Real Estate

The Official Mortgage Rates Thread

Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
klazutin wrote: @JerryC900861

Sure, that's what I'm thinking. Just a bit weary of having several hits on my credit report.
Hi there,

Just wanted to clear a few things up for you. The 3.29% that you were offered for pre-approval was this high simply because it was a pre-approval (unless it is from a bank with high rates, at which point it wouldn't matter). Lenders often charge a premium on pre-approval rates which is why you don't see extremely low rates quoted on a pre-approval basis. You were then quoted 2.99%. The person who quoted you this rate likely quoted it because he/she knew that you actually have an accepted offer, and don't require a pre-approval - you require an actual approval. If they didn't know this then they should have made it clear that it will only become available once a purchase is made. For 'live files,' much cheaper rates are available, like the 2.99% that you were quoted.

If you speak to a broker about rates, they will have different rates available whether you are in the pre-approval stage, or in the actual approval stage - which is what you're seeing, and which is why the discrepancy in rate likely exists. Brokers can not guarantee you the lowest rates in the market until you actually have an accepted offer.

In response to your other inquiry - yes often the lowest rates in the market have a reduction in pre-payment options or more aggressive penalty calculations (slightly restricted products). This is not always the case, though. Also, depending on your goals with the mortgage and the property, the cheaper rate rate may outweigh the negatives of the restrictions. It's different for everyone depending on their preferences.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Mar 27, 2009
26 posts
3 upvotes
New Westminster, BC
I forgot about even including the rental income as income... does it help? I have had it since 2014 and never without tenants. I sent you a PM.
GreenMortgages wrote: Hi there,

It's going to be tough to qualify for more financing with an 'A' lender without a 2 year history of self-employed earnings. Some lenders can make exceptions based on a combination of your work history, the industry you're in, if you have contracts into the future, etc. Lenders can often treat the rental properties in a way that really reduces their impact on your qualifying, so that's not really the issue - the real issue is finding a lender who can use your income to qualify you. There may be some 'B' lenders who would be interested, but it will be very tough on the 'A' side.

Of course, it's tough to say without knowing the nature of your business, your work history, credit, etc. If there is a strong industry income average and you've been in the industry for a number of years, there may be a way to get financing. The amount that you can get qualified for and which institutions may be able to lend to you will be a reflections of these variables.

Regards,

Connor
Deal Addict
Apr 26, 2004
2114 posts
101 upvotes
GTA
GTASeeker wrote: 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?
You should be eligble to get 3.05% with cash back!
Mortgage Specialist in the GTA
Deal Addict
Apr 26, 2004
2114 posts
101 upvotes
GTA
joonyer wrote: 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!
Great detailed post! You’re new on here do you know how to check your inbox?
Mortgage Specialist in the GTA
Sr. Member
Sep 13, 2008
746 posts
151 upvotes
Toronto
For insurance purposes, how is the value of a home determined? I'm reading that a house over 1 million is deemed uninsurable; even if owner has over 20% equity and amortized over 25 years or less.
Newbie
Dec 14, 2013
5 posts
@GreenMortgages
Hi Connor,

Thank you very much for the detailed response.

The thing is, the place that quoted me 3.29% specifically quoted this as the final rate, not the pre-approval rate. I confirmed this with them on two separate occasions. This is what prompted me to post here in the first place, since for the life of me I couldn't understand why two places were offering such different rates for what seems to be identical products (granted, I don't know about restrictions yet). I just want to make sure there isn't something major that I'm overlooking here, especially since the 3.29% place has been trying hard to convince me it's impossible to find anything lower than that.

Based on the answers I've gotten here, it's absolutely realistic to expect a rate below 3%, which is what I will pursue, even if it may mean certain restrictions.

Again, thank you very much for your answer.
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
klazutin wrote: @GreenMortgages
Hi Connor,

Thank you very much for the detailed response.

The thing is, the place that quoted me 3.29% specifically quoted this as the final rate, not the pre-approval rate. I confirmed this with them on two separate occasions. This is what prompted me to post here in the first place, since for the life of me I couldn't understand why two places were offering such different rates for what seems to be identical products (granted, I don't know about restrictions yet). I just want to make sure there isn't something major that I'm overlooking here, especially since the 3.29% place has been trying hard to convince me it's impossible to find anything lower than that.

Based on the answers I've gotten here, it's absolutely realistic to expect a rate below 3%, which is what I will pursue, even if it may mean certain restrictions.

