Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Sep 13, 2011
5279 posts
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Toronto
ntj wrote: Hi Brokers -- looking for some guidance on rates:

Primary residence for renewal. Currently with Scotiabank.

Type: Single-family dwelling
City: North Bay, ON
Term: Fixed or variable (3yrs or 4yrs or 5yrs)
Mortgage amount: 200k
Home Value: ~300k

I've been offered an early renewal of 3.49% for 5-year fixed and 3.41% 5-year variable. Shorter terms were higher rates.
Based on the info provided, 5 year fixed rate of 3.34% or 5 year variable at prime -1.15% (2.80%). If there was just a bit more equity in the property (35%), then you would be eligible for 3.24% 5 year fixed. Variable would not change. Lowest 3 year fixed is 3.44% either way. Shorter terms are generally higher than 5 year terms.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Mar 1, 2019
4 posts
My initial posting was delayed so I repost in case it was missed.

Hi brokers,

Kindly provide the best rates for the following terms: 1, 2, 3 y fixed and 5 y variable.

Property use: Owner occupied
Amortization: 25 years
Downpayment: 20%
Property type: Condo
Property location: Toronto
Purchase price: 296,000 (it was a preconstruction)
Income: 130k combined
First time home buyers
Occupancy is in April with closing in June/July. I understand it might be early but they require pre approval in March.

Thank you
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Feb 2, 2014
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Turpentine wrote: If you are fine with staying with TD, you may want to push them a little on that rate ; I got 3.39 from them four days ago.
You could get as low as 3.24% 5-year fixed and 2.75% 5-year variable with a NON-COLLATERAL charge lender.

TD is horrendous for mortgages.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Feb 2, 2014
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JayLove06 wrote: Quick question. Would refinance or equity takeout on property with current bank result in the same qualifying pricesss and documentation as a new bank? Keep in mind I have rental properties so things get hairy there (providing leases, taxes,etc...just a PITA). Would I have to again (did this already when I got the mortgage 5 years ago) go through this? I’m trying to see what is the advantage if any of refinancing through my current bank? Is my loyalty worth it?
Always a pleasure to answer your questions @JayLove06.

If you have a standard charge, you would be re-underwritten/re-qualified. You're taking out new money and it will be a new mortgage, so you would have to qualify.

HOWEVER, this is where having a collateral charge may help. For example, if you have an all-on-one product where you qualified for a $500,000 borrowing limit and have $200,000 currently outstanding, you can get the $300,000 unlocked fairly easily.

PM me or call me (416-799-8035) if you have any questions on this. If you don't know if you have this collateral product, I can look it up for you (if you're in Ontario).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Feb 2, 2014
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OttawaGuy2 wrote: Paul, can you clarify this please?
Even if someone taking equity without increasing their original mortgage amount do they still have to do new mortgage approval?
Example would help.
Original Mortgage amount approved = 100,000.00
Mortgage paid down = 60,000.00
Mortgage balance = 40,000.00
Upon renewal , can they renew back to original mortgage amount of 100,000.00 without approval process?
If you have a standard mortgage, you cannot re-borrow the amount your were qualified for. You also cannot increase the amortization back up to that original amount.

That would be a refinance.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
7774 posts
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Toronto
lehoff wrote: My initial posting was delayed so I repost in case it was missed.

Hi brokers,

Kindly provide the best rates for the following terms: 1, 2, 3 y fixed and 5 y variable.

Property use: Owner occupied
Amortization: 25 years
Downpayment: 20%
Property type: Condo
Property location: Toronto
Purchase price: 296,000 (it was a preconstruction)
Income: 130k combined
First time home buyers
Occupancy is in April with closing in June/July. I understand it might be early but they require pre approval in March.

Thank you
3.00% 5-year variable and 3.39% 5-year fixed are the best rates.

Yes, your post was delayed and we missed it....apologies.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Mar 15, 2016
3 posts
Please, I have a quick question for experienced mortgage brokers on this site. My wife and I are looking to purchase our first investment property. I am the only one on the title and mortgage of our principal residence. For the investment property, we want only my wife to be on the title and by herself, she does qualify for the mortgage on the investment property we are looking to purchase. My question is: as part of the downpayment, can I draw on my own line of credit and give to her as a source of downpayment without jeopardizing her qualification ratios? I will not be on the title and neither will my income be required for her to qualify.

