Real Estate

The Official Mortgage Rates Thread

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Jan 31, 2018
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AnonymousHuman wrote: Hello! Thanks in advance for answering my questions.

I'm considering breaking a 5 year fixed mortgage with 4 years left, and I've been unable to get any direct answers from my mortgage agent from CIBC.
  • $385k left in mortgage balance
  • bought in Dec 2019
  • 5 year fixed rate of 2.7%
  • my significant other and I own the property, we don't have any other debt, credit score 850+, combined salary 200k

A few questions:
  • What new rate would I qualify for?
  • What would be my penalty if I break it?
  • Would there be additional penalty if I leave CIBC for another bank? vs. staying with CIBC?
  • How much of the penalty would I need to pay upfront?

Thank you!
You could be eligible for rates as low as 1.54% but need more info

What is the property value
Is it cmhc insured

You can roll in up to 3k of the penalty to the new mortgage on a switch

Roll in the entire penalty to the new mortgage still be 1% less in rate (rates slightly higher on refis)

You need to ask the current lender for the penalty amount

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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SamanA83525 wrote: Hi, I have found a house in Winnipeg and want to know what is the best rate that I can get to purchase it.

-What is the purchase price? 370,000
-How much is the down payment? 50K
-Where it the property located? Winnipeg, MB
-When is the closing date? ASAP
-Will the property be owner-occupied or a rental? Owner + rental

First time buyers, Income 66K, Credit Scores 800+, Zero Debt.

Please let me know what is the next step.
With less than 20% down you can get 1.54%

Lower rates available but not in MB

You can reach out to any of the mortgage experts on the forum
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
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jtee604 wrote: Looking to refinance my mortgage (currently with MCAP).
-Roughly, what is the current market value of the property? $700,000
-What is the current mortgage owing? $135000
-How much do you want to borrow (refinance)? $235000
-Is the property owner-occupied or a rental? owner
-Where is the property located? burnaby BC (greater vancouver)
-When do you want to close on the refinance? November 27 is maturity of existing mortgage

Thanks in advance!
You can get 1.79% 5 yr fixed
Major bank
Full featured

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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rob187 wrote: For a purchase of a property:

-What is the purchase price? 720,000
-How much is the down payment? 50K
-Where it the property located? Binbrook, ON
-When is the closing date? ASAP
-Will the property be owner-occupied or a rental? Owner

First time buyers, Combined Income 140K, Credit Scores 850+, Zero Debt, Recession Proof Careers



This rate was quoted to someone else but, is this possible for my scenario,
if no; what do I need to achieve it
if yes; next steps?
You can get 1.45% 5 yr fixed
Full featured
Credit Union

They are slightly backed up so if you have a quick close allow enough time

Phil
Phil Cragg
Mortgage Agent
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Jan 31, 2018
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ironchefff wrote: Hello everyone! Could you please check below for a first time home buyer?

-What is the purchase price? $875,000
-How much is the down payment? 20%
-Where it the property located? Mississauga, ON
-When is the closing date? November 19
-Will the property be owner-occupied or a rental? Owner-occupied

Thank you!
congrats

5 yr fixed 1.69%
5 yr variable 1.70%

Reach out to any of the experts

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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VanMan20202077 wrote: I found this very helpful, thanks a lot.

A main concern of mine is getting a fixed rate now for something like 1.6%, and then having the rates drop to something lower, leaving me wishing I had just waited to get a fixed rate until the rates dropped. Is there any point in time where you feel it's most likely that rates will drop in the next few months? Any big announcements?
Even if you lock a rate and rates drop we float down the rate for you

Phil
Phil Cragg
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Sep 13, 2011
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Toronto
Chenx335 wrote: For a mortgage transfer/renewal:

