Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Apr 25th, 2019 11:11 pm
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Arrow wrote:
Jan 2nd, 2019 11:57 pm
Question for the mortgage brokers on here:

How much time before renewing/shopping around for a mortgage should one stop applying too often for credit cards?
It really depends on your situation. How many credit cards do you have now and how long have you had them for? How many more do you plan on applying for?
Do you carry a balance on all these cards?
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Shaidin wrote:
Dec 31st, 2018 12:22 pm
Thank you Paul!

If you increase you monthly payments by 20%, are you still able to later reduce the payments back to the original amount if required (due to change of life circumstances, etc)?
Yes, you can lower them back down to the original amount.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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fiiw2008 wrote:
Jan 2nd, 2019 3:19 pm
Hi Guys,

It’s a pre construction detached house with a completion date of April 2019.
Purchase Price - $1.1M
Down payment- %20
Income - $180k
Credit score - 800+
Location - Whitby, ON

Looking for rates on both fixed and variable.

Thanks in advance!
Hi there,

Depending on when you signed the contract, it's likely that your mortgage will be considered uninsurable to mortgage default insurers, since the purchase price is over $1,000,000. If the contract was signed prior to the regulatory change the made these mortgages uninsurable, then you may be able to get grandfathered through into insurable rates.

The best rates in the market are reserved for insurable products, so the rates available to you will be slightly higher than the best you see quoted around here. You should have around 3.74% available to you for a 5 year fixed mortgage, and 3.20% available for a 5 year variable rate mortgage. If you're able to be grandfathered through, you may have some better rates available as well!

These rates are also of course dependant on the income qualifying. For 80% of $1.1m, you would be tight, in terms of income qualifying, with $180k in income. You should be fine, though.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Sr. Member
Jul 31, 2008
774 posts
1 upvote
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
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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
Hi there,

You should have some excellent options available to you at renewal given the information that you've provided. For a 5 year variable rate mortgage, you would have p-1.24% available to you (2.71%). For a 5 year fixed mortgage, you should have 3.44%-3.49% available to you.

Now, it;'s important to note that in order to get these rates, your remaining amortization would not be able to be longer than 25 years. Since you began your mortgage in 2017, your natural remaining amortization would be around 28 years, which would have to be reduced to 25 years (which isn't an issue at all). If you've prepaid your mortgage significantly over the last 2 years, it may be that your true amortization is already under 25 years, so we'd have to take a look.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
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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
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Jr. Member
Sep 25, 2016
108 posts
24 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?
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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
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Sep 13, 2011
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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!
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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
5 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
5 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?
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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
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Sr. Member
Nov 3, 2009
914 posts
338 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?

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