Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
User avatar
Feb 2, 2014
6969 posts
1724 upvotes
Toronto
CanuckBassist wrote:
Jan 3rd, 2019 10:12 am
Hi,

We have our first renewal coming up. Looking to see what 3/5 fixed and variable rates are out there.

Primary residence
Downtown Toronto condo
Purchased: 835k (Mar 2017)
Current mortgage: 450k originally, 30yr amort, 2.19% 2yr fixed
Outstanding at renewal: 428k (Mar 2019)
Household income: 200k
Credit score: 870

Thank you
2.71% 5-year variable and 3.44% 5-year fixed are the best rates. Max 25-year amortization as already mentioned.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Jr. Member
Sep 25, 2016
116 posts
25 upvotes
Is this something I should report to CIBC Ombudsman?
Went from conventional mortgage to collateral mortgage
Financial Services Representative messed up our mortgage and my Fiance had to fix it himself
Told her we wanted bi weekly payments - she put us on monthly
Told her we wanted the property tax excluded - she included it
Told me there were no appraisal & lawyer fees but when my Fiance & I went to go in to sign 15 days before our existing mortgage was coming up told us there were appraisal and lawyer fees. Told me her manager tried to waive the appraisal fee but couldn't because the house was appraised below the amount they were expecting. She never told me that there would be a fee if the house got appraised below a certain amount. If i knew I would've told them to forego the appraisal. She said the reason for the appraisal was because they tried to get me more money for my line of credit?
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
tt1688 wrote:
Jan 3rd, 2019 12:49 pm
Is this something I should report to CIBC Ombudsman?
Went from conventional mortgage to collateral mortgage
Financial Services Representative messed up our mortgage and my Fiance had to fix it himself
Told her we wanted bi weekly payments - she put us on monthly
Told her we wanted the property tax excluded - she included it
Told me there were no appraisal & lawyer fees but when my Fiance & I went to go in to sign 15 days before our existing mortgage was coming up told us there were appraisal and lawyer fees. Told me her manager tried to waive the appraisal fee but couldn't because the house was appraised below the amount they were expecting. She never told me that there would be a fee if the house got appraised below a certain amount. If i knew I would've told them to forego the appraisal. She said the reason for the appraisal was because they tried to get me more money for my line of credit?
That sounds a little fishy to me. I've personally never seen an instance where an appraisal fee is demanded based on the property under-appraising. Especially considering that it doesn't appear that you requested an increased LOC limit. The fee for legals is likely due to them having to re-register a new mortgage - which they would have known about in advance and should have informed you of up front. There are many lenders who cover the legals, and it appears that they may have told you they would do the same for you. The screw-ups regarding the payment frequency and property tax collection are unfortunately somewhat par for the course, unfortunately. They can still be amended, typically at no cost to you. This happens often when inexperienced people handle transfers, renewals, refinances, etc. It's not an issue that's specific to CIBC, there are inexperienced people seemingly at every branch of every bank. I've heard similar stories from many institutions, including the broker channel. It really depends on who you deal with.

While it's certainly frustrating, I'm not sure it's something that's worth reporting to an ombudsman. Your best bet is to issue a complaint through CIBC and get the complaint escalated to someone who wasn't participating in the mishandling of your mortgage. If you're really perturbed you can write a letter to the ombudsman, just not sure if anything would come of it.

You could always consider switching lenders if nothing comes from your complaints, but if you're already locked into your new mortgage, you'd likely be charged a penalty, so it probably wouldn't be worth it. If your mortgage hasn't yet renewed, you could renew into an open term to give you some time to switch lenders.

Best,

Connor
Last edited by GreenMortgages on Jan 3rd, 2019 1:58 pm, edited 2 times in total.
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
User avatar
Sep 13, 2011
4907 posts
1744 upvotes
Toronto
tt1688 wrote:
Jan 3rd, 2019 12:49 pm
Is this something I should report to CIBC Ombudsman?
Went from conventional mortgage to collateral mortgage
Financial Services Representative messed up our mortgage and my Fiance had to fix it himself
Told her we wanted bi weekly payments - she put us on monthly
Told her we wanted the property tax excluded - she included it
Told me there were no appraisal & lawyer fees but when my Fiance & I went to go in to sign 15 days before our existing mortgage was coming up told us there were appraisal and lawyer fees. Told me her manager tried to waive the appraisal fee but couldn't because the house was appraised below the amount they were expecting. She never told me that there would be a fee if the house got appraised below a certain amount. If i knew I would've told them to forego the appraisal. She said the reason for the appraisal was because they tried to get me more money for my line of credit?
Sorry to hear of your situation!

