Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
User avatar
Sep 13, 2011
5454 posts
2386 upvotes
Toronto
Ram421 wrote: Is TD only offering a collateral mortgage. Can I ask for a standard mortgage . There is fees at renewal ( discharge + Legal Fee) , if we switch to another bank with collateral
Is it advisable to do 125% of home value ?

My case: first home buyer dealing with TD and HSBC for rates
My home value : 590,000
TD calculated registration : 738,000
TD is matching HSBC rate of 2.84 fixed.

Will 738,000 be shown as my loan in credit history ?

I wanted an easy mortgage so that I can pay what I was told. At time of renewal, if their a lower rate I should have the decision power to choose.
TD resisters ALL their new mortgages as a collateral charge. There is no way around this with TD. HSBC uses collateral charges frequently as well, but not on all their products. It can be tough to get a straight answer from them as well, and it's not common to be given incorrect information. It an also be difficult to find this info in the documents.

With a collateral charge mortgage, there are additional fees to switch at the end of your term. Legal of approximately $800, appraisal of around $300, in addition to the discharge fee from TD (around $300). Legal and appraisal are 3rd party fees. If you ask TD, they will often tell you that the only fee to switch is their discharge fee. This is the only fee from TD, however the other fees are very real, which they don't typically tell you about.

There are some lenders who will cover some or even all of these fees for you. if you want all the fees covered for you, the rate is usually around 0.05% higher. One way or another, you're paying the fees.

Should you register at 125%? The benefit of this is that it allows you to borrow additional money against your home without any additional fees. However, the fees you are saving are going to have to be paid anyway once you switch lenders. Either by adding the fees to your mortgage, or with a higher rate. Also, you still have to qualify for the additional funds. I once had a client who had registered their mortgage with TD for 125% of the home value. They needed to borrow additional money mid term, however TD declined them for the financing. Since TD had locked up all their equity, they had no choice but to sell their home. Something that they did not want to do. Considering the above, I do not suggest registering your mortgage for 125% of the home value.

This this for a switch? Or a purchase? What is the amount of the mortgage you actually need? Home value is $590,000?
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Oct 22, 2013
69 posts
13 upvotes
Etobicoke, ON
Thank you Paul

Some lenders will accept collateral mortgage transfer .
Can you share which lenders are those .
Does RBC have to do a collateral mortgage also? Any big 5 which won’t do a collateral?

Consider I go with registering 125% with a value of
730k . I’m now qualified for 500k mortgage as my income is (100*5) . How can I use the(730-500) 230k that is registered? Will my income has to increase or equity on the house ?

This is a new purchase and amount I am requesting is 460k (590-130). TD has offered 2.84 fixed or variable 5 yrs

What is a better option for me ?

PaulMeredith wrote: TD resisters ALL their new mortgages as a collateral charge. There is no way around this with TD. HSBC uses collateral charges frequently as well, but not on all their products. It can be tough to get a straight answer from them as well, and it's not common to be given incorrect information. It an also be difficult to find this info in the documents.

With a collateral charge mortgage, there are additional fees to switch at the end of your term. Legal of approximately $800, appraisal of around $300, in addition to the discharge fee from TD (around $300). Legal and appraisal are 3rd party fees. If you ask TD, they will often tell you that the only fee to switch is their discharge fee. This is the only fee from TD, however the other fees are very real, which they don't typically tell you about.

There are some lenders who will cover some or even all of these fees for you. if you want all the fees covered for you, the rate is usually around 0.05% higher. One way or another, you're paying the fees.

Should you register at 125%? The benefit of this is that it allows you to borrow additional money against your home without any additional fees. However, the fees you are saving are going to have to be paid anyway once you switch lenders. Either by adding the fees to your mortgage, or with a higher rate. Also, you still have to qualify for the additional funds. I once had a client who had registered their mortgage with TD for 125% of the home value. They needed to borrow additional money mid term, however TD declined them for the financing. Since TD had locked up all their equity, they had no choice but to sell their home. Something that they did not want to do. Considering the above, I do not suggest registering your mortgage for 125% of the home value.

This this for a switch? Or a purchase? What is the amount of the mortgage you actually need? Home value is $590,000?
Deal Fanatic
User avatar
Sep 13, 2011
5454 posts
2386 upvotes
Toronto
Ram421 wrote: Thank you Paul

Some lenders will accept collateral mortgage transfer .
Can you share which lenders are those .
Does RBC have to do a collateral mortgage also? Any big 5 which won’t do a collateral?

Consider I go with registering 125% with a value of
730k . I’m now qualified for 500k mortgage as my income is (100*5) . How can I use the(730-500) 230k that is registered? Will my income has to increase or equity on the house ?

This is a new purchase and amount I am requesting is 460k (590-130). TD has offered 2.84 fixed or variable 5 yrs

What is a better option for me ?
Most lenders now are offering a collateral switch program. As mentioned, there are fees involved, however some lenders will cover some or even all of these fees for you. Usually there is a rate premium of 0.05%. Most of the big banks should offer them as well, often with no rate premium, however your usually paying a rate premium just to be with the big banks to begin with, and usually for a mortgage with less favourable terms or conditions. Of course, there are always exceptions at times.

If you are qualified for a maximum of $500,000, then yes, you would need to have a higher income if you wanted to qualify to borrow additional funds. Again, if you choose to register for 125% of the purchase price, then you still have to qualify to borrow any additional funds against the home.

