Real Estate

The Official Mortgage Rates Thread

Sr. Member
Mar 1, 2014
539 posts
646 upvotes
arcueid wrote: Hi all

I'm looking for a high ratio mortgage of $800K on a fixed rate for either 3 or 5 years (first time home buyer), closing in 3 weeks. What're the best rates I should be getting right now? What kind of cash backs are brokerages offering, since many are probably using the same lenders?
Congratulations on buying your first home. However, you really should hurry up to get your mortgage done ASAP. 3-week closing is going to be very tight, especially this time of the year.

If you have not been approved for the mortgage yet, your first order of business of business should be to get an approval quickly, instead of thinking ahead about cash back or whatnot.
Jr. Member
Sep 21, 2006
134 posts
5 upvotes
Toronto
gshrfd wrote: Congratulations on buying your first home. However, you really should hurry up to get your mortgage done ASAP. 3-week closing is going to be very tight, especially this time of the year.

If you have not been approved for the mortgage yet, your first order of business of business should be to get an approval quickly, instead of thinking ahead about cash back or whatnot.
Thx for the advice. I already have a couple options in hand, but wanted to check the market to make sure I'm getting the best possible deal before I commit!
Newbie
Jul 14, 2016
2 posts
1 upvote
I just signed with Scotiabank in Calgary for 2.34% Fixed 5yr a week ago. I also have another mortgage for 2.10 variable 5yr fixed. LOC @ prime. I had to push for the 2.34 with scotia but worth it.
Jr. Member
Mar 30, 2007
190 posts
24 upvotes
Vancouver
I'm curious what people think about these options for a $620k mortgage on a new purchase.

5 yr fixed @ 2.29 w/ $1000 cash back (I'd pay the cash back directly to the mortgage)
3 yr fixed @ 2.09
2 yr fixed @ 1.99 (this is just what I've seen people post here from RBC and I'm not even sure if I could get that)

This is really stressing me out. What would you pick and why?
Deal Fanatic
User avatar
Sep 13, 2011
5310 posts
2285 upvotes
Toronto
tareks wrote: I'm curious what people think about these options for a $620k mortgage on a new purchase.

5 yr fixed @ 2.29 w/ $1000 cash back (I'd pay the cash back directly to the mortgage)
3 yr fixed @ 2.09
2 yr fixed @ 1.99 (this is just what I've seen people post here from RBC and I'm not even sure if I could get that)

This is really stressing me out. What would you pick and why?
They are all excellent rates of course. There is really no right or wrong answer and the correct choice really comes down to you personally. Are you a first time homebuyer? More than 50% of first time home buyers end up breaking their mortgage before the end of 5 years. No one ever expects to break their mortgage, yet so many people do. Often as a result of unforeseen circumstances.

Two year terms are well suited to those who think there is a strong chance they will end up breaking the mortgage or moving after a couple of years. It's also good for those who prefer a shorter commitment as their future is unpredictable. Two years will also come up before you even realize it. It's a pretty short term. We also don't know where rates will be at that time, so a two year term really doesn't give you a very long rate guarantee.

The three year fixed is a great middle of the road option. Typically when people break their mortgage, it's usually around the 3 year mark. Not always the case of course, and every situation is different, however this is where most mortgage breaking happens. The 3 year fixed term is a very popular choice these days.

If you feel that you are pretty stable and chances are quite slim that you would end up breaking before the end of 5 years, then the 5 year term is a great option. You're getting one of the lowest fixed rates in history and it's being locked in for 5 years. It's a great choice for more stable borrowers.

Hope this helps, good luck! :)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Addict
Apr 26, 2004
2115 posts
101 upvotes
GTA
tareks wrote: I'm curious what people think about these options for a $620k mortgage on a new purchase.

5 yr fixed @ 2.29 w/ $1000 cash back (I'd pay the cash back directly to the mortgage)
3 yr fixed @ 2.09
2 yr fixed @ 1.99 (this is just what I've seen people post here from RBC and I'm not even sure if I could get that)

This is really stressing me out. What would you pick and why?
You should be able to get back at least 1500$ cash back on all scenarios
Mortgage Specialist in the GTA
Jr. Member
Jun 20, 2012
174 posts
4 upvotes
MARKHAM
I was able to negotiate with RBC to get 2-years fixed offer @1.99%.
I have another offer of 5-year variable @2.05 but that will involve switching lender cost (~1200)

