you of course have to go local. When dealing with a broker, many of us work across Canada and there is no need for a face to face meeting.

Based on the information you provided, you should qualify for a mortgage of around $370,000 - $400,000 using your base income alone. So shouldn't be any issues with you qualifying for the $270,000 you are looking for. Lowest variable rate with 20% down right now is prime -1.10% (2.35%).
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Member
Jun 29, 2017
437 posts
1470 upvotes
If BOC were to increase interest rates tomorrow, how long does it usually take for lenders to adjust the rates they are offering?
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Apr 16, 2009
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Halifax
robfun wrote: If BOC were to increase interest rates tomorrow, how long does it usually take for lenders to adjust the rates they are offering?
<24 hrs
Newbie
Jan 1, 2007
15 posts
2 upvotes
Thanks Kevin,

The current property value is would be around 650K
Newbie
Mar 4, 2015
10 posts
Toronto, ON
Hello all,

Looking to get a pre-approval to buy a home in the Toronto/Mississauga area.
Income is around 140K and I will be putting down 20%
Absolutely no debt, excellent credit

Please shoot me a PM to get the ball rolling.

Thanks so much.
Newbie
Sep 13, 2013
94 posts
27 upvotes
Ottawa
Hi,

Wife and I are looking at a new build in Ottawa (K0A 1W0).

Purchase price: around $380,000
Downpayment: $80,000
Mortgage amount: $300,000

We are first time home buyers. What would be the best 5-year fixed and variable rate? We are looking at a max mortgage of $300,000 as that is what I qualify for based on my sole income and it's in our comfort zone.

Thank you.
Deal Addict
Aug 3, 2017
1605 posts
1366 upvotes
DefconZero wrote: <24 hrs
To adjust their prime rates. For fixed rates, they are adjusted from time to time and are not as directly linked to the prime rate as they are to long term bonds and other market instruments.
Deal Fanatic
Jan 18, 2004
6564 posts
264 upvotes
Markham
Mortgage Brokers please PM me. I'm looking for rates on a renewal. Thanks.
This space for rent
Deal Guru
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Feb 2, 2014
11233 posts
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Toronto
eroci7 wrote: Hi,

Wife and I are looking at a new build in Ottawa (K0A 1W0).

Purchase price: around $380,000
Downpayment: $80,000
Mortgage amount: $300,000

We are first time home buyers. What would be the best 5-year fixed and variable rate? We are looking at a max mortgage of $300,000 as that is what I qualify for based on my sole income and it's in our comfort zone.

Thank you.
2.35% 5-year variable and 3.14% 5-year fixed.

Any idea when the closing date is? If it's not for a few years, you can't get a competitive rate held now, as most rate holds are for 90-120 days.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
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Sep 13, 2011
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Toronto
robfun wrote: If BOC were to increase interest rates tomorrow, how long does it usually take for lenders to adjust the rates they are offering?
It depends on the lender. Some lenders will adjust the same day. Others will wait a couple of days. Some will wait until the start of the next month. The big banks are always the first lenders to increase their rates.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Newbie
May 16, 2017
14 posts
1 upvote
Montreal
Hello all,

I need help/advice from experts on this forum regarding a roadblock I'm facing about a 2nd rank mortgage I was about to get from CIBC. Thanks to this thread, I looked for a heloc in 2nd position (rather than having a collateral mortgage on my first rank mortgage).

In short, the heloc is approved from CIBC. Just the perfect deal I was aiming for (heloc at prime+0% and a few more interesting goodies).

However, the roadblock is from a legal perspective. My first rank mortgage is with MCAP where I have the value-flex mortgage (hence, a bona-fide clause) and this MCAP mortgage is a transfer from Group Investor (they refer to this as a 'subrogation').

The issue (that I'm being told) is that the full original amount of the mortgage from Investor is still registered against our property even though the mortgage amount with MCAP is about one third of that (660k vs 262k). As a result, the ratio does not allow CIBC to register any amount against our property (valued at 711k).

