Real Estate

The Official Mortgage Rates Thread

Newbie
Mar 1, 2011
10 posts
1 upvote
Toronto
What is the best variable rate currently available for a refinance (120 days out) if the home value is over $1m in Ontario? Home value $1.5m mortgage amount $400K?

If a lower variable rate can be obtained on homes valued under $1m is it possible to take out a mortgage on half the home to get the better rate? The home is technically on two lots.

Thanks in advance.
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Sep 13, 2011
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Supperfly wrote: Thanks for the reply. I guess my concern is that what if the bigger lenders dont want to take over the risky portfolios. I mean if theres a 25% correction everyonr will be affected, hence why bigger lenders wont be able to absorb smaller ones. Also my anecdotal evidence of my peers beeing approved for 500k + mortgages, while swimming in debt and making under 80k annually.

Thanks for the reply
As mentioned, there is ZERO concern here. I guess if a lender went out of business and no one was there to take over their portfolio than you wouldn't have any more payments to make on your mortgage and you would be mortgage free. This of course would never happen. There will always be a lender there to take your money. :-)
Paul Meredith
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Sep 13, 2011
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Taxman1 wrote: What is the best variable rate currently available for a refinance (120 days out) if the home value is over $1m in Ontario? Home value $1.5m mortgage amount $400K?

If a lower variable rate can be obtained on homes valued under $1m is it possible to take out a mortgage on half the home to get the better rate? The home is technically on two lots.

Thanks in advance.
Take out a mortgage on half of the home? No.. The mortgage has to be taken out on the full home. it's either valued at over a million or it isn't. There is no getting around it.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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Feb 2, 2014
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ahato wrote: Here is a scenario. I am buying a 4-plex for 750k. I have around 250k with me as downpayment which is around 33% of the price. I however want to leverage more and curious on how far can I go ? If my current Debt coverage ratio is 1.69 for one of my other mortgage and have 0 debt apart from that. Since it's a 4-plex, I am also getting income from the same property which is around 4000. Based on these calculations, how much income do I need if I need to put 15% down ? I have calculated my DCR will still remain around 1.4 if I put down 15% downpayment. Thoughts ?
Will you be living in the 4plex? If not, minimum 20% down.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Apr 26, 2004
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GTA
Taxman1 wrote: What is the best variable rate currently available for a refinance (120 days out) if the home value is over $1m in Ontario? Home value $1.5m mortgage amount $400K?

If a lower variable rate can be obtained on homes valued under $1m is it possible to take out a mortgage on half the home to get the better rate? The home is technically on two lots.

Thanks in advance.
Right now the lower is 2.2% with cash back to cover the transfer costs but that's within 60 days.

May I ask who's your lender and what's your current rate?
Mortgage Specialist in the GTA
Newbie
Mar 1, 2011
10 posts
1 upvote
Toronto
Thanks Paul/Geese for the quick responses. Currently in an IG three year variable that started at 1.99 went down to 1.69 but now back up to 1.84. Will check back in a couple of months.
Newbie
Apr 8, 2013
93 posts
14 upvotes
Toronto
Regarding the new mortgage rules, what if your property is on the cusp of the $1M threshold? The reason that I’m asking is that our mortgage is up for renewal a in 11 months – we’re looking at a transfer (as opposed to a re-finance). We have a single detached house in Toronto – one of my neighbours sold their home last year for$ 900K. I would think that ours would be worth at least 900K. Although our neighbour's house was in much better shape it was also on a corner lot. How would a lender determine the FMV of the property to see if the mortgage is insurable without incurring the costs of a formal valuation?
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Sep 13, 2011
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F22Raptor wrote: Regarding the new mortgage rules, what if your property is on the cusp of the $1M threshold? The reason that I’m asking is that our mortgage is up for renewal a in 11 months – we’re looking at a transfer (as opposed to a re-finance). We have a single detached house in Toronto – one of my neighbours sold their home last year for$ 900K. I would think that ours would be worth at least 900K. Although our neighbour's house was in much better shape it was also on a corner lot. How would a lender determine the FMV of the property to see if the mortgage is insurable without incurring the costs of a formal valuation?
It depends. Most lenders would just do an automated valuation on it. If it comes in under the million dollar mark then great. if it comes in over, then your out of luck unfortunately. Lenders like MCAP, who currently has the lowest rate on 5 year fixed and variable products, will require an appraisal every time. If the appraisal comes in under a million, you're in great shape. Over a million, you're out of luck.
Paul Meredith
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Aug 28, 2012
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Hi all. Just wondering what the best HELOC rates are right now? 2.30%? Mortgage is theough Alterna at the moment. What lenders should I approach?

