Real Estate

The Official Mortgage Rates Thread

Member
Dec 28, 2010
438 posts
119 upvotes
Toronto
Sorry if this is a strict - exact mortgage - only asking thread. I wanted to ask how do you decide on choosing between a variable or fixed?
I feel i made a mistake of going with a 2yr fixed - as I was and still apprehensive of long term mortgages. Anything 5yr seems so far to be locked into.

But, now rates are everywhere and it takes so much paperwork to get anything renewed or transferred to another lender.

So how do you decide , given all the choices. Any stats or metrics to compare? or news, politics motivated?
Any calculation of Variable vs Fixed scenario?
thanks!
Last edited by Karma2000 on Feb 1st, 2019 7:54 pm, edited 1 time in total.
Member
Dec 28, 2010
438 posts
119 upvotes
Toronto
nm..i just found Paul's post #47747
thats some good info on making a Variable vs. Fixed choice. Thanks!
Member
Jul 13, 2006
254 posts
55 upvotes
Thanks to all of the brokers who answered/reached out. Met with CIBC today. In short:
  • Offered 5yr fixed, 3.67%
  • I have 2 separated charges, one for the the mortgage, another for the HELOC.
  • They offered to combine both a HPP (Home power plan), which gives me larger borrowing power than my fixed 30k HELOC
The HPP appeals in the event we do decide to renovate. But it's still way down the road. Need to figure out if I want to renovate or move.
Newbie
Jan 31, 2019
5 posts
1 upvote
Have a house in my sights but haven't put an offer in yet:

What is the purchase price? $419,000
-How much is the down payment? 20% ($83800)
-Where it the property located? Windsor, ON
-When is the closing date? May
-Will the property be owner-occupied or a rental? Owner occupied
- Family gross income: $150,000
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Sep 13, 2011
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Splader1751 wrote: Have a house in my sights but haven't put an offer in yet:

What is the purchase price? $419,000
-How much is the down payment? 20% ($83800)
-Where it the property located? Windsor, ON
-When is the closing date? May
-Will the property be owner-occupied or a rental? Owner occupied
- Family gross income: $150,000
Lowest 5 year fixed would be 3.44% or lowest 5 year variable would be prime -0.95% (3.00%). There are shorter term fixed and variable available as well, however rates are a bit higher than the 5 year options. Note that these rates cannot be locked in until you have an accepted offer in place, which is the case with all the low rate specials.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jan 31, 2019
5 posts
1 upvote
PaulMeredith wrote: Lowest 5 year fixed would be 3.44% or lowest 5 year variable would be prime -0.95% (3.00%). There are shorter term fixed and variable available as well, however rates are a bit higher than the 5 year options. Note that these rates cannot be locked in until you have an accepted offer in place, which is the case with all the low rate specials.
Thanks. Being new to this (first time HB), you mentioned that 'these rates cannot be locked in until you have an accepted offer in place...'. What's the order of operations? Sign with a financing condition and obtain this rate that you mentioned? How can I obtain this rate?
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Splader1751 wrote: Thanks. Being new to this (first time HB), you mentioned that 'these rates cannot be locked in until you have an accepted offer in place...'. What's the order of operations? Sign with a financing condition and obtain this rate that you mentioned? How can I obtain this rate?
The first thing you want to do (if you have not done so already) is to get a pre-approval to find out exactly how much you will be eligible to purchase. You can do this through a broker or through a bank. Never assume you will qualify for a mortgage, and always reach out to a bank or broker before putting an offer in. This will then allow you to shop with confidence, however the standard 5 day finance condition is still recommended as your file will not be underwritten by a lender until you have an accepted offer on a property. Your mortgage professional will however review your application and may even ask for some supporting documentation up front to ensure everything looks solid. If there are any concerns, now is when we would want to address them. This will help to ensure the process runs smoother for you.

As mentioned, the lowest rates cannot be locked in or held for you until your offer has been accepted. It's at that point where your application would be submitted through to a lender and the rate becomes locked. The lowest 5 year fixed rate that can be locked in at the preapproval stage is 3.64%.
The 3.44% 5 year fixed rate is available through any regular posting broker on this board, once your offer has been accepted.
Let me know if this answers your question or if there is anything I can clarify for you.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jan 31, 2019
5 posts
1 upvote
PaulMeredith wrote: The first thing you want to do (if you have not done so already) is to get a pre-approval to find out exactly how much you will be eligible to purchase. You can do this through a broker or through a bank. Never assume you will qualify for a mortgage, and always reach out to a bank or broker before putting an offer in. This will then allow you to shop with confidence, however the standard 5 day finance condition is still recommended as your file will not be underwritten by a lender until you have an accepted offer on a property. Your mortgage professional will however review your application and may even ask for some supporting documentation up front to ensure everything looks solid. If there are any concerns, now is when we would want to address them. This will help to ensure the process runs smoother for you.

