Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Apr 23rd, 2019 6:06 pm
Newbie
Apr 30, 2015
80 posts
18 upvotes
CdnRealEstateGuy wrote:
Oct 24th, 2018 11:13 pm
I still like variable, but I'm have a high risk tolerance.
Right now Variable P -0.65% which is 3.30% today (Maturity date December 2021). Lender offers Fixed 3.75% for next 5 years. (Maturity date November 2023).
350K amount
Any suggestions?
Newbie
Oct 23, 2018
1 posts
Looking for 380K mortgage(25Y) for 5% down payment.

What are the best rates I can get?

Location: Montreal
Income: 90k
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Feb 2, 2014
6181 posts
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Toronto
kleraj wrote:
Oct 24th, 2018 11:20 pm
Right now Variable P -0.65% which is 3.30% today (Maturity date December 2021). Lender offers Fixed 3.75% for next 5 years. (Maturity date November 2023).
350K amount
Any suggestions?
How much is the property worth today (roughly)?
Kevin Somnauth, CFA
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
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Sep 13, 2011
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dazz wrote:
Oct 24th, 2018 10:17 pm
Elder family member raise the following question today.
Why to get a HELOC, you need to verify your income and have appropriate income. I thought the whole point of HELOCs is to get cash with your property as collateral??
Example: property value 600K+. Mortgage left $80K out of original $270K amount. This family wants to take 150-200K HELOC yet their bank says their family income of $36,000( 1 person working as self employed and other is not working until next summer) is not enough for that amount or even close to it. Is that normal, as it makes no sense considering almost paid off mortgage with over 500K in equity?!!
I can complete understand your frustration and things don't always make the most sense in this industry. You would think if there is that much equity, then where is the risk to the lender, right? The problem is, everything needs to qualify on income these days. There used to be programs where as long as you had 35% equity, income didn't matter. Those were all eliminated earlier this year. Everything has to qualify on income unfortunately.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Sep 13, 2011
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kleraj wrote:
Oct 24th, 2018 11:20 pm
Right now Variable P -0.65% which is 3.30% today (Maturity date December 2021). Lender offers Fixed 3.75% for next 5 years. (Maturity date November 2023).
350K amount
Any suggestions?
Your definitely going to want to get out of your current mortgage for sure. Many are looking at converting to fixed rate mortgages, and if ever there was a time to do so, now is the time. Given your situation, the lowest 5 year fixed is 3.39%. If I factor in a penalty of $3,200, which should be fairly close (including discharge fee), you'll save $2,548.95 with 3.39% vs. the 3.75% your current lender is offering you.

If you wanted to go into another variable, there is prime -1.24% available (2.71%). We would need to see 3 more increases to prime rate for it to move ahead of the 3.39%. The Bank of Canada is hoping to increase prime rate two more times next year. If the economy continues at it's current pace, then this will become reality... and it could continue to increase further from there. If you are at all concerned about rising rates, then a fixed rate is a good solid option that you can not go wrong with it. Why do I say that? Because it gives you a solid peace of mind knowing that you're protected. Variable may still end up being the better long term choice, but if you're going to feel anxiety about increasing rates, then fixed would be the best choice if thats what allows you to sleep soundly at night.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Sep 13, 2011
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givemetheloot wrote:
Oct 24th, 2018 8:25 pm
In the process of closing/purchasing.
How much is the property tax? Have you spoke to a bank or a broker yet to find out how much you will qualify for? To even have a chance at a $500,000 mortgage, you cannot have any debt and property tax cannot exceed $5,000. A 30 year amortization would be required and you will not qualify for the lowest rates posted on this board. So whether it's $999.999 or $1,000,000, it's irrelevant. In most cases, under a million would give you a lower rate, but not if you need to go to a 30 year amortization.

Is $90K the total income or is there any bonus or overtime income on top of that? I would suggest reaching out to a broker or bank before you go any further with this.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Apr 21, 2018
4 posts
3 upvotes
Hello brokers. Have been mulling over whether to break mortgage early or stay the course. My variable (Prime minus 0.65) discount not is not great compared to what is available now, but not much time left in term (10 months). First mortgage and renewal both with MCAP and I've been very happy with them. 10% down payment at time of purchase, CMHC insured. Realize the break penalty around $3K, and weighing this vs. savings of better variable discount. First mortgage was fixed and not opposed to considering that as well. Given my situation and time left in term do you think it's best to ride it out until next August, and do you foresee variable discount remaining similar for some time?

