Real Estate

The Official Mortgage Rates Thread

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Feb 2, 2014
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Toronto
Raven_007 wrote: Hello,

Does it make sense for to switch from my variable rate mortgage at TD (currently paying 3.22% on variable rate) to any other options? I have ~ 400K mortgage. The house was bought in 2017 for ~900K. Comparable houses now sell for 1.05M-1.15M. I think the cost of will be 3.22%*400,000/3=3,220 for the interest + 600 for lawyer + 300 for discharge.

I have over 3 years left on 5 year term.
Location: Centre of the Universe.

Thanks!
You will be ahead if you switch to 2.79% 5-year fixed.

Legals are $800, but discharge fee can be covered.

Also, you made a small typo (should be $400,000/4 to compute penalty, but your answer is correct).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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dnbrown wrote: Hello,

Looking for 5 year fixed rates

Mortgage amount owing at maturity: $254000
Remaining amortization period: 25 years
Purchase price: $311000
Original purchase date: September 2009
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): Yes
Did you refinance your mortgage since you owned your home? No
Do you have a second component such as a HELOC attached to your mortgage? No
Current lender: Scotiabank
Is this your primary residence or a rental property? Primary residence
Location: Edmonton AB
Maturity date: August 8, 2019

Thanks in advance
2.79% 5-year fixed and 2.70% 5-year variable are the best rates available. Legal and appraisal fees covered!
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Sep 13, 2011
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Raven_007 wrote: Hello,

Does it make sense for to switch from my variable rate mortgage at TD (currently paying 3.22% on variable rate) to any other options? I have ~ 400K mortgage. The house was bought in 2017 for ~900K. Comparable houses now sell for 1.05M-1.15M. I think the cost of will be 3.22%*400,000/3=3,220 for the interest + 600 for lawyer + 300 for discharge.

I have over 3 years left on 5 year term.
Location: Centre of the Universe.

Thanks!
There is savings to be had, but the savings will be minimal, so it may not sense for you to make a switch at this time. Once you factor in your penalty of $3,220 (your calculation was correct), and legal fee of around $800, you're only going to save around $700 over the next three years. That's based on converting to today's lowest 5 year fixed rate of 2.79%. As the next movement to prime rate will likely be downward, that could potentially wipe out what little savings you would see over this period. This is assuming that we do not see any further increases to prime rate over that period.

It's up to you of course, but if it were me, I would stay put.
Paul Meredith
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CityCan Financial Corp (lic. 10532)
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dnbrown wrote: Hello,

Looking for 5 year fixed rates

Mortgage amount owing at maturity: $254000
Remaining amortization period: 25 years
Purchase price: $311000
Original purchase date: September 2009
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment): Yes
Did you refinance your mortgage since you owned your home? No
Do you have a second component such as a HELOC attached to your mortgage? No
Current lender: Scotiabank
Is this your primary residence or a rental property? Primary residence
Location: Edmonton AB
Maturity date: August 8, 2019

Thanks in advance
You would have 2.79% available to you on a previously insured file for 5 yr fixed rates

20/20 prepayments 90 day rate hold

Phil
Phil Cragg
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Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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MostafaM44945 wrote: I am currently shopping around to get a mortgage (property sale agreement was just signed). I am a first time buyer. So, please excuse my ignorance or clear no compliment questions.

I got a rate of 2.79% from CanWise and 2.94% from a bank (5 year fixed) . I was told by a friend that sometimes a broker gives a low interest rate to get you in then he says "The lender did not approve but I got another lender with higher interest xyz%". Any by that time the client (me) will be desperate to get approved before the deal expiry.
I have a couple of questions here:
1) is it true that check for approval is a single shot thing. Meaning that if I go with a broker/bank and they wanted to play games and increase the interest they offered at the beginning, I will not be able to backup and go with the other offer ?
2) I usually read reviews regarding some kind of "strings" attached with some mortgage offers. Experts here can briefly explain some of these strings (I am getting worried now).
Just so you understand Canwise is also a broker and that is a competitive rate one you could get through any of the brokers on the forum

Brokers on the forum are not into bait and switch tactics if you provide the accurate information required for a quote then the rate quoted will be the rate you get pending approval

We realize that this is a competitive space and that you may get approvals from other lenders which is fine just keep all offers open until you are prepared to commit

I guarantee you will get the most competitive rates and best service through any of the brokers on the forum

Please provide:

purchase price
down payment
closing date

Many thanks

Phil
Phil Cragg
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Mortgage Outlet Inc Broker License #12628
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Jan 22, 2009
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Question for the brokers, are the low rates you posted (fixed and variable) all have restriction? I mean if I want a full featured mortgage, the rate will be higher than the posted rate?
Newbie
Aug 26, 2012
88 posts
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Nepean
I am currently with RBC and my mortgage is up for renewal on August 15, 2019. They are offering 3.09% on a five year fixed rate.

