Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Sep 13, 2011
7037 posts
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Toronto
Adrenaline112 wrote: Hello,

Please help pm me 5 year fixed and variable rates for my mortgage renewal in April 2019.

-How much is the mortgage owing? ~$175k
-what is the current market value of the property? ~$1 million
-Which city is the property located in? Richmond Hill, ON
-Is the property owner-occupied or a rental? Owner-occupied
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When is your renewal date? April 2019
-Credit rating: Excellent
You're still just a bit early to start shopping as most lenders have a maximum 90 day rate hold for switches. Lowest rates as of right now would be 5 year fixed at 3.49% or 5 year variable at prime -1.24% (2.71%).
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Addict
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Jan 8, 2007
4879 posts
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Ontario
PaulMeredith wrote: 3.79% is an excellent rate on a rental property, so there won't be anything close to that anywhere else. What rate are you paying the variable right now?
Interesting.... I was hoping for 3.5 or lower.

I am paying 3.35% on my variable mortgage, originally it was 2.85% three years ago. My maturity date is April 2020.

Given this is a rental house should I lock in for 5 years or should I go for a longer term? RBC is saying they can do 7 year fixed at 3.89.
Deal Guru
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Feb 2, 2014
11233 posts
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Toronto
Adrenaline112 wrote: Hello,

Please help pm me 5 year fixed and variable rates for my mortgage renewal in April 2019.

-How much is the mortgage owing? ~$175k
-what is the current market value of the property? ~$1 million
-Which city is the property located in? Richmond Hill, ON
-Is the property owner-occupied or a rental? Owner-occupied
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When is your renewal date? April 2019
-Credit rating: Excellent
3.44% 5-year fixed and 2.71% 5-year variable are the best rates available to you.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
Jun 29, 2007
6041 posts
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Vancouver
Anybody get a good 3 yr or 5 yr fixed rate from major bank (esp CIBC) recently? TIA
Deal Fanatic
Jun 29, 2007
6041 posts
2751 upvotes
Vancouver
Speedy1 wrote: Anybody get a good 3 yr or 5 yr fixed rate from major bank (esp CIBC) recently? TIA
Haven't checked this thread for about 2.5 months.
I am surprised 3 yr and 5 yr fixed rates have not dropped much considering the BoC 3 yr and 5 yr bond yields since 1st half of October when I was negotiating my CIBC mortgage renewal for a rental property.
On October 11, CIBC offered me 3.39% and 3.49% for 3 and 5 yr fixed.
I expected rates to be about 0.25% lower now but quotes I see here from last few days are not much lower than what CIBC quoted me in October.

I am shopping around again now. Let's see what I get.
Newbie
Dec 18, 2018
6 posts
PaulMeredith wrote: Have you received your PR in Canada?
Do you have any active Canadian credit? If so, how many credit cards do you have, what are their current limits and when did you get them? Any car or bank loans? If so, when did you get these loans?
How long have you been at your current job? Any probation periods?

Yes, I have PR in Canada, got it in Nov 2017.
I have 2 Canadian cards, limits $6000 and $750 got them nov 2017 and Oct 2018 respectively. No loans at all.
8 months at current job. No probation here.
Deal Guru
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Feb 2, 2014
11233 posts
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Toronto
Speedy1 wrote: Haven't checked this thread for about 2.5 months.
I am surprised 3 yr and 5 yr fixed rates have not dropped much considering the BoC 3 yr and 5 yr bond yields since 1st half of October when I was negotiating my CIBC mortgage renewal for a rental property.
On October 11, CIBC offered me 3.39% and 3.49% for 3 and 5 yr fixed.
I expected rates to be about 0.25% lower now but quotes I see here from last few days are not much lower than what CIBC quoted me in October.

I am shopping around again now. Let's see what I get.
Let's see what happens in the New Year.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
Speedy1 wrote: Haven't checked this thread for about 2.5 months.
I am surprised 3 yr and 5 yr fixed rates have not dropped much considering the BoC 3 yr and 5 yr bond yields since 1st half of October when I was negotiating my CIBC mortgage renewal for a rental property.
On October 11, CIBC offered me 3.39% and 3.49% for 3 and 5 yr fixed.
I expected rates to be about 0.25% lower now but quotes I see here from last few days are not much lower than what CIBC quoted me in October.

I am shopping around again now. Let's see what I get.
It's extremely unusual that fixed rates are as high as they are right now. I wrote a blog post explaining the reasons a few weeks ago: http://www.easy123mortgage.ca/why-are-m ... right-now/
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Jr. Member
Apr 13, 2013
108 posts
10 upvotes
Woodbridge
CIBC is giving 3.61 for 3 year fixed & 3.70 for 5 year fixed. RBC gives 3.49 for 3 year fixed. I might be wrong but how market is behaving, still variable might be good option.
Deal Guru
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Feb 2, 2014
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Toronto
Pentacool wrote: CIBC is giving 3.61 for 3 year fixed & 3.70 for 5 year fixed. RBC gives 3.49 for 3 year fixed. I might be wrong but how market is behaving, still variable might be good option.
Of course it differs for each person's risk tolerance, but I really do like variable now.

