Real Estate

The Official Mortgage Rates Thread

Deal Addict
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May 1, 2017
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CdnRealEstateGuy wrote: Ratehub is one of the most deceitful websites in our industry. They are giving consumers the impression that they are displaying the best rates in the industry after they have done extensive research. But the truth is, they are an advertising site that only shows the rates of brokers and banks that pays them money.
Not in disagreement with you on this one!
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Connor Green
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Concierge Mortgage Group
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Oct 30, 2007
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If I decide to go with one of agents in this thread, how do I proceed? What information do you need and do we have to meet in person?
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yasss1 wrote: If I decide to go with one of agents in this thread, how do I proceed? What information do you need and do we have to meet in person?
You don't need to meet in person necessarily - everything can be done by phone/email if you prefer. In order to proceed all you need to do is PM (private message) one of the brokers and go from there!

Best,

Connor
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Connor Green
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Concierge Mortgage Group
#12179
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Dec 13, 2014
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My SO is looking at buying a new place and doesn't know a whole lot about mortgages.
Besides the big banks, which other lenders are good to research given the place will be located in Bolton?

First National is one I'm familiar with.
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mlong813 wrote: My SO is looking at buying a new place and doesn't know a whole lot about mortgages.
Besides the big banks, which other lenders are good to research given the place will be located in Bolton?
Hi there,

There are plenty of mortgage lenders available to borrowers in Canada. For 'A' lenders, aside from the big banks, there are also credit unions, trust/savings companies, monoline (online lenders) lenders, and more. Bolton is no exception, the vast majority of lenders lend in that area. Some lenders that are worth looking into are MCAP, RMG, CMLS, First National, Alterna CU, DUCA CU, Merix, Lendwise, Wealthline etc. Note that many of these lenders are only available through the broker channel, so it may be tough to do too much research on your own without chatting with a broker/agent. Some of the lenders may have limited information online. Also worth noting that many of these lenders are very similar, but there are in fact different terms conditions, restrictions, penalties, etc between different lenders and products. The amount of information to consider may be a bit daunting to research on your own!

Best,

Connor
Last edited by GreenMortgages on Jan 31st, 2019 2:07 pm, edited 1 time in total.
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Connor Green
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Concierge Mortgage Group
#12179
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Jul 13, 2006
254 posts
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CdnRealEstateGuy wrote: If the mortgage is tied to the HELOC (aka CIBC's Home Power Plan), then they are under the same charge/lien and cannot be separated.

If they are registered as separate charges (not tied together), then yes, you can keep the HELOC and transfer the mortgage alone.
Thanks Kevin.

How would I go about finding out if they are tied together or separate? I remember having to go to the notary to add the HELOC (CIBC HPLC Home Power Line of Credit) a week after moving in to the house. It wasn't builtin to the mortgage from the getgo.
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Oct 14, 2018
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Hello,

I am looking for some information. Our mortgage is up for renewal in August 2019. It is a Homeline plan with RBC. The LOC portion is unused. I don't completely understand the difference between a renewal, switch and refinancing. RBC has already reached out about renewing early because of 'low rates'. I am considering accessing the LOC credit for approx 10k or upon renewal increasing my mortgage by 10k (if thats possible) Or doing neither of those things. I suppose I am looking for the consequences to those in terms of being able to get the lowest rate at the appropriate time. And how to go about doing that.

How much is the mortgage owing? $490,000
Roughly, what is the current market value of the property? $730,000
Which city is the property located in? Ottawa, On
Is the property owner-occupied or a rental? Owner-Occupied
Who is your current lender? RBC
Do you have a HELOC tied to the mortgage? yes
Is the mortgage CMHC insured? No
When did you buy the property? February 23, 2018
When is your renewal date? August 22, 2019
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Dec 1, 2015
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Etobicoke, ON
A renewal is a simple as that - you just renew with the existing lender - RBC in this case.

A switch (sometimes referred to as a transfer) implies moving the exact mortgage balance (for a standard mortgage) OR the total balance between mortgage and Heloc (in a collateral charge such as the product you have). If your mortgage balance is 490k and you take another 10k of the Heloc, you would transfer the $500k to another lender. A true switch means there are no costs to you, and a collateral switch (such as yours - regardless you use the Heloc or not) means you will incur some fees around $775.00 or so. In either case you cannot extend the amortization past the current amortization, nor increase the mortgage amount (past the total balance of mortgage and Heloc combined).

A refinance is similar to a switch - but allows you to pick a longer amortization and/or increase the mortgage amount. Assuming you qualify for the amount, you could (technically) refinance up to 80% of the current property value. Fees around $1000.00 will apply, and rates go up substantially, compared to a switch.

It is too early for you to look elsewhere, with a mortgage maturing in August. This is exactly why RBC is contacting you now, as they know there is no competition at this point.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
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Dec 1, 2015
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Etobicoke, ON
it is always ideal to call your current lender (CIBC) and confirm if you have either :

A - 1 single charge (a collateral charge) that covers both mortgage and Heloc.

OR

B - 2 separate charges, 1 for the mortgage and 1 for the Heloc. As you mentioned you added the Heloc later, this is likely the case here (2 separate charges) but in reality we dont know if CIBC removed the initial charge and registered a collateral for both or just registered a 2nd charge behind the 1st.


