Real Estate

The Official Mortgage Rates Thread

Sr. Member
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Mar 9, 2012
684 posts
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RFD is pro Tangerine & pro non-bank lenders. Fact is you can get same or better rates from the big banks depending of who you are and what are your assets with the financial institution. There's a myth where people claim that non-bank lenders offer a better package and better rates, don't be fooled... if you pay less you get less. Just do your own researches and then make your own conclusion on where to get your mortgage. Don't let them troll you.
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Mar 9, 2012
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Don't forget to update your links Paul, some of them are as old as from 2011. Face With Stuck-out Tongue And Tightly-closed Eyes
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Nov 23, 2003
1688 posts
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skunkyjosh wrote: RFD is pro Tangerine & pro non-bank lenders. Fact is you can get same or better rates from the big banks depending of who you are and what are your assets with the financial institution. There's a myth where people claim that non-bank lenders offer a better package and better rates, don't be fooled... if you pay less you get less. Just do your own researches and then make your own conclusion on where to get your mortgage. Don't let them troll you.
Are you saying a major bank is offering better or same:2.05% on 5 year variable and 2.19% on fixed 5 year fixed..of course after your best negotiation? What if you don't have any assets at that bank? Do you still stand a chance?
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Mar 9, 2012
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Singh_21 wrote:
skunkyjosh wrote: RFD is pro Tangerine & pro non-bank lenders. Fact is you can get same or better rates from the big banks depending of who you are and what are your assets with the financial institution. There's a myth where people claim that non-bank lenders offer a better package and better rates, don't be fooled... if you pay less you get less. Just do your own researches and then make your own conclusion on where to get your mortgage. Don't let them troll you.
Are you saying a major bank is offering better or same:2.05% on 5 year variable and 2.19% on fixed 5 year fixed..of course after your best negotiation? What if you don't have any assets at that bank? Do you still stand a chance?
Your best odds of getting strong rates are on renewals since it cost them pretty much nothing to renew your mortgage. On a new mortgage, it's a different game but it's still possible to match what non-bank lenders offers. They make you believe it's not possible so you do business with them. However, will the mortgage specialist from the big bank agrees to reduce his commission for you? Just remember that if you work with a big bank as a mortgage specialist, you split your commission with the big boys . If you work as a non-bank lender mortgage specialist, you don't have to split your commission as much which is why they offer lower rate. If you don't run through mortgage prepayment charges by breaking your current mortgage, the difference is not that big, especially with discounts you might be able to get at the time of the renewal. There's also the convenience of walking into the bricks and motors and the how you feel as having "one bank one stop" for all your needs.
Deal Guru
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Aug 8, 2012
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BC
skunkyjosh wrote:
Singh_21 wrote:
skunkyjosh wrote: RFD is pro Tangerine & pro non-bank lenders. Fact is you can get same or better rates from the big banks depending of who you are and what are your assets with the financial institution. There's a myth where people claim that non-bank lenders offer a better package and better rates, don't be fooled... if you pay less you get less. Just do your own researches and then make your own conclusion on where to get your mortgage. Don't let them troll you.
Are you saying a major bank is offering better or same:2.05% on 5 year variable and 2.19% on fixed 5 year fixed..of course after your best negotiation? What if you don't have any assets at that bank? Do you still stand a chance?
Your best odds of getting strong rates are on renewals since it cost them pretty much nothing to renew your mortgage. On a new mortgage, it's a different game but it's still possible to match what non-bank lenders offers. They make you believe it's not possible so you do business with them. However, will the mortgage specialist from the big bank agrees to reduce his commission for you? Just remember that if you work with a big bank as a mortgage specialist, you split your commission with the big boys . If you work as a non-bank lender mortgage specialist, you don't have to split your commission as much which is why they offer lower rate. If you don't run through mortgage prepayment charges by breaking your current mortgage, the difference is not that big, especially with discounts you might be able to get at the time of the renewal. There's also the convenience of walking into the bricks and motors and the how you feel as having "one bank one stop" for all your needs.

