Real Estate

The Official Mortgage Rates Thread

Newbie
Aug 31, 2013
19 posts
12 upvotes
TORONTO
Looking for rates for a renewal. Property bought in March 2016 for 1.065mill

How much is the mortgage owing? ~$675k
-what is the current market value of the property? ~$1.4mill
-Which city is the property located in? Vaughan, ON
-Is the property owner-occupied or a rental? Property owner-occupied
-Do you have a HELOC tied to the mortgage? Yes
-Current Rate? 2.29% fixed
-Is the mortgage CMHC insured? No
-When is your renewal date? Mar 2019
-Credit rating: 700+

Currently with NBC so I know there are collateral charges too. Looking to get something with good prepayment options.

Please reply here or PM me for available rates. Willing to get CMHC insurance if its available to get overall lower rates. Currently amortized at I believe 13 years.
Last edited by trozman666 on Dec 28th, 2018 10:57 am, edited 1 time in total.
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Jan 31, 2018
818 posts
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Siciliano90 wrote:
Dec 27th, 2018 3:11 pm
Hi guys,

Looking to sell current existing home (owner occupied) in the Spring & buy a new home:

Household income: 123,500

Location: Ottawa

Downpayment: Between 240k to 250k (includes equity of existing home)

Looking at 700 to 720k for purchase price. Credit score for us both is very good. No personal debts (CC gets paid off every month in full). Would we qualify no problem for a mortgage between 460 to 480k?

Thanks
Using a 500k mortgage amt you would need to have the ability to carry a mortgage of 36k annually (using the stress test)
using 1% for property taxes 7200
annual heat of 1800

Given the above you would be at 36% for mortgage obligations relative to your income and we would need you to be below 39%

I dont see an issue with qualification

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
818 posts
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NuF518600 wrote:
Dec 27th, 2018 4:24 pm
First time home buyer and looking for 5 year fixed.

How much is the mortgage owing? $450k
-Which city is the property located in? Ottawa
-Is the property owner-occupied or a rental? Owner-occupied
-downpayment 5%
-Is the mortgage CMHC insured? Yes
-Credit rating: 780
Best 5 yr rate 3.29% 120 day hold 20/20 prepayments

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Sr. Member
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Jan 31, 2018
818 posts
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cbcpride wrote:
Dec 27th, 2018 11:08 pm
Hi all -

Looking for some rates for my condo with a final closing for the end of January.
Looking at either a 5-year variable rate or a shorter term fixed (like 2-3 years)

-Purchase Price? ~$278k
-Downpayment? 20% made already as a precon condo
-Mortgage needed? ~220000, able to increase downpayment if needed.
-Which city is the property located in? Toronto, ON
-Is the property owner-occupied or a rental? Owner-occupied
-Closing date? Jan 30, 2019
-Credit rating: Excellent

Thanks in advance!
Best variable rate is prime -1.05% or 2.90%

2.71% is only available if you can increase your downpayment to 35%

Hope this helps

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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Sep 13, 2011
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trozman666 wrote:
Dec 28th, 2018 10:55 am
Looking for rates for a renewal. Property bought in March 2016 for 1.065mill

How much is the mortgage owing? ~$675k
-what is the current market value of the property? ~$1.4mill
-Which city is the property located in? Vaughan, ON
-Is the property owner-occupied or a rental? Property owner-occupied
-Do you have a HELOC tied to the mortgage? Yes
-Current Rate? 2.29% fixed
-Is the mortgage CMHC insured? No
-When is your renewal date? Mar 2019
-Credit rating: 700+

Currently with NBC so I know there are collateral charges too. Looking to get something with good prepayment options.

Please reply here or PM me for available rates. Willing to get CMHC insurance if its available to get overall lower rates. Currently amortized at I believe 13 years.
Lowest 5 year fixed would be 3.44% or lowest 5 year variable would be prime -1.24% (2.71%). Paying a mortgage insurance premium just to get a lower rate is never a good choice. Some are so obsessed with getting the lowest rate that they forget about the most important thing. Cost. In most cases, the rate would need to be 0.75% lower with an insured mortgage, just to break even on the insurance premium. There will never be that great of a difference, and even if there were, that would just be to break even.

