Real Estate

The Official Mortgage Rates Thread

Jr. Member
Sep 25, 2016
124 posts
28 upvotes
Don't know if this is good but got 3.49% 5 year - fixed rate closed mortgage (refinance) with CIBC today
Deal Addict
Apr 26, 2004
2114 posts
101 upvotes
GTA
bpstandi wrote: Hi there, we're up for renewal in November. As with many others on here, it looks like the bank does not want to offer much to keep our business.

Renewal:
-How much is the mortgage owing? $250,000
-Roughly, what is the current market value of the property? $1,250,000
-Which city is the property located in? Toronto
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? TD
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? Nov 2017 is your renewal date? Nov 1

Looking forward to some responses.

Thanks,
Any chance you’re interested in a heloc as well? I might be able to do 3.39% on a 5 year with 2000-2500$ cash back
Mortgage Specialist in the GTA
Deal Addict
Apr 26, 2004
2114 posts
101 upvotes
GTA
tt1688 wrote: Don't know if this is good but got 3.49% 5 year - fixed rate closed mortgage (refinance) with CIBC today
What is your renewal date? I might be able to do better depending on the renewal date and mortgage amount.
Mortgage Specialist in the GTA
Jr. Member
Sep 25, 2016
124 posts
28 upvotes
Geese_Howard wrote: What is your renewal date? I might be able to do better depending on the renewal date and mortgage amount.
Dec. 13, 2018, as of today approximately $403,000 left on mortgage
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Feb 2, 2014
7569 posts
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Toronto
cathaea wrote: Hoping that someone here can message me or help. I have a second residence that I guess might be a rental--my mother lives there so it's not an arm's length transaction and we basically cost share (she is older). This second property is up for renewal.

-How much is the mortgage owing? $155,000
-Roughly, what is the current market value of the property? 350k
-Which city is the property located in? SW Ontario
-Is the property owner-occupied or a rental? Rental maybe? See note above
-Who is your current lender? CIBC
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? Maybe? See note above.
-When did you buy the property? Dec 2009
-When is your renewal date? Nov 23, 2018
Rates start at 3.24% 5-year fixed and 2.46% 5-year variable. We will have to look it up to see if your mortgage is CMHC insured or not to get you an accurate quote.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Feb 2, 2014
7569 posts
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Toronto
signhereplease wrote: Hi there,

Looking to purchase my first home and wondering about the rates I was offered.
My credit is ok at 750 but it dropped a few points after paying off a major loan and opening a line of credit. I make $73k per year on single income
3.44 fixed 5yr from Canwise
2.50 Variable from True North Mortgage

For a purchase, we need to know:

-What is the purchase price? $135000
-How much is the down payment? 5%
-Where it the property located? Masset BC
-When is the closing date? December
-Will the property be owner-occupied or a rental? Owner occupied

Thanks in advance for any guidance!
2.50% 5-year variable and 3.24% 5-year fixed are the best rates.

Have you purchased the property yet?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
7569 posts
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Toronto
tt1688 wrote: Don't know if this is good but got 3.49% 5 year - fixed rate closed mortgage (refinance) with CIBC today
Just to confirm, it was refinance (borrowing more money) and not a renewal?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Jr. Member
Sep 25, 2016
124 posts
28 upvotes
Ok I'm a little bit confused now because CIBC just called me back and said if I wanted to refinance I need to borrow an extra 10,000 more on my mortgage...has anyone heard of this?

Borrowing more just so I can get a HPP?
Newbie
Oct 11, 2018
4 posts
2 upvotes
CdnRealEstateGuy wrote: Rates start at 3.24% 5-year fixed and 2.46% 5-year variable. We will have to look it up to see if your mortgage is CMHC insured or not to get you an accurate quote.
Can you PM me so we can talk? We had CMHC when we bought it for sure, but I was told that was irrelevant if it’s now classified as a rental property.
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Feb 2, 2014
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cathaea wrote: Can you PM me so we can talk? We had CMHC when we bought it for sure, but I was told that was irrelevant if it’s now classified as a rental property.
I sent you a PM.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Sep 29, 2013
5 posts
Sorry if this has been mentioned before but what are the drawbacks of these non-big bank lenders offering 3.24 5yr fixed?
Need high ratio?
Less prepayment flexibility?
Bigger penalty to break?
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Sep 13, 2011
5168 posts
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AddictRC wrote: Sorry if this has been mentioned before but what are the drawbacks of these non-big bank lenders offering 3.24 5yr fixed?
Need high ratio?
Less prepayment flexibility?
Bigger penalty to break?
Yes, the mortgage has to be high ratio (CMHC insured) in order to get the rate of 3.24%.
The other two are the other way around. Often you get less flexibility and substantially higher penalties with fixed rate mortgages from the major banks. RBC for instances has among the worst prepayment privileges of all mortgage lenders, bank or non-bank. For the most part, mortgages with most non-bank lenders are no more restrictive, and are actually usually less restrictive than those of banks.   Here is a list of common restrictions found with mortgage lenders, and which lenders carry these restrictions: 

