Real Estate

The Official Mortgage Rates Thread

Newbie
Mar 13, 2019
1 posts
Hello, looking at variable and fixed 5 year rates.
House purchase 500 k
20% down
income 105 k
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Sep 13, 2011
5009 posts
1783 upvotes
Toronto
Rose1718 wrote:
Mar 15th, 2019 1:27 pm
Hello, looking at variable and fixed 5 year rates.
House purchase 500 k
20% down
income 105 k
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.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Oct 31, 2013
1 posts
Woodbridge, ON
Purchase Price: 860K
Down Payment: $240k
2yr Average Income: $116,900k
2018 Income: $122k
Milton

Looking for best rate on 5yr Var 30yr Amortization
Last edited by ftinvesting on Mar 16th, 2019 9:35 am, edited 1 time in total.
Newbie
Mar 28, 2017
20 posts
1 upvote
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.
Member
Jan 7, 2013
427 posts
183 upvotes
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
5009 posts
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Toronto
striderfox wrote:
Mar 15th, 2019 11:01 pm
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
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5009 posts
1783 upvotes
Toronto
stallion4life wrote:
Mar 15th, 2019 7:46 pm
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
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Mar 28, 2017
20 posts
1 upvote
PaulMeredith wrote:
Mar 16th, 2019 10:44 am
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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Feb 2, 2014
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Toronto
stallion4life wrote:
Mar 16th, 2019 11:08 am
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
President's Club Award Winner At The Mortgage Architects
PLATINUM CLUB Award Winner At Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
7223 posts
1809 upvotes
Toronto
Shaidin wrote:
Mar 16th, 2019 9:28 am
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
President's Club Award Winner At The Mortgage Architects
PLATINUM CLUB Award Winner At Century 21 Innovative
Newbie
Apr 30, 2010
30 posts
PaulMeredith wrote:
Mar 15th, 2019 12:31 pm
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
Sr. Member
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Dec 23, 2007
786 posts
147 upvotes
Winnipeg
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 :(
Sr. Member
Sep 19, 2012
991 posts
854 upvotes
Calgary
PaulMeredith wrote:
Mar 15th, 2019 3:37 pm
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:
Mar 15th, 2019 1:15 pm
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
Member
Jan 7, 2013
427 posts
183 upvotes
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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Sep 13, 2011
5009 posts
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Toronto
ahlaker wrote:
Mar 16th, 2019 2:10 pm
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
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

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