Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Feb 2, 2014
8244 posts
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Toronto
HamsiBrain wrote: Looking for mortgage renewal advice, thanks in advance:

-Credit score? Excellent
-How much is the mortgage owing? $357.000
-Roughly, what is the current market value of the property? $800.000
-Which city is the property located in? Hamilton,ON
-Is the property owner-occupied or a rental? owner-occupied
-Who is your current lender? Icici Bank (Std mortgage)
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? June 2012
-Original buying price? $450.000
-When is your renewal date? July 2019

Would like to know rates:
Expenses (if any) on switching lender:
Expenses (if any) on switching lender + secured LOC:
Incentives:
2.54% 5-year fixed with legal and appraisal fees covered!

There are a few options you can do if you want a HELOC.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Jun 15, 2019
4 posts
First time buyer here. Super excited yet very anxious during this time.

-Mortgage price: $298,000
-Where is the property located? Greater Vancouver
-When is the closing date? Mid August
-Will the property be owner-occupied or a rental? It will be owner occupied .
-Mortgage insurance? No.
-Amortization length? 30 years

I’m currently being offered 5 years fixed @ 2.97% with TD. However, BMO is offering 4 years fixed @ 2.79% with $1,000 cash back. TD allows 20/20 whereas BMO is 15/15. Both mortgages are portable.

Are these good rates? What types of rates are available for 4-5 yrs fixed with a 30 yr amortization?

Thanks!
Deal Fanatic
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Sep 13, 2011
5468 posts
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Toronto
HamsiBrain wrote: Looking for mortgage renewal advice, thanks in advance:

-Credit score? Excellent
-How much is the mortgage owing? $357.000
-Roughly, what is the current market value of the property? $800.000
-Which city is the property located in? Hamilton,ON
-Is the property owner-occupied or a rental? owner-occupied
-Who is your current lender? Icici Bank (Std mortgage)
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? June 2012
-Original buying price? $450.000
-When is your renewal date? July 2019

Would like to know rates:
Expenses (if any) on switching lender:
Expenses (if any) on switching lender + secured LOC:
Incentives:
As mentioned, the lowest 5 year fixed for your situation would be 2.54%. When switching your mortgage at the end of your term, legal fees and appraisal fees are always covered by the lender. The biggest exception to this is if you are in a collateral mortgage (which you are not). Aside from a collateral mortgage, there are very few lenders who will not cover your legal and appraisal fees on a switch.

If you wanted to add a HELOC to your mortgage, there are options available as well, however rates are higher. The lowest 5 year fixed for a mortgage with a HELOC attached would be 2.84%.

Sometimes you can get a HELOC with a different lender, which then allows you to get the lowest rate, AND have a HELOC as well. However, there are often additional set up costs involved. Also, lenders offering HELOCs behind another lenders mortgage are very limited, and sometimes this is not an option.

Whenever you have a HELOC attached to your mortgage, your mortgage would then get registered as a collateral charge. As mentioned above, legal and appraisal fees apply when switching a collateral mortgage at the end of your term. Appraisal is usually around $300, and legal fee varies from $600 - $900, depending on your province. There are some lenders who will cover some, or even all of these fees for you, however often the right is just slightly higher if all the fees are being covered. One way or another, there is a cost to having a collateral mortgage.
Paul Meredith
Mortgage Broker, Author
(lic. 10532)
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Sep 13, 2011
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lovebebe. wrote: Hi,
Looking for best rate from the banks and best rate from a broker

-What is the purchase price? $1.29million
-How much is the down payment? 470k
-Where it the property located? Vancouver BC
-When is the closing date? Oct
-Will the property be owner-occupied or a rental? Owner

I bank with BMO and partner with RBC. We are hoping to be able to pay off earlier than 25 year amortization. Which bank is best to go with for lowest rates and what would be a good rate to go with?
Lowest 5 year fixed for your situation would be 2.84%. Prepayment privileges are 20/20, meaning you can increase your payments by up to 20% and/or pay up to 20% of the original mortgage balance per year, over and above your scheduled payments. You can do any combination of both as long as it doesn’t exceed 20% of the original mortgage balance. There is no limit to how many times you can make lump sum payments, as long as they fall on a scheduled payment date.

If considering RBC, keep in mind that RBC has the most limited prepayment privileges used in the industry today. 10/10 + Double Up. So you can increase each payment up to 10% OR double it up. The lump sum privilege is limited to one time per year on the anniversary date.

Another thing to consider when choosing a lender for your mortgage is that the major banks have the harshest penalties to break of all mortgage lenders. This applies to fixed rates only. Variable rates are almost always just three months interest, regardless of lender. Fixed rates are the higher of 3 months interest or the Interest Rate Differential (IRD). The IRD is the difference between the rate you are paying and the new rate the lender would have to re-lend the money out at. The simplest way to explain it is if the rate at the time you break is higher than what you are paying, then you would pay 3 months interest. If it's lower, you would pay the IRD. The calculation is more complex than that, but thats the basic concept of it.

