Real Estate

The Official Mortgage Rates Thread

Deal Addict
User avatar
May 1, 2017
1070 posts
227 upvotes
outinbc wrote: Hi there,

I hope this is the right place for my question - I'm new to RFD but I've found a lot of very helpful information on this forum.

I've just sold my 1st condo, and am looking to get back into the market. I live in BC, have a credit score of 660, income of 92k/year, expenses are roughly 1.5k - 2k/month.

I want to buy a primary residence around 200-250k, and I have a roommate that is willing to sign a tenancy agreement at pay $600/month, however, I also will like to buy a secondary investment unit at 200K, and I have a property manager that has a list of tenants and is confident he can fill it immediately. I have found the two places I want to buy, and now it's just a matter of financing them.

I have about 50-60K that I want to put into downpayments/closing fees (so I was hoping I could do 5% on the first place at 20% on the second place)
Do you feel like with the above information I can qualify to purchase both these places?
And if so, what is the best way to go about this? Is there a mortgage broker here in BC that you would recommend?

Thank you!
Hi there,

As a matter of timing, you can certainly purchase both units concurrently, it's just a matter of getting you qualified for both mortgages. As you've already stated, on the owner occupied property, you can put as little as 5% down, and the rental as little as 20%. Keep in mind that you'll need to show that you have an additional 1.5% of the purchase price available for closing costs on the owner occupied property since you're looking to put less than 20% down.

Your credit shouldn't be too much of an issue in terms of acquiring financing, but the rate may reflect score a bit on the rental. Also, it's worth noting that the score you receive by checking your own credit may vary from the score we as brokers receive when we pull a report from equifax. It's not uncommon for the score to be significantly lower/higher that what you're receiving depending on where you've accessed the score.

Ultimately it's tough to say what you'll qualify for without taking a closer look at your personal situation (debts, credit, the properties in question all play a significant role). You could likely get it done, but when factoring for qualifying on two properties concurrently it's necessary to have all relevant information up front!

I suggest speaking with a broker/agent about what your options are for qualifying. Any of the agents/brokers on here would be able to help you as most if not all are licensed in multiple provinces.

Best,

Connot
_________________________________
Connor Green
Mortgage Awards of Excellence Winner
Concierge Mortgage Group
#12179
Deal Addict
User avatar
May 1, 2017
1070 posts
227 upvotes
frank664 wrote: I have a couple of questions hopefully you guys can help me out with. I have a 5 year fixed mortgage at 3.09% that is coming due August 2018. Here are the details

Property value - 380000
Current Mortgage Amt - $78000
Collateral or Non collateral mortgage - Non Collateral Mortgage
Original downpayment - 20%
Credit Score - 888 according to Transunion
Current payments are - 968.50 biweekly and i double them up so it is actually $1937 every two weeks

The way i have setup the payments I should be able to pay the house off August 2019. When I go to renew my mortgage is it best to just get 1 year rate considering I would like to keep the payments similar to what i am currently paying $1937 every 2 weeks? Can you get a 1 year amortization period? What are the best rates i can expect?

Thanks
Hi there,

Congrats on almost being done with your mortgage, first of all. And yes, if you're confident that at your current payment frequency/amount that you will pay the mortgage off in a year, you should try to line up the term you take with the remaining payments. If you can just renew into a one year term and pay it off in a year that's likely your best course of action.

Most lenders have a minimum amortization of 5-10 years for switch/transfers unfortunately so your option will be limited in terms of product availability. Also it's unlikely going to be worth switching lenders since the cost and trouble likely won't outweigh the interest savings achieved over the year by switching lenders.

Best,

Connor
Last edited by GreenMortgages on Feb 19th, 2018 2:42 pm, edited 1 time in total.
_________________________________
Connor Green
Mortgage Awards of Excellence Winner
Concierge Mortgage Group
#12179
Deal Addict
User avatar
May 1, 2017
1070 posts
227 upvotes
harhaf wrote: Hi there, can anyone recommend a mortgage broker who is based in city of Toronto (North York, Scarborough), I want to get pre-approval done. Thanks
Hi there,

Any of the brokers/agents on this forum can help you out with a pre-approval! A number of us are GTA based.

