Real Estate

The Official Mortgage Rates Thread

Deal Addict
User avatar
Aug 7, 2007
3353 posts
1433 upvotes
GTA
This might be a really silly question regarding buying a previously owned home.
Why does the buyers deposit matter for the sellers?

For example, a home is listed at $500,000. Buyer 1 puts a deposit of $10,000 at $500,000 and Buyer 2 puts a deposit of $20,000 at $500,000. I'm reading that the seller will most likely take Buyer 2, but why? Wouldn't the seller still be receiving the same money in the end? Or are the sellers actually getting that $20,000 deposit to them in their pockets and they can decide what to do with it?
Deal Addict
User avatar
Jan 31, 2018
1668 posts
292 upvotes
akalic wrote: Hi there,

Went to a BMO mortgage specialist and wanted some insight on this offer by them.

3.19% on a 4 year fixed 20/20

295k home. first time home buyers
25 year amortization
downpayment: >30%
Credit/Employment: Very Good
Province: BC

She was telling me this is the special. Does that mean that this rate is not tailored to me at all? What can i do at this point
Hi There

Did she offer you any other terms rates ? Are you open to other terms or specifically a 4 yr?

I would explore other options as there are definitely some more competitive rates out there see below:

5 yr fixed rate 3.04% 20/20 90 day rate hold

5 yr variable 2.45% or prime - 1% 120 day hold 20/20 prepayment

4 yr 3.19% 120 day hold 15/15 prepayment

3 yr fixed 2.99% 90 day hold 15/15 prepayment

Hope this helps

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Jan 31, 2018
1668 posts
292 upvotes
ADRiiAN` wrote: This might be a really silly question regarding buying a previously owned home.
Why does the buyers deposit matter for the sellers?

For example, a home is listed at $500,000. Buyer 1 puts a deposit of $10,000 at $500,000 and Buyer 2 puts a deposit of $20,000 at $500,000. I'm reading that the seller will most likely take Buyer 2, but why? Wouldn't the seller still be receiving the same money in the end? Or are the sellers actually getting that $20,000 deposit to them in their pockets and they can decide what to do with it?
Regarding the deposit amount I can only surmise the greater deposit show more of a commitment in the sellers eyes by the buyer

Deposits are held in trust by the Realtors brokerage until completion of the transaction
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Aug 7, 2007
3353 posts
1433 upvotes
GTA
rateconnect wrote: Regarding the deposit amount I can only surmise the greater deposit show more of a commitment in the sellers eyes by the buyer

Deposits are held in trust by the Realtors brokerage until completion of the transaction
Thanks. What's a common deposit now a days to show good commitment?
Newbie
Jan 25, 2018
6 posts
Hey,

I posted here about a week ago but my situation as changed a little bit. I'm buying a $1.5 million house in Toronto and will be paying cash but I would like to get a $500k loan on the house to replace some of the investments I am selling.

I presume that I can still get a regular mortgage, but will this situation affect the rate I will be able to get? I see in this thread that it is currently possible to get around 3.00% five year fixed but the best offer from my bank is 3.24%. How should I go about getting a better rate?

Thanks
Deal Addict
User avatar
Apr 16, 2009
1246 posts
474 upvotes
Vancouver
ADRiiAN` wrote: Thanks. What's a common deposit now a days to show good commitment?
Wife and I did 25K deposit which ended up being ~5.1%

Given the "hot" markets, that little extra competitive edge - however silly it may seem, helps in the end.
Deal Addict
User avatar
Jan 31, 2018
1668 posts
292 upvotes
greylake wrote: Hey,

I posted here about a week ago but my situation as changed a little bit. I'm buying a $1.5 million house in Toronto and will be paying cash but I would like to get a $500k loan on the house to replace some of the investments I am selling.

I presume that I can still get a regular mortgage, but will this situation affect the rate I will be able to get? I see in this thread that it is currently possible to get around 3.00% five year fixed but the best offer from my bank is 3.24%. How should I go about getting a better rate?

Thanks
Hi there

When do you take possession of the property?

Non insurable rates are slightly higher than some of the low rates you see posted on the forum - in my opinion you will not be able to get to the 3% range on a refinance and the bank offer at 3.24% is a good one --

Best rates 5 yr fixed rate 3.22%

Hope this helps

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Jan 25, 2018
6 posts
rateconnect wrote: Hi there

When do you take possession of the property?