As per your request, i'll shoot you a PM.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Member
Sep 13, 2007
359 posts
89 upvotes
Toronto
Hi all -

Looking for either 5 year variable or 5 yr fixed for first house purchase (first time home ubyer)

-Purchase Price? ~$750k
-Downpayment? 270k > 35% downpayment
-Mortgage - 480k
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Closing date? Jan/Feb 2019
-Credit rating: High 700s

Thanks in advance!
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PaulMeredith wrote:
Dec 28th, 2018 9:13 am

An insurable mortgage must meet the following criteria:

- Value of home must be under $1 million (applies only if home was purchased after November 30th, 2016).
- Maximum 25 year amortization
- Purchases or switches only (no refinances)
- Owner occupied property

The last three points are fairly straightforward, but let me touch on the first one for a moment as there are some exceptions. Let's say you purchased your home for $850,000 in 2014 for example, and it is now worth $1,100,000. When that mortgage comes up for renewal, this could be processed as an insurable loan, meaning you can get lowest rates. This is because you had purchased the home prior to November 30th, 2016, which is the date these new mortgage regulations took effect. However, if you had refinanced he home after November 30th, 2016, then this mortgage would no longer be insurable. Therefore, the higher uninsurable rates would apply.

Any uninsurable mortgage would be any of the following:

- Any mortgage on a purchase / property value over $1 million
- 30 year year amortization
- Refinances and rental properties

Hope this helps bring some clarity as to how mortgage rates are quoted. I know this can get pretty confusing, but that's what we are here for :)
Paul, what if we refinanced in 2015 and lost our CMHC insurance as a result because the property value appreciated where LTV was now below 80%? I'm not sure if we lost the CMHC insurance as a result of refinancing at another lender and not sure how I can find out.

In any case, does this mean if we want to switch lenders, we can opt for an insurable loan/mortgage to get a lower mortgage rate? It may make sense if the CMHC surcharge is very minimal based on the LTV as at renewal?
Member
Aug 14, 2007
421 posts
174 upvotes
Ottawa
PaulMeredith wrote:
Dec 28th, 2018 9:13 am
Lowest 5 year fixed would be 3.59% or 5 year variable at prime -0.75% (3.20%). The reason rates are higher than what others are being offered on this board is due to the purchase price being over $1 million. It doesn't matter if the mortgage amount is under $1 million. Purchase price is the only thing that matters in this case.

I know it doesn't seem to make a lot of sense. After all, you are putting 60% down, so why wouldn't you get the lower rate? It has to due with the cost of funds to the lender. Any property with a purchase price over $1 million will be an uninsurable mortgage for that lender, therefore it falls into a different pricing category. Let me further explain.

After new mortgage regulations took effect on November 30th, 2016, mortgages are now placed into two categories. Insurable and uninsurable. Most mortgage lenders will buy bulk portfolio insurance of their mortgages through one of the three mortgage insurers (such as CMHC), regardless of how much you have for down payment. This allows them to securitize the loan (meaning, break it up into smaller pieces, or bundle complete loans together and then sell them off as mortgage backed securities). The lenders ability to do this reduces the cost of funds to that lender, which is a savings they can pass on to the borrower in the form of a lower rate. This is what is referred to as an 'insurable' mortgage.

An insurable mortgage must meet the following criteria:

- Value of home must be under $1 million (applies only if home was purchased after November 30th, 2016).
- Maximum 25 year amortization
- Purchases or switches only (no refinances)
- Owner occupied property

The last three points are fairly straightforward, but let me touch on the first one for a moment as there are some exceptions. Let's say you purchased your home for $850,000 in 2014 for example, and it is now worth $1,100,000. When that mortgage comes up for renewal, this could be processed as an insurable loan, meaning you can get lowest rates. This is because you had purchased the home prior to November 30th, 2016, which is the date these new mortgage regulations took effect. However, if you had refinanced he home after November 30th, 2016, then this mortgage would no longer be insurable. Therefore, the higher uninsurable rates would apply.