Best,

Connor
_________________________________
Connor Green
Mortgage Awards of Excellence Winner
Concierge Mortgage Group
#12179
Deal Addict
User avatar
May 1, 2017
1070 posts
227 upvotes
Frash1 wrote: Hi all,

We’re new home buyers and looking to purchase our first place with minimum down (5%). Home value is $550k. Have a few questions:

1. We have two pre-approvals received in December last year, one for $527k (3.19% on 5yr fixed) and the other for $632k (3.34% on 5yr fixed). These were received through a mortgage broker. We would like to switch to another broker now given that he is willing to buy down our mortgage rate. Is this normal practice, i.e. buying down the rate?

2. Can we shop around with our current pre-approval and then move to the new broker when it’s time to purchase?

3. What are the best rates at the moment for 5yr fixed on an insured mortgage?

4. On a side note, how does the land transfer tax rebate work? Does one have to pay the full amount and then get the rebate at a later time? Or does one just pay the difference from the onset?

Thanks!
Hi there,

You can certainly shop around with your current pre-approvals and then find the best rate available to you once you've made a purchase. As of right now, the best 5 year fixed rate is 2.94% -2.99%. It's difficult to say how long these rates will last though as rates have been moving up rather quickly the last little while.

The solicitor acting for you will credit the LTT rebate at the time of closing - it's not done after the fact.

Best,

Connor
_________________________________
Connor Green
Mortgage Awards of Excellence Winner
Concierge Mortgage Group
#12179
Newbie
Feb 18, 2018
4 posts
1 upvote
GreenMortgages wrote: ...
Ultimately it's tough to say what you'll qualify for without taking a closer look at your personal situation (debts, credit, the properties in question all play a significant role). You could likely get it done, but when factoring for qualifying on two properties concurrently it's necessary to have all relevant information up front!
...

Best,

Connor
Thanks for all your helpful information! I got my credit report from equifax (the consumer side however), and I've paid down most, if not all of my debt with the exception of a car loan from my bank, the balance of which is around 12k (monthly payments of 763). If necessary I can probably pay off this car loan and still have enough for the 5/20/1.5% downpayment/fees.

I have sent you a PM!

Daniel
Deal Fanatic
User avatar
Feb 2, 2014
7828 posts
2175 upvotes
Toronto
harhaf wrote: Hi there, can anyone recommend a mortgage broker who is based in city of Toronto (North York, Scarborough), I want to get pre-approval done. Thanks
My office is in Scarborough and I live in Durham. I am a realtor and mortgage broker. $450k is tight...where in Durham are you looking to buy?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Jan 26, 2018
9 posts
Vancouver
eurodin wrote: 2.95 2 Y Fixed @ TD ^^^^^^

My friend just got one.
What are the details on this offer? All I could find today close from TD was 1 year fixed @ 3.04%
Newbie
Feb 19, 2018
7 posts
Hi Everyone, we're in the process of purchasing our first home, and I had previously been preapproved with TD for 3.19 5 years fixed. I'm looking to connect with a broker in the Toronto area to see if I can find a better rate. My details are below:

Purchase Price 620,000
Downpayment 12%
Type: Condo in Toronto

A few questions I have:
1) Whats the best 5 year fixed I can get?
2) Whats the best variable rate I can get?
3) How long does it take to approve a financing application?

Would appreciate if any available brokers can PM me.

Thanks!
V
Last edited by vikpage on Feb 20th, 2018 11:24 am, edited 1 time in total.
Sr. Member
Dec 28, 2010
527 posts
181 upvotes
Toronto
rateconnect wrote: Rental rates are higher than the owner occupied properties

These rates are competitive from your current lender below are the best rates on rentals at the moment:
3.44% for a 5yr fixed
2.85% 5 yr variable prime-.60%
2.89% 1 yr fixed
2.99% 2 yr fixed
3.23% 3 yr fixed
3.36% 4yr fixed

Hope this helps
Phil

Thanks for the assurance on the rates.

Just got call from TD specialist and the new rate for 2yr fixed is up 15 from previous offer of 2.94% to 3.09%
At first the specialist said, there is no going back, no negotiation, but, then as a courtesy offered 3.0% if I committed to the deal today.

Our renewal is on the 30th of March. Is it worth waiting 6 more weeks for a better 2yr fixed or I have 4hrs to decide on this and get this over with.
Leaning towards closing and getting rid of headache.

