Real Estate

The Official Mortgage Rates Thread

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Dec 10, 2009
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Van Isle
For the Mortgage specialists on this forum. Are any of you GENUINELY interested in securing a mortgage for people that require no more than $125K? We have not been told outright to get lost but we are getting the feeling that brokers are not interested in this smaller amount of money required. A few details...the home value will be between 675-750 and we have about 80% down. credit is great zero debts. Looking for a non-collateral, 20/20 5yr vari, 15yr amor. Please PM me if this is something you would want to do. We are in BC and we have not yet found the property.

Thanks
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Hi there,

Most lenders now include a a small section confirming that it is a collateral charge in their initial commitments, but it's unclear wether that would be included in renewal documentation. Who is your mortgage with, and what type of mortgage is it? Is it a stand-alone mortgage, or is it a mortgage+heloc combination product?

If it's a combination mortgage +LOC, then it will be a collateral charge mortgage. If it's a stand alone mortgage, it has a higher liklihood of being a standard charge. That's not true of all mortgages, though. If your mortgage is a TD, National Bank, or Tangerine mortgage, it will be a collateral charge regardless of the type of product, as those lenders only register collateral charges. If it's a Scotiabank STEP, CIBC/Firstline Matrix, MCAP Fusion, RBC Homeline, (all combination products), then it will be collateral. Plenty of Investor's Group mortgages are also collateral charges.

If you let us know the bank/lender and product name then we'd be able to tell you fairly quickly.

Best,

Connor
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Connor Green
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katwittfan wrote: For the Mortgage specialists on this forum. Are any of you GENUINELY interested in securing a mortgage for people that require no more than $125K? We have not been told outright to get lost but we are getting the feeling that brokers are not interested in this smaller amount of money required. A few details...the home value will be between 675-750 and we have about 80% down. credit is great zero debts. Looking for a non-collateral, 20/20 5yr vari, 15yr amor. Please PM me if this is something you would want to do. We are in BC and we have not yet found the property.

Thanks
Brokers should certainly be interested in setting up a mortgage for you. I know a few of the brokers on this forum would - myself included. The mortgage amount shouldn't matter! If a borrower is looking for a mortgage, a broker should be happy to help, regardless or mortgage size.

There are some brokers, as you've experienced, that may be too busy to help, or may not think that the mortgage balance is large enough, but there are certainly plenty of agents/brokers that would be happy to help.

Best,

Connor
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Connor Green
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Concierge Mortgage Group
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derdev wrote: Hi brokers,

I already received great info on this thread, but I am back for more.

I just started a pre-approval process with a broker in my town (from Dominion Lending) but was surprised by the exclusivity agreement of several months.

This makes me uneasy, even though I was planning to go all the way with this one broker.

How normal is this, and do all brokerages force exclusivity agreements (e.g. True North, Mortgage Alliance / Multi-Prets, etc.)?

Not sure what to do in this case.
Which province are you in?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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madmoe wrote: Looking for 5-yr fixed rates. Info:
Purchase price: $700k
Down payment: 20%
Location: GTA
Closing date: mid-June
First time buyers. Good credit score.

Was offered 3.39%. Broker mentioned 3.14% and 3.24% rates originally, but wasn't able to get them (according to him these rates were for down payment up to (but less than) 20%)
You can get 3.19% 5-year fixed with 20% down fairly easily.
Kevin Somnauth, CFA
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Doing some homework for my daughter, who just got a preapproved rate of 3.24 5 year fixed from TD.
Her mortgage will be a high ratio insured mortgage, with a max house price tag of 260k. Located in MB.
Is 3.24 really the best available these days?
I find it hard to believe a big bank could have the best available rate, especially TD.
Also, once she gets a rate from a broker, can she go elsewhere (say her own bank RBC) and ask them to match that rate, or is she kind of locked in to the broker?
I didn’t use a broker when I got my mortgage so I have no idea how it works.
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coolintheshade wrote: Doing some homework for my daughter, who just got a preapproved rate of 3.24 5 year fixed from TD.
Her mortgage will be a high ratio insured mortgage, with a max house price tag of 260k. Located in MB.
Is 3.24 really the best available these days?
I find it hard to believe a big bank could have the best available rate, especially TD.
Also, once she gets a rate from a broker, can she go elsewhere (say her own bank RBC) and ask them to match that rate, or is she kind of locked in to the broker?
I didn’t use a broker when I got my mortgage so I have no idea how it works.
She can get 2.94% 5-year fixed or Prime -1.24% 5-year variable for an insured mortgage.

Banks won't match that rate.
Kevin Somnauth, CFA
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A - Banks in most cases dont have the best rates.
B - If you get a rate from a broker, what would be the benefit of having a bank match it?

