Real Estate

The Official Mortgage Rates Thread

Deal Addict
User avatar
Jan 31, 2018
1541 posts
241 upvotes
Deveno wrote: Dear RFD experts, we just received our notice of completion for a new townhouse. We would love to know the best rates you guys are able to offer us for a fixed / variable mortgage.

Property Details:

Price: $658k
Down Payment: 20%
Location: Surrey, BC
Closing Date: June 10, 2019
Occupants: Owners (may add 1 student renter later on, but not sure yet)


Personal Details:
First time home owners: Yes
Household income: $108k
Household debt: none (no car payments, no loans, just regular living expenses such a groceries and rent)
Credit Scores: 792 and 814

Other details:
We wish to add a LOC / HELOC to the mortgage (we don't need any money now, but have been advised to get one for the future and save money on application / evaluation fees later on). Would be amazing to know the mortgage rates with or without this option.
Congratulations on your first home

Best rates without LOC

2.84% 5 yr fixed

2.95% 5 yr variable

Product with LOC

3.04% 5 yr fixed

3.05% 5 yr variable

Hope this helps

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Dec 31, 2016
74 posts
72 upvotes
My house is conditionally sold and the buyers wanted a possession date for June 13th. Is it possible to buy a house and take possession by June 6th with interim financing or is that not enough time to get mortgage approval?
Newbie
Oct 22, 2013
53 posts
8 upvotes
Etobicoke, ON
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.
Newbie
Oct 22, 2013
53 posts
8 upvotes
Etobicoke, ON
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.
Deal Fanatic
Feb 9, 2009
7932 posts
4922 upvotes
Question: If I want to buy a property with 4 or less units compared to 5 or more, what is the difference in terms of down payment, etc and how is the mortgage qualified, based on rental income of the current property, income, etc?

Im looking at maybe buying a multi unit rental property in the near future but Im not sure the best way to go about it from a mortgage prospective and what to anticipate...

Anyone with some quick pointers would be much appreciated!
Deal Fanatic
User avatar
Sep 13, 2011
5052 posts
1796 upvotes
Toronto
Sanyo wrote: Question: If I want to buy a property with 4 or less units compared to 5 or more, what is the difference in terms of down payment, etc and how is the mortgage qualified, based on rental income of the current property, income, etc?

Im looking at maybe buying a multi unit rental property in the near future but Im not sure the best way to go about it from a mortgage prospective and what to anticipate...

Anyone with some quick pointers would be much appreciated!
Yes, there is a huge difference. Anything 5 or more units is considered commercial. 4 or less is residential. When buying a property of 5 or more units it can take about a month just to get a commitment from the lender and set a rate. A rate cannot be guaranteed at time of shopping. For CMHC insured commercial purchases, rate will be a lot lower. Likely in the high 2% range to low 3's. Without insurance, rate would be in the 4% range.

Unlikely residential mortgages, CMHC is often taken, regardless of down payment amount. Usually, the minimum down payment of a property with 5 or more units is 15%, however it's not that cut and dry. It depends on a number of factors. Location, price, financials of the building, condition etc. Approval on these mortgages is also based more on the strength of the property itself, and not as much on the income of the borrower.

Any appraisal is always required for up to 6 units. For complexes with 7+ units, a phase one environmental is required, and an appraisal may not be.

There may also be an up front processing fee of $1,500 to $2,500 lender fee, as well as a cost per unit, usually around $150 per unit.

That being said, yes, quite a difference. All that being said, I believe RBC will consider a property of up to 5 units under their residential program. To the best of my knowledge, they are the only lender who does this, so that might be the best place to start.

That being said, I am NOT an expert in this space as I prefer to keep maintain my focus on residential financing only.

Hope you find this helpful :)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5052 posts
1796 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
53 posts
8 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
5052 posts
1796 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
53 posts
8 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
2034 posts
734 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 Fanatic
Feb 29, 2008
9259 posts
4354 upvotes
Are brokers able to provide rate holds for new construction up to 2 years sort of like what builder banks do?

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