Real Estate

The Official Mortgage Rates Thread

Deal Guru
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Aug 8, 2012
10198 posts
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BC
coleworld wrote: I will be relocating in Spring/Summer 2018 and will NOT be porting mortgage when moving (renting for a year or 2)

My current MTG is with TD and it matures August 2017. (2 yr fixed 1.99% (100k remaining, +35% equity/down Payment)

My company pays for my move including breaking the mortgage (legal fees etc), yet stipulates the following:

"If you meet the conditions in x.x.x, you will be reimbursed:

First mortgage repayment penalty, not exceeding six months’ mortgage interest.

When your first mortgage is at a higher interest rate than current rates, the lender
may levy a special charge to cover the loss of interest, known as a “mortgage interest
repayment charge”. This is not reimbursable."

I would like to stick with TD to keep it simple and easy, but need help figuring out whether fixed or variable is best with the above conditions.\
Thanks
Sounds like variable is the way to go since it will only have 3-mo penalty and your work will cover 6.

IRD is only on fixed rates (and only when that is more than 3-mo penalty) and that's what it sounds like your work will not pay.
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Sr. Member
Sep 9, 2008
608 posts
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Mississauga
valuemortgage wrote: Correct. If you contact a lender that registers a 2nd (and therefore, a separate) charge behind the current lender, your mortgage does not "become" a collateral charge - only the Heloc will be. That way, you can still change lenders as a switch (for the mortgage) while the Heloc remains separate. You need to confirm with your current lender if they are ok to have ABC as a a second charge, and confirm with the new lender if they are ok to provide a Heloc behind your current lender.
Will I be able to get HELOC @ P+0.5 in this situation?
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Feb 2, 2014
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Toronto
coleworld wrote: I will be relocating in Spring/Summer 2018 and will NOT be porting mortgage when moving (renting for a year or 2)

My current MTG is with TD and it matures August 2017. (2 yr fixed 1.99% (100k remaining, +35% equity/down Payment)

My company pays for my move including breaking the mortgage (legal fees etc), yet stipulates the following:

"If you meet the conditions in x.x.x, you will be reimbursed:

First mortgage repayment penalty, not exceeding six months’ mortgage interest.

When your first mortgage is at a higher interest rate than current rates, the lender
may levy a special charge to cover the loss of interest, known as a “mortgage interest
repayment charge”. This is not reimbursable."

I would like to stick with TD to keep it simple and easy, but need help figuring out whether fixed or variable is best with the above conditions.\
Thanks
I would also recommend going variable. I don't think Prime will be jumping up before you relocate and penalty is capped at 3 months of interest.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
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Dec 1, 2015
1966 posts
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Etobicoke, ON
You *should*... unfortunately, what I learned from trying to get a bank to provide a Heloc behind another lender is that everything depends on who you talk to. My previous Mcap mortgage was easy to get a Heloc with CIBC. But when I called BMO, 1 branch told me they would nto do it, another branch said yes.... TD told me they would be fine, at P+1.50%, while another branch said TD does not allow that (lol).. RBC was also a mess to get info from.
My point is that if you go this route and your bank says they cant do it, call another branch.. it may take 3-5 calls to different branches and banks to get the right person who really understands it. Most of the folks answering those calls have no idea what they are talking about.
Szharkov wrote: Will I be able to get HELOC @ P+0.5 in this situation?
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
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Mar 2, 2014
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Looking for some advice on getting mortgage pre approval in Ontario:
I was on my parent's mortgage for 2 years and just finished the process of getting out of it. The lawyer closed the house 2 days ago with my name going out.

1) How much time should I give before starting to look for mortgages?
2) I do have papers from lawyer to indicate me getting out, so would that help in expediting the process?
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Dec 1, 2015
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Etobicoke, ON
If the process was completed, you are ready to go. If you were to get a mortgage today, likely your credit bureau will show the old mortgage however you can easily prove you have been removed from the previous deal.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Newbie
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May 5, 2016
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Montreal
scorown wrote: Looking for some advice on getting mortgage pre approval in Ontario:
I was on my parent's mortgage for 2 years and just finished the process of getting out of it. The lawyer closed the house 2 days ago with my name going out.

1) How much time should I give before starting to look for mortgages?
2) I do have papers from lawyer to indicate me getting out, so would that help in expediting the process?

A Pre-approval process in Ontario will last for 100-120 days, do a thorough analysis of your financial situation. Secure enough money even before thinking about pre approval otherwise there are chances that you will be screwed by them.
Check this pre approved mortgage solutions in Toronto for more details.
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Feb 2, 2014
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Toronto
scorown wrote: Looking for some advice on getting mortgage pre approval in Ontario:
I was on my parent's mortgage for 2 years and just finished the process of getting out of it. The lawyer closed the house 2 days ago with my name going out.

1) How much time should I give before starting to look for mortgages?
2) I do have papers from lawyer to indicate me getting out, so would that help in expediting the process?
Just a note, keep the papers on hand. It may take some time before the system shows your name off.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Oct 20, 2013
23 posts
1 upvote
Toronto
I just wanted to give my thanks to "valuemortgage" (Andre), who helped me put together a mortgage on a condo purchase in Vancouver that closed today. Andre was an absolute pleasure to work with throughout the entire process, and I really appreciated that he always provided timely responses to all of my questions. I would definitely recommend anyone looking for mortgage to work with Andre, as he definitely took a big portion of the stress out of the purchasing process.
Jr. Member
Dec 1, 2005
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Toronto
I know this is general, but who has the best re-advancable mortgage/Heloc right now in terms of both rates and ease-of-use/flexibility?

Thanks.
Deal Addict
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Dec 1, 2015
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Etobicoke, ON
Many thanks for your kind words. It was a pleasure assisting you.
forgamez123 wrote: I just wanted to give my thanks to "valuemortgage" (Andre), who helped me put together a mortgage on a condo purchase in Vancouver that closed today. Andre was an absolute pleasure to work with throughout the entire process, and I really appreciated that he always provided timely responses to all of my questions. I would definitely recommend anyone looking for mortgage to work with Andre, as he definitely took a big portion of the stress out of the purchasing process.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Member
Nov 18, 2013
282 posts
100 upvotes
Toronto
My mtg is up for renewal in 3 months. That 5 yr fixed from HSBC for 2.35% is pretty enticing. I was originally going to go the mtg broker route but not sure if there are lower rates out there for 5 yr fixed. For any of the mtg brokers on here (I'm in the GTA).....is it worth my while to shop around with a broker for a lower rate??
Deal Addict
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Dec 1, 2015
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Etobicoke, ON
(A) Flexibility? (B) good rates? (C) re-advancable? Pick any 2... TO get what you are describing, you will be severely limited to a few small pool of lenders, mainly banks. As a result, you will get a collateral charge (all Helocs are tied to collateral charges), you will lose the flexibility to shop around and change lenders to get a better rate, etc.

In terms of a product, I still believe National Bank has the best product with an integrated Heloc. You can split the mortgage in up to 3 portions, they could have different maturity dates, etc. The Heloc can be split in several sub accounts so you can track interest individually. A really good product. But keep in mind that getting such a product means you will likely be in their hands at the time of renewal, as you will have several different products all tied together, meaning you cannot move a single one out of them. And refinances now are a costly thing.
ayking wrote: I know this is general, but who has the best re-advancable mortgage/Heloc right now in terms of both rates and ease-of-use/flexibility?

Thanks.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428

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