Real Estate

The Official Mortgage Rates Thread

Newbie
May 8, 2017
14 posts
Natasha321 wrote: You can get HELOC with any kind of mortgage as long as you have adequate equity (and meet other qualifying criteria). Fixed or variable rate mortgages will not impact your ability to get a HELOC.

However if you have the mortgage registered as a Collateral, and assuming it was registered for a high enough amount to meet your HELOC needs, it will save you about $350 at the time of getting HELOC. As you won't have to register a separate charge for HELOC.
So let me ask another question. Do you think if it is in my benefit to get HELOC within a mortgage package today (as Scotia has offered me now) or wait and get it separately in future (when I have equity for sure)

Thanks again
Newbie
Sep 3, 2017
33 posts
Hi Mortgage experts,

Based on signs you are observing, what is the probability of new stress tests enforced in October?!
And if so, is a pre-approval obtained before the stress test, still valid after the date it is enforced?

Thanks.
Newbie
Mar 6, 2017
6 posts
Does anyone have any experience on setting up a mortgage on rental property held by a holding company with personal guarantees? Are the rates similar to owner occupied conventional mortgage?


Thanks,
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May 1, 2017
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rfdquestion wrote: Hi Mortgage experts,

Based on signs you are observing, what is the probability of new stress tests enforced in October?!
And if so, is a pre-approval obtained before the stress test, still valid after the date it is enforced?

Thanks.
Hi there,

Many are convinced that the new "stress test" will be enforced in October. I personally think it's very likely. Now, as with the last round of rule changes - if you're pre-approved formally before the rule changes, you'll be fine as long as your pre-approval doesn't expire, and thus you have to re-qualify after the rule changes take place. If you're worried about qualifying, you should certainlty get a pre-approval before the proposed rule changes to protect yourself.

Regards,

Connor
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Connor Green
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cita1234 wrote: Does anyone have any experience on setting up a mortgage on rental property held by a holding company with personal guarantees? Are the rates similar to owner occupied conventional mortgage?


Thanks,
Hi there,

There are only a few lenders who will do rentals in a holding company, so you would be at the whims of those lenders rates. Also, the rates for rental properties typically carry a small rate premium, so the rates on rentals would be slightly higher than you would see posted around here. Rates for a rental in a hold-co are around 3.29%.

Regards,

Connor
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Connor Green
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Concierge Mortgage Group
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GreenMortgages wrote: Hi there,

Many are convinced that the new "stress test" will be enforced in October. I personally think it's very likely. Now, as with the last round of rule changes - if you're pre-approved formally before the rule changes, you'll be fine as long as your pre-approval doesn't expire, and thus you have to re-qualify after the rule changes take place. If you're worried about qualifying, you should certainlty get a pre-approval before the proposed rule changes to protect yourself.

Regards,

Connor
Just curious, but wasn't this "stress testing" already in place? Is something changing about how it is done?
Jr. Member
Apr 1, 2009
115 posts
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In terms of rentals, non - owner occupied multi family, what are the best rates out there currently both for variable and fixed 5 year rates with lenders that have decent other features such as decent penalty rules on a sale and pre-payment options, etc?
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winner2000 wrote: Just curious, but wasn't this "stress testing" already in place? Is something changing about how it is done?
Hello,

Currently there is only stress testing for insured and insurable mortgages. So, for a purchase when you have less than 20% down, you need to pass the "stress test". Also, if you want access to the best rates in the market, the mortgage must be insurable, meaning it has to pass the "stress test" as well - 4.84% qualifying rate, 25 year max amortization. These are called insurable mortgages and need to meet a few other criteria as well, such as, the property can't be valued at over a $1m, it can't be a single unit rental, etc. As of right now, you can still avoid the stress test, and get an uninsurable mortgage qualifying using a 30-35 year amortization, and the contract rate, which of course will extend the maximum mortgage amount you qualify, at the expense of the interest rate.

What is being proposed in the next round of qualification tightening measures is a "stress test" on ALL mortgages. Even on uninsurable mortgages. The measure proposes having all borrowers qualify a full 2% (200bps) above what the actual contract rate will be.

So, those who are on the fence of qualifying using a 30 year amortization and the contract rate will soon likely not qualify for the same mortgage.

Regards,

Connor
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Connor Green
Mortgage Agent
Concierge Mortgage Group
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Clarky wrote: In terms of rentals, non - owner occupied multi family, what are the best rates out there currently both for variable and fixed 5 year rates with lenders that have decent other features such as decent penalty rules on a sale and pre-payment options, etc?
Hello,

This question requires a bit more detail in order for us to give you accurate answers. What kind of building are you buying/do you have? How many units? Are you purchasing, switching, refinancing? Where are you located?

