Real Estate

The Official Mortgage Rates Thread

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Sep 13, 2011
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mobility1 wrote:
Feb 11th, 2019 1:52 pm
April 2016.

I didn't know that was an important piece of info, otherwise I would have included it.
No problem! It's not something that you would think would matter, but it does when we are dealing with properties valued at over $1 million. Lowest rates in your case would be a 5 year fixed at 3.29% or 5 year variable at prime -1.15% (2.80%). There are shorter term rates available as well, however they are higher.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Feb 10, 2019
1 posts
Hi,

Looking for best rates on the following:

Mortgage amount owing at maturity (or current mortgage amount if unknown): 485k
Approximate market value: 975k
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
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: Industrial Alliance
Is this your primary residence or a rental property?: Primary residence
Location: Toronto
Maturity date: May 2019


Thanks!
Sr. Member
Nov 17, 2014
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Are you guys recommending to pick the 5 yr fixed mortgage rate (3.29%), because there is only a small difference from the 5 yr variable mortgage rate (2.80%)?
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Feb 2, 2014
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Griff0n121 wrote:
Feb 10th, 2019 10:55 pm
Hoping to try and buy a house sooner than I had originally planned.

Price 260-275k
Income 65k
Down 5%
Property type : House
Province: Mb
Credit :730
2.75% 5-year variable and 3.24% 5-year fixed are the best rates.
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
Newbie
Feb 10, 2019
1 posts
Need an answer asap...have an accepted offer, week to clear conditions (financing included)

First time home buyer...

Purchase Price 545k
DP: 25%
Income 80k + 60k (spouse and I)
Property type : House
Province: AB
Credit :800

Looking for 5 year variable closed, 20+20, semi-annual compounding, 20 year ammortization

And go!
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Dec 28, 2010
325 posts
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Toronto
Just curious and wanted to ask very knowledgeable people here.
- Does my banks (big Canadian bank) mortgage specialist provide me the best rate offered at their own discretion or is it software calculated.
As in- if i go to another branch say close to work, will I get the same offering? or any one else having similar property gets same BEST offer for renewal.

Reason I ask is am having hard time my bank specialist budge. Who is very polite to say I will forward the file for adjustment but in 30 mins I receive a reply that it can't be done.
- How does one negotiate with the banks? I shared what Ratehub etc. show for other lenders, but no love.
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Karma2000 wrote:
Feb 11th, 2019 6:39 pm
Just curious and wanted to ask very knowledgeable people here.
- Does my banks (big Canadian bank) mortgage specialist provide me the best rate offered at their own discretion or is it software calculated.
As in- if i go to another branch say close to work, will I get the same offering? or any one else having similar property gets same BEST offer for renewal.

Reason I ask is am having hard time my bank specialist budge. Who is very polite to say I will forward the file for adjustment but in 30 mins I receive a reply that it can't be done.
- How does one negotiate with the banks? I shared what Ratehub etc. show for other lenders, but no love.
From my experience with major banks (RBC and CIBC), there is some discretion at branch level. If you ask for a rate lower than what the branch can offer at their discretion, the request is sent to mtg head office for their review. Usually reply comes back within 24 hrs. Thus if one branch has sent request into head office, it is unlikely going to a different branch will get better result.

I am surprised lenders are still keeping 5 yr fixed rate high considering 5 yr bond yield is at a ~1 yr low right now. Lowest since early 2018.
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Karma2000 wrote:
Feb 11th, 2019 6:39 pm
Just curious and wanted to ask very knowledgeable people here.
- Does my banks (big Canadian bank) mortgage specialist provide me the best rate offered at their own discretion or is it software calculated.
As in- if i go to another branch say close to work, will I get the same offering? or any one else having similar property gets same BEST offer for renewal.

Reason I ask is am having hard time my bank specialist budge. Who is very polite to say I will forward the file for adjustment but in 30 mins I receive a reply that it can't be done.
- How does one negotiate with the banks? I shared what Ratehub etc. show for other lenders, but no love.
Then why stick with a bank that doesn't reward your loyalty

Better rates through the broker channel

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Sr. Member
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Mar 9, 2012
676 posts
268 upvotes
Karma2000 wrote:
Feb 11th, 2019 6:39 pm
Just curious and wanted to ask very knowledgeable people here.
- Does my banks (big Canadian bank) mortgage specialist provide me the best rate offered at their own discretion or is it software calculated.
As in- if i go to another branch say close to work, will I get the same offering? or any one else having similar property gets same BEST offer for renewal.