Which bank do you work for?
You are trying to compare the bank mortgage specialist commission with a broker?
Let's compare the overhead cost of the lenders. The bank has to pay for thousands of branches and employees and marketing commercials with animated penguins, etc.

That money comes from profits they make off your mortgage and other banking.

It's the same as with savings accounts. Online savings accounts pay higher rates and have lower overhead costs.

A bank doesn't care if it loses your mortgage if you are a hard negotiator because they will just replace it with a mortgage for a non-negotiating sucker.

This has been the experience of many.
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Member
Jun 15, 2009
237 posts
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Victoria
I just renewed my mortgage on September 1st (6 months early) with BMO - I was offered 2.09% 2 year fixed, 2.54% 5 year fixed and prime -0.35 for 5 year variable (2.35%). I accepted the 2 year rate as it was the lowest and it's a regular conventional mortgage with all the normal prepayment offerings. Also my old interest rate was 3.676%, so the sooner I could get into a lower rate, the better so I was really happy to do such an early renewal.

My father-in-law once said, when the family was discussing mortgages around the dinner table, "I never had a problem deciding which term to take: I just accepted the term that had the lowest interest rate, and that was usually the 1 or 2 year." Great advice, IMO.

On another blog I follow, a mortgage broker had this to say about fixed rates: "The reason it seems fixed rate mortgages are peddled more is that it’s a lot easier to qualify a borrower under a fixed rate. Under a fixed rate the borrower qualifies at the actual interest rate they will pay. Variable rate mortgages require qualifying under the benchmark rate, which at 4.64% is almost twice that of the most competitive 5 yr fixed."
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Aug 8, 2012
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honsolo wrote: On another blog I follow, a mortgage broker had this to say about [5-yr] fixed rates: "The reason it seems [5-yr] fixed rate mortgages are peddled more is that it’s a lot easier to qualify a borrower under a [5-yr] fixed rate. Under a [5-yr] fixed rate the borrower qualifies at the actual interest rate they will pay. Variable rate mortgages [and fixed rates of less than 5 years] require qualifying under the benchmark rate, which at 4.64% is almost twice that of the most competitive 5 yr fixed."
Fixed that for you.

That qualifying rate also applies to fixed rates of <5yr term, so everywhere you said "fixed rates" should say "5-yr fixed rates".

This rule also isn't mandatory if you put 20% down.
Last edited by ace604 on Sep 25th, 2016 5:42 pm, edited 1 time in total.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Member
Jun 15, 2009
237 posts
72 upvotes
Victoria
ace604 wrote:
Fixed that for you.

That qualifying rate also applies to fixed rates of <5yr term, so everywhere you said "fixed rates" should say "5-yr fixed rates".

This rule also isn't mandatory if you put 20% down.
Good info for people. Thanks.
Sr. Member
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Mar 9, 2012
684 posts
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ace604 wrote:
skunkyjosh wrote:
Singh_21 wrote:

Are you saying a major bank is offering better or same:2.05% on 5 year variable and 2.19% on fixed 5 year fixed..of course after your best negotiation? What if you don't have any assets at that bank? Do you still stand a chance?
Your best odds of getting strong rates are on renewals since it cost them pretty much nothing to renew your mortgage. On a new mortgage, it's a different game but it's still possible to match what non-bank lenders offers. They make you believe it's not possible so you do business with them. However, will the mortgage specialist from the big bank agrees to reduce his commission for you? Just remember that if you work with a big bank as a mortgage specialist, you split your commission with the big boys . If you work as a non-bank lender mortgage specialist, you don't have to split your commission as much which is why they offer lower rate. If you don't run through mortgage prepayment charges by breaking your current mortgage, the difference is not that big, especially with discounts you might be able to get at the time of the renewal. There's also the convenience of walking into the bricks and motors and the how you feel as having "one bank one stop" for all your needs.