How much is the mortgage owing? 378K
Roughly, what is the current market value of the property? 1.3 million (purchase price in 2009 was $667K)
Which city is the property located in? Downtown Toronto
Is the property owner-occupied or a rental? Owner occupied/principal residence. House. Freehold.
Who is your current lender? MCAP
Do you have a HELOC tied to the mortgage? No
Is the mortgage CMHC insured? Yes
When did you buy the property? 09/2009
When is your renewal date? 08/2019
Jr. Member
Oct 20, 2009
187 posts
66 upvotes
Renewal date is Nov 26. How long would it take to apply and get approval for a new lender with the cheapest rate?
Newbie
Oct 24, 2018
1 posts
Looking for renewal rates for early January - 3 year fixed or 5 year fixed

Here is the info:
- House value - 1.5 mil (estimate - purchased in 2016 for 1.2)
- Remaining principal 630k
- 25 years amortization
- House hold income - 200k
- Excellent credit score >850
- Regular mortgage (not collateral mortgage)
Deal Addict
Apr 26, 2004
2100 posts
70 upvotes
GTA
dazz wrote:
Oct 24th, 2018 10:17 pm
Elder family member raise the following question today.
Why to get a HELOC, you need to verify your income and have appropriate income. I thought the whole point of HELOCs is to get cash with your property as collateral??
Example: property value 600K+. Mortgage left $80K out of original $270K amount. This family wants to take 150-200K HELOC yet their bank says their family income of $36,000( 1 person working as self employed and other is not working until next summer) is not enough for that amount or even close to it. Is that normal, as it makes no sense considering almost paid off mortgage with over 500K in equity?!!
My lender can approve based on equity and doesn’t factor income. If they have some savings and investments they can get approved just by their net worth and assets.
Mortgage Specialist in the GTA
Deal Addict
Apr 26, 2004
2100 posts
70 upvotes
GTA
kleraj wrote:
Oct 24th, 2018 11:20 pm
Right now Variable P -0.65% which is 3.30% today (Maturity date December 2021). Lender offers Fixed 3.75% for next 5 years. (Maturity date November 2023).
350K amount
Any suggestions?
If you can find it your penalty and can qualify for a heloc I can probably do 3.44-3.49% on a 5 year fixed rate with 1500-2500$ cash back.
Mortgage Specialist in the GTA
Deal Addict
Apr 26, 2004
2100 posts
70 upvotes
GTA
mparker2 wrote:
Oct 25th, 2018 11:15 am
Hello brokers. Have been mulling over whether to break mortgage early or stay the course. My variable (Prime minus 0.65) discount not is not great compared to what is available now, but not much time left in term (10 months). First mortgage and renewal both with MCAP and I've been very happy with them. 10% down payment at time of purchase, CMHC insured. Realize the break penalty around $3K, and weighing this vs. savings of better variable discount. First mortgage was fixed and not opposed to considering that as well. Given my situation and time left in term do you think it's best to ride it out until next August, and do you foresee variable discount remaining similar for some time?

How much is the mortgage owing? 378K
Roughly, what is the current market value of the property? 1.3 million (purchase price in 2009 was $667K)
Which city is the property located in? Downtown Toronto
Is the property owner-occupied or a rental? Owner occupied/principal residence. House. Freehold.
Who is your current lender? MCAP
Do you have a HELOC tied to the mortgage? No
Is the mortgage CMHC insured? Yes
When did you buy the property? 09/2009
When is your renewal date? 08/2019
If you can qualify for a heloc I can probably do 3.44-3.49% on a 5 year fixed rate with 1500-2500$ Cash back to help pay for penalties and transfer fees
Mortgage Specialist in the GTA
Deal Addict
Apr 26, 2004
2100 posts
70 upvotes
GTA
tzoanca wrote:
Oct 25th, 2018 11:53 am
Looking for renewal rates for early January - 3 year fixed or 5 year fixed

Here is the info:
- House value - 1.5 mil (estimate - purchased in 2016 for 1.2)
- Remaining principal 630k
- 25 years amortization
- House hold income - 200k
- Excellent credit score >850
- Regular mortgage (not collateral mortgage)
Sent you a private message!
Mortgage Specialist in the GTA
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User avatar
Dec 1, 2015
1816 posts
853 upvotes
Etobicoke, ON
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mparker2 wrote:
Oct 25th, 2018 11:15 am
Hello brokers. Have been mulling over whether to break mortgage early or stay the course. My variable (Prime minus 0.65) discount not is not great compared to what is available now, but not much time left in term (10 months). First mortgage and renewal both with MCAP and I've been very happy with them. 10% down payment at time of purchase, CMHC insured. Realize the break penalty around $3K, and weighing this vs. savings of better variable discount. First mortgage was fixed and not opposed to considering that as well. Given my situation and time left in term do you think it's best to ride it out until next August, and do you foresee variable discount remaining similar for some time?

How much is the mortgage owing? 378K
Roughly, what is the current market value of the property? 1.3 million (purchase price in 2009 was $667K)
Which city is the property located in? Downtown Toronto
Is the property owner-occupied or a rental? Owner occupied/principal residence. House. Freehold.
Who is your current lender? MCAP
Do you have a HELOC tied to the mortgage? No
Is the mortgage CMHC insured? Yes
When did you buy the property? 09/2009
When is your renewal date? 08/2019
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
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