Real Estate

The Official Mortgage Rates Thread

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Jan 7, 2013
472 posts
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Oshawa, Ontario
My mortgage with MCAP has closed. It was facilitated by Kevin. The rates advertised on this board were the rates that I closed for.

A smooth process overall, with communications and documents handled by email. Kevin had no problem in redoing the document packages a couple times as I made some changes to the mortgage details.

Visits by a third party for home appraisal
and by a notary to sign some papers were also required, and both were under 15 minutes long.

The MCAP website seems to be well done and organized, with lots of details and self-serve options.

Well worth the effort of switching, vs the terrible renewal deal my bank was offering.
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Sep 13, 2011
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striderfox wrote: Hi everyone,

Looking for the best rate (3 yr closed) or 5 yr variable on these details:

Purchase Price : $720k
Downpayment: 20%
Closing date: April 2019
Primary residence? No (investment property)
Location: BC
amortization: 30 year
Household income: $220k

Third property (have main and 1 other investment condo)
Lowest 3 year fixed for a rental property right now would be 3.49%. Lowest 5 year variable would be higher than this, so would suggest the 3 year fixed in most cases. While fixed rates have come down for rental properties, the variable rate options are terrible.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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stallion4life wrote: Hi all, just looking for feedback on a couple of rates I've been given. 3.34 for 5 yr fixed vs 3.14 for 2 yr fixed. Looking for expert opinions on which is the better route option. This is a 2nd property.
Is the 2nd property going to be an investment property? 2nd home? Or are you turning your current home into a rental and will be making the new home a primary residence?
What is the purchase price and how much do you have for down payment?

Whether to go with 2 year or 5 year really depends on the person. A 2 year fixed is not something that is right for everyone. We don't know where rates will be in two years, so there is no way to know for sure which would prove to be the better option mid term. If you tell me the amount of your mortgage, I can then let you know what your break even rate would be. The break even rate would be what the 3 year fixed rate would need to be after the end of the two year term for you to come out ahead with either option. The 3 year fixed is used for the break even rate since we are comparing a 2 year term with a 5 year term. Let me know and I can further advise.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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Mar 28, 2017
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PaulMeredith wrote: Is the 2nd property going to be an investment property? 2nd home? Or are you turning your current home into a rental and will be making the new home a primary residence?
What is the purchase price and how much do you have for down payment?

Whether to go with 2 year or 5 year really depends on the person. A 2 year fixed is not something that is right for everyone. We don't know where rates will be in two years, so there is no way to know for sure which would prove to be the better option mid term. If you tell me the amount of your mortgage, I can then let you know what your break even rate would be. The break even rate would be what the 3 year fixed rate would need to be after the end of the two year term for you to come out ahead with either option. The 3 year fixed is used for the break even rate since we are comparing a 2 year term with a 5 year term. Let me know and I can further advise.
Mortgage amount will be $226000, have 20% down and its a 2nd home that family will be residing in. I will still have my primary residence.
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stallion4life wrote: Mortgage amount will be $226000, have 20% down and its a 2nd home that family will be residing in. I will still have my primary residence.
3.24% 5-year fixed and 3.00% 5-year variable would be the best rates for you!
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Shaidin wrote: My mortgage with MCAP has closed. It was facilitated by Kevin. The rates advertised on this board were the rates that I closed for.

A smooth process overall, with communications and documents handled by email. Kevin had no problem in redoing the document packages a couple times as I made some changes to the mortgage details.

Visits by a third party for home appraisal
and by a notary to sign some papers were also required, and both were under 15 minutes long.

The MCAP website seems to be well done and organized, with lots of details and self-serve options.

Well worth the effort of switching, vs the terrible renewal deal my bank was offering.
Thank you for sharing this!

There are a lot of new visitors to RFD and specifically this thread who are only familiar with Big Banks as mortgage lenders. The brokers here are all huge supporters of monoline lenders due to their low rates, cheaper IRD penalty calculation and overall better service (keep in mind, we have access to Big Banks as well). Sharing this experience will help new visitors make their decision on choosing a mortgage lender.

Very big +1. Much appreciated, and I’m sure Paul, Andre, Phil and Conor do as well.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Apr 30, 2010
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PaulMeredith wrote: Which lender are you with right now? Investment properties are priced quite a bit higher than owner occupied properties, so it may not make sense to switch. Let me know and ill further advise.
Currently with street captial
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Dec 23, 2007
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I renewed my mortgage about 40days ago with RBC fixed 5year at 3.64.(yes, i know not the best move)
Noticed its down to 3.49 on rbc website. Is there anything that can be done? or am i out of luck :(
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Sep 19, 2012
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PaulMeredith wrote: With 20% down payment, the lowest 5 year fixed is 3.24% or 5 year variable at prime -0.95% (3.00%). For any purchase under $1 million with a 20% down payment, these will be the rates.
CdnRealEstateGuy wrote: Lots of people asking about the best rate for an owner-occupied property with 20% down. From coast-to-coast, the best rates are 3.00% 5-year variable and 3.24% 5-year fixed with 20% down.
Other brokers (non RFD) are quoting the same rate but the product they've got has a 3% early termination penalty. Can you gents clarify? I assume you're quoting full-featured products with "standard" termination penalties, right?
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
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Jan 7, 2013
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Oshawa, Ontario
My MCAP policy came with the standard 20% prepay/20% lump sum/3 months interest penalty.

I opted for their product without the "bona-fide sales" clause, which was a slightly higher rate. But really that clause probably is not a big deal.
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ahlaker wrote: Other brokers (non RFD) are quoting the same rate but the product they've got has a 3% early termination penalty. Can you gents clarify? I assume you're quoting full-featured products with "standard" termination penalties, right?
The 3.24% (20% down payment), 3.14% (25%+ down payment) and 3.09% (high ratio) 5 year fixed mortgages all have the standard penalties. They do not have a 3% minimum penalty.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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lak8 wrote: I renewed my mortgage about 40days ago with RBC fixed 5year at 3.64.(yes, i know not the best move)
Noticed its down to 3.49 on rbc website. Is there anything that can be done? or am i out of luck :(
If your new mortgage with RBC has already closed then there is nothing you can do unfortunately.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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stallion4life wrote: Mortgage amount will be $226000, have 20% down and its a 2nd home that family will be residing in. I will still have my primary residence.
Thanks for the info. Your break even rate would be 3.49%, which means that if the 3 year fixed rate at the end of your 2 year term was greater than 3.49%, then you would have been better off taking the 5 year fixed rate at 3.34%. However, if it was less than that, you would have been better off with the 2 year fixed. It's really hard to say where rates will be in a couple of years, so it's pretty much a coin flip.

As mentioned, you can get a 5 year fixed rate now as low as 3.24%. Given the difference is so small between the two year fixed and the 5 year fixed at only -0.10%, and you think this mortgage will suit your needs for the next 5 years, than I would go with the 5 year fixed option.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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xqcftwx wrote: Anyone know where I can get a mortgage pre-approval/pre-qualification quickly online? (I have a cosigner/co-borrower if it makes any difference)

I've found a house I'd like to make an offer on, but they requested a pre-approval letter so I'd like to get one asap. I'm fine with sending proof of income etc.

Thanks.
The quick, online "preapprovals" are not really worth much more than the paper they are written on. You can reach out to any regular posting broker on this board and they should be able to help you out.
Paul Meredith
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Mar 20, 2005
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Maple
Hey guys

Current offerings for my renewal is;

2.85 5 year variable

Or

3.24 5 year fixed.

Any opinions ? What is my break even point ? I also plan on putting roughly 10k a year extra down.

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