As mentioned, the lowest rates cannot be locked in or held for you until your offer has been accepted. It's at that point where your application would be submitted through to a lender and the rate becomes locked. The lowest 5 year fixed rate that can be locked in at the preapproval stage is 3.64%.
The 3.44% 5 year fixed rate is available through any regular posting broker on this board, once your offer has been accepted.
Let me know if this answers your question or if there is anything I can clarify for you.
Extremely helpful. Appreciate you taking the time to help.
  1. So the order of operations is:
  2. Get pre-approved
  3. Go mortgage shopping (i.e. use this thread or go to a broker) - Do most people offer you a rate pending the acceptance of your offer on the house?
  4. Sign the offer with a financing condition
  5. This part is a little unclear to me: When the conditional offer is (hopefully) accepted, reach out to a broker/someone on this board to secure a rate? How does that work exactly?
Also, for people in a similar situation, why would you sign an offer without a financing condition? Is it because people are just happy with their pre-approved rate from the bank? But even still, these pre-approved rates are not guaranteed, right? So what's the incentive for no financing condition?

Finally, closing date is in may (more than the standard 90 days away, which is the validity of most mortgages). Is this problematic at all?

Thanks again for your help
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Splader1751 wrote: Extremely helpful. Appreciate you taking the time to help.
  1. So the order of operations is:
  2. Get pre-approved
  3. Go mortgage shopping (i.e. use this thread or go to a broker) - Do most people offer you a rate pending the acceptance of your offer on the house?
  4. Sign the offer with a financing condition
  5. This part is a little unclear to me: When the conditional offer is (hopefully) accepted, reach out to a broker/someone on this board to secure a rate? How does that work exactly?
Also, for people in a similar situation, why would you sign an offer without a financing condition? Is it because people are just happy with their pre-approved rate from the bank? But even still, these pre-approved rates are not guaranteed, right? So what's the incentive for no financing condition?

Finally, closing date is in may (more than the standard 90 days away, which is the validity of most mortgages). Is this problematic at all?

Thanks again for your help
Yes, that's correct. Yes, you'll be told what the rate is, but that rate is not guaranteed until your offer is accepted and the application has been submitted through to a lender through a broker. The 3.44% IS the lowest rate out there for your situation.
You'll reach out to a broker first to get pre-approved. Then you'll let that broker know once you have an accepted offer. He/she will then confirm the rate with you, and submit it through to the lender for approval. It's at this point when the rate becomes locked, assuming approval by the lender of course. Your broker should be able to let you know right away if you will qualify or not . There is no real unique qualifying criteria for this rate, so if you don't qualify for it, then your options may be limited with other lenders as well.

The only time it makes sense to put in an offer without a finance condition would be if a bidding war is expected. In that case, a finance condition can mean the difference between the seller accepting your offer, or another condition-free offer. Between 2014-2017, it was next to impossible to buy a home in the GTA or GVA with a finance condition, as buyer competition was so intense. Things have since settled down since then, and finance conditions are the norm once again.

The rate hold period for the 3.44% 5 year fixed rate is 120 days, so closing in May would be fine.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Feb 1, 2019
1 posts
First time Homebuyer looking for best variable rate in rural area, and comparing with current broker rate of prime -0.8

-What is the purchase price? $500000
-How much is the down payment? $100000
-Where it the property located? Black Creek, BC
-When is the closing date? April 13
-Will the property be owner-ocupied or a rental? Owner occupied

House hold income is 85,000.
Last edited by IslandTime24 on Feb 3rd, 2019 5:18 pm, edited 1 time in total.
Newbie
Nov 12, 2018
12 posts
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Hi What is the best rate going on atm, I am getting HSBC Var 5 yr 2.99 and HSBC Fixed 3.34 2 year . Are these the best or is there any further scope for discount.FYI I am a new immigrant with 100% commission job and was eligible under newcomers to Canada program offered by HSBC Canada
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rubssingh wrote: Hi What is the best rate going on atm, I am getting HSBC Var 5 yr 2.99 and HSBC Fixed 3.34 2 year . Are these the best or is there any further scope for discount.FYI I am a new immigrant with 100% commission job and was eligible under newcomers to Canada program offered by HSBC Canada
How long have you been at your current job? You'll need to have a full two years of tax filings from your current job in order to consider commission income. The same will apply with HSBC, as the two full tax years are required considering your income is not guaranteed and taking a two year average is the only way to determine a usable income for you.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Nov 12, 2018
12 posts
1 upvote
PaulMeredith wrote: How long have you been at your current job? You'll need to have a full two years of tax filings from your current job in order to consider commission income. The same will apply with HSBC, as the two full tax years are required considering your income is not guaranteed and taking a two year average is the only way to determine a usable income for you.
I have been in Canada for 1 year. Its a newcomers to Canada program
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rubssingh wrote: I have been in Canada for 1 year. Its a newcomers to Canada program
The New to Canada program applies to guaranteed, salaried income only unfortunately. How much do you have available for down payment? It's possible that HSBC may have a program that could still qualify you given your situation, however pretty much all the no income qualification programs for newcomers were eliminated in 2018. Have you already applied to HSBC and they have conformed you will qualify? Or was this just something you read about online?
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

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