Real Estate

The Official Mortgage Rates Thread

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Sep 13, 2011
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Jeremyl007 wrote: Hi, looking for some rate options for a rental property of mine. Closing is Jan 17.. I'm buying it off a distressed seller who can't close after they bought it pre-construction back in 2011. Mortgage amount 432,000 and that's 80% of the the purchase price so I have 20% down already. Looking at 2, 3, 4 fixed or even variable for more flexibility.

Anyone have information for rates for this kind of situation?
You'll be pretty limited in options here due it being a rental property and an assignment. Rates will be higher than what would be had if you were owner occupying the property and if we didn't have to deal with the assignment as well. Many lenders are not interested in them. Rates would range from around 2.59% on a 2 year fixed to around 2.89% on a 5 year fixed. Variable would be around 2.50% (prime -0.20%).
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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ace604 wrote: Great for some consumers, but you could say it's bad news for other consumers who want the changes to curb the crazy unrealistic real estate growth rates so that they can hope save to buy a house faster than the house prices appreciate away from them :)
The Oct 17 rules didn't have a big impact on the market it appears (as I predicted)...November numbers were pretty big in the GTA.

With all lenders still offering 30-year AMs, qualification based off contract rates for longer term mortgages and financing on million dollar homes, I don't see much changes to the Toronto market.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
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PaulMeredith wrote: Yes. Your credit that Equifax gives you directly is for your own use only. It's allows you to see how your trade lines are reporting and if there is any mysterious or unusual activity showing. The scoring system is also different. You could have a 750 score the one you get from Equifax (FICO score) and a 700 score from a broker or bank (Beacon score). Or vice versa. The requirement to pull your credit also helps to reduce mortgage fraud, which is a big problem for lenders.

So yes, 100% of the time, a broker will be required to pull your credit themselves.

Unless your credit is weak or borderline, or if you have already had numerous credit checks in the past several months, then a credit check is really not going to do you any harm. It's a myth that your score will plummet from just a single check. It might drop a few points, but it's nothing thats going to have any impact at all on your credit worthiness. You can also have as many credit checks as you like within a 45 day period, providing it's all for the purpose of applying for a mortgage. It would all count as only one.
Well but when ever some one pulls a credit inquiry, it does appear on your account . NO ? I had no credit checks in last 2 years and score is very good !
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ahato wrote: Well but when ever some one pulls a credit inquiry, it does appear on your account . NO ? I had no credit checks in last 2 years and score is very good !
Yes, it appears on your account that someone has checked your credit, but this is not a bad thing and doesn't affect you negatively.
Paul Meredith
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Question about my current situation. I purchased a new house and will be selling my old home. New house will cost 640k and will need a mortgage of approx 315k. My understanding when it comes to upgrades is im only able to add those items to the mortgage is if I go through the builder in which case they make an amendment to the price factoring in the upgrades. Is it possible to receive say a mortgage of 330k and use the 15k for upgrades without having to pay ridiculous builder prices for upgrades?
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The mortgage is based on the purchase price on the contract. When you use the builder to purchase upgrades, as they will amend the price, the new and revised price will be used to calculate now much will be financed.

What exactly are you trying to achieve? Pay $15k in upgrades to someone else (like another contractor)? If so, why not simply increase the mortgage amount by $15k, which means you would give $15k less down payment at the time of closing, and use those $15k to pay the contractor? All this work on the property would have to be done after closing, as builders wont likely allow anyone else doing work on the property before closing.
Andre Oliveira - Mortgage Agent at Valuemortgage
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marcopolo85 wrote: Question about my current situation. I purchased a new house and will be selling my old home. New house will cost 640k and will need a mortgage of approx 315k. My understanding when it comes to upgrades is im only able to add those items to the mortgage is if I go through the builder in which case they make an amendment to the price factoring in the upgrades. Is it possible to receive say a mortgage of 330k and use the 15k for upgrades without having to pay ridiculous builder prices for upgrades?
You would be able to do a purchase plus improvements mortgage where the cost of the upgrades would get added on to the current mortgage amount. If you are putting 20% down, you can get up to 80% of this included (up to $40,000). This added money would be held back by your lawyer and then released once the work has been confirmed completed (as the renos would have to take place after closing).

EDIT: Sorry, missed the part about the size of your down payment. Why do you need to include upgrades in the purchase price? Like Andre said, just hold back the money you need from your down payment and then get the renos done after closing.
Paul Meredith
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I must be missing something here. Can someone explain to me how BoC interest rates are 4.64% 5 years but then the mortgage rates brokers give are 2.xx?
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Sep 19, 2012
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crystallight wrote: I must be missing something here. Can someone explain to me how BoC interest rates are 4.64% 5 years but then the mortgage rates brokers give are 2.xx?
That "Posted Rate" you are quoting is essentially the undiscounted interest rate quoted by the Big 6 banks, whereas brokers quoting 2.xx are giving you the "sales/discounted" price. Kind of like MSRP compared to dealer price for a car.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
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Dec 6, 2016
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Good Morning Everyone;

I am in the process to get a early renewal from CIBC for my $600K mortgage on a rental property, currently at 2.04% 1 yr fixed, expiring May 05 2017. The specialist told me yesterday she is trying to get a 2yr fixed rate between 2.09 to 2.14%. Could friends here let me know your best 2yr fix rate recently from CIBC or any lenders?

Much appreciated!
John
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jllmoe wrote: Good Morning Everyone;

I am in the process to get a early renewal from CIBC for my $600K mortgage on a rental property, currently at 2.04% 1 yr fixed, expiring May 05 2017. The specialist told me yesterday she is trying to get a 2yr fixed rate between 2.09 to 2.14%. Could friends here let me know your best 2yr fix rate recently from CIBC or any lenders?

Much appreciated!
John
You are being quoted an AMAZING rate, particularly considering it's a rental property. I would be signing for that in two seconds before they pull the offer to you.
Paul Meredith
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Dec 7, 2014
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For all the Mortgage experts, would you recommend signing a 4 years mortgage vs 2 years? Im not planning to sell....
Thanks!!
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Jigglywiggly wrote: For all the Mortgage experts, would you recommend signing a 4 years mortgage vs 2 years? Im not planning to sell....
Thanks!!
We would need to know the mortgage and what rates are you being offered in order to properly advise.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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Dec 7, 2014
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Markham, ON
HI paul,

Mortgage amount 300k
rate; 2 year 2.09%, 3 year 2.29%, 4 year 239%. with TD. Thanks
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Exact same thing happened to me a couple of weeks ago.

Rental property as well. Got 2 yrs 2.09% starting Dec 1. It's wasn't initially offered in renewal letter or phone call. I called them back and asked for 2.09% as some posted here, the mtg retention rep reviewed my file and approved it in 10 sec. Maybe I could have pushed them for lower but 2.09% should be doable for you. My mtg was about $730k.

Previously had 1 yr at 2.14% due on Mar 1/17. Since your current rate is 2.04%, see if they will hold the new rate for you for a few months so you get to keep your 2.04% a little longer.
jllmoe wrote: Good Morning Everyone;

I am in the process to get a early renewal from CIBC for my $600K mortgage on a rental property, currently at 2.04% 1 yr fixed, expiring May 05 2017. The specialist told me yesterday she is trying to get a 2yr fixed rate between 2.09 to 2.14%. Could friends here let me know your best 2yr fix rate recently from CIBC or any lenders?

Much appreciated!
John

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