Reason I ask is am having hard time my bank specialist budge. Who is very polite to say I will forward the file for adjustment but in 30 mins I receive a reply that it can't be done.
- How does one negotiate with the banks? I shared what Ratehub etc. show for other lenders, but no love.
Usually you want to have a written approval from the competition or broker and provide it to the big bank to have them try to match it with their national office. Without that, you may need manager approval and regional vice -president approval to get a better rate approved by national office but you will need a strong portfolio for the second option. Just like the brokers here, any additional rate reductions would affect the mortgage broker compensation at a big bank so they usually wouldn't want to work for peanuts either.
Last edited by skunkyjosh on Feb 12th, 2019 12:27 am, edited 1 time in total.
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Jan 23, 2017
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GTA
Karma2000 wrote:
Feb 11th, 2019 6:39 pm
Just curious and wanted to ask very knowledgeable people here.
- Does my banks (big Canadian bank) mortgage specialist provide me the best rate offered at their own discretion or is it software calculated.
As in- if i go to another branch say close to work, will I get the same offering? or any one else having similar property gets same BEST offer for renewal.

Reason I ask is am having hard time my bank specialist budge. Who is very polite to say I will forward the file for adjustment but in 30 mins I receive a reply that it can't be done.
- How does one negotiate with the banks? I shared what Ratehub etc. show for other lenders, but no love.
I have had similar experience where my big Canadian bank would not budge and come no where near what a mortgage broker could offer. Tried at my branch and she put in an exception request and they came back with just a 0.10% lower rate than their published rates.

I also called their mortgage caĺl centre where the agent I got at said a lot of customers have been calling for rate matches and he escalated every time and got rejected. He said he doesn't even bother escalating anymore, seems the bank is fine to let customers walk. So far the RFD brokers on here have the lowest rates I've seen.
Newbie
Dec 24, 2017
1 posts
Hi Phil,

Please can you pm me? I'm looking for a mortgage renewal quote but don't wish to post publicly my financial details.

Thanks
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Sep 13, 2011
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Beefeater wrote:
Feb 11th, 2019 4:06 pm
Are you guys recommending to pick the 5 yr fixed mortgage rate (3.29%), because there is only a small difference from the 5 yr variable mortgage rate (2.80%)?
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.

All that being said, now that the 5 year fixed rate has come back down to as low as 3.29%, the spread is definitely a lot thinner. Two rate increases and rate would even. Three and it would be higher. As mentioned above, this doesn't necessarily mean you would be losing out. The thinner spread definitely does make fixed an attractive option. As far as which one is better? The better question is which one is better for YOU personally. If you have a higher tolerance for risk, then you may want to consider the variable rate. If you're more risk adverse, then I would suggest going with the fixed option.

Another 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.
I’m attaching a calculator you can use to compare fixed with variable to get a better feel for it.

Hope you find this helpful. :)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Addict
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Sep 13, 2011
4792 posts
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Toronto
Karma2000 wrote:
Feb 11th, 2019 6:39 pm
Just curious and wanted to ask very knowledgeable people here.
- Does my banks (big Canadian bank) mortgage specialist provide me the best rate offered at their own discretion or is it software calculated.
As in- if i go to another branch say close to work, will I get the same offering? or any one else having similar property gets same BEST offer for renewal.

Reason I ask is am having hard time my bank specialist budge. Who is very polite to say I will forward the file for adjustment but in 30 mins I receive a reply that it can't be done.
- How does one negotiate with the banks? I shared what Ratehub etc. show for other lenders, but no love.
There have been some pretty good responses to your question here. I've had clients sometimes wait over week to get a negative response back from their bank on rate matching. Sometimes they'll match, but often it's a waste of time. Keep in mind also that the penalty to break a fixed rate mortgage with a major bank can be as much as 500% higher than that of most non-bank lenders.
I'm assuming your preference is to be with a major bank? Is there a reason why? In some cases, it makes sense, but there are a lot of myths floating around as well and it would be a shame for you to pay thousands more in interest because of an erroneous belief.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Member
Feb 22, 2011
384 posts
172 upvotes
Hi there,

Renewing in Qc. HELOC mortgage with 0 on the loc.

375k balance after 2 years.

What rates am I looking at ?
What fees are incurred from switching lenders?

Thanks
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bobmk2 wrote:
Feb 12th, 2019 8:16 am
Hi there,

Renewing in Qc. HELOC mortgage with 0 on the loc.

375k balance after 2 years.

What rates am I looking at ?
What fees are incurred from switching lenders?

Thanks
Hi there,

If your heloc is part of the same registration as your mortgage, then you'll have a collateral charge mortgage, which typically incurs a fee to transfer. If the heloc is not registered with the mortgage, instead behind it in second position, then you may be able to transfer the mortgage with minimal cost and leave the heloc in second position.

Now, in order to adequately quote you rates, we would need a bit more information about the situation.

- How much is the property worth (approximately)
- what's the remaining amortization?
- Was the mortgage originally or previously insured (did you purchase with less than 20% down)?

The lowest rates in QC are p-1.10% - p-1.15% for a variable rate mortgage, and 3.29% 5 year fixed, but it depends on . the loan to value ratio of the mortgage (which is why we need the approximate value) and whether or not the mortgage was previously insured.

Best,

Connor
_________________________________
Connor Green
Mortgage Agent
Concierge Mortgage Group
#12179

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