Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Sep 13, 2011
7038 posts
3631 upvotes
Toronto
Plucky123 wrote: - original purchase price: $782,000
- original purchase date (month and year): Dec 2015
- Current property value (approx): $782,500 (MPAC) & $1,400,000
- mortgage amount needed:
- did you pay CMHC (or similar) insurance on the home when you purchased it (if switching): No
- current lender: BMO
- do you you have a second component such as a Home Equity Line of Credit (HELOC) attached to your mortgage? Yes
- primary residence or rental property: Primary residence
- maturity date: HELOC (Nov 14, 2018), mortgage (Nov 22)
- Location: Thornhill, ON
- Family Gross Income: 200K (married)
- Payment Frequency: Bi-Weekly
- Current home mortgage balance: $407,375
- Current HELOC balance: $26,000 (if possible would like it to be combined to home mortgage)

BMO is offering for 2 year fix for 3.24%, 5 year fix for 3.54% and 5 year variable for 2.81% for 25 year amortization.
What is the best rate available for 2 year fix, 2 year variable, 5 year fix and 5 year variable?

Are following rates still available 3.14% for 5 year fix and 2.46% for 5 year variable?

Thanks!!!
Yes, the 5 year fixed at 3.14% and variable at prime -1.24% (i2.46%) are still available and they would apply to your situation. As you are in a collateral charge mortgage (any mortgage with a HELOC attached to it is a collateral charge), there would be legal and appraisal fees, in addition to the discharge fee charged by BMO. Around $1,400 all together. In this case, the discharge fee and appraisal fee can be paid for you. The legal fee (approximately $800 in Ontario), would be added to your new mortgage amount.

After factoring in the $800 fee, you will save $6,988.61 over the 5 year term when comparing the 3.54% you are being offered from your bank with the 3.14% being offered here. I'm basing this on a 20 year amortization, but numbers will be somewhat similar regardless of your actual amortization.

*EDIT: I didn't factor in the HELOC, so the actual savings will be even greater.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Jr. Member
Jun 19, 2018
155 posts
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Edmonton
Hello,

In the market to purchase a first home and have gotten one quote so far from RBC: 5 yr fixed @ 3.64%. Will applying at a mortgage broker count as another hit to my credit report or would I be free to apply to as many within a certain period.

What would be the best rate available to me? I was reading back a few pages and noticed 3.14% but it seemed to be with down payments >20%.

Looking to spend: $400-420K
Location: Edmonton AB or Leduc AB
Downpayment: 5-10%
Debt: None
Income: $110K
Credit Score: ~750-780

Thank you
Newbie
Sep 20, 2018
2 posts
Hello - thanks for all the good info - finding some of it conflicting so I'm hoping one of you could comment on my situation:
- Purchase price > 1M, closing in early December
- Down payment around 50%
- Would like prepayment ability of at least 20%/year

Would anyone be able to give me quotes on a 5 year fixed and 3 year fixed? I was pre-approved with a credit union but they did not make it clear previously that their best rate was not applicable for purchase prices over 1M, so looking around at what my other options are.
Deal Fanatic
Jun 29, 2007
6041 posts
2751 upvotes
Vancouver
JohnyBGood wrote: 2 years ago, I renewed my mortgage for another 5 years (TD called w/ a fantastic promo rate and I agreed to it over the phone...easy choice, at the time). Now that I have 3 years left, things have changed and money is very tight and so I'd like to sell before the 3 years, but I remember I was pretty much told in 2016 that cancelling would be a terrible option not worth considering. I was just wonder what the general penalty might be with TD (I wouldn't even know where to look for my contract and I'll probably request a new one). I'm thinking of switching to renting, which is why transferring the mortgage isn't really an option. Thanks.

Also, if it turns out to be a horrible idea to cancel the mortgage (even though I may not have a choice), is SaversMortgage.com a good place to get a 2nd mortgage from? $50-70k cash for 3 years (until I sell) would be fantastic. Thanks, again.
1st thing you should do is call and ask TD to see what the payout penalty would be. If you got a fantastic promo rate 2 yrs ago, the penalty may only be 3 months interest.

