Real Estate

The Official Mortgage Rates Thread

Deal Addict
May 10, 2006
1127 posts
393 upvotes
Toronto
Hi everyone,

it's renewal time for me again so I'm back reading this thread. :)

Here are the details:
- 12 years to pay
- $170K left
- credit score is 800+

Looking for 5-year rates in both fixed and variable.

I already received the renewal offer from the lender and it's 2.89% fixed and 2.35% variable. They have a good prepayment plan as well.

Please PM me with your rates. Thanks!
Home Phone: $0 since 2016 - Obi200/FPL with Google Voice (free call Can/US)
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Who is the current lender? Your options will vary a LOT if the mortgage can be re-assigned (as a true switch) or not (such as in a collateral charge).
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Newbie
Jun 27, 2008
52 posts
19 upvotes
Montreal
valuemortgage wrote: You can do MUCH better than that. 5y fixed rate is available at 2.39% with terms and conditions WAY better than TD.
I am with TD as well and I have my first 5yr fixed mortgage with TD up for renewal and was offered 2.84%. I shopped other banks and they seem to have the same range. RBC offered 2.80. Where would I go for 2.39%?
Deal Addict
May 10, 2006
1127 posts
393 upvotes
Toronto
valuemortgage wrote: Who is the current lender? Your options will vary a LOT if the mortgage can be re-assigned (as a true switch) or not (such as in a collateral charge).
Street Capital
Home Phone: $0 since 2016 - Obi200/FPL with Google Voice (free call Can/US)
Sr. Member
Nov 21, 2007
509 posts
58 upvotes
Looking for some advise...

Currently have a mtg with BMO maturing next month for $180k.

Property is a condo valued at $400k and is currently leased.

Annual income (incl lease) is ~$55k.

We are looking to refinance and withdraw as much as possible and lock for a 5yr term at a competitive rate.

Do we go through bmo? Other big 5? Or a broker?

If broker, what we should be aware/watch for?


TIA
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
If this is the first renewal and you are with TD, then you have a collateral charge.. unfortunately, you would now qualify for that rate, as a transfer out of TD bank must be treated as a refinance, and you would have to pay legal fees, plus be subject to a higher rate. You can still get a better rate than the 2.84%, and depending on the balance it may be worth to refinance, as you may save money in interest and get rid of that collateral charge.
simba115 wrote: I am with TD as well and I have my first 5yr fixed mortgage with TD up for renewal and was offered 2.84%. I shopped other banks and they seem to have the same range. RBC offered 2.80. Where would I go for 2.39%?
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Newbie
Jun 27, 2008
52 posts
19 upvotes
Montreal
valuemortgage wrote: If this is the first renewal and you are with TD, then you have a collateral charge.. unfortunately, you would now qualify for that rate, as a transfer out of TD bank must be treated as a refinance, and you would have to pay legal fees, plus be subject to a higher rate. You can still get a better rate than the 2.84%, and depending on the balance it may be worth to refinance, as you may save money in interest and get rid of that collateral charge.
I am upset that I never heard about collateral mortgages until I got on here! I guess it's not something they bring up when you sign with them... by the way it will be very difficult to leave us after your 5 yr term is up! I was under the impression that all I might need to pay are the notary fees. Since I am in Quebec is it different than in Ontario? The balance is 250K. I have not found a rate better than 2.84% yet. still looking!
Newbie
Mar 2, 2014
2 posts
Toronto
Looking for the best rate for 5yr fix
- mortgage 300K
- great Credit
- 20% down.
PM rate and more info
Thanks
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Unfortunately, this happens all the time. Banks like TD often forget to mention this, or ever worse - they sometimes insist to their clients that their mortgages are "just like anyone else's" when confronted with some technical questions. Even more disturbing is that despite this, there are a lot of people out there that prefer to deal only with banks, which causes exactly this type of situation.

Getting out of a collateral charge is not "difficult", but it carries additional fees. You will have to deal with :

Appraisal (may or may not be required - depends on the lender) - approx $300.00
Discharge fee - varies from lender to lender, but normally around $300.00 or so
Legal fees. You will need a notary OR a title company to handle the transfer. The cost varies depending on several factors, but could be as little as $500.00 and as much as $820.00, depending on the company used.