Looking at purchasing a $45,000 travel trailer. Interest on their loans are quite a bit higher, but what fees go along with setting up the HELOC so I can compare both options?

Thanks.
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Sep 13, 2011
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MarvinMartian wrote: Hi all. Just wondering what the best HELOC rates are right now? 2.30%? Mortgage is theough Alterna at the moment. What lenders should I approach?

Looking at purchasing a $45,000 travel trailer. Interest on their loans are quite a bit higher, but what fees go along with setting up the HELOC so I can compare both options?

Thanks.
Rates on HELOCs are pretty much prime +0.50% (3.20%) across the board. They are really not very competitive products with most lenders being priced the same. National Bank (I believe) has a HELOC at prime that they offer to engineers only. However, it's only available to this group.

A HELOC will typically cost around $1,000 to set up. Manulife has a pretty decent product where they will cover these fees for you, however they have a $14 per month fee.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
Newbie
Feb 27, 2017
1 posts
Hi, my mortgage is upon renewal on this coming May. I just found that HSBC's 5 year fixed rate (closed) for 2.35%. After I showed this offer to my mortgage provider Industrial Alliance, they told me that they can only rate match up to 2.45% for 5 years. I am just wondering if it is worth to take the renewal rate from IA or move my mortgage to HSBC. My balance, as of this May, would be 160,519.87 and it was conventional mortgage with IA. Please advise (PM), thank you for your help!
Newbie
Jan 22, 2017
53 posts
21 upvotes
AB
What is the best option for maximum flexibility in the case your current home does not sell before purchasing a new home? Both homes would be of similar value.
25% downpayment.

The goal would be to payout the new mortgage with the proceeds from the sale of the old house, hopefully within 3-6 months. Would it be worth it to setup a HELOC in this case and then take a penalty when paying out the mortgage portion? BMO Readiline has offered 2.70% fixed on the mortgage and prime + 0.5 on the LOC, appraisal fees waived. How does this compare to the MCAP Fusion rates? Don't really need the LOC after payout, but good to have around for future.

Or would it be simpler to go with an open variable mortgage at 3.50% so you can payout at anytime with no fees?
What about bridge financing? From what I understand, to qualify for bridge loans, you need firm sell and purchase dates/agreements.
Thanks in advance for any input!
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Feb 2, 2014
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MarvinMartian wrote: Hi all. Just wondering what the best HELOC rates are right now? 2.30%? Mortgage is theough Alterna at the moment. What lenders should I approach?

Looking at purchasing a $45,000 travel trailer. Interest on their loans are quite a bit higher, but what fees go along with setting up the HELOC so I can compare both options?

Thanks.
Start with the bank that you have the most assets with...you might be able to get Prime +0.00%.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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User avatar
Sep 13, 2011
5266 posts
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Toronto
LenG17 wrote: What is the best option for maximum flexibility in the case your current home does not sell before purchasing a new home? Both homes would be of similar value.
25% downpayment.

The goal would be to payout the new mortgage with the proceeds from the sale of the old house, hopefully within 3-6 months. Would it be worth it to setup a HELOC in this case and then take a penalty when paying out the mortgage portion? BMO Readiline has offered 2.70% fixed on the mortgage and prime + 0.5 on the LOC, appraisal fees waived. How does this compare to the MCAP Fusion rates? Don't really need the LOC after payout, but good to have around for future.

Or would it be simpler to go with an open variable mortgage at 3.50% so you can payout at anytime with no fees?
What about bridge financing? From what I understand, to qualify for bridge loans, you need firm sell and purchase dates/agreements.
Thanks in advance for any input!
From the sounds of things, once the current home sells and closes, you will not need a mortgage on the new home, correct? You'll have enough money to own it free and clear? Just wanted to make sure i'm fully understanding your situation before I advise.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

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