Banks have some of the worst terms and conditions in the business. One of them is how they calculated penalties when a client breaks a mortgage, and the difference is absurd. See below one of the "benefits" of big banks :

Image


coolintheshade wrote: Doing some homework for my daughter, who just got a preapproved rate of 3.24 5 year fixed from TD.
Her mortgage will be a high ratio insured mortgage, with a max house price tag of 260k. Located in MB.
Is 3.24 really the best available these days?
I find it hard to believe a big bank could have the best available rate, especially TD.
Also, once she gets a rate from a broker, can she go elsewhere (say her own bank RBC) and ask them to match that rate, or is she kind of locked in to the broker?
I didn’t use a broker when I got my mortgage so I have no idea how it works.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
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CdnRealEstateGuy wrote: She can get 2.94% 5-year fixed or Prime -1.24% 5-year variable for an insured mortgage.

Banks won't match that rate.
Which lender would this be?
The broker my daughter met with claims they work with 19 different lenders, including 2 of the big banks.
I was suspicious right away, when she told me the best rate is offered by TD Bank.
So this guy is telling her the other 17 non big bank lenders are not offering a better rate than TD?
I find that very difficult to believe.
What I do believe is perhaps this broker gets a special kick back from TD, in return for bringing business their way, even though they don’t have the best rate.
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valuemortgage wrote: A - Banks in most cases dont have the best rates.
B - If you get a rate from a broker, what would be the benefit of having a bank match it?

Banks have some of the worst terms and conditions in the business. One of them is how they calculated penalties when a client breaks a mortgage, and the difference is absurd. See below one of the "benefits" of big banks :

Image
This is why I was immediately suspicious that TD is the best rate this broker could find her.
I’m not saying there is any benefit to going with a big bank, I only brought up matching the rate at RBC because if the brokers claim is true, that TD is the best rate, and she’s stuck going with TD, she may as well see if she can match the rate at her own bank (RBC).
Plus I’ve heard bad stories about how TD registers their mortgages at a collateral charge or something like that.
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Dec 26, 2008
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Ottawa
- original purchase price : 505000
- current property value : 560000
- mortgage amount needed: 320000
- did you pay CMHC (or similar) insurance on the home when you purchased it (if switching): No
- current lender: CIBC
- do you you have a second component such as a Home Equity Line of Credit (HELOC) attached to your mortgage? No
- primary residence or rental property : Primary
- maturity date : July 6,2018

based on the info above, am I qualified for the 2.99%? and how long does this rate can be hold?

Thanks
PaulMeredith wrote: We woud need to know a bit more information in order to quote you rates accurately. If switching or refinancing we would need to know the following:

- original purchase price
- current property value
- mortgage amount needed
- did you pay CMHC (or similar) insurance on the home when you purchased it (if switching)
- current lender
- do you you have a second component such as a Home Equity Line of Credit (HELOC) attached to your mortgage?
- primary residence or rental property
- maturity date

This is all information that is needed in order to quote you an accurate rate. If you have at least 35% equity in the property, then you'll likely be eligible for 5 year fixed rates as low as 2.99% or variable at prime -1.24% (2.21%).
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coolintheshade wrote: This is why I was immediately suspicious that TD is the best rate this broker could find her.
I’m not saying there is any benefit to going with a big bank, I only brought up matching the rate at RBC because if the brokers claim is true, that TD is the best rate, and she’s stuck going with TD, she may as well see if she can match the rate at her own bank (RBC).
Plus I’ve heard bad stories about how TD registers their mortgages at a collateral charge or something like that.
You're right that TD only registers collateral mortgages, which in itself isn't a terrible thing, but really should only be used by borrowers who have a use for the features of a collateral charge mortgage. Otherwise, collateral charge mortgages only complicate things upon maturity, which can often be costly and will limit options at the end of the term. All other things being equal, it's typically best to avoid collateral charges if the borrower doesn't intend on using the benefits of that type of mortgage.
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Aymer wrote: - original purchase price : 505000
- current property value : 560000
- mortgage amount needed: 320000
- did you pay CMHC (or similar) insurance on the home when you purchased it (if switching): No
- current lender: CIBC
- do you you have a second component such as a Home Equity Line of Credit (HELOC) attached to your mortgage? No
- primary residence or rental property : Primary
- maturity date : July 6,2018

based on the info above, am I qualified for the 2.99%? and how long does this rate can be hold?

Thanks
Based on the information provided, YES! Maximum rate hold is 90 days, so we are still a little outside of the window, which would be April 7th. Another week and a half to go. Rates are fairly stable right now, so this rate 'should' still be available by then.
Paul Meredith
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Mar 8, 2015
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CdnRealEstateGuy wrote: She can get 2.94% 5-year fixed or Prime -1.24% 5-year variable for an insured mortgage.

Banks won't match that rate.

Can you let me know which lender will give this rate for an insured mortgage in MB? The best I could get is 3.19% for 5 yrs fixed with CIBC. Max house price will be around 270k.
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Nov 10, 2016
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Renewing my mortgage. Looking the lowest fixed or variable rates (term does not matter). Info:
Purchase price: $930k
Down payment: 20%
Location: GTA
Excellent credit score.

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