Depending on the deal, spread is about 75bps (5 year variable vs 5 year fixed). Penalty calc is favourable (3 months interest for variable vs GREATER of IRD or 3 months interest for fixed) and variable can always be converted to fixed.

And as I've said in many threads on RFD, anybody who is "certain" rates are going up, doesn't understand economics.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Dec 13, 2018
4 posts
1 upvote
Thank you, unfortunately i don't have any additional income. Do I have any other option e.g 35 years amortization, instead of pay off 27k to credit card use it for down payment?
Newbie
Dec 20, 2018
5 posts
Calgary
Purchase price: $340,000.
Down Payment: $140,000. (about 42%)
Location: Calgary, AB
Closing: Feb-2019
Property be owner-occupied or a rental: Owner Occupied
Combined Income over 200K

Appreciate if someone refers me good Mortgage broker agency.
What will be the best 5 year fixed or variable rates available?
Deal Addict
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Jan 8, 2007
4879 posts
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Ontario
So what would you guys advise me to do, my post is a couple up from here.. I have a HELOC mortgage on a rental property with $155,000 remaining at 3.35% variable, with a maturity date April 2020. RBC just offered me a 5 year fixed rate at 3.79. The property is worth approximately 200,000. Do I wait it out or do I lock it in? The property is in Belleville Ontario
Member
Oct 17, 2003
462 posts
55 upvotes
Etobicoke
I am going to through a refinancing with BMO and they told me on rental properties they only offer 70% ratio for borrowing.

Previously I had recieved 80%. I asked if I this is all I qualified for they said no just that they offer

Should I push harder is this normal?
Newbie
Jul 4, 2018
8 posts
I have a question. I own a 900 sq ft condo in Oakville I bought in 2007 for 165k but currently owe 185k as my wife refinanced at renewal for a 20k car. Similar units are selling for 450k. We won't to take out a HELOC to put down 20% on a 450k detached home in Hamilton. I will rent out my condo for 2k a month. So I would need a mortgage around 650k. But I would own my condo in Oakville worth 450k and a house in Hamilton worth 450k. I'm thinking of my condo goes up to 650k in 4 or 5 years I will just sell the condo and own the house free and clear. Guys am I crazy or is this a good idea?
Deal Addict
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Jul 25, 2015
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Burnaby, BC
Lessjunkremovel wrote: I have a question. I own a 900 sq ft condo in Oakville I bought in 2007 for 165k but currently owe 185k as my wife refinanced at renewal for a 20k car. Similar units are selling for 450k. We won't to take out a HELOC to put down 20% on a 450k detached home in Hamilton. I will rent out my condo for 2k a month. So I would need a mortgage around 650k. But I would own my condo in Oakville worth 450k and a house in Hamilton worth 450k. I'm thinking of my condo goes up to 650k in 4 or 5 years I will just sell the condo and own the house free and clear. Guys am I crazy or is this a good idea?
I think you are nuts.
Deal Guru
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Feb 2, 2014
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Toronto
Lessjunkremovel wrote: I have a question. I own a 900 sq ft condo in Oakville I bought in 2007 for 165k but currently owe 185k as my wife refinanced at renewal for a 20k car. Similar units are selling for 450k. We won't to take out a HELOC to put down 20% on a 450k detached home in Hamilton. I will rent out my condo for 2k a month. So I would need a mortgage around 650k. But I would own my condo in Oakville worth 450k and a house in Hamilton worth 450k. I'm thinking of my condo goes up to 650k in 4 or 5 years I will just sell the condo and own the house free and clear. Guys am I crazy or is this a good idea?
Did you purchase the property already?

Did you get pre-approved for all of this extra financing?
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Jul 4, 2018
8 posts
No I haven't looked into the financing yet. Would the lender take into account that I'm going to rent out my condo for 2k a month? We can sell are condo for around 450k and the house we want is 450k so we would still owe 185k.
Jr. Member
Jun 8, 2009
153 posts
46 upvotes
Toronto
Yes the rent will be considered as added income, though only 50%.
Your qualification will also include your ability to carry both properties. This means two mortgage payments, two property tax payments and maintenance fees.

Lessjunkremovel wrote: No I haven't looked into the financing yet. Would the lender take into account that I'm going to rent out my condo for 2k a month? We can sell are condo for around 450k and the house we want is 450k so we would still owe 185k.

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