Non insurable rates are slightly higher than some of the low rates you see posted on the forum - in my opinion you will not be able to get to the 3% range on a refinance and the bank offer at 3.24% is a good one --

Best rates 5 yr fixed rate 3.22%

Hope this helps

Phil
Thanks for the answer. Taking possession march 1st but I guess I won't necessarily need the mortgage on that date.
Member
Mar 13, 2010
297 posts
26 upvotes
Hi,

I am currently with TD and my 120 day renewal start on Feb 21. Looking for TD mortage specialist can off the best rate.

We can open for any other bank mortgage specialist or broker offer.

Excellent income and good record.

Thanks
Deal Addict
User avatar
Jan 31, 2018
1668 posts
292 upvotes
ivylai wrote: Hi,

I am currently with TD and my 120 day renewal start on Feb 21. Looking for TD mortage specialist can off the best rate.

We can open for any other bank mortgage specialist or broker offer.

Excellent income and good record.

Thanks
Hi There

How much is the property worth and current mortgage balance? Also when you purchased the property did you put less than 20% down

TD mortgages are a collateral charge so legals would be required to switch to a different lender however there are some that allow collateral switches

Hope this helps

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Jan 31, 2018
1668 posts
292 upvotes
greylake wrote: Thanks for the answer. Taking possession march 1st but I guess I won't necessarily need the mortgage on that date.
The rates are good for 120 days

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Nov 22, 2017
30 posts
14 upvotes
What are the better rates with 25% down? We would be able to do 25% if the difference in rates made it make sense.
rateconnect wrote: Based on the information provided you can get preapproval rates below:

5 yr fixed with a major bank 3.44% 20/20 good for 120 Days
5yr variable would be in the 2.80% range or prime - .65

Once you purchase the property then you would be eligible for all the best rates. Some of the rates you see posted on the forum are not good until you have a firm deal on a property.

If you had a firm deal today rates below would apply

5 yr variable at 2.60% prime - .85% with 20% down 20/20 prepayment good for 120 days

5yr fixed 3.06% 120 day rate hold 20/20 prepayment

There are slightly better rates if you could come up with 25% down

Hope this helps

Phil
Jr. Member
Sep 12, 2007
176 posts
19 upvotes
Coquitlam
rateconnect wrote: Hi There

Did she offer you any other terms rates ? Are you open to other terms or specifically a 4 yr?

I would explore other options as there are definitely some more competitive rates out there see below:

5 yr fixed rate 3.04% 20/20 90 day rate hold

5 yr variable 2.45% or prime - 1% 120 day hold 20/20 prepayment

4 yr 3.19% 120 day hold 15/15 prepayment

3 yr fixed 2.99% 90 day hold 15/15 prepayment

Hope this helps

Phil
She offered:

3.24% x 5 year 10/10 fixed
3.34% x 5 year 20/20 fixed
3.19% x 4 year 20/20 fixed
3.25% x 3 year 20/20 fixed

Where would i be able to get a 3.04% 20/20 fixed for 5 years? Is it necessary to submit the actual signed offer of Purchase and proof of income to get these "better" rates? I'm not really understanding when I can actually be offered better deals

Thanks for helping
Last edited by akalic on Feb 10th, 2018 3:39 pm, edited 1 time in total.
Deal Fanatic
Feb 22, 2011
6516 posts
6502 upvotes
Toronto
I have a tenant leaving on August 15th of this year and my renewal for the term is August 26th. I want to sell the property which between cleaning, listing and closing will likely take a few months. Should I bother finding a broker or just ask the bank to renew me with open? I had a broker before but he has become unreliable.

I also plan on paying down my primary residence, they said I can do a 20% payment, plus increase my payments by 20% and double them. Is there anything I should know about doing this? What will the benefits be now of paying half my balance? Will I just keep making the same payment and pay the principal down faster? So then when I renew this one in 2.5 years I would have a much lower balance? Would I then have a different payment or continue with my current one?
Sr. Member
User avatar
Oct 23, 2007
502 posts
53 upvotes
Toronto
Hi there,

I'm about to purchase a condo with my girlfriend and we're looking to try find a better mortgage. Could I please request the best mortgage rate available to us for our situation? Thanks in advance!

Both first time home buyers, located in Ontario
Both working, combined income: $157,000
Purchase Price: $660,000
Down payment: 10% / $66,000
Credit score: Excellent & Very Good

We currently have a pre-approval from a big bank for 3.44% 5 year fixed, 25 year mortgage. Would increasing the down payment amount qualify us for a better rate?

Top

Thread Information

There are currently 11 users viewing this thread. (5 members and 6 guests)

jeblers, wroom, stunner416, Portlander, weidmark