You can change from monthly to biweekly at any time, even after closing, so this is not a biggie.
The bank should still be able to make the change for you to manage your own taxes. As you were promised otherwise, they should be able to do this for you.
Was this a refinance or a switch? Either way, if you were told legal and appraisal fees would be covered, or that there were no fees, then the bank should do something for you here. There should never be any surprise fees.
Not something I would take to the CIBC Ombudsman just yet. Speak to the branch manager and tell them your situation and see what they can do for you. If they do not come back with an acceptable resolution, then you can tell them you'll take it up with the ombudsman.

Good luck!
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jan 2, 2019
1 posts
Hello,

My wife and I are first time home buyers. We are both professional engineers and have a household income or around 140k.
We are interested in a 3/5 year fixed rate for a 30 year amort.
We are looking at a home here in Montreal:

Price: 650K
Down payment: 20%
Household income: 140k
Credit score: rated as 'Good'
We each have a car, total monthly cost of 800$
No other loans or debts.

Thank you!
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
triples636343355377530000 wrote:
Jan 3rd, 2019 10:16 pm
Hello,

My wife and I are first time home buyers. We are both professional engineers and have a household income or around 140k.
We are interested in a 3/5 year fixed rate for a 30 year amort.
We are looking at a home here in Montreal:

Price: 650K
Down payment: 20%
Household income: 140k
Credit score: rated as 'Good'
We each have a car, total monthly cost of 800$
No other loans or debts.

Thank you!
Hi there,

As you may be aware, mortgages with 30 year amortizations are typically not eligible for the best rates in the market. The best rates in the market are generally reserved for insured/insurable mortgages, and any mortgage with an amortization greater than 25 years is considered uninsurable by mortgage default insurers. For a 5 year fixed rate, you would have around 3.74% available to you and 3.69% available for a 3 year fixed mortgage.

If you wanted to consider a 25 year amortization, the best 5 year fixed mortgage would be 3.44%-3.54% (depending on the product that suits you best), and similar rates for a 3 year term.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
May 18, 2015
6 posts
Edmonton, AB
Any thoughts on what rate we can expect on a 5 year term mortgage with 25 year am? I have had many people recommend I get a variable rate over a fixed rate - willing to consider either.

Price: 500kish (TBD)
Down payment: 15-20% (depending on what we can sell our condo for)
Household income: 160k
Credit score: I think we are both 800+
Total car payments of about $450 per month
No other liabilities

We are in Edmonton, Alberta.
Newbie
May 18, 2015
6 posts
Edmonton, AB
One other thing, our current mortgage term is coming up in late April. When can we expect a renewal offer from RBC?
Deal Fanatic
User avatar
Feb 2, 2014
6969 posts
1724 upvotes
Toronto
RandomWok wrote:
Jan 4th, 2019 12:46 pm
Any thoughts on what rate we can expect on a 5 year term mortgage with 25 year am? I have had many people recommend I get a variable rate over a fixed rate - willing to consider either.

Price: 500kish (TBD)
Down payment: 15-20% (depending on what we can sell our condo for)
Household income: 160k
Credit score: I think we are both 800+
Total car payments of about $450 per month
No other liabilities

We are in Edmonton, Alberta.
To get a quote, please provide:

For a mortgage transfer/renewal:

-How much is the mortgage owing?
-Roughly, what is the current market value of the property?
-Which city is the property located in?
-Is the property owner-occupied or a rental?
-Who is your current lender?
-Do you have a HELOC tied to the mortgage?
-Is the mortgage CMHC insured?
-When did you buy the property?
-When is your renewal date?

For a purchase of a property:

-What is the purchase price?
-How much is the down payment?
-Where it the property located?
-When is the closing date?
-Will the property be owner-occupied or a rental?

For a mortgage refinance:

-Roughly, what is the current market value of the property?
-What is the current mortgage owing?
-How much do you want to borrow (refinance)?
-Is the property owner-occupied or a rental?
-Where is the property located?
-When do you want to close on the refinance?

Whenever you are borrowing MORE money than currently owing or INCREASING the remaining amortization period, it is a refinance.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Deal Addict
Nov 3, 2009
1094 posts
520 upvotes
Calgary
Just a quick question:

I've got 3 renewal coming in April. They are all rentals. Remaining principles are ranging from 300k to 400k. Banks offer 3.25% for 5 year var. My current credit score is 710-730 from Transunion (Credit Karma). Carry large balance on my CCs and not gonna pay them off soon.

