Real Estate

The Official Mortgage Rates Thread

Newbie
Oct 15, 2011
4 posts
Hello,

Please help pm me with 5 year fixed and variable rates for my mortgage renewal in April 2019.

-How much is the mortgage owing? ~$175k
-what is the current market value of the property? ~$1 million
-Which city is the property located in? Richmond Hill, ON
-Is the property owner-occupied or a rental? Owner-occupied
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When is your renewal date? April 2019
-Credit rating: Excellent

Thank You
Deal Addict
User avatar
Jan 31, 2018
1677 posts
301 upvotes
Jehops wrote: Hello,

My wife and I purchased our first home in Halifax.
- purchase price $250k
- we both have excellent credit scores
- closing is early April
- we plan to put 20%
- best rate we have found is prime - .85%; this is for a 5-year term and 25-year amortization

We can find better rates, like prime -1.1%, but we have to put less down and purchase mortgage insurance for about $6k. My calculations suggest that even with good pre-payment privileges, 20% down without the insurance will likely be cheaper for us in the long run. Could we currently expect to find a better rate than prime -.85%? I think a conventional mortgage with good pre-payment privileges (15%/15% or even 20%/20%) is important in our situation.

Any advice is appreciated. Thanks in advance.

You can get better rates with 20% down

Prime -.95% currently 3%
120 day hold
20/20 prepayments

Congratulations on the first home

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Jan 31, 2018
1677 posts
301 upvotes
Adrenaline112 wrote: Hello,

Please help pm me with 5 year fixed and variable rates for my mortgage renewal in April 2019.

-How much is the mortgage owing? ~$175k
-what is the current market value of the property? ~$1 million
-Which city is the property located in? Richmond Hill, ON
-Is the property owner-occupied or a rental? Owner-occupied
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When is your renewal date? April 2019
-Credit rating: Excellent

Thank You

Sent PM as requested
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Jan 21, 2019
3 posts
1 upvote
rateconnect wrote: You can get better rates with 20% down

Prime -.95% currently 3%
120 day hold
20/20 prepayments

Congratulations on the first home

Phil
Thank you Phil. Could you point us in the right direction to find these rates? I contacted True North and they have prime-0.9% with 20% down and 20%/20% prepayments with Think Financial as the lender.
Newbie
Nov 25, 2015
21 posts
17 upvotes
Toronto, ON
Looking to buy a house within the next 3-12 months (no rush). We started with a preapproval at our big bank (TD) and I'd like to know if we can get a better rate as a first time homebuyer and how we should go about doing so.

-What is the purchase price? $1.05 - 1.2M
-How much is the down payment? $600K (50%+)
-Where it the property located? Toronto, ON or within GTA
-Is the mortgage CMHC insured? No
-Credit rating: Excellent (780)

Rate offered was a 3.54% HELOC on an approximately 650K balance with double up payments available and up to 15% prepayments towards the principle at any time.

Thanks in advance!
Deal Addict
User avatar
Jan 31, 2018
1677 posts
301 upvotes
Jehops wrote: Thank you Phil. Could you point us in the right direction to find these rates? I contacted True North and they have prime-0.9% with 20% down and 20%/20% prepayments with Think Financial as the lender.
Reach out to myself, Paul, Kevin, Coonor or Andre and you will be in great hands

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Member
Jun 27, 2009
367 posts
38 upvotes
looking for some help/advice on my renewal

Mortgage amount owing at maturity (or current mortgage amount if unknown): $208k
Approximate market value: 900k
Original purchase date (month and year) Feb 2014
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): No
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? Yes (currently using 40k)
Current lender: RBC
Is this your primary residence or a rental property? Primary res
Location: Vaughan,ON
Maturity date: Late Feb 2019

My first renewal so i'm confused on which way i should be going (fixed/variable open/closed)....original was 5 year fixed @ 3.29.

Also looking to put down some extra money towards so the mortgage amount could be less, but just unsure of the timing the money will arrive

Have an upcoming meeting with rbc this weekend to go over my options

Thanks
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
onslaught192 wrote: looking for some help/advice on my renewal

Mortgage amount owing at maturity (or current mortgage amount if unknown): $208k
Approximate market value: 900k
Original purchase date (month and year) Feb 2014
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): No
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? Yes (currently using 40k)
Current lender: RBC
Is this your primary residence or a rental property? Primary res
Location: Vaughan,ON
Maturity date: Late Feb 2019

My first renewal so i'm confused on which way i should be going (fixed/variable open/closed)....original was 5 year fixed @ 3.29.