Does the effective date of new rate starts today or we can decide on a new effective date.
Sorry, this is my first renewal, feedback appreciated. thnx
Last edited by Karma2000 on Feb 20th, 2018 12:25 pm, edited 3 times in total.
Deal Fanatic
User avatar
Sep 13, 2011
5287 posts
2269 upvotes
Toronto
vikpage wrote: Hi Everyone, we're in the process of purchasing our first home, and I had previously been preapproved with TD for 3.19 5 years fixed. I'm looking to connect with a broker in the Toronto area to see if I can find a better rate. My details are below:

Purchase Price 620,000
Downpayment 12%
Type: Condo in Toronto

A few questions I have:
1) Whats the best 5 year fixed I can get?
2) Whats the best variable rate I can get?
3) How long does it take to approve a financing application?

Would appreciate if any available brokers can PM me.

Thanks!
V
Yes, there are definitely lower rates available, and with far superior terms and conditions as well. Lowest 5 year fixed with 12% down would be 2.94%. Lowest variable would be prime -1.24% (2.21%). After submitting the application to the lender, they usually issue a commitment as soon as within a few hours, to as long as a couple of days, depending on lender.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Jan 31, 2018
1810 posts
346 upvotes
vikpage wrote: Hi Everyone, we're in the process of purchasing our first home, and I had previously been preapproved with TD for 3.19 5 years fixed. I'm looking to connect with a broker in the Toronto area to see if I can find a better rate. My details are below:

Purchase Price 620,000
Downpayment 12%
Type: Condo in Toronto

A few questions I have:
1) Whats the best 5 year fixed I can get?
2) Whats the best variable rate I can get?
3) How long does it take to approve a financing application?

Would appreciate if any available brokers can PM me.

Thanks!
V
Done as requested
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Fanatic
User avatar
Sep 13, 2011
5287 posts
2269 upvotes
Toronto
Karma2000 wrote: Thanks for the assurance on the rates.

Just got call from TD specialist and the new rate for 2yr fixed is up 15 to 3.09%
At first the specialist said, there is no going back, no negotiation, but, then as a courtesy offered 3.0% if I committed to the deal today.

Our renewal is on the 30th of March. Is it worth waiting 6 more weeks for a better 2yr fixed or I have 4hrs to decide on this and get this over with.
Leaning towards closing and getting rid of headache. Does the effective date of new rate starts today or we can decide on a new effective date.

Sorry, this is my first renewal, fedback appreciated. thnx
Banks love to play this rate game where they tell you that the rate is only available for a specific amount of time. I've seen them even do this on rates that could be considered gouging, meaning they are higher than market rates for that particular bank. In your case, the 3.00% you are being offered is a solid rate for a 2 year fixed, so I think if a 2 year fixed is what you are looking for, then this would be a great option for you.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Sr. Member
Dec 28, 2010
527 posts
181 upvotes
Toronto
Thanks Paul!
Also, Does the effective date for new rate starts asap/same day or we can decide on a new effective date.
This is a considerable jump from current rate. So ideally , would have liked to rollover to new rate on expiry.

I can essentially ask the bank specialist , but wanted to be prepared when I go in today.
Deal Fanatic
User avatar
Sep 13, 2011
5287 posts
2269 upvotes
Toronto
Karma2000 wrote: Thanks Paul!
Also, Does the effective date for new rate starts asap/same day or we can decide on a new effective date.
This is a considerable jump from current rate. So ideally , would have liked to rollover to new rate on expiry.

I can essentially ask the bank specialist , but wanted to be prepared when I go in today.
The new rate would start on your maturity date. It could always be set before, but it of course wouldn't make any sense to start paying a higher rate earlier than you have to.

Everyone switching right now is in the same boat you are. Fixed rates are higher than they have been in years, which means most are now paying a higher rate on maturity unfortunately.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Sr. Member
Dec 28, 2010
527 posts
181 upvotes
Toronto
Thanks Paul.
Yes this is a considerable jump from 2.14% right now.
Two final questions :-
Are their better 3 or 4 yr rates for rentals - variable or fixed .
And is it a lot of hassle to transfer to new lender.

Amount remaining is 287k and I can put in another 10% at renewal if that helps. Again, new to this whole renewal so bear with my questions.

Top

Thread Information

There are currently 9 users viewing this thread. (6 members and 3 guests)

Sigurd, AnthonyC18, AzairS95333, abhishektaneja, tanerci, cec4111