Any uninsurable mortgage would be any of the following:

- Any mortgage on a purchase / property value over $1 million
- 30 year year amortization
- Refinances and rental properties

Insurable rates can also vary based on the down payment / equity amount as well. For example, with a 20% down payment, the lowest 5 year variable would be prime -1.05% (2.90%). With 35%, it drops to prime -1.24% (2.71%)
If you had LESS than 20% and therefore CMHC insured, then rates change once again, with lowest 5 year variable rate being prime -1.25% (2.70%). An uninsurable mortgage would be prime -0.75% (3.20%) at best right now, with rates being even higher for rental properties.

Hope this helps bring some clarity as to how mortgage rates are quoted. I know this can get pretty confusing, but that's what we are here for :)
I was wondering why people with low down payment get better rate than people who can pay 20% down payment. It makes so much sense now, thanks for information! Electric Light Bulb
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alanbrenton wrote:
Dec 28th, 2018 11:18 am
Paul, what if we refinanced in 2015 and lost our CMHC insurance as a result because the property value appreciated where LTV was now below 80%? I'm not sure if we lost the CMHC insurance as a result of refinancing at another lender and not sure how I can find out.

In any case, does this mean if we want to switch lenders, we can opt for an insurable loan/mortgage to get a lower mortgage rate? It may make sense if the CMHC surcharge is very minimal based on the LTV as at renewal?
You lost the CMHC insurance when you did the refinance, not because of the change in LTV.
Can you let me know how much you owe on the mortgage now and the approximate value of the home?
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Feb 2, 2014
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noobienoob wrote:
Dec 28th, 2018 11:11 am
Hi all -

Looking for either 5 year variable or 5 yr fixed for first house purchase (first time home ubyer)

-Purchase Price? ~$750k
-Downpayment? 270k > 35% downpayment
-Mortgage - 480k
-Which city is the property located in? Markham
-Is the property owner-occupied or a rental? Owner-occupied
-Closing date? Jan/Feb 2019
-Credit rating: High 700s

Thanks in advance!
2.71% 5-year variable and 3.44% 5-year fixed are the best rates available to you.
Kevin Somnauth, CFA
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Penalty Box
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For people looking into switching lenders prior to renewal, it probably makes sense to use prepayment privileges to lower the total principal and therefore increase the chances of passing the B20 Stress Test, correct?

So is it Bank Prime Rate + 2.0% that I use in a mortgage calculator.
Member
Nov 8, 2009
239 posts
49 upvotes
Hi all -

Looking for either 5 year variable or 5 yr fixed for first condo purchase (first time home buyer)

-Purchase Price? ~$600k
-Downpayment? 100-120k > 15-20% downpayment
-Mortgage - 480-500k
-Which city is the property located in? DT Toronto
-Is the property owner-occupied or a rental? Owner-occupied
-Closing date? march/apr 2019
-Credit rating: High 700s

Thanks in advance!
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Feb 2, 2014
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alanbrenton wrote:
Dec 28th, 2018 2:18 pm
For people looking into switching lenders prior to renewal, it probably makes sense to use prepayment privileges to lower the total principal and therefore increase the chances of passing the B20 Stress Test, correct?

So is it Bank Prime Rate + 2.0% that I use in a mortgage calculator.
No. Greater of BoC posted rate (5.34%) or contract rate +2.00%.
Kevin Somnauth, CFA
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Newbie
Dec 27, 2018
1 posts
Hello,

Looking to Renew my mortgage soon, looking at 5 year variable or fixed rates on my condo

How much is the mortgage owing? ~$324k (at renewal)
-what is the current market value of the property? ~$385k
-Which city is the property located in? Calgary, Alberta
-Is the property owner-occupied or a rental? Property owner-occupied
-Do you have a HELOC tied to the mortgage? No
-Current Rate? 3.19% Fixed
-Is the mortgage CMHC insured? Yes
-When is your renewal date? Mar 27 2019
-Credit rating: 800+

One other thing. When I originally purchased my parents co-signed, as I was doing straight contract work and couldn't get approved by the lender without a co-signer, now I'm a full-time employee, My parents (now retired) want to come off the mortgage and my Wife would take their place. I'm wondering how hard of a process this would be at renewal with a new lender?

Thank you!

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