-How much is the mortgage owing? $370,000
-Roughly, what is the current market value of the property? $800 thousand
-Which city is the property located in? North YORK
-Is the property owner-occupied or a rental? owner occupied
-Who is your current lender? Meridian
-Do you have a HELOC tied to the mortgage? NO
-Is the mortgage CMHC insured? No
-When did you buy the property? 2016
- mortgage ending october 2021 but willing to pay the penalty if it save me money
Thanks for the info! I'd suggest checking wth Meridian to find out how much your penalty will be a break. Penalties with Meridian can be high (similar to that of the big banks), but these days, even fair penalty lenders will have higher penalties given how far fixed rates have fallen. Once you confirm your penalty, post again with the above information, plus penalty amount, your current payment amount, your current rate, and your exact maturity date. We'll then advise if there is potential to save you any money or if it will make more sense to wait.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Sr. Member
Dec 12, 2007
630 posts
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Canada
jtee604 wrote: Looking to refinance my mortgage (currently with MCAP).
-Roughly, what is the current market value of the property? $700,000
-What is the current mortgage owing? $135000
-How much do you want to borrow (refinance)? $235000
-Is the property owner-occupied or a rental? owner
-Where is the property located? burnaby BC (greater vancouver)
-When do you want to close on the refinance? November 27 is maturity of existing mortgage

Thanks in advance!
You could get as low as 1.71% 5 year fixed for your refinance situation.
Newbie
May 10, 2020
18 posts
1 upvote
PaulMeredith wrote: Thanks for the info! I'd suggest checking wth Meridian to find out how much your penalty will be a break. Penalties with Meridian can be high (similar to that of the big banks), but these days, even fair penalty lenders will have higher penalties given how far fixed rates have fallen. Once you confirm your penalty, post again with the above information, plus penalty amount, your current payment amount, your current rate, and your exact maturity date. We'll then advise if there is potential to save you any money or if it will make more sense to wait.
thank you Paul. I was informed it's $6900
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Sep 13, 2011
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stevo88 wrote: I see most of the cashback offers the banks are offering right now for switching are set to expire at the end of the month. Do they do these often or is there always some sort of cashback available?
Correct, cash back offers have all pretty much ended. They are offered periodically, but not always. I wouldn't expect to see cash back promotions again until the springtime, however no guarantees of this.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
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Sep 13, 2011
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Chenx335 wrote: thank you Paul. I was informed it's $6900
Pretty much impossible to overcome that penalty in only a year. What rate are you paying now? What is your payment amount and frequency? When is your exact maturity date?
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Sr. Member
Aug 24, 2006
734 posts
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Scarborough
My builder has finally advised my building has been registered and my final closing is in 3 weeks.

Question to the pros: I would need this financed as a rental with 20% down. How can I access more funds given it's worth more than my initial purchase price; Is a HELOC allowed on the property during the initial financing using the cost price from 7 yrs ago ? ( originally signed in 2013 )
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Sep 13, 2011
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ahlavanthan wrote: My builder has finally advised my building has been registered and my final closing is in 3 weeks.

Question to the pros: I would need this financed as a rental with 20% down. How can I access more funds given it's worth more than my initial purchase price; Is a HELOC allowed on the property during the initial financing using the cost price from 7 yrs ago ? ( originally signed in 2013 )
Great! You would need to get started getting your mortgage set up ASAP. 3 weeks still still a reasonable amount of time, but you'll till want to get started within a day or two at the latest. The sooner the better. The maximum loan amount will always be the LOWER of the purchase price or the appraised value. In this case, it would be the purchase price. To access the additional equity, you would need to either add a HELOC, or look at refinancing. Both would be done after closing the initial mortgage. You could always look at doing this through a bank with an open mortgage. The rate will be high, but you would then be able to refinance it immediately after closing for the amount you want. That's another option.

Paul
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Sr. Member
Aug 24, 2006
734 posts
155 upvotes
Scarborough
Thanks Paul.

Yeap , got all docs ready since I just went through a renewal.

Tangerine just confirmed they don't allow HELOC on rental properties. Will check with other lenders.