The 2.84% rate you are being offered from TD is the lowest rate you will get for your situation. if the choice is between TD and HSBC, I would take TD.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Oct 22, 2013
69 posts
13 upvotes
Etobicoke, ON
Really appreciate the help Paul .
can I request RBC/HSBC to do a standard charge mortgage based on your experience.

Considering that in need to qualify to borrow th money . Is it bad idea to register at 125 percent .
Can’t I even take the equity built up on the house ?
PaulMeredith wrote: Most lenders now are offering a collateral switch program. As mentioned, there are fees involved, however some lenders will cover some or even all of these fees for you. Usually there is a rate premium of 0.05%. Most of the big banks should offer them as well, often with no rate premium, however your usually paying a rate premium just to be with the big banks to begin with, and usually for a mortgage with less favourable terms or conditions. Of course, there are always exceptions at times.

If you are qualified for a maximum of $500,000, then yes, you would need to have a higher income if you wanted to qualify to borrow additional funds. Again, if you choose to register for 125% of the purchase price, then you still have to qualify to borrow any additional funds against the home.

The 2.84% rate you are being offered from TD is the lowest rate you will get for your situation. if the choice is between TD and HSBC, I would take TD.
Deal Addict
Oct 19, 2007
2094 posts
761 upvotes
If I stay with the same lender for my mortgage renewal, do I have to let Canada Life Insurance know about the renewal?
Newbie
May 11, 2019
2 posts
Calgary, AB
[Reposting my early thread as it might be missed]

Hi, I am shopping for a mortgage renewal for my house. This is the information.
For a mortgage transfer/renewal:
-How much is the mortgage owing? 384K
-Roughly, what is the current market value of the property? 460K
-Which city is the property located in? Calgary, AB
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? CIBC
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? Yes
-When did you buy the property? 2014 Aug
-When is your renewal date? Aug 15, 2019

Additional information:
I also have a mortgage for a rental apartment which is not up to renewal yet. but just posting for extra information
-How much is the mortgage owing? 184K
-Roughly, what is the current market value of the property? 224K
-Which city is the property located in? Calgary, AB
-Is the property owner-occupied or a rental? Rental
-Who is your current lender? CIBC
-Do you have a HELOC tied to the mortgage? Yes (no balance)
-Is the mortgage CMHC insured? Yes
-When did you buy the property? 2012
-When is your renewal date? Feb 2021

Also, CIBC is trying to get us to renew at 2.99% for a 5-year fix.

Looking for good rates. Flexible on the length/term.

Also Looking for some advice on choosing a variable or fixed rate for current market.

Thanks!
Newbie
May 15, 2019
2 posts
Hey All,
What is a good interest rate for my renewal coming up Sept 1st?? Equitable did send me some early renewal options but they are high. I am thinking of fixed rate or variable with a 3 to 5 yr term. Thank you for your help in advance.
Mortgage amount owing at maturity 962,000
Approximate market value: 1,200,000
Original purchase date: Aug 2018
Current lender: Equitable
Is this your primary residence or a rental property?: Primary
Location: Toronto
Maturity date: Aug 31st 2019
Credit Score: 723
Deal Guru
Feb 29, 2008
12204 posts
7321 upvotes
Are brokers able to provide rate holds for new construction up to 2 years sort of like what builder banks do?
Deal Addict
User avatar
Jan 11, 2006
1729 posts
236 upvotes
North York
So far I have both RBC and CIBC at 2.99% fixed, any recommends for a better rate? 1 week to go till my final closing date...
Deal Addict
User avatar
Jan 31, 2018
2725 posts
501 upvotes
brutal wrote: So far I have both RBC and CIBC at 2.99% fixed, any recommends for a better rate? 1 week to go till my final closing date...
With a week to go before closing you will have to go with the rate you have in place

Likely would have got lower through any of the brokers on the forum potentially 2.74%

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
May 15, 2019
2 posts
Hi, I am shopping for a mortgage renewal for my house. I have been discharged of CP two years ago and my credit score is 723
For a mortgage transfer/renewal:
-How much is the mortgage owing? 962
-Roughly, what is the current market value of the property? 1.2,
-Which city is the property located in? Toronto
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? Equitbale Life
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No (20 percent down)
-When did you buy the property? 2018 Aug
-When is your renewal date? Aug 21, 2019
Member
Apr 15, 2007
228 posts
39 upvotes
Thornhill
Will a HELOC rate reset upon a mortgage renewal? Or do I get to keep my existing rate? I have a competitive rate with my lender and don't want to lose it
Member
Aug 31, 2001
474 posts
32 upvotes
does any mortgage brokers work with motusbank?
Newbie
May 14, 2019
3 posts
-What is the purchase price? 330k
-How much is the down payment? 20%
-Where it the property located? Saskatoon
-When is the closing date? mid July
-Will the property be owner-occupied or a rental? Owner
Newbie
Feb 12, 2015
13 posts
2 upvotes
North York, ON
Looking for feedback. Situation

Mortgage up November 2020 - Currently 5 year variable at 3.2%
CIBC has offered to convert to 3.12 fixed. Should I do it?

Current Mortgage $345K at renewal will be $262K, value of house around 2.2 million
Will I be stuck at CIBC at renewal or will another institution give me a mortgage at a good rate

Thanks everyone

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