Also looking to put down some extra money towards so the mortgage amount could be less, but just unsure of the timing the money will arrive

Have an upcoming meeting with rbc this weekend to go over my options

Thanks
Lowest rates in your situation would be a 5 year fixed at 3.49% or 5 year variable at prime -1.10% (2.85%). You're not alone on the confusion, so let's see if we can get you some clarity, and help you make an informed decision. Whether to go fixed or variable really depends on the person. When taking variable, you have to be comfortable with the fact that your rate and your payment could increase at any time. There are 8 rate announcements per years by the Bank of Canada. We have now seen five increases to prime rate since July, 2017. It has been predicted that prime rate was expected to increase at least two more times this year, perhaps even by the summer. With new economic uncertainty created by the announcement of the GM plant closing in Ontario, and the oil situation in Alberta, the BOC may not increase rates as quickly as they were hoping too. Even if they were to move forward with their planned increases, we could then expect to see it level off, or even start to drop back down again. It would be quite a rare situation for us to go the next 5 years without seeing any decreases and chances of that happening would be quite minimal. In fact, it’s extremely unlikely and it would be unprecedented.

The above is all speculation and anything can happen. In the period between September 2010 and July 2017, one of the longest streaks in history without an increase to prime rate, every year leading economists were predicting that prime rate would increase 'next year'. However that never happened until 2017. In fact, it ended up decreasing. Twice. Anything can happen here.

Even if prime rate were to increase this year to the point where it goes up above the fixed rate you would be offered today, that doesn't mean you would be losing. Not at all. You would just start to give back some of your savings. You wouldn't know until the end of the 5 year period if you came out ahead. Again, it would be an unlikely scenario for us to go the next 5 years without seeing any decreases.

Over the past 30 years, people have typically come out ahead with variable rate. This doesn't mean they ALWAYS come out ahead with variable however. The question is, how would you feel if your rate and payment were to increase within the next few months? and then again a few months later? These are things that you have to be comfortable with when taking a variable rate. If you will feel anxiety at the thought, then a fixed rate might be a better option. The best choice isn’t always the one that saves you the most amount of money, it’s the one that allows you to sleep soundly at night.

One strategy I often suggest is to go variable, but set the payments to match that of the 5 year fixed option since you were prepared to pay the higher payment anyway. The additional will go straight to your principal and will significantly accelerate the payoff of the mortgage. If you were to take the fixed rate, the difference in payment would be going 100% towards interest.

You can also take it one step further and increase the payment a bit more each year. Also, this way when rates do increase, you’ll already be making a higher payment so you wouldn’t really notice the increase as you are already in ahead of it. You're already making the higher payments and are now ahead of the game. You're increasing your payments when YOU want to and not when you're forced to. This way, YOU are the one in control, not the Bank of Canada. Note that your payment will still increase further when there is a rate increase, however you can easily lower it back down to where it was before so your payment doesn’t need to change.

Here's a great link with a calculator that lets you add in increases to decreases to prime rate at various intervals. Note that when prime rate changes, it's usually by 0.25% per time. https://www.investing.com/rates-bonds/c ... bond-yield

Regarding open vs. closed, pretty much all of the low rate mortgages are closed. All this means is that you can't pay if off before the end of the term without incurring a penalty. Open rates are always substantially higher, and are only useful when you only need them for a month or two. There are also some options that have an added restriction where you cannot pay it off in full, or switch lenders before the end of the term without a bonafide sale of the home. Your broker of choice should advise you of any additional restrictions such as this at the tie when you quote the rate.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jan 2, 2013
11 posts
1 upvote
Markham
Hi, i'm looking for a mortgage for a new home I purchased. Purchase price 625k
Mortgage amount owing at maturity (or current mortgage amount if unknown): $562 000 (after 10 % down)
Approximate market value: 625 000
Original purchase date (month and year) Jan 2019
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): Yes
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? No. Can I get a rate with HELOC too?
Current lender: none
Is this your primary residence or a rental property? Primary
Location: Aurora

Appreciate the help!
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
anthonylam wrote: Hi, i'm looking for a mortgage for a new home I purchased. Purchase price 625k
Mortgage amount owing at maturity (or current mortgage amount if unknown): $562 000 (after 10 % down)
Approximate market value: 625 000
Original purchase date (month and year) Jan 2019
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): Yes
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? No. Can I get a rate with HELOC too?
Current lender: none
Is this your primary residence or a rental property? Primary
Location: Aurora

Appreciate the help!
Congratulations on your purchase! Lowest rate for your situation would be a 5 year fixed at 3.29% or 5 year variable at prime -1.20% (2.75%). A HELOC would not be available for your situation as you need to have a minimum down payment of 20% to start one.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Apr 7, 2015
14 posts
3 upvotes
Burnaby, BC
Hello, looking for a mortgage on a pre-construction that will be completed in March. RBC has currently offered a 3.20% 5 year variable rate. Just wanted to know if I can do better and what the process is.

Mortgage amount owing at maturity (or current mortgage amount if unknown): $400k
Approximate market value: $670k
Original purchase date (month and year) May 2016
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): No, we will be paying minimum 20% from the $500k purchase price.
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? No
Current lender: None, first house.
Is this your primary residence or a rental property? Primary residence
Location: Burnaby, BC
Maturity date: March 2019

Thanks for the help!
Deal Addict
User avatar
May 1, 2017
1064 posts
227 upvotes
h1jacks wrote: Hello, looking for a mortgage on a pre-construction that will be completed in March. RBC has currently offered a 3.20% 5 year variable rate. Just wanted to know if I can do better and what the process is.

