Real Estate

The Official Mortgage Rates Thread

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Sep 13, 2011
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Alexdeal222 wrote: Hello,

I am looking to refinance my property. Currently Jointly owned property. Will be removing one name off title and registering under just my name. New mortgage will be just under my name. What are the best rates available 5 year fixed/variable for 25 year amortization? Will be looking to meet up within Toronto preferably.

Current Mortgage: 216,000
Desired New Mortgage: 380,000
Approximate Market Value: 800,000
Location: Condo Toronto DT

Thanks!
Lowest 5 year fixed for a refinance would be 3.09%.
Paul Meredith
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Feb 14, 2006
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PaulMeredith wrote: Unfortunately, not. Most lenders have heavy rate premiums on rentals, if they even lend on them at all. The lowest rates on rentals would be with a different lender. Even if they were available with the same lender, there would still not be any additional discounts by moving them both to that same lender.
Lowest 5 year fixed rate on your primary residence would be 2.84%, or 2.99% for 3 year fixed. Providing you are not in a collateral mortgage, the only fee involved with switching your mortgage would be the discharge fee from your current lender, which is around $300. This can be capitalized into the new mortgage.
Thanks for the info! I don't have a collateral mortgage (standard charge, no HELOC etc.). My understanding also was that I had to only pay a discharge fee. The renewal advisor from ICICI was trying to convince me that I had to pay for appraisal/legal if I were to switch which surprised me. Does the 2.84 offer require any of these?
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Apr 17, 2019
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Thanks so much for taking the time to respond Paul. I appreciate it.

I do need to do something to consolidate my my loan and LOC’S from when we built. The interest rates are too high. It looks like I’d be better off in the long run to add a HELOC after. If I went this route would it change me to a collateral mortgage? If not, it’d be beneficial to go this route as well, to prevent extra fees if I want to switch lenders after my term.

Thanks again.
PaulMeredith wrote: The 2.99% 3 year fixed and 3.09% 5 year fixed are the lowest rates available with a HELOC right now. You would qualify for the 2.84% if you didn't need the HELOC. This is why you need to ask yourself if the HELOC truly is that important to you and if you really need it. There is always a cost to having one, in one form or another. The difference between 2.84% and 3.09% works out to around $4,200 over 5 years, so this is what you would essentially be paying to have a HELOC. A fair bit of change, so it's something you would really need.

You may also want to consider switching to the 2.84%, but then adding a HELOC with a different lender behind it. This way, you have the best of both worlds. You may have to pay around $1,000 in legal and appraisal fees to get the HELOC set up, but that's still a lot cheaper than $4,200. You may want check with RBC to see if they would be willing to have their HELOC in 2nd position behind another lender. If they have an issue with it, then check with CIBC and TD as well, who are both pretty good. As Andre (Valuemortgage) mentioned in a recent post, you may want to call several branches to find out what your options are. Unfortunately, most of the people you speak with at the bank will likely not be too knowledgeable, and you may get differing answers, which is why you want to speak to several different people within the same bank to find out what might be possible for you.
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Sep 13, 2011
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You are correct that you would not need to pay any of these fees. Just the discharge fee. Slightly Smiling Face
Paul Meredith
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JakeBD wrote: Thanks so much for taking the time to respond Paul. I appreciate it.

I do need to do something to consolidate my my loan and LOC’S from when we built. The interest rates are too high. It looks like I’d be better off in the long run to add a HELOC after. If I went this route would it change me to a collateral mortgage? If not, it’d be beneficial to go this route as well, to prevent extra fees if I want to switch lenders after my term.

Thanks again.
My pleasure! Adding a HELOC in 2nd position begins an existing mortgage would not affect the charge type. It would still be a standard charge mortgage, so switching at the end of the term could be done quite easily, and without additional charge.

The HELOC itself can only be registered as a collateral, charge, but if you need a HELOC then there is no way around that. I also wouldn’t be too concerned with the collateral charge in this case. The interest cost you are paying on the current debt is the biggest issue.

Depending on how much debt you have, it still may make more sense to just refinance at a slightly higher rate, as opposed to adding the debt to a HELOC, which would be be at 4.45%
Paul Meredith
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Feb 2, 2014
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Spec wrote: Thanks for the info! I don't have a collateral mortgage (standard charge, no HELOC etc.). My understanding also was that I had to only pay a discharge fee. The renewal advisor from ICICI was trying to convince me that I had to pay for appraisal/legal if I were to switch which surprised me. Does the 2.84 offer require any of these?
You just need to cover the discharge fee...most lenders will cover legal and appraisal fees for standard charges.

Sales reps will say anything to make a sale. Saying you have to cover legals and appraisal fees to switch a non-collateral charge is rubbish.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Dec 31, 2016
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I currently have my house listed for sale and have a few questions about breaking my mortgage. I am on 5 year variable so the penalty to break it is 3 months interest.

Am I able to waive the 3 months interest if I port the mortgage to another house? Do I get to keep CHMC insurance if I port the mortgage? If I port the mortgage could I get a competitive rate on the new blended rate?

Do I contact the lender directly or go through a broker?
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Desna99 wrote: I currently have my house listed for sale and have a few questions about breaking my mortgage. I am on 5 year variable so the penalty to break it is 3 months interest.

Am I able to waive the 3 months interest if I port the mortgage to another house? Do I get to keep CHMC insurance if I port the mortgage? If I port the mortgage could I get a competitive rate on the new blended rate?