What you need to consider at this point is that :

A - Depending on what you can get from a different lender, it may be worth paying all those fees, as you can still save on interest AND get rid of the collateral charge. For example, if you move out of TD and transfer/refinance that mortgage to Mcap, ICICI, First National, Street Capital, etc... when the new mortgage term matures in 5y, you will have much more freedom to change lenders without those expenses. If you just renew with TD, you are simply delaying the inevitable, as you will find yourself in the same situation down the road again.
B - If you deal with other lenders (not just the "big banks") you avoid situations like these in most cases. 99% of the mortgages you can get from what we call "monoline lenders" are not collateral charges. If you had one of those mortgages, you would only have to pay the discharge fee, and that often can be reimbursed to you!

Talk to a broker, get the numbers properly calculated (to determine what is available to you and if you can recover the costs by refinancing), and make an informed decision.
simba115 wrote: I am upset that I never heard about collateral mortgages until I got on here! I guess it's not something they bring up when you sign with them... by the way it will be very difficult to leave us after your 5 yr term is up! I was under the impression that all I might need to pay are the notary fees. Since I am in Quebec is it different than in Ontario? The balance is 250K. I have not found a rate better than 2.84% yet. still looking!
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Deal Fanatic
User avatar
Sep 13, 2011
5306 posts
2281 upvotes
Toronto
Navon01 wrote: Looking for some advise...

Currently have a mtg with BMO maturing next month for $180k.

Property is a condo valued at $400k and is currently leased.

Annual income (incl lease) is ~$55k.

We are looking to refinance and withdraw as much as possible and lock for a 5yr term at a competitive rate.

Do we go through bmo? Other big 5? Or a broker?

If broker, what we should be aware/watch for?


TIA
Rental properties unfortunately carry higher rates than owner occupied properties. Lowest 5 year fixed on an owner occupied right now is 2.39%. On rental properties, it can be as low as 2.69% if the refinance remains within 70% of it's appraised value or as much as 2.99% or even higher if going up to 80%.

If the $55K annual income includes the lease payments as you say then you may have difficulty qualifying for this and your best bet will likely be to renew with BMO.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jun 27, 2008
52 posts
19 upvotes
Montreal
valuemortgage wrote:
Talk to a broker, get the numbers properly calculated (to determine what is available to you and if you can recover the costs by refinancing), and make an informed decision.
Thanks for all that info! Looks like I will talk to a broker. Like I said, here in Quebec all I heard was about notary fees. I guess everyone I talked to had a Collateral mortgage because no one ever said they changed lenders without paying a notary fee (around 900$ I think)

Just took a quick look at some of the places you mentioned since I never heard of them.. both Mcap and ICICI have posted rates for 5yr fixed that are higher than the 2.84% I have been offered by TD. Do I disregard the posted rates and contact them anyway to see if they can give me a better deal?
Newbie
Jul 5, 2016
2 posts
Hi all - looking for some guidance. I feel as though interest rates are on the upward trend.

Tangerine mortgage - 5 yr fixed term at 2.99% finishes Sep 2017. $136k left on mortgage with ammortization at 9yrs.

I do recieve large bonuses every 2nd year so pre-payment priveledges are important.

Should I break my current mortgage to go with some of the low rates around 2% I've seen?
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
In this case of yours (since Tangerine uses collateral charges for some of their products), extra consideration must be given when trying to figure out the next move. If you do have a collateral charge, you will have to pay legal fees to change lenders, and would be subject to higher rates (as this would be treated as a refinance), and having only a few months left on your term you wont be able to recover the expenses.
You mention seen rates around 2%...but most likely, what will be available to you will be closer to 2.64% or more.
Terminator3 wrote: Hi all - looking for some guidance. I feel as though interest rates are on the upward trend.

Tangerine mortgage - 5 yr fixed term at 2.99% finishes Sep 2017. $136k left on mortgage with ammortization at 9yrs.

I do recieve large bonuses every 2nd year so pre-payment priveledges are important.

Should I break my current mortgage to go with some of the low rates around 2% I've seen?
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Newbie
Jan 13, 2017
65 posts
11 upvotes
I lost my 12 year old Rfd ID so starting over new.

Can the mortgage brokers here please send me refinance rates please. I'm wondering whether to stay with the same company or refinance with a different one


Thanks
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Changing lenders does not mean you will be refinancing. Is there a need to refinance?

Who is the current lender?
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428

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