Real Estate

The Official Mortgage Rates Thread

  • Last Updated:
  • Mar 20th, 2019 9:34 pm
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!
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Sep 13, 2011
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penpmcol201 wrote:
Feb 13th, 2019 10:52 pm
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)
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Sep 5, 2007
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tsinoboy wrote:
Feb 14th, 2019 11:32 am
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
108 posts
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c9gunner wrote:
Feb 14th, 2019 11:40 am
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
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Dec 1, 2015
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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:
Feb 14th, 2019 11:32 am
Anyone heard of MCAP?
Andre Oliveira - Mortgage Agent
FSCO # 10428 - Mortgage Intelligence
Newbie
Feb 27, 2014
13 posts
c9gunner wrote:
Feb 14th, 2019 11:40 am

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:
Feb 14th, 2019 12:37 pm

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.
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tsinoboy wrote:
Feb 14th, 2019 11:32 am
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)
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BridgesW wrote:
Feb 14th, 2019 1:27 pm
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)
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BridgesW wrote:
Feb 14th, 2019 1:27 pm
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
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Newbie
Feb 13, 2019
1 posts
Hello,

I have a renewal coming up for my condo in March. What are the best rates available for 5-yr fixed or variable?

Mortgage amount owing at maturity (or current mortgage amount if unknown): 180K
Approximate market value: 360K
Original purchase date (month and year): March 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?: No
Current lender: TD
Is this your primary residence or a rental property?: Primary
Location: Laval, QC
Maturity date: March 15, 2019

Thanks in advance.
Member
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Jul 25, 2015
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Burnaby, BC
I'm currently with MCAP, no issues at all. However they seem to be difficult on giving better rates in renewal. They just send me a variable rate of 3.2%. Makes me think its easier getting a better rate thru a broker even though its MCAP again.

I send them a counter offer of 2.85 and I haven't heard back yet.
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Piklishi wrote:
Feb 14th, 2019 6:09 pm
I'm currently with MCAP, no issues at all. However they seem to be difficult on giving better rates in renewal. They just send me a variable rate of 3.2%. Makes me think its easier getting a better rate thru a broker even though its MCAP again.

I send them a counter offer of 2.85 and I haven't heard back yet.
You won't get 2.85% variable with MCAP right now...their variable rates are a bit high at the moment (I'm hoping it will come down very soon based on some conversations I've had with them). Best rates start at 2.75% 5-year variable, but it's not with MCAP.
Kevin Somnauth, CFA
Mortgage Broker - Mortgage Architects (#10287) and Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
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Jan 31, 2018
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natenate wrote:
Feb 14th, 2019 12:20 pm
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?
Congratulations on your first home see below best rates

5 yr fixed 3.29% 120 day hold with 20/20 prepayments

5 yr variable 2.80% prime-1.15% 90 days 20/20 prepayments

Hope this helps

Phil
Phil Cragg
Rateconnect
Broker License #12626

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