Real Estate

The Official Mortgage Rates Thread

Newbie
Jul 21, 2018
16 posts
4 upvotes
Hi everyone. Forgive me asking this (newbie here).

Since there are similar offers among most of the decent people on this board, what is being distinguished between all of the offers available in general?
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Sep 13, 2011
5056 posts
1796 upvotes
Toronto
Explode wrote: I'm looking to refinance my mortgage for a recently purchased home. We recently renewed our mortgage in Oct 2018 for 3 year fixed term with CIBC. We weren't planning on moving but something came up and we have recently bought a new home in March and have a firm offer on our existing home. Our current closing date is June 14.

Current mortgage amount: Estimated ~134K by closing
Maturity Date: Oct 2021
Interest Rate: 3.24% Fixed
Remaining Amortization 7 years.
Approximate market value: 660K Sale Price
Purchase Price of new home: 840K
Required Mortgage: Estimated ~220-230K

Original purchase date (month and year): Sept 2013 (TD)
Did you pay an insurance premium such as CMHC when you purchased the home?: No
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance?: Yes, Oct 2018 (CIBC)
Do you have a second component such as a HELOC attached to your mortgage?: Yes, 45K
Current lender: CIBC
Is this your primary residence or a rental property?: Primary Residence
Province: Ontario
Maturity date: Oct 2021
Thanks for providing the info! Lowest 5 year fixed in your situation would be 2.84% at the moment.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Apr 10, 2019
1 posts
Long time lurker, first time poster. Would those rates mentioned below apply to my situation?

Purchase Date: June 2014
Purchase Price: $830,000 Concord, ONT
Current estimated value: $1.1 - $1.15 M
No CMHC insurance
No HELOC attached
Never refinanced
Current bank: CIBC
Remaining balance: approximately $330,000
Excellent credit
PaulMeredith wrote: Yes, for down payment of 20% - 34.99%. For down payment greater than 35% lowest rate would be 2.84%. Note that purchase price must be under $1 million and maximum amortization is 25 years (this is the case for most of the lowest rate options. This rate is also available for those with a renewal coming up as well. If you have a renewal, property value must be under $1 million OR you purchased your property prior to November 30th, 2019.
Deal Fanatic
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Sep 13, 2011
5056 posts
1796 upvotes
Toronto
theblues wrote: Hi everyone. Forgive me asking this (newbie here).

Since there are similar offers among most of the decent people on this board, what is being distinguished between all of the offers available in general?
Most of the rates we quote are all from the same lenders. The lenders can sometimes vary, depending on who is offering the lower promo. This changes all the time. Sometimes the lowest rates are available with multiple lenders. Here are some common restrictions found with some mortgages, and with which lenders:

- Lack of bridge Financing (Industrial Alliance).

- Fully closed mortgages where you can only break the mortgage early if you can sell your home (some products with MCAP, CMLS and BMO).

- Higher than normal penalties to break the mortgage early (Industrial Alliance, and some products with Merix and RMG. Plus, all of the big banks on fixed rate mortgages (penalties to break a mortgage with the big banks can be as much as 500% higher than most non-bank lenders).

- Limited prepayment privileges (Industrial Alliance, RBC, and some products with BMO)

- Higher than industry prime rate (TD and Investors Group).

- Collateral mortgages (TD, Tangerine, National Bank, and HSBC. Plus, a mortgage from any lender that contains a HELOC or second component of any kind).

- Variable rate mortgage that is compounded monthly as opposed to semi-annually (Merix, CMLS, TD, RBC, BMO, CIBC, National Bank).

The above covers just about everything. Aside from that, most mortgages are fairly similar.

Hope you find this helpful :)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Mar 27, 2016
10 posts
4 upvotes
I have a question regarding the determination between owner occupied vs rental for mortgage rates. I bought a condo in another city to be used by a family member as they have moved there. Does this still count as owner occupied?
Deal Fanatic
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Sep 13, 2011
5056 posts
1796 upvotes
Toronto
SteveC123472 wrote: I have a question regarding the determination between owner occupied vs rental for mortgage rates. I bought a condo in another city to be used by a family member as they have moved there. Does this still count as owner occupied?
If it's a family member living in the property then it could be considered a 2nd home, and therefore you should be able to get lowest rates. :)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Feb 2, 2014
7356 posts
1861 upvotes
Toronto
Explode wrote: I'm looking to refinance my mortgage for a recently purchased home. We recently renewed our mortgage in Oct 2018 for 3 year fixed term with CIBC. We weren't planning on moving but something came up and we have recently bought a new home in March and have a firm offer on our existing home. Our current closing date is June 14.

Current mortgage amount: Estimated ~134K by closing
Maturity Date: Oct 2021
Interest Rate: 3.24% Fixed
Remaining Amortization 7 years.
Approximate market value: 660K Sale Price
Purchase Price of new home: 840K
Required Mortgage: Estimated ~220-230K

Original purchase date (month and year): Sept 2013 (TD)
Did you pay an insurance premium such as CMHC when you purchased the home?: No
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance?: Yes, Oct 2018 (CIBC)
Do you have a second component such as a HELOC attached to your mortgage?: Yes, 45K
Current lender: CIBC
Is this your primary residence or a rental property?: Primary Residence
Province: Ontario
Maturity date: Oct 2021
I'm confused by your post.

Are you looking to refinance your current home (as stated) or get a mortgage for a home that you are purchasing?
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
Deal Fanatic
User avatar
Feb 2, 2014
7356 posts
1861 upvotes
Toronto
newtothisrfd wrote: Long time lurker, first time poster. Would those rates mentioned below apply to my situation?