Whatever the 1st rep tells you, call back and ask at least 2-3 other TD reps. From experience, you can't rely on just what 1 bank rep tells you.

As Kevin suggested, see if TD will give you a heloc or a 2nd.

GL.
Last edited by Speedy1 on Sep 21st, 2018 6:18 pm, edited 1 time in total.
Deal Addict
Apr 26, 2004
2337 posts
705 upvotes
GTA
crln04 wrote: Hello - thanks for all the good info - finding some of it conflicting so I'm hoping one of you could comment on my situation:
- Purchase price > 1M, closing in early December
- Down payment around 50%
- Would like prepayment ability of at least 20%/year

Would anyone be able to give me quotes on a 5 year fixed and 3 year fixed? I was pre-approved with a credit union but they did not make it clear previously that their best rate was not applicable for purchase prices over 1M, so looking around at what my other options are.
Do you have a firm closing date?

Depending on your closing date you may be able to qualify for 3.35% on a 5 year fixed rate with 2000-3000$ cash back.
Mortgage Specialist in the GTA
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
kenjyap wrote: Looking for good 5 year closed fixed, monthly, 20 percent down, 30 year amortization. Big bank offered me a builder's commitment fixed rate of 4.84% for 30 year , which I know is ridiculous. I know i am far out in terms of locking in any rate or commitment, but would be great to know who wants to do business with me.

Property: preconstruction freehold townhome
Location: Milton, ON
Closing date: May 1, 2019
Primary residence: primary ( will rent out 2 bedrooms with me staying there)
Price of home: 578k
Employment income: 93k
Debt: None

Thanks for your time.
You got a "builder" rate because the closing date is so far away.

Once you are within 120 days of closing, you can check back to see where rates are at. You're not going to get anything competitive at this point in time.
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
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Toronto
Gadelros wrote: Hello,

In the market to purchase a first home and have gotten one quote so far from RBC: 5 yr fixed @ 3.64%. Will applying at a mortgage broker count as another hit to my credit report or would I be free to apply to as many within a certain period.

What would be the best rate available to me? I was reading back a few pages and noticed 3.14% but it seemed to be with down payments >20%.

Looking to spend: $400-420K
Location: Edmonton AB or Leduc AB
Downpayment: 5-10%
Debt: None
Income: $110K
Credit Score: ~750-780

Thank you
Have you purchased the property yet? The promo rates you see posted here are for approvals only (not pre-approvals).

If you haven't purchased a property yet and have already been pre-approved, there is no reason to get pre-approved again. After you have purchased a property, you can check back to get a promo rate locked-in.

In the meantime, go buy a property and good luck with your home search.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Sep 20, 2018
2 posts
Geese_Howard wrote: Do you have a firm closing date?

Depending on your closing date you may be able to qualify for 3.35% on a 5 year fixed rate with 2000-3000$ cash back.
Yes the closing date is in early December. Who offers that rate?
Jr. Member
Jun 19, 2018
155 posts
79 upvotes
Edmonton
CdnRealEstateGuy wrote: Have you purchased the property yet? The promo rates you see posted here are for approvals only (not pre-approvals).

If you haven't purchased a property yet and have already been pre-approved, there is no reason to get pre-approved again. After you have purchased a property, you can check back to get a promo rate locked-in.

In the meantime, go buy a property and good luck with your home search.

I have not purchased a property yet and I'm not exactly sure what you mean. I had thought once you sign up for the mortgage you are locked into that rate, but it sounds like you're saying I can lock in a promotional rate at a later time.

This shows I need to do some more research.
Deal Addict
Aug 17, 2012
1752 posts
742 upvotes
Windsor
Gadelros wrote: I have not purchased a property yet and I'm not exactly sure what you mean. I had thought once you sign up for the mortgage you are locked into that rate, but it sounds like you're saying I can lock in a promotional rate at a later time.

This shows I need to do some more research.
Yes pre-approval rates are little higher ...