Thanks.
Member
Nov 8, 2009
255 posts
62 upvotes
Property use: Owner occupied
Amortization: 30 years
Term: 5 Year Fixed
Downpayment: 20%
Property type: Condo
Property location: DT Toronto
Purchase price: 650,000
Income: 150k+
First time home buyer
Closing April 11th

My bank is offering me 3.44% as I'm an employee, can any brokers here offer something better?
Deal Fanatic
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Sep 13, 2011
5279 posts
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Toronto
SolarD wrote: Please, I have a quick question for experienced mortgage brokers on this site. My wife and I are looking to purchase our first investment property. I am the only one on the title and mortgage of our principal residence. For the investment property, we want only my wife to be on the title and by herself, she does qualify for the mortgage on the investment property we are looking to purchase. My question is: as part of the downpayment, can I draw on my own line of credit and give to her as a source of downpayment without jeopardizing her qualification ratios? I will not be on the title and neither will my income be required for her to qualify.

Thanks.
Unfortunately not. While spousal gifts on purchases of owner occupied properties are acceptable, gifts on the purchase of a rental property are typically not. The lender will need to see bank statements for the past 90 days to see the natural accumulation of down payment. Note that some lenders will only need to see 30 days, however these are few and far between.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5279 posts
2268 upvotes
Toronto
linske wrote: Property use: Owner occupied
Amortization: 30 years
Term: 5 Year Fixed
Downpayment: 20%
Property type: Condo
Property location: DT Toronto
Purchase price: 650,000
Income: 150k+
First time home buyer
Closing April 11th

My bank is offering me 3.44% as I'm an employee, can any brokers here offer something better?
Nothing lower than 3.44% with 30 year amortization unfortunately. If you wanted to drop down to 25 years, then there are 5 year fixed rates as low as 3.39%.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Member
Nov 8, 2009
255 posts
62 upvotes
PaulMeredith wrote: Nothing lower than 3.44% with 30 year amortization unfortunately. If you wanted to drop down to 25 years, then there are 5 year fixed rates as low as 3.39%.
I'm getting a rate of intellimortgage for 3.38% from scotiabank but once we go through the entire application it says the "effective rate" is 3.38% and the contractural rate is 3.54%, what is the difference between the 2?
Sr. Member
Nov 9, 2017
634 posts
67 upvotes
PaulMeredith wrote: Unfortunately not. While spousal gifts on purchases of owner occupied properties are acceptable, gifts on the purchase of a rental property are typically not. The lender will need to see bank statements for the past 90 days to see the natural accumulation of down payment. Note that some lenders will only need to see 30 days, however these are few and far between.
So if a gift is in account for 91 days then bank doesn't care if it's a gift or not because money was available in account for 90 days? or is there a specific question asked what the source of money is regardless of time?
Newbie
Mar 1, 2019
4 posts
Thank you Kevin.

May I please have 1,2 and 3 y fixed rates as well?
I am trying to asses what is best since we are planning on moving out of the condo sometimes in the next five years.
I am aware of the ability to port a mortgage but I wonder if it's better to get a discharge and setup a new mortgage (new house) when time comes to sell.
Newbie
Mar 1, 2019
4 posts
CdnRealEstateGuy wrote: 3.00% 5-year variable and 3.39% 5-year fixed are the best rates.

Yes, your post was delayed and we missed it....apologies.
Thank you Kevin.

May I please have 1,2 and 3 y fixed rates as well?
I am trying to asses what is best since we are planning on moving out of the condo sometimes in the next five years.
I am aware of the ability to port a mortgage but I wonder if it's better to get a discharge and setup a new mortgage (new house) when time comes to sell.
Sr. Member
Nov 9, 2017
634 posts
67 upvotes
PaulMeredith wrote: Your best bet would be to refinance into a new mortgage, OR a mortgage / HELOC.
Thanks for feedback.

1- What is the refinance rates? is it the same as new mortgage?
2- by "mortgage / HELOC" I think you mean a combo product to be more flexible but probably is not best rates. I am assuming you mean best rates are in this order: Refinance, refinance+HELOC, HELOC - am I correct with this assumption?

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