Regards,

Connor
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Connor Green
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winner2000 wrote: Just curious, but wasn't this "stress testing" already in place? Is something changing about how it is done?
The stress test rate applies to all insured and insurable deals, but uninsurable deals where the client applies for a 5y fixed rate still allow the bank/lender to qualify on the contract rate. This is what is about to change, as the new rules would also apply to these specific situations, requiring any lender to calculate the mortgage portion of the debt ratios using a 2% premium over the contract rate. In simple terms, someone getting a 5y at 3.25% would actually have to qualify as if the rate was 5.25%.
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winner2000 wrote: Just curious, but wasn't this "stress testing" already in place? Is something changing about how it is done?
The stress test was already in place for insured or insurable mortgages. For uninsurable mortgages, qualification can still be done using the contract rate (the rate your payments are based on. See this post for the explanation differences between insurable and uninsurable: official-mortgage-rates-thread-351105/2645/#p28244344

They are now taking about implanting this stress test on ALL mortgages, insurable and uninsurable, which would mean that all mortgages would have to qualify based on the benchmark rate, which is currently 4.84%. This means that A LOT of people who would have previously qualified for a mortgage will no longer qualify.
Paul Meredith
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Jul 15, 2006
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Hello mortgage experts,

I'm trying to figure out the best rate I can get for a renewal. Currently at 2.99. I'm trying to secure an early renewal during the first week of October.
I'm quoted 2.99 for 3 years and 3.19 for 5 years, both fixed.
Looking for about 320K not ensured.
What are the best rates available now from the big banks?

My other option would be to find another lender and secure the rate early October so that I can switch once my mortgage is actually at maturity in January.
As part of the renewal, I'm looking to get a reassessment of the value of the house so that I can increase the HELOC limit to align with the current of the house.
The bank tells me they can swallow the assessment fee but can absolutely not cover the legal registration fees for the post assessment value of the house. Is that common or can I push for them to cover that as well

Thanks in advance.
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Feb 7, 2006
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PaulMeredith wrote: The stress test was already in place for insured or insurable mortgages. For uninsurable mortgages, qualification can still be done using the contract rate (the rate your payments are based on. See this post for the explanation differences between insurable and uninsurable: official-mortgage-rates-thread-351105/2645/#p28244344

They are now taking about implanting this stress test on ALL mortgages, insurable and uninsurable, which would mean that all mortgages would have to qualify based on the benchmark rate, which is currently 4.84%. This means that A LOT of people who would have previously qualified for a mortgage will no longer qualify.
Interesting. Thanks to all for replying.

I saw this article in the G&M about this topic (https://beta.theglobeandmail.com/real-e ... om&)...the banks seem to be arguing that it won't be a big deal, but since you're on the front lines of this, I would certainly take your word over theirs at this point.
Despite the potential impact on lending, the banking industry has made little public comment on the OSFI rule proposal. Executives of some major banks have said most of their mortgage applicants would qualify under the higher stress-testing requirements, but alternative or subprime lenders have warned they could face an impact because their customers have less financial leeway.
Jr. Member
Sep 10, 2017
176 posts
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GreenMortgages wrote: Hello,

Currently there is only stress testing for insured and insurable mortgages. So, for a purchase when you have less than 20% down, you need to pass the "stress test". Also, if you want access to the best rates in the market, the mortgage must be insurable, meaning it has to pass the "stress test" as well - 4.84% qualifying rate, 25 year max amortization. These are called insurable mortgages and need to meet a few other criteria as well, such as, the property can't be valued at over a $1m, it can't be a single unit rental, etc. As of right now, you can still avoid the stress test, and get an uninsurable mortgage qualifying using a 30-35 year amortization, and the contract rate, which of course will extend the maximum mortgage amount you qualify, at the expense of the interest rate.

What is being proposed in the next round of qualification tightening measures is a "stress test" on ALL mortgages. Even on uninsurable mortgages. The measure proposes having all borrowers qualify a full 2% (200bps) above what the actual contract rate will be.

So, those who are on the fence of qualifying using a 30 year amortization and the contract rate will soon likely not qualify for the same mortgage.

Regards,

Connor
This will certainly affect the house prices in GTA . Curious to know if this will actually have any effect on the mortgage rates offered ? (As less people will qualify and less business for banks/lenders )
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Apr 21, 2004
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PaulMeredith wrote: The stress test was already in place for insured or insurable mortgages. For uninsurable mortgages, qualification can still be done using the contract rate (the rate your payments are based on. See this post for the explanation differences between insurable and uninsurable: official-mortgage-rates-thread-351105/2645/#p28244344

They are now taking about implanting this stress test on ALL mortgages, insurable and uninsurable, which would mean that all mortgages would have to qualify based on the benchmark rate, which is currently 4.84%. This means that A LOT of people who would have previously qualified for a mortgage will no longer qualify.
Paul, is there such a thing as a reverse cash back where the borrower pays the lender so that the contract rate goes down a quarter or more of a percentage point?

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