Real Estate

The Official Mortgage Rates Thread

Deal Addict
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May 1, 2017
1064 posts
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Ghost001 wrote:
Nov 16th, 2017 4:00 pm
HI.
I would like some advice please.
My mortgage due for renewal.

Location: Vancouver BC
House value: $900K
Lender: CIBC
Mortgage Balance: $500K
Renewal Date: End of March
Have a Line of credit attached to it, but not in use. Would like to keep it though.

I have questions.

1. What are the rates I can get for 5 years fixed?
2. Should I be looking at other options?
3. Is there additional fees if I decide to go to Canwise? They seem to have the best posted 5 year fixed.

Any advice would be appriciated.
Thank you.
Hi there,

For your switch, you could get a 5 year fixed rate in the range of 2.84% for a full featured mortgage. This option would allow you to maintain a line of credit to access your equity should you need to. For a variable rate mortgage you could get p-.95% to p-1.00%.

I don't know if Canwise charges any fees, but they shouldn't in my opinion for an 'A' mortgage/borrower.

These rates of course depend on your qualifying (income, debts, credit, property type, employment structure, etc.)

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
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Feb 2, 2014
6968 posts
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Toronto
a_fine_balance wrote:
Nov 16th, 2017 3:20 pm
My closing is on December 15 and trying to finalize a rate - I was almost approved for 2.89% 4yr + 3 months fixed at First National, but now being told I can't get that rate because the insurers behind the FN mortgage won't cover a multi-use building (I live at Maple Leaf Square which includes a hotel portion.) Has anyone heard of this before? Now I'm looking at a 3.14% 5yr fixed from Scotiabank, which is at least non-collateralized. Any background or guidance on this would be much appreciated.
How much are you putting down?
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Deal Fanatic
User avatar
Feb 2, 2014
6968 posts
1724 upvotes
Toronto
Ghost001 wrote:
Nov 16th, 2017 4:00 pm
HI.
I would like some advice please.
My mortgage due for renewal.

Location: Vancouver BC
House value: $900K
Lender: CIBC
Mortgage Balance: $500K
Renewal Date: End of March
Have a Line of credit attached to it, but not in use. Would like to keep it though.

I have questions.

1. What are the rates I can get for 5 years fixed?
2. Should I be looking at other options?
3. Is there additional fees if I decide to go to Canwise? They seem to have the best posted 5 year fixed.

Any advice would be appriciated.
Thank you.
1-2.79% 5-year fixed is the best rate.
2-You can also get 2.01% 5-year variable.
3-You will have to pay for legal and discharge fees IF the HELOC is under the same charge as the mortgage (only discharge fee if not).

However, you will have to wait a bit before you can get these rates locked-in...March end is too far.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Jr. Member
Apr 8, 2017
173 posts
39 upvotes
I got my first house yesterday and i would definitely recommend Connor (GreenMortgages). The process went so smooth and he answered all my emails in a timely manner.

Cheers
Newbie
Nov 16, 2017
2 posts
1 upvote
Hi guys,

First of all, I have to say thank you to all the brokers that are on this forum. I’ve tried to do my own research online and I have to say it is difficult AF with all the confusing and out of date articles out there. I’ve learned way more reading back 50 or so pages of the latest posts here than I have in the last two weeks of research elsewhere that I’ve been doing.

After all that reading, I was hoping to get some more specific information that I was not able to garner in the latest posts. Could you guys help please? 

1. Looking to confirm the best rates (fixed/variable, 3-5 yr. term, 25 yr. amortization) I could have access to with the following info:
+ First time purchase, single family home, detached house
+ Owner occupied
+ Purchase price: 900K
+ Downpayment of 20%
+ Closing date: Jan 31, 2018
+ Location: Toronto (East York, specifically)

2. I have a few rates on hold with the banks but I saw in some posts that it is better to shop around for rates (assuming nothing changes in terms of prime and BOC rates) closer to date of mortgage renewal as one may get more competitive rates. Does this apply for new mortgages and the closing date?

3. If my rate hold is only until Jan 20, 2018 but my close date is Jan 31, if I want to take advantage of the rates I have on hold, I should be committing to a lender prior to Jan 20, right?

4. We’d like to possible consider the option of pulling out some equity in the 3-5 year term to buy an investment/rental property. Does getting a HELOC mortgage make the best sense for this (collateral charge) or get a standard charge and get separate HELOC later on (in order to get access to better rates and make it easier to switch on renewal)? Since we don’t really require LOC right now, would the latter be the better choice or does it matter since pulling out equity on the existing property would require a refinance?

5. Based on what I’ve read in previous posts, it seems like the better option is to always just add the HELOC as a second charge. The interest rate on the LOC (prime + 50 bps) doesn’t seem to vary regardless. Why would anyone actually need the LOC bundled with the mortgage?

6. For a variable rate mortgage, if there is a change in prime, when is the impact reflected in your payments? Is it immediate?

7. Are appraisals typically done for new mortgages? Who typically pays the appraisal fee? Is there any possibility for the appraisal fee to be absorbed by the lender?

Thanks!
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May 1, 2017
1064 posts
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ShuttleBoy wrote:
Nov 17th, 2017 10:13 am
I got my first house yesterday and i would definitely recommend Connor (GreenMortgages). The process went so smooth and he answered all my emails in a timely manner.

Cheers
Hi! Thanks for the nice review. The process was so smooth thanks in part to how prepared and prompt you two were! I hope you enjoy your home!