- lack of bridge Financing (Industrial Alliance). 
- Fully closed mortgages where you can only break the mortgage early if you can sell your home (some products with MCAP and BMO). 
- higher than normal penalties (Industrial Alliance, plus some products with Merix and RMG.  Plus, all of the big banks on fixed rate mortgages (penalties to break a mortgage with the big banks can be as much as 500% higher than most non-bank lenders).  
- limited prepayment privileges (Industrial Alliance and RBC)
- Higher than industry prime rate (TD and Investors Group). 
- Collateral mortgages (TD, Tangerine, National Bank, and HSBC.  Plus, a mortgage from any lender that contains a HELOC or second component of any kind). 
- Limited porting options (RMG Mortgages)
- variable rate mortgage that is compounded monthly as opposed to semi-annually (Merix, RBC and TD). 

The above covers just about everything.  Aside form that, most mortgages are fairly similar.  Keep in mind this is a heavily regulated industry.  The big banks usually only issue one page approval letters.  Very limited information on them. They don’t release their terms until signing with the lawyers office, or when signing in branch (if a switch or refinance). Non-bank lenders have longer mortgage commitments as they disclose their terms up front. 

There are many myths about non-bank lenders (most likely created by the big banks) such as extra fees, miss a payment and the lender will take your house, brokers charge fees, or if the smaller lender goes out of business then you will be facing a big headache and have to pay all sorts of fees to get out of it.  Nothing of course could be further from the truth. If the small lender happens to go out of business, their mortgage portfolio would just get taken over by another lender. All the same terms and conditions would remain in place and the only difference to you is that the logo on your mortgage statement changes. This can happen with lenders big or small. It happened with ING late 2012 when their parent company was in rough shape and sold out to Scotiabank. 

Also, some of these ‘small' lenders are also quite large. Industrial Alliance is a publicly traded company that has been around for over 125 years and has over 5,000 employees across Canada. They have over $160 billion in assets under their management.  MCAP has over $66 Billion in assets under their management.  First National has a larger mortgage portfolio than National Bank and is a little less than BMO with $100 Billion.

 I mentioned above that big banks have much harsher penalty formulas if you found yourself in a situation where you needed to break your mortgage early (fixed rates only).  Here are some articles:  
http://www.theglobeandmail.com/globe-in ... e15774375/
http://www.cbc.ca/news/customer-fee-to- ... -1.1055127
http://canadamortgagenews.ca/2011/01/04 ... penalties/
http://www.cbc.ca/news/canada/edmonton/ ... -1.2790108
http://www.canadianmortgagetrends.com/c ... lties.html

That being said... spending thousands of dollars more to go with a major bank doesn't make a lot of sense financially. The only real benefit to you is that you can have all your accounts with the same institution and can view them all on the screen together. Not much more.... other than recognizing the logo on your mortgage statement.  I talk a lot about differences between banks and non-bank lenders in my book.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
May 25, 2013
81 posts
5 upvotes
Ajax
Hi ,

Looking for Renewal best rate for 2 yrs or 5 yrs fixed or variable.

Currently w TD
Mortgage left 305K

Thanks
Thanks
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Sep 13, 2011
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Toronto
freshwater4ever wrote: Hi ,

Looking for Renewal best rate for 2 yrs or 5 yrs fixed or variable.

Currently w TD
Mortgage left 305K

Thanks
Thanks
Rates vary depending on a number of factors. Minimum term length for a switch is 3 years. For an accurate rate quote, please provide the following information:

- original purchase price
- original purchase date (month and year)
- current property value (approx)
- 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
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Addict
Apr 26, 2004
2114 posts
101 upvotes
GTA
tt1688 wrote: Ok I'm a little bit confused now because CIBC just called me back and said if I wanted to refinance I need to borrow an extra 10,000 more on my mortgage...has anyone heard of this?

Borrowing more just so I can get a HPP?
Sent you a pm! I think I can help you.
Mortgage Specialist in the GTA

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