Real Estate

The Official Mortgage Rates Thread

Newbie
Jan 2, 2017
21 posts
Hi guys,

Looking on info on the best -5-years fixed rates I could get on my first house purchase in QC.
My broker gave me 3.59%.

- House price: 610k
- Down payment: 150k (>20%)
- Annual income (S.O and me) : 150k
- Credit score :>730 for both
- No existing credit

My broker told me that if we were to put less than 20% we could get 3.40-3.44%.

Is 3.59 for my situation good enough?

Sorry if I forgot any info.

Thanks!
Newbie
Feb 12, 2019
2 posts
Hello,

Looking for the best rates available. Lower penalties preferable in case of house sale in a year.

Original loan amount: $165,000 BMO Readline
Home value: ~ $400,000
Mortgage owing: $65,000
HELOC: $50,000
Owner occupied
Income: $47,500
No insurance
Renewal: April 2019
Location: Montreal

Thank you
Deal Fanatic
User avatar
Sep 13, 2011
5278 posts
2267 upvotes
Toronto
Deadou wrote: Hi guys,

Looking on info on the best -5-years fixed rates I could get on my first house purchase in QC.
My broker gave me 3.59%.

- House price: 610k
- Down payment: 150k (>20%)
- Annual income (S.O and me) : 150k
- Credit score :>730 for both
- No existing credit

My broker told me that if we were to put less than 20% we could get 3.40-3.44%.

Is 3.59 for my situation good enough?

Sorry if I forgot any info.

Thanks!
Lowest 5 year fixed for your situation is 3.44%. No need to put down less than 20% to get a better rate. It NEVER makes sense to pay a CMHC fee, just to get a lower rate. Difference would have to be 0.75% just to break even...and you'll never see THAT large of a difference between the two options.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jan 2, 2017
21 posts
PaulMeredith wrote: Lowest 5 year fixed for your situation is 3.44%. No need to put down less than 20% to get a better rate. It NEVER makes sense to pay a CMHC fee, just to get a lower rate. Difference would have to be 0.75% just to break even...and you'll never see THAT large of a difference between the two options.
Thanks for your feedback!
I'm gonna try to negotiate with the broker then. Any tips?
Newbie
Feb 12, 2019
1 posts
First time posting!

Purchasing a pre-construction condo (purchase agreement already signed).

Purchase price - $990,000 (before GST)
Down payment amount (or percentage) - 20% (or a bit higher possibly if advantageous to do so)
Primary residence - Yes, first home!
Location - Edmonton, AB
Closing date - Early June 2019

Would this be considered an insurable mortgage because purchase price is < $1 million? Or would you look at the total price after GST (5%), which would be over $1 million?
Interested in 5 year fixed and 5 year variable rates!

Thanks!
Deal Fanatic
User avatar
Sep 13, 2011
5278 posts
2267 upvotes
Toronto
penpmcol201 wrote: First time posting!

Purchasing a pre-construction condo (purchase agreement already signed).

Purchase price - $990,000 (before GST)
Down payment amount (or percentage) - 20% (or a bit higher possibly if advantageous to do so)
Primary residence - Yes, first home!
Location - Edmonton, AB
Closing date - Early June 2019

Would this be considered an insurable mortgage because purchase price is < $1 million? Or would you look at the total price after GST (5%), which would be over $1 million?
Interested in 5 year fixed and 5 year variable rates!

Thanks!
Congratulations on buying your first home!! It would be considered an uninsurable mortgage as it would go by the total price, including GST. Lowest 5 year fixed is 3.54% or variable at prime -0.75% (3.20%).
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Member
User avatar
Sep 5, 2007
227 posts
86 upvotes
Calgary
tsinoboy wrote: Anyone heard of MCAP?
Yes. A private real estate financing company. My mortgage broker gave me a rate quote from these guys. The rate was darn good, but required a few extra conditions (e.g. no bona fide sale clause)
Jr. Member
Feb 6, 2011
171 posts
31 upvotes
c9gunner wrote: Yes. A private real estate financing company. My mortgage broker gave me a rate quote from these guys. The rate was darn good, but required a few extra conditions (e.g. no bona fide sale clause)
Thank you for your input.
Newbie
Feb 13, 2019
1 posts
Hi! First time purchaser, purchasing a home in Toronto.

Purchase price of $475K
downpayment of 35%
income: 90K
Closing date: Mid March
Primary Residence: First home

what 5 year rates could I get?
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Mcap is a very large monoline lender, with excellent rates and great products. I do a ton of business with them, and my own mortgage is with them.
tsinoboy wrote: Anyone heard of MCAP?
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Newbie
Feb 27, 2014
21 posts
10 upvotes
c9gunner wrote:
Yes. A private real estate financing company. My mortgage broker gave me a rate quote from these guys. The rate was darn good, but required a few extra conditions (e.g. no bona fide sale clause)
valuemortgage wrote:
Mcap is a very large monoline lender, with excellent rates and great products. I do a ton of business with them, and my own mortgage is with them.
From what I understand, a bona fide sales clause means, among other things, you can't pay off your mortgage before your term unless you sell the property. Don't most closed mortgages have the same limitation? Or does a bona fide sales clause mean even if you're willing to pay the penalty (IRD or 3 months interest) you can't pay off the entire mortgage because it's explicitly stated in the terms and conditions of your mortgage? Thanks for clarifying
Last edited by BridgesW on Feb 14th, 2019 1:30 pm, edited 1 time in total.
Deal Fanatic
User avatar
Sep 13, 2011
5278 posts
2267 upvotes
Toronto
tsinoboy wrote: Anyone heard of MCAP?
They are one of the largest non-bank lenders in Canada with over $70 billion in assets under administration. They are known for solid service and great rates. I've placed literally hundreds of my clients with them and have not received any negative feedback about them.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5278 posts
2267 upvotes
Toronto
BridgesW wrote: From what I understand, a bona fide sales clause means, among other things, you can't pay off your mortgage before your term unless you sell the property. Don't most closed mortgages have the same limitation? Or does a bona fide sales clause mean even if your willing to pay the penalty (IRD or 3 months interest) you can't because it's explicitly stated in the terms and conditions of your mortgage? Thanks for clarifying
Most mortgages in Canada are closed, which just means they have a set term and there is a penalty if you want to break the mortgage before the end of that term. You can usually break them for any reason at all. A mortgage with a bonafide sale clause means that you cannot break the mortgage for any reason before the end of the term unless you sell your home. Even if you pay the penalty. This means you can't switch or refinance with another lender mid-term, however you can still refinance with MCAP if need be. If you sell your home, then the restriction is meaningless.

Not all MCAP products have this restriction. Just their Value Flex mortgage, which is their lowest rate product. BMO also has a product with the same restriction.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Feb 2, 2014
7772 posts
2156 upvotes
Toronto
BridgesW wrote: From what I understand, a bona fide sales clause means, among other things, you can't pay off your mortgage before your term unless you sell the property. Don't most closed mortgages have the same limitation? Or does a bona fide sales clause mean even if you're willing to pay the penalty (IRD or 3 months interest) you can't pay off the entire mortgage because it's explicitly stated in the terms and conditions of your mortgage? Thanks for clarifying
From a realistic standpoint though, the Value Flex is very flexible.

Need to break the mortgage because you sold the property? You can.

Need to break the mortgage because you need more money? You can refinance with MCAP. Or you can get a HELOC behind the mortgage for extra funds without breaking and paying any penalties.

What to payoff the mortgage faster? You can with the 20/20 prepayments which can be made throughout the year (and 20% x 5 years = 100% of the mortgage, so you can pay it off in full with prepayments penalty-free).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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