What would you suggest I should go for. leaning towards 2 years fixed but would like to hear from others as well (My mortgage amount is 260k)
Newbie
Aug 8, 2013
6 posts
7 upvotes
Regarding the poster comparing rates above. Here is the logic I am using right now as my mortgage is also up for renewal. I know the future is unknown and ultimately the rates are all awesome (for a smaller mortgage it doesn't really matter). Just a thought exercise so please don't take it super serious as nobody knows the future. I assumed 2 year term would be repeated and that rates differences (5 year variable discount is around the same as 2 year fixed). Again this is just a though exercise but its how I try to make the 'right' choice. :)

BOC 2x0.25% increases - year 3 and 5 - global economy picks up
1 2 3 4 5 AVG
2 year 1.99 1.99 2.3 2.3 2.55 2.226
3 year 2.09 2.09 2.09 2.3 2.3 2.174
5 year 2.29 2.29 2.29 2.29 2.29 2.29
5 year var. 2.05 2.05 2.3 2.3 2.55 2.25

2 decreased of 0.15 in years 3 and 5 - serious CND economic problems leading to 2 more rate cuts (banks pass on partial cuts)
1 2 3 4 5 AVG
2 year 1.99 1.99 1.9 1.9 1.75 1.906
3 year 2.09 2.09 2.09 1.9 1.9 2.014
5 year 2.29 2.29 2.29 2.29 2.29 2.29
5 year var. 2.05 2.05 1.9 1.9 1.75 1.93

rates stay constant for 5 years - sideways economy
1 2 3 4 5 AVG
2 year 1.99 1.99 1.99 1.99 1.99 1.99
3 year 2.09 2.09 2.09 1.99 1.99 2.05
5 year 2.29 2.29 2.29 2.29 2.29 2.29
5 year var. 2.05 2.05 2.05 2.05 2.05 2.05
Sr. Member
Mar 1, 2014
539 posts
646 upvotes
reachme wrote: I was able to negotiate with RBC to get 2-years fixed offer @1.99%.
I have another offer of 5-year variable @2.05 but that will involve switching lender cost (~1200)

What would you suggest I should go for. leaning towards 2 years fixed but would like to hear from others as well (My mortgage amount is 260k)
Take the 2-yr fixed.
Deal Fanatic
User avatar
Sep 13, 2011
5310 posts
2285 upvotes
Toronto
reachme wrote: I was able to negotiate with RBC to get 2-years fixed offer @1.99%.
I have another offer of 5-year variable @2.05 but that will involve switching lender cost (~1200)

What would you suggest I should go for. leaning towards 2 years fixed but would like to hear from others as well (My mortgage amount is 260k)
Whenever you have a choice between fixed and variable where the fixed rate is lower than the variable, you'll almost always want to go with the fixed rate. You have a rate that is guaranteed for two years vs. a rate that is not only higher but also not guaranteed. The only time I would suggest a variable in this particular case would be if there was a very high probability that you would be breaking before the end of the term. Even then, I may still suggest the fixed rate depending on when you think you might be breaking the mortgage.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Sep 30, 2014
34 posts
7 upvotes
Hamilton, ON
I just wanted to quickly share, if anyone wants a knowledgeable, patient and efficient mortgage broker, Paul Meredith is highly recommended.

I found him on this forum and he has been of great assistance to me (I had zero knowledge of mortgages, and I have been searching for a home for a long time) and Paul has been helpful in making this process as pleasant as possible thus far.
Deal Addict
Oct 3, 2005
1064 posts
32 upvotes
Geese_Howard wrote: You should be able to get back at least 1500$ cash back on all scenarios
Are cashbacks done on renewals too?
Member
Feb 22, 2010
265 posts
98 upvotes
n/a
brutus99 wrote: RBC currently has a great offer for 2 year term @ 1.99%, they just offered it to us for our renewal.
Got offered this as well... on top of that they'll give you $450 cash for mortgages between 250k-499k. And $250 for mortgages less than that. This offer is good until August 3rd but you must renew within 31 days of your renewal date to get it (so they say).
Newbie
Dec 22, 2011
3 posts
Quebec
Hi everyone,

I would like to know what are the best fixed rates I can get for my mortgage in the province of Quebec, I'm currently refinancing my mortgage and the current balance is 208k with CIBC. For the brokers on the forum, you could PM me if you can't post your best rates directly in this forum.

The current offer I negociated from CIBC is 2.39 % 4 years fixed and 2.44 % 5 years fixed, I was wondering if these are the best rates I can get ? I'm also interested to know what are the best rates for 2-3 years fixed terms in Quebec currently.

Thanks in advance for your help !

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