Which bank do you work for?
You are trying to compare the bank mortgage specialist commission with a broker?
Let's compare the overhead cost of the lenders. The bank has to pay for thousands of branches and employees and marketing commercials with animated penguins, etc.

That money comes from profits they make off your mortgage and other banking.

It's the same as with savings accounts. Online savings accounts pay higher rates and have lower overhead costs.

A bank doesn't care if it loses your mortgage if you are a hard negotiator because they will just replace it with a mortgage for a non-negotiating sucker.

This has been the experience of many.
Do you give your money to the less fortunate people like itinerants and homeless people too just because they don't have the same luck as everyone else?
All I'm saying is that non-bank lenders can only provide better rates right away due to commission fees being lower than bank lenders. Are you saying it's false?

I've had mortgages with Multi-Pret, TD, RBC and BMO in the past.
Jr. Member
Sep 1, 2012
111 posts
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Ottawa/Gatineau
Would you take a 2 years fixed at 2.04% with 1000$ cashback or 5 years fixed at 2.19 with no cashback?
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Feb 4, 2008
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Would depend on the amount of the mortgage and the amortization.

If you click on the link in my signature you will find a calculator to help you out.
www.mortgagecalculatortoolkit.com

Do your mortgage math correctly!
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Feb 2, 2014
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Toronto
stefxx wrote: Would you take a 2 years fixed at 2.04% with 1000$ cashback or 5 years fixed at 2.19 with no cashback?
How much is the mortgage amount? That is key to know.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Jr. Member
Sep 1, 2012
111 posts
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Ottawa/Gatineau
CdnRealEstateGuy wrote:
stefxx wrote: Would you take a 2 years fixed at 2.04% with 1000$ cashback or 5 years fixed at 2.19 with no cashback?
How much is the mortgage amount? That is key to know.
Lets say 350k
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Sep 23, 2014
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Toronto, ON
skunkyjosh wrote:
ace604 wrote:
skunkyjosh wrote:

Your best odds of getting strong rates are on renewals since it cost them pretty much nothing to renew your mortgage. On a new mortgage, it's a different game but it's still possible to match what non-bank lenders offers. They make you believe it's not possible so you do business with them. However, will the mortgage specialist from the big bank agrees to reduce his commission for you? Just remember that if you work with a big bank as a mortgage specialist, you split your commission with the big boys . If you work as a non-bank lender mortgage specialist, you don't have to split your commission as much which is why they offer lower rate. If you don't run through mortgage prepayment charges by breaking your current mortgage, the difference is not that big, especially with discounts you might be able to get at the time of the renewal. There's also the convenience of walking into the bricks and motors and the how you feel as having "one bank one stop" for all your needs.

Which bank do you work for?
You are trying to compare the bank mortgage specialist commission with a broker?
Let's compare the overhead cost of the lenders. The bank has to pay for thousands of branches and employees and marketing commercials with animated penguins, etc.

That money comes from profits they make off your mortgage and other banking.

It's the same as with savings accounts. Online savings accounts pay higher rates and have lower overhead costs.

A bank doesn't care if it loses your mortgage if you are a hard negotiator because they will just replace it with a mortgage for a non-negotiating sucker.

This has been the experience of many.
Do you give your money to the less fortunate people like itinerants and homeless people too just because they don't have the same luck as everyone else?
All I'm saying is that non-bank lenders can only provide better rates right away due to commission fees being lower than bank lenders. Are you saying it's false?

I've had mortgages with Multi-Pret, TD, RBC and BMO in the past.
Are you completely discounting the fact that banks have much higher overhead and is reflected in the rates? When I needed the $1M mortgage in 2014, no banks can come close to 2 year fixed @ 2.23%.
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Apr 26, 2004
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GTA
[/quote]

Lets say 350k
[/quote]

You can also get a 3 year at 2.14% with 1750$ cash back if it's closing within 30 days.
Mortgage Specialist in the GTA

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