Rate for live deal with less than 20% down payment are 3.14% 5yr fixed...
Deal Addict
Aug 17, 2012
1752 posts
742 upvotes
Windsor
Gadelros wrote: I have not purchased a property yet and I'm not exactly sure what you mean. I had thought once you sign up for the mortgage you are locked into that rate, but it sounds like you're saying I can lock in a promotional rate at a later time.

This shows I need to do some more research.
Yes pre-approval rates are little higher ...

Rate for live deal with less than 20% down payment are 3.14% 5yr fixed...
Deal Addict
Aug 17, 2012
1752 posts
742 upvotes
Windsor
Closing or renewal by Oct 31st best 5yr fixed 3.14% (Insured Mortgages)
3.19% with 90 days rate hold (Insured Mortgages)
Variable - 2.46 with 90 days hold (Insured Mortgages)

Insured Mortgages means less than 20% down payment ..rates applies to renewals also if the original mortgage was insured..
Newbie
Aug 11, 2018
11 posts
Hi there,

This thread has been a huge help for first-time home buyers - thank you for the info!

Looking for rates on a first-time purchase:

First time homebuyer in Mississauga
Purchase Price: $810,000.00
Down Payment: $220,000 (27%)
Payment Preference: Monthly
Property Taxes: $3,800
HH Income: $145,000
Equifax score: 830
No debt

What rates are out there for a 5yr fixed, 25 yr?


Thanks!
Deal Fanatic
User avatar
Sep 13, 2011
7038 posts
3631 upvotes
Toronto
rmobdbdb wrote: Hi there,

This thread has been a huge help for first-time home buyers - thank you for the info!

Looking for rates on a first-time purchase:

First time homebuyer in Mississauga
Purchase Price: $810,000.00
Down Payment: $220,000 (27%)
Payment Preference: Monthly
Property Taxes: $3,800
HH Income: $145,000
Equifax score: 830
No debt

What rates are out there for a 5yr fixed, 25 yr?


Thanks!
Lowest rate for a 5 year fixed in your case would be 3.29% - 3.34%, depending on closing date.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
7038 posts
3631 upvotes
Toronto
rmobdbdb wrote: thanks PaulM - the closing date would be Nov 1

Thank you!
Would be 3.29% in that case.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
rmobdbdb wrote: Hi there,

This thread has been a huge help for first-time home buyers - thank you for the info!

Looking for rates on a first-time purchase:

First time homebuyer in Mississauga
Purchase Price: $810,000.00
Down Payment: $220,000 (27%)
Payment Preference: Monthly
Property Taxes: $3,800
HH Income: $145,000
Equifax score: 830
No debt

What rates are out there for a 5yr fixed, 25 yr?


Thanks!
With 25-29% down, best rate is 3.24% 5-year fixed.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
User avatar
Jul 25, 2015
2544 posts
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Burnaby, BC
Does the mortgage amount effects the interest rate? So for example let's say at the end of the 5 year term the renewal amount is 400k vs 150k?
Also will variable vs fixed rate be effected by the amount remaining for renewal?
Not sure if my question is clear or not.
Last edited by Piklishi on Sep 21st, 2018 5:47 pm, edited 1 time in total.
Deal Guru
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Feb 2, 2014
11233 posts
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Toronto
Piklishi wrote: Does the mortgage amount effects the interest rate? So for example let's say at the end of the 5 year term the renewal amount is 400k vs 150k?
Also will variable vs fixed make a difference?
Not sure if my question is clear or not.
Yes and no.

LTV (loan to value) effects the rate. Mortgages at 65% LTV or less carry a better rate than mortgages at 75% LTV for example.

LTV is simply mortgage amount / current property value.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
User avatar
Jul 25, 2015
2544 posts
2555 upvotes
Burnaby, BC
Thanks @ CdnRealEstateGuy I didnt know that.

So is the range that wide? From 0 to 65% to get a better rate? I would be at the lower end of that, between 10% and 15%.

I was just debating if I should go for a big lump sum right before the 5 year term is over and so, to have a smaller mortgage amount for the new term. Or just to keep that amount for a lump sum in the new term?
Last edited by Piklishi on Sep 21st, 2018 6:10 pm, edited 2 times in total.

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