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
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May 1, 2017
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a_fine_balance wrote:
Nov 17th, 2017 10:39 am
5% - we can put more but were told this would not give us a better rate.
The issue with having less than 20% down is that the mortgage must be insured, meaning it must be approved by one of the Canadian mortgage default insurers (Genworth, CMHC, Canada Guarantee). If you have 20% or more down, the mortgage doesn't have to be insured, meaning the lender can fund the mortgage without approval from an insurer. If it was turned down by FN due to insurer issues, and Scotiabank has it approved, then they're evidently using different insurers.

Also, while having less than 20% down will get you the best rate, the interest rate savings will be largely offset by the insurance premium that you will have to pay (which is tacked on to the mortgage balance). It's advisable to put 20% down (if possible) in the vast majority of cases to avoid the insurance premiums.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Nov 15, 2017
25 posts
GreenMortgages wrote:
Nov 17th, 2017 10:47 am
The issue with having less than 20% down is that the mortgage must be insured, meaning it must be approved by one of the Canadian mortgage default insurers (Genworth, CMHC, Canada Guarantee). If you have 20% or more down, the mortgage doesn't have to be insured, meaning the lender can fund the mortgage without approval from an insurer. If it was turned down by FN due to insurer issues, and Scotiabank has it approved, then they're evidently using different insurers.

Also, while having less than 20% down will get you the best rate, the interest rate savings will be largely offset by the insurance premium that you will have to pay (which is tacked on to the mortgage balance). It's advisable to put 20% down (if possible) in the vast majority of cases to avoid the insurance premiums.

Regards,

Connor

Quick question regarding this. Is it smarter to put down 5% down payment, or borrow the remaining 15% From a heloc?
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May 1, 2017
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Alexander12 wrote:
Nov 17th, 2017 4:48 pm
Quick question regarding this. Is it smarter to put down 5% down payment, or borrow the remaining 15% From a heloc?
Well, you'd be borrowing the 15% in either case - just from different institutions (if your heloc is with a different lender). The only difference is the interest rate, and the fact that if you only put 5% down you need to pay the insurance premium. So, you'd need to weight the cost of the funds borrowed from the Heloc against the cost of borrowing it at the lower (high-ratio) rate while also factoring in the ins. premium (which you'll also pay interest on since it is tacked on to the mortgage amount and amortized along with the mortgage). In most cases it makes more sense to borrow from the heloc if and when possible. If the additional funds are being borrowed (refinanced) against a rental property, the interest payable will also be tax deductible, which is a bit of an added bonus.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Dec 11, 2011
40 posts
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MONTRÉAL
Hi

My mortgage is due for renewal. It’s a investment property 4plex.

Location: Montréal
House value: $825K
Lender: RBC
Mortgage Balance: $425K
Renewal Date: beginning of March
Insured:no
Down payment was 25%
Good credit score

I was offered 3.29 5 years fixed and 2.65% for 5 years variable by RBC

Any advice would be appreciated.


Thank you.
Newbie
Dec 4, 2011
96 posts
3 upvotes
Toronto
Looking for some of the reputable brokers here to PM with best rates and solution for the following situation.

Home Value: $800K
Home Ownership: Shared with common-law partner 50/50
Current Mortgage Balance: $350K outstanding with CIBC with both parties on loan
Current Mortgage Term Remaining: 2 years and 8 months left on a 5 year fixed mortgage
Current Mortgage Rate: 2.44%
Income: $100K, Salaried & Full-Time
Credit: Excellent
Debt: $0

Issue to solve: Buy-out my common-law partner and do so via a refinance or an alternate solution. Estimate buyout to partner is $200K or so.

Target Mortgage amount, including buyout: $560K
Target Terms: 30 Year Amortization
Target Mortgage Type: 5 year fixed or alternate option that enables highest mortgage qualification amount

Given the new mortgage rules, what is the best rate and mortgage amount I can qualify for now compared to waiting until next year?
Newbie
Feb 10, 2015
62 posts
136 upvotes
London, ON
CdnRealEstateGuy wrote:
Nov 10th, 2017 12:57 pm
Assuming you have no HELOC...

You can get 2.15% 5-year variable or 2.84% 5-year fixed today. But, these rates are only a 3-4 month rate hold. You can check back here in 2018 to see where rates are at then.
What mortgage company is offering these rates? MCAP?
Member
Jan 16, 2008
257 posts
77 upvotes
Brampton
My current mortgage with TD is due for renewal in Jan/2018 and just spoke with TD mortgage specialist. This the rate for renewal from TD.

2yrs fix 2.85
3 yrs fix 3.05
5 yrs variable 2.65 (Prime - 0.7)

Can say the current value of the house(semi-detach) in Brampton, but 2 1/2 years ago, bought it for 465K, borrow 367K, so the current owing/renewal amount is about 349K.
I am wondering if this is the best rate I can get. Look better than most and even True North.
Advice is appreciated.
Thanks
Newbie
Nov 16, 2017
4 posts
@GTASeeker

According to my calculations, you will be able to qualify for 650k no problem currently.

However, once the new rule hits, your amount will go down to around 480k.

5 year fixed for a refinance is around 3.24-3.44
Last edited by JerryC900861 on Nov 17th, 2017 10:22 pm, edited 1 time in total.
Jerry Chen, Mortgage Agent
Canadian Capital Mortgages Inc
#M17002091
jerry@canadiancapitalmortgages.com

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