Real Estate

The Official Mortgage Rates Thread

Newbie
Jul 4, 2018
8 posts
I want to get a HELOC on my house. I bought in 2007 with TD. I got a cash back loan. Now I owe $173k. I'm in Oakville Ontario. 2 bedroom condo. Similar units are selling for 400k. We would like a line of credit for 50k to buy new equipment for our business. Household income is around 70k. Who should I talk to?
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Sep 13, 2011
5068 posts
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Toronto
Lessjunkremovel wrote: I want to get a HELOC on my house. I bought in 2007 with TD. I got a cash back loan. Now I owe $173k. I'm in Oakville Ontario. 2 bedroom condo. Similar units are selling for 400k. We would like a line of credit for 50k to buy new equipment for our business. Household income is around 70k. Who should I talk to?
Since your mortgage is currently with TD, TD would be the best lender to speak to. Options are always more limited when adding a HELOC behind a different lender. You may want to speak with Manulife as well. As mentioned in my above post, there are fees of around $1,000 to set up a HELOC. Manulife will typically cover these for you, but they have a $17 per month fee. This gives you an idea of where you can start.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jul 4, 2018
8 posts
How does the qualifications process work? Do they base it on the value of the property? Or do you need to prove you can pass a stress test.
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Sep 13, 2011
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Lessjunkremovel wrote: How does the qualifications process work? Do they base it on the value of the property? Or do you need to prove you can pass a stress test.
It would be the same process as applying for a mortgage. An appraisal would be required to determine the value. The mortgage and HELOC combination can go up to 80% of the appraised value. The HELOC portion alone cannot exceed 65%. You will need to pass the stress test as well.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jul 4, 2018
8 posts
Is there a secondary lender with less restrictions. Must be a easier way. If my property is worth 400k minimum and I owe 173k. I would think lenders would be lined up to lend 50k. Shouldn't a equity loan, be based on the equity. Not someone's ability to pay it back. Its secured on the equity. Maybe I'm wrong.
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Sep 13, 2011
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Lessjunkremovel wrote: Is there a secondary lender with less restrictions. Must be a easier way. If my property is worth 400k minimum and I owe 173k. I would think lenders would be lined up to lend 50k. Shouldn't a equity loan, be based on the equity. Not someone's ability to pay it back. Its secured on the equity. Maybe I'm wrong.
It's not an equity loan. You still need to qualify, just as with any other mortgage. It doesn't matter how much equity there is in the property, you still need to qualify based on income, credit, etc. If you are concerned about qualifying, then other options do exist, however they are a lot more pricey. Likely a rate of around 10%, plus set up fees which can vary depending on the situation, loan size, etc.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jul 4, 2018
8 posts
Thanks for your help. I guess I have to go in the bank. I think I can qualify. Just seems like a hassle. I'm going to offer a service 1% higher then the banks, but we qualify you in under a hour and do it during a Skype call. Funds available in under a hour.
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Sep 13, 2011
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Lessjunkremovel wrote: Thanks for your help. I guess I have to go in the bank. I think I can qualify. Just seems like a hassle. I'm going to offer a service 1% higher then the banks, but we qualify you in under a hour and do it during a Skype call. Funds available in under a hour.
There is a reason why that service does not exist ;)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Feb 12, 2019
2 posts
Looks like I may have been missing some information

Mortgage amount owing at maturity (or current mortgage amount if unknown): 60k
Approximate market value: 400k
Original purchase date (month and year): 1999
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? Yes, 50K used
Current lender: BMO
Is this your primary residence or a rental property?: Primary
Location: Montreal, QC
Maturity date: April, 2023

Looking to lower monthly payments, seems like getting a new mortgage for ~110k with a longer term would be an option to consider in that regard?
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Sep 13, 2011
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ilcravatta wrote: Looks like I may have been missing some information

Mortgage amount owing at maturity (or current mortgage amount if unknown): 60k
Approximate market value: 400k
Original purchase date (month and year): 1999
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? Yes, 50K used
Current lender: BMO
Is this your primary residence or a rental property?: Primary
Location: Montreal, QC
Maturity date: April, 2023