It is imperative that you obtain this info before you start the process, as the scenarios above will be dealt in quite different ways. In a switch most lenders use FNF as a title company and may use them for appraisal as well... while in a collateral switch FCT (a different title company) is used for legal docs, etc.

The most difficult part will be obtaining this info from CIBC. When you call the toll free number, they should know all details but experience tells me that half of those employees have absolutely zero idea what you will be asking, and the other half will be more interested in selling you another credit card or insurance, instead of giving you the correct answers. If you call and ask "do I have a collateral charge or not?" the only valid answers are YES or NO. If they tell you "we dont charge any fees..." or "our mortgages are like any other.." or "if you transfer to another lender there will be discharge fees.." it only means they did not understand the question. You must insist in a Yes or No to the question.
I have seen clients get replies from their banks, in writing (email) confirming they did not have a collateral charge - only to find out later (during the switch) that it was a collateral charge... and the deal fell apart or had major delays.
morden wrote: Thanks Kevin.

How would I go about finding out if they are tied together or separate? I remember having to go to the notary to add the HELOC (CIBC HPLC Home Power Line of Credit) a week after moving in to the house. It wasn't builtin to the mortgage from the getgo.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
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valuemortgage wrote: it is always ideal to call your current lender (CIBC) and confirm if you have either :

A - 1 single charge (a collateral charge) that covers both mortgage and Heloc.

OR

B - 2 separate charges, 1 for the mortgage and 1 for the Heloc. As you mentioned you added the Heloc later, this is likely the case here (2 separate charges) but in reality we dont know if CIBC removed the initial charge and registered a collateral for both or just registered a 2nd charge behind the 1st.


It is imperative that you obtain this info before you start the process, as the scenarios above will be dealt in quite different ways. In a switch most lenders use FNF as a title company and may use them for appraisal as well... while in a collateral switch FCT (a different title company) is used for legal docs, etc.

The most difficult part will be obtaining this info from CIBC. When you call the toll free number, they should know all details but experience tells me that half of those employees have absolutely zero idea what you will be asking, and the other half will be more interested in selling you another credit card or insurance, instead of giving you the correct answers. If you call and ask "do I have a collateral charge or not?" the only valid answers are YES or NO. If they tell you "we dont charge any fees..." or "our mortgages are like any other.." or "if you transfer to another lender there will be discharge fees.." it only means they did not understand the question. You must insist in a Yes or No to the question.
I have seen clients get replies from their banks, in writing (email) confirming they did not have a collateral charge - only to find out later (during the switch) that it was a collateral charge... and the deal fell apart or had major delays.
A purview will show registration details too. Takes a second to pull and you get some decent additional info as well!
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179
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Feb 2, 2014
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morden wrote: Thanks Kevin.

How would I go about finding out if they are tied together or separate? I remember having to go to the notary to add the HELOC (CIBC HPLC Home Power Line of Credit) a week after moving in to the house. It wasn't builtin to the mortgage from the getgo.
PM me the address if you're in Ontario and I can look it up.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Ediehank wrote: Hello,

I am looking for some information. Our mortgage is up for renewal in August 2019. It is a Homeline plan with RBC. The LOC portion is unused. I don't completely understand the difference between a renewal, switch and refinancing. RBC has already reached out about renewing early because of 'low rates'. I am considering accessing the LOC credit for approx 10k or upon renewal increasing my mortgage by 10k (if thats possible) Or doing neither of those things. I suppose I am looking for the consequences to those in terms of being able to get the lowest rate at the appropriate time. And how to go about doing that.

How much is the mortgage owing? $490,000
Roughly, what is the current market value of the property? $730,000
Which city is the property located in? Ottawa, On
Is the property owner-occupied or a rental? Owner-Occupied
Who is your current lender? RBC
Do you have a HELOC tied to the mortgage? yes
Is the mortgage CMHC insured? No
When did you buy the property? February 23, 2018
When is your renewal date? August 22, 2019
2.80% 5-year variable and 3.39% 5-year fixed are the best rates, but it's only a 120 day rate hold...you're too early to shop around.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Jul 13, 2006
254 posts
55 upvotes
You guys are great, thanks for the info! I'm meeting tomorrow at the branch and can ask directly if the Mortgage + HELOC are single or separate charges. I won't make any commitments at the meeting, I'll just ask questions and get their rate offer for now while I figure this all out.
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Feb 1, 2009
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Toronto
Does any lender in Canada offer 35-year or 40-year amortizing mortgages with 20%+ down?

The only one I could find was B2B Bank as advertised on their website (https://b2bbank.com/en/mortgages/standa ... properties)

I tried searching through the Bank Act, OFSI and Ministry of Finance laws and regulations for any restrictions on lenders to issue these types of mortgages but did not find anything clear for low ratio mortgages. Also, some lenders (e.g. non-deposit taking institutions) are not regulated by OSFI would not be subject to their restrictions.
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Dec 1, 2015
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Correct. I mentioned the client calling the lender as Purview is not available to the consumer, and Purview details seem to be limited in some provinces.
GreenMortgages wrote: A purview will show registration details too. Takes a second to pull and you get some decent additional info as well!
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428

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