Purchase Date: June 2014
Purchase Price: $830,000 Concord, ONT
Current estimated value: $1.1 - $1.15 M
No CMHC insurance
No HELOC attached
Never refinanced
Current bank: CIBC
Remaining balance: approximately $330,000
Excellent credit
2.84% 5-year fixed is the best rate for your mortgage.
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
Member
Oct 22, 2005
474 posts
9 upvotes
CdnRealEstateGuy wrote: I'm confused by your post.

Are you looking to refinance your current home (as stated) or get a mortgage for a home that you are purchasing?
I am looking for a mortgage for the new home. The bank referred to a new mortgage as a refinance. I am looking to extend the amortization out as I am increasing the mortgage amount and would like to keep the monthly payments down.
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
If you are looking for a mortgage on a new purchase - this is not a refinance. A refinance is when you get the existing mortgage (still on the same property) and want to take some of the equity our and/or extend the amortization.

On a purchase, the lender will get you a new mortgage.
Explode wrote: I am looking for a mortgage for the new home. The bank referred to a new mortgage as a refinance. I am looking to extend the amortization out as I am increasing the mortgage amount and would like to keep the monthly payments down.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Member
User avatar
Mar 2, 2009
476 posts
219 upvotes
This is one of my favourite threads on RFD. Thanks to everyone involved!

I have a question about lenders other than the big five e.g. MCAP, ManuLife/ManuVie, etc:
- I know these alternative lenders provide better rates and better payment privileges (e.g. 20/20) than the big banks
- Are there any hidden fees in their contracts, say that come up at renewal time?

This is a question for both brokers and customers that have renewed their mortgage while being a client of such lenders. Any unexpected fees/issues?
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
derdev wrote: This is one of my favourite threads on RFD. Thanks to everyone involved!

I have a question about lenders other than the big five e.g. MCAP, ManuLife/ManuVie, etc:
- I know these alternative lenders provide better rates and better payment privileges (e.g. 20/20) than the big banks
- Are there any hidden fees in their contracts, say that come up at renewal time?

This is a question for both brokers and customers that have renewed their mortgage while being a client of such lenders. Any unexpected fees/issues?
Think about that for a moment... if there were hidden fees, how could anyone legally get away with that?

Canadians in general believe that banks are "safe" and "regulated" while anyone else that is not a bank has "hidden clauses", is a "fly by night", has "hidden fees" or other obscure clauses. But reality is that these are lenders that have been in business for over a century (such as Industrial Alliance), some have higher mortgage volumes than some of the banks. These institutions work under the very same guidelines as any other larger or smaller institution.
Often we get clients asking "is that a "class B lender?" or "second tier" lender? There is no such a thing in reality. Even lender that specialize in certain markets (such as equity lending, new employment, bad credit, etc) they still must fulfill a ton of obligation to make sure they are not just disbursing money who cant pay back. Believe it or not, when a client has bad credit and other issues that push them to the real B side of lending, the institutions doing those deals are still required to do a lot of underwriting, using the same principles as any main stream lender does. And these institutions would not be Mcap, Manulife, RMG, First Nat, etc.

Sometimes when a client tells me : "I prefer a bank", I ask them :

Is ICICI Bank a bank?
Is Alterna Bank a bank?
Is Street Capital Bank a bank?
Is Laurentian Bank a bank?

9.5 out of 10 times they have never head of those "banks". To them, "a bank" has to be one of the big 5 or 6, if if the other banks are banks.

Banks in Canada have been able to perpetuate the concept that "safe" relates to themselves. Meanwhile some of those banks are funding the mortgages managed by the monoline lenders. So they have money that goes to fund a mortgage of the bank itself, and some money that goes to a monoline lender, at a lower interest cost, and that monoline lender then lends the money to the client, while servicing the mortgage.

When I send a deal to one of the big banks, I upload documents to a portal (available to brokers only - not to clients), and you would be surprised if you could see the portal.. because the mortgages are serviced by a monoline lender. So the banks themselves trust monoline lenders, while telling their clients to never trust a monoline lender. Funny, eh?

Fun fact - for a few years I worked for a "big bank" - and the bank had all the pensions of several thousand employees managed by... well... a monoline lender.
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Deal Fanatic
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Feb 2, 2014
7356 posts
1861 upvotes
Toronto
valuemortgage wrote: If you are looking for a mortgage on a new purchase - this is not a refinance. A refinance is when you get the existing mortgage (still on the same property) and want to take some of the equity our and/or extend the amortization.

On a purchase, the lender will get you a new mortgage.
Holy cow, why is a bank classifying this mortgage as a "refinance"?
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
Newbie
Mar 13, 2019
11 posts
Hello Experts,

Looking for some idea on 5 year fixed rates for my situation. First time buyer, bought a house in GTA. Details are all follows:

Purchase price - $610,000
Down payment amount (or percentage) - 5%
Primary residence or rental property - Primary
Province - Ontario
Closing date - May 20th
Deal Fanatic
User avatar
Sep 13, 2011
5056 posts
1796 upvotes
Toronto
Explode wrote: I am looking for a mortgage for the new home. The bank referred to a new mortgage as a refinance. I am looking to extend the amortization out as I am increasing the mortgage amount and would like to keep the monthly payments down.
If you choose to work with your bank on this, I would suggest asking for someone else to handle your mortgage for you as he/she doesn't seem to understand the terminology. The person you choose to handle your mortgage for you can be just as important as rate and terms and conditions.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

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