Mortgage amount owing at maturity (or current mortgage amount if unknown): $400k
Approximate market value: $670k
Original purchase date (month and year) May 2016
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): No, we will be paying minimum 20% from the $500k purchase price.
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? No
Current lender: None, first house.
Is this your primary residence or a rental property? Primary residence
Location: Burnaby, BC
Maturity date: March 2019

Thanks for the help!
Hi there,

Based on the information that you've provided you should certainly have better options available to you for your mortgage - closer to 3% for a variable rate mortgage. The rate quoted would be through the broker channel - so you would need to go through a mortgage agent/broker in order to obtain it.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
Newbie
Jan 21, 2019
2 posts
Hi!

I am a first time buyer looking for some help.

-What is the purchase price? $420,000
-How much is the down payment? $84,000 (20%)
-Where it the property located? Ottawa
-When is the closing date? April 1
-Will the property be owner-occupied or a rental? Owner occupied

I'm interested in the fixed and variable rates, but probably leaning towards variable. A broker secured a rate for me which was much higher than we had previously discussed so I'm looking for a second opinion and trying to figure out what happened.

Thank you!
Newbie
Jan 17, 2019
70 posts
52 upvotes
PaulMeredith wrote: Lowest rates in your situation would be a 5 year fixed at 3.49% or 5 year variable at prime -1.10% (2.85%). You're not alone on the confusion, so let's see if we can get you some clarity, and help you make an informed decision. Whether to go fixed or variable really depends on the person. When taking variable, you have to be comfortable with the fact that your rate and your payment could increase at any time. There are 8 rate announcements per years by the Bank of Canada. We have now seen five increases to prime rate since July, 2017. It has been predicted that prime rate was expected to increase at least two more times this year, perhaps even by the summer. With new economic uncertainty created by the announcement of the GM plant closing in Ontario, and the oil situation in Alberta, the BOC may not increase rates as quickly as they were hoping too. Even if they were to move forward with their planned increases, we could then expect to see it level off, or even start to drop back down again. It would be quite a rare situation for us to go the next 5 years without seeing any decreases and chances of that happening would be quite minimal. In fact, it’s extremely unlikely and it would be unprecedented.

The above is all speculation and anything can happen. In the period between September 2010 and July 2017, one of the longest streaks in history without an increase to prime rate, every year leading economists were predicting that prime rate would increase 'next year'. However that never happened until 2017. In fact, it ended up decreasing. Twice. Anything can happen here.

Even if prime rate were to increase this year to the point where it goes up above the fixed rate you would be offered today, that doesn't mean you would be losing. Not at all. You would just start to give back some of your savings. You wouldn't know until the end of the 5 year period if you came out ahead. Again, it would be an unlikely scenario for us to go the next 5 years without seeing any decreases.

Over the past 30 years, people have typically come out ahead with variable rate. This doesn't mean they ALWAYS come out ahead with variable however. The question is, how would you feel if your rate and payment were to increase within the next few months? and then again a few months later? These are things that you have to be comfortable with when taking a variable rate. If you will feel anxiety at the thought, then a fixed rate might be a better option. The best choice isn’t always the one that saves you the most amount of money, it’s the one that allows you to sleep soundly at night.

One strategy I often suggest is to go variable, but set the payments to match that of the 5 year fixed option since you were prepared to pay the higher payment anyway. The additional will go straight to your principal and will significantly accelerate the payoff of the mortgage. If you were to take the fixed rate, the difference in payment would be going 100% towards interest.

You can also take it one step further and increase the payment a bit more each year. Also, this way when rates do increase, you’ll already be making a higher payment so you wouldn’t really notice the increase as you are already in ahead of it. You're already making the higher payments and are now ahead of the game. You're increasing your payments when YOU want to and not when you're forced to. This way, YOU are the one in control, not the Bank of Canada. Note that your payment will still increase further when there is a rate increase, however you can easily lower it back down to where it was before so your payment doesn’t need to change.

Here's a great link with a calculator that lets you add in increases to decreases to prime rate at various intervals. Note that when prime rate changes, it's usually by 0.25% per time. https://www.investing.com/rates-bonds/c ... bond-yield

Regarding open vs. closed, pretty much all of the low rate mortgages are closed. All this means is that you can't pay if off before the end of the term without incurring a penalty. Open rates are always substantially higher, and are only useful when you only need them for a month or two. There are also some options that have an added restriction where you cannot pay it off in full, or switch lenders before the end of the term without a bonafide sale of the home. Your broker of choice should advise you of any additional restrictions such as this at the tie when you quote the rate.
This was a great breakdown, thanks!
Deal Fanatic
User avatar
Feb 2, 2014
7569 posts
2022 upvotes
Toronto
Hey everyone. I've noticed some posts on the past few pages requesting a quote, but the incorrect information was provided. Again, please provide the information below for the transaction type that you're trying to finance.

Some people were requesting quotes for a purchase, but providing information required for a mortgage renewal. See the below.

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
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

Top

Thread Information

There are currently 8 users viewing this thread. (2 members and 6 guests)

new936, Portlander