Looking to lower monthly payments, seems like getting a new mortgage for ~110k with a longer term would be an option to consider in that regard?
With such a small balance (congratulations on that!), and also considering you have a collateral mortgage (HELOC attached), your best bet will be to work with BMO directly. Additional fees would be involved which would make switching cost-prohibitive. If you want to lower payments, you would need to proceed as a refinance to extend your amortization. Note that BMO may charge you additional fees here as well, such as legal and appraisal, but best to ask them what they can do for you. You'll be hard pressed to get competitive rates outside BMO given your situation unfortunately.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Feb 2, 2014
7375 posts
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Toronto
jchung513 wrote: Our mortgage renewal is coming up this September.
We are trying to decide if we should add to our loan and refinance for home improvements or renew and use our two existing LOCs (35k unused, 7%). Looking for 5 yr variable. What’s the best rate for renewal or refinance? With only 6 months left, is it better to wait closer to maturity date to renew/refinance?
I wouldn’t refinance for $35k. You have the pay legal fees, appraisal fees and a higher rate. Transfer the mortgage over as is. There are alternative ways to get the $35k at a pretty cheap cost.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Sr. Member
Jan 12, 2008
964 posts
208 upvotes
Vancouver
Hi, i hope y'all can help me regarding Mortgage penalties. It was an area i've overlooked when prepping things. I've gone through my mortgage documents that i got from my broker at the time of purchase, but i can't find anything on the penalty calculation. How much do you think it'll end up costing?

I purchased a property that i just ended up hating so i knew i wanted to sell by the time my mortgage term ended. But maybe i made a mistake with the timing? There is about a 3 week difference in the closing date & mortgage term expiry date. During these awful two years, i inherited two other properties and moved into one of those. So i will not be porting the mortgage, straight termination.

Mortgage amount owing at maturity: 330k
Monthly Mortgage Payment: $1343, 2.29% fixed
Original purchase date (month and year): April 19/2017
Mortgage Maturity date: April 19/2019
Current lender: Scotiabank, conventional

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

Closing date: March 29/2019

Anyways, i hope i don't get penalized too harshly for 3 weeks difference. I don't even mind paying off the final month, but i doubt they'll let me.
Jr. Member
Jun 8, 2009
110 posts
23 upvotes
Toronto
Three months interest penalty $1890. For exact figures contact Scotia. There’s also a standard discharge fee.

Try to delay the closing, give buyer an incentive if possible.
thefeebster wrote: Hi, i hope y'all can help me regarding Mortgage penalties. It was an area i've overlooked when prepping things. I've gone through my mortgage documents that i got from my broker at the time of purchase, but i can't find anything on the penalty calculation. How much do you think it'll end up costing?

I purchased a property that i just ended up hating so i knew i wanted to sell by the time my mortgage term ended. But maybe i made a mistake with the timing? There is about a 3 week difference in the closing date & mortgage term expiry date. During these awful two years, i inherited two other properties and moved into one of those. So i will not be porting the mortgage, straight termination.

Mortgage amount owing at maturity: 330k
Monthly Mortgage Payment: $1343, 2.29% fixed
Original purchase date (month and year): April 19/2017
Mortgage Maturity date: April 19/2019
Current lender: Scotiabank, conventional

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

Closing date: March 29/2019

Anyways, i hope i don't get penalized too harshly for 3 weeks difference. I don't even mind paying off the final month, but i doubt they'll let me.
Newbie
Feb 22, 2017
2 posts
1 upvote
Hi, need some help in figuring out what my next mortgage move will be. We just sold our primary house and are currently house shopping for the next one.

I was wondering, in the current economy, would it be best to get a fixed or variable rate mortgage? Also, for the term, I usually take 5 years. Besides uncertainty, are there any advantages in taking shorter terms?

What are the best avaible fixed and variable rates right now ?

Somme info:
House price : will be between 500 and 625K
Down payment: 150K
Location: Montreal, QC

Thank you
Newbie
Feb 16, 2019
6 posts
Hi,

I am looking for mortgage rate for our first home. Some information is as below:

- Income: My wife has already worked for 1 year and I'll start working in July (I already signed my contract). Family gross annual income will be 155k
- House price: 600 - 750k
- Downpayment: 20%
- Closing date: June 2019
- Location: GTA (Mississauga, Oakville, Vaughan)
- I have one study loan of 55k.

Thanks.

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