PaulMeredith wrote: Great! You would need to get started getting your mortgage set up ASAP. 3 weeks still still a reasonable amount of time, but you'll till want to get started within a day or two at the latest. The sooner the better. The maximum loan amount will always be the LOWER of the purchase price or the appraised value. In this case, it would be the purchase price. To access the additional equity, you would need to either add a HELOC, or look at refinancing. Both would be done after closing the initial mortgage. You could always look at doing this through a bank with an open mortgage. The rate will be high, but you would then be able to refinance it immediately after closing for the amount you want. That's another option.

Paul
Member
Dec 5, 2017
299 posts
317 upvotes
TazZaide wrote: In your situation you can get 1.59% five year fixed or 1.50% five year variable, however it’s important to see what the penalty is first to see whether it’s worth switching.
The penalty to break was bigger than I was expecting. It's just over $5,700. Which is 2/3 of the remaining interest payments for the current term. The only reason I see to renew now, with that penalty is if I think the rates are going up. Which I don't see in the short term.
Newbie
Oct 26, 2020
3 posts
westcoaster12 wrote: Hi,

Looking to get an idea of what my best 5 year rates look like for:

Property Info:

City: Burnaby
Purchase date: 2011
Original Purchase Price: $630k
Downpayment: 20% (not insured)
Current Market Value: ~$900k
Mortgage balance at maturity: $233k.
Current mortgage: 5 year fixed 2.40%
Renewal Time: May 2021
Household Income: ~275k.
Owner Occupied.
About 7 years left on mortgage (originally 25 year amort) at the time of renewal.

Recognize, I'm a little bit early on rate holds, but want to understand what I can currently get. Feel free to DM if preferred.

Thanks
Just bumping this. Thanks!
Jr. Member
May 8, 2014
198 posts
102 upvotes
Toronto, ON
AnonymousHuman wrote: Hello! Thanks in advance for answering my questions.

I'm considering breaking a 5 year fixed mortgage with 4 years left, and I've been unable to get any direct answers from my mortgage agent from CIBC.
  • $385k left in mortgage balance
  • bought in Dec 2019
  • 5 year fixed rate of 2.7%
  • my significant other and I own the property, we don't have any other debt, credit score 850+, combined salary 200k

A few questions:
  • What new rate would I qualify for?
  • What would be my penalty if I break it?
  • Would there be additional penalty if I leave CIBC for another bank? vs. staying with CIBC?
  • How much of the penalty would I need to pay upfront?

Thank you!
4 years left on a 5-year term? Better grab the handle and brace yourself.

If you know your rate discount (the difference between the 5-year posted rate when you got the mortgage and your contact rate) you can use this calculator:

https://www.cibc.com/en/personal-bankin ... lator.html

Also, subtract your max prepayment privilege for the mortgage balance field, and plug in your max weekly payment amount (divide your contract monthly payment by 4, and multiply by 2). This should make a noticeable difference in the penalty.
More billionaires on submersibles, please!
Jr. Member
Oct 7, 2016
132 posts
63 upvotes
Hey
My mortgage is expiring in 1 year and 7 months
Mortgage Balance 638,000
original value 888,000
Current interest variable prime -0.4 (2.05%)
I asked my current loaner for fixed rate best rate 1.84% for 5 years fixed.
If I switch to a different bank penalty around 3K
Experts opinion? Shall I switch to fixed now for 5 years , keep the current variable at 2.05% or switch to a totally different bank ?
Newbie
Aug 5, 2019
8 posts
2 upvotes
rateconnect wrote: You can get 1.79% 5 yr fixed
Major bank
Full featured

Phil
What about for variable 5 year? Thank you!

Looking to refinance my mortgage (currently with MCAP).
-Roughly, what is the current market value of the property? $700,000
-What is the current mortgage owing? $135000
-How much do you want to borrow (refinance)? $235000
-Is the property owner-occupied or a rental? owner
-Where is the property located? burnaby BC (greater vancouver)
-When do you want to close on the refinance? November 27 is maturity of existing mortgage

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