Again, thank you very much for your answer.
No problem at all.

In this case it's likely that the lender who offered you the 3.29% product simply doesn't have the best rates in the market. Each lender has different rates and products available, and rates change with regularity. You're not overlooking anything major. The fact is that from time to time, some lenders can't compete and will try to convince you (read: sell you) that their product is the best.

Be sure when shopping for rates that whoever you're speaking with goes over the specifics of the product, and how they might differ from the lender you've been quoted 3.29% from (if there are any differences at all). For some borrowers, 3.29% may be the best available, but given the information you've provided, there should be better available to you.

Regards,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Not to mention that rates change all the time.. new promos come and goo almost daily. Today one lender released a new rate sheet with some new rates that may be lower for clients in certain specific situations. Sometimes, we get 1 new rate sheet from 1 lender with higher rates, while another lender is dropping them.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Deal Fanatic
User avatar
Feb 2, 2014
7569 posts
2022 upvotes
Toronto
redwings_patriots wrote: For insurance purposes, how is the value of a home determined? I'm reading that a house over 1 million is deemed uninsurable; even if owner has over 20% equity and amortized over 25 years or less.
Correct. Any property $1M or higher cannot obtain mortgage default insurance and most lenders will offer a slightly higher rate. The value of the property is usually determined by the purchase price (for a purchase) or an appraisal.

Now, I don't know if your question was referring to mortgage default insurance (aka CMHC insurance) or home property insurance. For property insurance, you can still get insurance for a million dollar property of course.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Sep 13, 2008
746 posts
151 upvotes
Toronto
CdnRealEstateGuy wrote: Correct. Any property $1M or higher cannot obtain mortgage default insurance and most lenders will offer a slightly higher rate. The value of the property is usually determined by the purchase price (for a purchase) or an appraisal.

Now, I don't know if your question was referring to mortgage default insurance (aka CMHC insurance) or home property insurance. For property insurance, you can still get insurance for a million dollar property of course.
Thanks for the info.

What if the purchase price was $850,000 4.5 years ago? Can it be considered under 1MM now? I'm still over 6 months out until renewal and just starting to do some research. Based on the $850,000, I have over 65% in equity...if we account for appreciation, equity would be well over 65%. Would a lender account for the amount of equity to offer a more competitive rate? There is a huge difference in risk for someone who has 25% equity, as compared to someone with 80+% in equity.
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
redwings_patriots wrote: Thanks for the info.

What if the purchase price was $850,000 4.5 years ago? Can it be considered under 1MM now? I'm still over 6 months out until renewal and just starting to do some research. Based on the $850,000, I have over 65% in equity...if we account for appreciation, equity would be well over 65%. Would a lender account for the amount of equity to offer a more competitive rate? There is a huge difference in risk for someone who has 25% equity, as compared to someone with 80+% in equity.
It's irrelevant what the purchase price was when you originally bought the home unfortunately. It goes by current market value only. The only exception here would be if you originally bought your home with LESS than 20% down payment. No other exceptions. If the property is valued at over $1 million, you won't get a better rate by having more equity. That only applies to properties valued at under $1 million.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Nov 19, 2017
1 posts
Hello,

Just looking to get the best rate on my upcoming renewal, I had looked at CanWise Financial and they seem to have some pretty good posted rates. I'm open to fixed or variable depending on the deal. My situation:

Location: Simcoe, Ontario
House value: $400K (Just appraised)
Lender: Your Neighborhood Credit Union
Mortgage Balance: $214K
Renewal Date: December 8th
Insured:Yes
Good credit score
Newbie
Jan 10, 2007
33 posts
9 upvotes
Toronto
My wife and I are planning on purchasing our first home and were looking around for some rates. If anyone is willing to help me out with the following, please let me know. Both of us have 0 debt with Excellent credit.

1. Interested in either a 5 or 10 Year fixed, 25 year amortization
2. First time purchase, single family home, detached house, Owner occupied
3. Purchase price(MAX): 400k
4. Down payment: 5% or 10%
5. Move in date: ~March 2018
6. Location: Niagara region.
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Tons of options available. With an insured mortgage, you will get the absolute best rates.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428

Top

Thread Information

There are currently 10 users viewing this thread. (9 members and 1 guest)

Scared1, leedanjy, TheGame, dgnr8, PwA, ViperZ, leseuldaniel, nickwa, FKZ2K71