Do I contact the lender directly or go through a broker?
If you port your mortgage over to a new property, then you would not need to pay a penalty. However, with a variable rate mortgage, typically only the remaining balance can be ported, and blended rates are not available. So if you need to take out additional funds, which is almost always the case, then you'll have no choice but to break your mortgage and pay the penalty.

CMHC insurance is portable, however it does not always make sense to port the insurance. This is also only something you would consider if CMHC insurance is required on the new purchase as well (ie, you have less than 20% down payment). If the insurance is needed, then you would only pay the premium on the increase in funds needed, as opposed to the entire amount. However, the top up premium is substantially higher than the regular premium, so this usually only makes sense if the increase in funds needed is minimal. There are still a small handful of lenders who will blend variable rate mortgages, however they are few and far between. Even so, it likely would make more sense to pay your penalty and get a new mortgage somewhere else anyway. Porting usually only makes sense if rates have increased substantially. Rates given on the blended amount are seldom as favourable as what there would be elsewhere. I wrote a great blog about this recently which will tell you pretty much everything you need to know about porting your mortgage.
As for dealing with a broker, or through the lender directly, it really depends on which lender you are with. If the lender is available through brokers, then you'll probably want to deal through your broker.
Paul Meredith
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Newbie
Apr 17, 2019
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PaulMeredith wrote: My pleasure! Adding a HELOC in 2nd position begins an existing mortgage would not affect the charge type. It would still be a standard charge mortgage, so switching at the end of the term could be done quite easily, and without additional charge.

The HELOC itself can only be registered as a collateral, charge, but if you need a HELOC then there is no way around that. I also wouldn’t be too concerned with the collateral charge in this case. The interest cost you are paying on the current debt is the biggest issue.

Depending on how much debt you have, it still may make more sense to just refinance at a slightly higher rate, as opposed to adding the debt to a HELOC, which would be be at 4.45%
I think the HELOC might still be my best option, since it looks like you quoted 3.09% for a refinance to someone else. I’m looking to consolidate 50k right now and will need 8k at the end of the year to buy back pension time. I’m hoping to pay at least half of that down in 3 years, then will look into finishing my basement.

So my final question....I think....would I be looking at a rate higher than prime +.5 if I get a HELOC in second position?

Thanks again Paul.
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Mar 26, 2010
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Hi mortgage gurus,
Mortgage is up for renewal in early august and looking for what i should be expecting:
420k left in mortgage
Current value: 900k
Located in Vaughan, Ont
Owner occupied
Current lender is First National
No HELOC
Not CMHC insured
Purchased July 2014
Renewal August, 2019

I’ve seen “2.8x” rates being mentioned...Would i be able to get this with a bank?
Also what happens if rates drop between now and my renewal date? Could I get the benefit of a lower rate if that happens?

Thanks in advance!
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Feb 2, 2014
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railmonkey wrote: Hi mortgage gurus,
Mortgage is up for renewal in early august and looking for what i should be expecting:
420k left in mortgage
Current value: 900k
Located in Vaughan, Ont
Owner occupied
Current lender is First National
No HELOC
Not CMHC insured
Purchased July 2014
Renewal August, 2019

I’ve seen “2.8x” rates being mentioned...Would i be able to get this with a bank?
Also what happens if rates drop between now and my renewal date? Could I get the benefit of a lower rate if that happens?

Thanks in advance!
2.84% 5-year fixed is the best rate. Definitely not with a Big Bank, they won'offer this rate.

With this particular lender, they don't drop rates if the rates drop further after approval unfortunately.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
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Feb 2, 2014
8329 posts
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JakeBD wrote: I think the HELOC might still be my best option, since it looks like you quoted 3.09% for a refinance to someone else. I’m looking to consolidate 50k right now and will need 8k at the end of the year to buy back pension time. I’m hoping to pay at least half of that down in 3 years, then will look into finishing my basement.

So my final question....I think....would I be looking at a rate higher than prime +.5 if I get a HELOC in second position?

Thanks again Paul.
You should be able to get Prime +.50% in second position with the Big Banks.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Sep 13, 2011
5510 posts
2417 upvotes
Toronto
railmonkey wrote: Hi mortgage gurus,
Mortgage is up for renewal in early august and looking for what i should be expecting:
420k left in mortgage
Current value: 900k
Located in Vaughan, Ont
Owner occupied
Current lender is First National
No HELOC
Not CMHC insured
Purchased July 2014
Renewal August, 2019

I’ve seen “2.8x” rates being mentioned...Would i be able to get this with a bank?
Also what happens if rates drop between now and my renewal date? Could I get the benefit of a lower rate if that happens?

Thanks in advance!
The lowest 5 year fixed rate is 2.84%. As mentioned, you would not be able to get this rate from a big bank. Can I ask why this is your preference and if you had any issues with First National?
Paul Meredith
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Deal Addict
Jan 10, 2007
1472 posts
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Abbotsford
I have my primary residence mortgage with RBC. I'm looking at buying a vacation rental condo and am being quoted at 3.69 on a 5yr fixed /30yr or 3.59/25yr.

Does that seem high for a big 6? I'm not really interested in exploring no name mortgage companies, but would be if significant difference. I'm looking at 20% DP. Seems to be a very difference scenario when buying a vacation home.
Member
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Dec 9, 2007
493 posts
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Looking for some mortgage advice

Mortgage: 513k after 21% down
Salary 120k
Credit rating 800+

- Thinking of 30yr amortization
- Considering variable
- Would like the option of lump sum contributions

Could use any and all advice, new to all of this.
RFD makes me :lol:

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