As far as you know, is this the typical way a mortgage switch works? I would have expected the registered amount to be the amount on my MCAP mortgage (262k). Given that I have a bona-fide clause, am I done without any alternatives? I did discuss with MCAP first about an heloc but they were offering prime + 1% (!). So, I looked for alternatives and got this deal with CIBC.

Thanks for any hindsight.
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Dec 1, 2015
1968 posts
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Etobicoke, ON
Talk to another branch. I had pretty much the same issue, getting my Heloc with CIBC behind a mortgage with Mcap... one time CIBC said it was fine, then told me absolutely no. Talked to the branch manager who showed me the email from the underwriter confirming they could not do it as it was CIBC's policy to register the new amount as the appraised (so they wanted to register a 1.2 million dollar in 2nd position).. I spoke with anotehr branch and got it done 1 month later.

blueeyes007 wrote: Hello all,

I need help/advice from experts on this forum regarding a roadblock I'm facing about a 2nd rank mortgage I was about to get from CIBC. Thanks to this thread, I looked for a heloc in 2nd position (rather than having a collateral mortgage on my first rank mortgage).

In short, the heloc is approved from CIBC. Just the perfect deal I was aiming for (heloc at prime+0% and a few more interesting goodies).

However, the roadblock is from a legal perspective. My first rank mortgage is with MCAP where I have the value-flex mortgage (hence, a bona-fide clause) and this MCAP mortgage is a transfer from Group Investor (they refer to this as a 'subrogation').

The issue (that I'm being told) is that the full original amount of the mortgage from Investor is still registered against our property even though the mortgage amount with MCAP is about one third of that (660k vs 262k). As a result, the ratio does not allow CIBC to register any amount against our property (valued at 711k).

As far as you know, is this the typical way a mortgage switch works? I would have expected the registered amount to be the amount on my MCAP mortgage (262k). Given that I have a bona-fide clause, am I done without any alternatives? I did discuss with MCAP first about an heloc but they were offering prime + 1% (!). So, I looked for alternatives and got this deal with CIBC.

Thanks for any hindsight.
Life can be good
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Apr 16, 2009
1389 posts
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Halifax
dolfan1980 wrote: To adjust their prime rates. For fixed rates, they are adjusted from time to time and are not as directly linked to the prime rate as they are to long term bonds and other market instruments.
Yes, true enough.

My answer was purely based on the assumption that if one asks about rates changing based on BoC, they're referring to variable.
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
mcew8032 wrote: Hi,

First time home buyer, not sure how this works. Looking for pre-approval and eventually purchase a condo in downtown Toronto.

Purchase Price: approx. $600K
Down: $150K
Salary: $98,500

No debt. Excellent credit.

Thanks-
For an approval, you're looking at 3.14% 5-year fixed and 2.35% 5-year variable. Note, these are for APPROVALS only (not pre-approvals).
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
blueeyes007 wrote: Hello all,

I need help/advice from experts on this forum regarding a roadblock I'm facing about a 2nd rank mortgage I was about to get from CIBC. Thanks to this thread, I looked for a heloc in 2nd position (rather than having a collateral mortgage on my first rank mortgage).

In short, the heloc is approved from CIBC. Just the perfect deal I was aiming for (heloc at prime+0% and a few more interesting goodies).

However, the roadblock is from a legal perspective. My first rank mortgage is with MCAP where I have the value-flex mortgage (hence, a bona-fide clause) and this MCAP mortgage is a transfer from Group Investor (they refer to this as a 'subrogation').

The issue (that I'm being told) is that the full original amount of the mortgage from Investor is still registered against our property even though the mortgage amount with MCAP is about one third of that (660k vs 262k). As a result, the ratio does not allow CIBC to register any amount against our property (valued at 711k).

As far as you know, is this the typical way a mortgage switch works? I would have expected the registered amount to be the amount on my MCAP mortgage (262k). Given that I have a bona-fide clause, am I done without any alternatives? I did discuss with MCAP first about an heloc but they were offering prime + 1% (!). So, I looked for alternatives and got this deal with CIBC.

Thanks for any hindsight.
As Andre said, keep trying. If not, you can try TD, but I doubt you'll get the Prime +0%.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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