The house value would probably be around $450,000. There is going to be around $135,000 left on the mortgage at the time of renewal. We did have a down payment over 20% when we purchased. There is a line of credit attached to the home.

What are the offers available for five and four year fixed? What is the name of the lender? Is it worth it to switch? What are the fees in switching? Are there fees for having a line of credit secured to the mortgage?

Thanks for your advice.
Newbie
Mar 7, 2010
17 posts
1 upvote
Vancouver
How do banks take consideration of rental income for a second/rental property if I already have mortgage on the primary property?
A bit of info on the rental property:
- purchase price: 400,000
- monthly rental income (average of similar units in the area): 2,000/m
- manage fee + property tax: 400/m

Thanks
Deal Addict
Dec 10, 2012
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Canada
is BOC expected to go up or down? Fixed Rates have been on the decline while the variable hasn't moved. is that an indication of variable rates going down soon?
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Jan 15, 2013
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Kamloops
True north offered 2.94 5 yr fixed for BC property mortgage went up for a renewal. Is that acceptable?
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Feb 2, 2014
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Hey guys. I know most posters here are looking for a quote on rates and fees.

For us to give you an idea on rates and fees, we need to know (please answer the questions below for your particular transaction only):

For a mortgage transfer/renewal:

-How much is the mortgage owing?
-Roughly, what is the current market value of the property?
-Which city is the property located in?
-Is the property owner-occupied or a rental?
-Who is your current lender?
-Do you have a HELOC tied to the mortgage?
-Is the mortgage CMHC insured?
-When did you buy the property?
-When is your renewal date?

For a purchase of a property:

-What is the purchase price?
-How much is the down payment?
-Where it the property located?
-When is the closing date?
-Will the property be owner-occupied or a rental?

For a mortgage refinance:

-Roughly, what is the current market value of the property?
-What is the current mortgage owing?
-How much do you want to borrow (refinance)?
-Is the property owner-occupied or a rental?
-Where is the property located?
-When do you want to close on the refinance?

Whenever you are borrowing MORE money than currently owing or INCREASING the remaining amortization period, it is a refinance.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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thetank85 wrote: True north offered 2.94 5 yr fixed for BC property mortgage went up for a renewal. Is that acceptable?
You can go as low as 2.79% 5-year fixed.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Feb 2, 2014
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yoursyumiko wrote: How do banks take consideration of rental income for a second/rental property if I already have mortgage on the primary property?
A bit of info on the rental property:
- purchase price: 400,000
- monthly rental income (average of similar units in the area): 2,000/m
- manage fee + property tax: 400/m

Thanks
It depends on the lender. Some lenders have more aggressive calcs with rental income than others.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Aug 3, 2011
535 posts
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Edmonton
Quick question for house assessment.

I paid 650k for my house and the city assessment is 525k. House assessment was lower than the price that I paid because house was built in Aug 2018 and the city assess the house every July so when city assessed my house, my house wasn't built completely.

Here is the question.

I will move my mortgage from TD to HSBC and HSBC will do the appraisal. If their assessed value is higher than 525k for example, would it increase the city assessment?

If that's the case I will save money on interest but pay more property tax.

Anybody knows how it works?
Newbie
Apr 21, 2018
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hogujak wrote: Quick question for house assessment.

I paid 650k for my house and the city assessment is 525k. House assessment was lower than the price that I paid because house was built in Aug 2018 and the city assess the house every July so when city assessed my house, my house wasn't built completely.

Here is the question.

MPAC assessment is frequently nowhere near market value. Appraisal is based on market value (what you could actually sell your house for). Typically based on comparable recent sales in your neighbourhood.

I will move my mortgage from TD to HSBC and HSBC will do the appraisal. If their assessed value is higher than 525k for example, would it increase the city assessment?

If that's the case I will save money on interest but pay more property tax.

Anybody knows how it works?
Sorry, my original reply got embedded in the quote.

MPAC assessment is frequently nowhere near market value. Appraisal is based on market value (what you could actually sell your house for). Typically based on comparable recent sales in your neighbourhood.

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