Should I go with my current bank?
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
RandomWok wrote:
Jan 4th, 2019 12:46 pm
Any thoughts on what rate we can expect on a 5 year term mortgage with 25 year am? I have had many people recommend I get a variable rate over a fixed rate - willing to consider either.

Price: 500kish (TBD)
Down payment: 15-20% (depending on what we can sell our condo for)
Household income: 160k
Credit score: I think we are both 800+
Total car payments of about $450 per month
No other liabilities

We are in Edmonton, Alberta.
Hi there,

There is a material difference in rates available when considering a 15% down payment and a 20% down payment. With 15% down, you can have as low as p-1.20% (2.75%) for a 5 year variable rate product. With 20% down, you would have as low p-1.05% (2.90%). The difference of course is due to the fact that you'll have to pay an insurance premium which is tacked on to the mortgage balance if you have less than 20% down. For fixed rates, you could have as low as 3.3x% available to you with 15% down, and 3.54% available to you with 20% down.

Which is better between fixed and variable depends on a number of factors, some personal, and economical. You should consider the spread between the best fixed rate available and the best variable rate available, and then factor in how many rate hikes it would take to make you worse off than taking the variable over the fixed rate. Then you can factor in how many rate hikes are expected, guesstimate the frequency, and see if it makes sense in that regard. You also need to consider whether you're the . type of person that can handle rate increases. You'll need a bit of a risk appetite to consider variable.

As for your maturing mortgage, you may receive a renewal offer at anytime. Lenders send them out at different times, typically between 120 days and 60 days before maturity for a standard renewal offer.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
ibuddler wrote:
Jan 4th, 2019 1:49 pm
Just a quick question:

I've got 3 renewal coming in April. They are all rentals. Remaining principles are ranging from 300k to 400k. Banks offer 3.25% for 5 year var. My current credit score is 710-730 from Transunion (Credit Karma). Carry large balance on my CCs and not gonna pay them off soon.

Should I go with my current bank?
Hello,

3.25% variable isn't too bad at all for mortgages on rental properties. Rental mortgages aren't eligible for the best rates in the market, so what you've bee quoted is actually quite competitive. Are they all single unit rental properties?

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Deal Addict
Nov 3, 2009
1094 posts
520 upvotes
Calgary
GreenMortgages wrote:
Jan 4th, 2019 1:55 pm
Hello,

3.25% variable isn't too bad at all for mortgages on rental properties. Rental mortgages aren't eligible for the best rates in the market, so what you've bee quoted is actually quite competitive. Are they all single unit rental properties?

Best,

Connor
That's correct. They all single units.

#1
Mortgage Loan Balance
$253,447.10
Interest Rate
2.24% Fixed
Maturity Date: April 29, 2019
Maturity Balance: $251,338.80
Remaining Amortization: 28 Years 3 Months

2:
Outstanding Principal: $384,117.91
Interest Rate: 2.24%
Maturity Date: 28 Apr 2019
Mortgage Term: 24 months
Mortgage Type: Fixed

They also offer 3.34% for 1 year and 3.49% for 2 years. Might be better to take fixed?
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
ibuddler wrote:
Jan 4th, 2019 2:01 pm
That's correct. They all single units.

#1
Mortgage Loan Balance
$253,447.10
Interest Rate
2.24% Fixed
Maturity Date: April 29, 2019
Maturity Balance: $251,338.80
Remaining Amortization: 28 Years 3 Months

2:
Outstanding Principal: $384,117.91
Interest Rate: 2.24%
Maturity Date: 28 Apr 2019
Mortgage Term: 24 months
Mortgage Type: Fixed

They also offer 3.34% for 1 year and 3.49% for 2 years. Might be better to take fixed?
Thanks for the additional info. With single unit rentals, it's going to be tough to find much better than what you've been offered - especially through the broker channel. All the products that you've noted are competitive and can't be beat through the broker channel. The fixed rates appear attractive, but keep in mind they're for very short terms. You run the risk of rates rising over the next couple of years and getting stuck in a higher rate at the following maturities. It really depends on what you plan to do with the properties and where you think interest rates are headed. Remember that if you don't plan on keeping the properties indefinitely, you should plan for the penalties for early discharge, for which variable is the preferred option.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Sep 12, 2014
10 posts
1 upvote
Burlington, ON
Hello. Our mortgage renewal is comping up in 3-4 months, and we know that we will want to move to a bigger place in the next year or two. What's the best type of mortgage to get in this situation?

Top

Thread Information

There are currently 3 users viewing this thread. (2 members and 1 guest)

rateconnect, JoeyC51640