There are different ways in which the IRD can be calculated. The major banks use posted rates to calculate it, which is the harshest method resulting in the highest penalties. This can result in a penalty of up to 500% higher than most of the non-bank lenders, such as MCAP, RFA, First National, etc. The other method is using the contract rate (the rate your payments are based on). This is the method used by most of the non-bank lenders. This is the most consumer friendly method for calculating the IRD penalty.

Here are some articles on big bank penalties:

http://www.theglobeandmail.com/…/the-hi ... e15774375/

http://www.cbc.ca/…/customer-fee-to-pay ... age-double

http://canadamortgagenews.ca/…/mortgage ... s-exposed-…/

http://www.cbc.ca/…/td-bank-client-deva ... 17-000-mor

http://www.canadianmortgagetrends.com/… ... ion-lawsui

Hope you find this helpful. :)
Paul Meredith
Mortgage Broker, Author
(lic. 10532)
Newbie
Jun 14, 2019
19 posts
3 upvotes
looking for best rates via mortgage broker, renewal is up.

What is the remaining mortgage amount? $240,000
-How much is the property worth? 370,000
-Where it the property located? Kingston, ON
-When is the renewal date? Sept 30
-Will the property be owner-occupied or a rental? Owner
- HELOC? No
- No CMHC
Credit score - excellent

looking for 4 and 5 year fixed rates.

HELOC would be nice as well
Newbie
Jun 15, 2014
34 posts
6 upvotes
Wanna see if we are getting a quality deal with TD on a new purchase.

Purchase price? 2.1 million
Down payment? 550k
Property location? Oakville, ON
Closing Date? July
Owner occupied? yes

Currently being offered 2.84 fix 5yr or 2.90 variable 5 yr.

Thanks
Deal Fanatic
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Sep 13, 2011
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Toronto
Debtfreeme wrote: looking for best rates via mortgage broker, renewal is up.

What is the remaining mortgage amount? $240,000
-How much is the property worth? 370,000
-Where it the property located? Kingston, ON
-When is the renewal date? Sept 30
-Will the property be owner-occupied or a rental? Owner
- HELOC? No
- No CMHC
Credit score - excellent

looking for 4 and 5 year fixed rates.

HELOC would be nice as well
You're still a bit early as the maximum rate hold on a switch is 90 days. Lowest 5 year fixed for your situation right now is 2.54%. There are shorter term rates available as well, however they are a fair bit higher. You would need to reach out end of June once you are within your 90 day window. Hopefully, rates will be a bit lower at that time.
Paul Meredith
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Sep 13, 2011
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canadian469 wrote: Wanna see if we are getting a quality deal with TD on a new purchase.

Purchase price? 2.1 million
Down payment? 550k
Property location? Oakville, ON
Closing Date? July
Owner occupied? yes

Currently being offered 2.84 fix 5yr or 2.90 variable 5 yr.

Thanks
TD should be able to go lower than this for you considering the mortgage amount. Brokers can get you lower with TD, but only if you have not already applied with them directly.
Paul Meredith
Mortgage Broker, Author
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Jr. Member
Sep 10, 2017
176 posts
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PaulMeredith wrote: Lowest 5 year fixed for your situation would be 2.84%. Prepayment privileges are 20/20, meaning you can increase your payments by up to 20% and/or pay up to 20% of the original mortgage balance per year, over and above your scheduled payments. You can do any combination of both as long as it doesn’t exceed 20% of the original mortgage balance. There is no limit to how many times you can make lump sum payments, as long as they fall on a scheduled payment date.


Hope you find this helpful. :)
Wonderful info once again !

Just to confirm though , does the 20/20 prepayment option not include double up as an option ?
Jr. Member
Sep 10, 2017
176 posts
34 upvotes
Eaglyeye wrote: Here are the details

-How much is the mortgage owing?
$275,000

-Roughly, what is the current market value of the property?
$725,000

-Which city is the property located in?
Toronto

-Is the property owner-occupied or a rental?
Owner-occupied

-Who is your current lender?
RBC

-Do you have a HELOC tied to the mortgage?
No

-Is the mortgage CMHC insured?
Yes. Paid less than 20%down when buying

-When did you buy the property?
September 2013

-When is your renewal date?
October 1, 2019
The correct renewal date is September 21, 2019
Newbie
Jun 15, 2019
3 posts
Hi,

We are looking to buy a new home and looking for best 2-5 year fixed rates.

Purchase price: 291 000$
Down payment: 58 000$ (20%)
Location: Sherbrooke, QC
Closing date: July 2019
Owner-occupied

Thanks,

Louis
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Sep 13, 2011
5468 posts
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Toronto
Eaglyeye wrote: Wonderful info once again !

Just to confirm though , does the 20/20 prepayment option not include double up as an option ?
Glad you found that helpful! :)

Not specifically, no, but it's not needed in this case. Since there is no limit to how many times you can make the lump sum payments, you can do more than double up the payments.

For example, let's say you have a $300,000 mortgage at 2.54% amortized over 25 years would have a monthly payment of $1,349.88. Doubling up would then allow you to increase this payment to $2,699.76. 20% lump sum privileges allows you to pay an additional $60,000 towards your mortgage each year. If doing monthly payments, you can do as much as $5,000 per month (if you choose to max it out and break it up evenly). This means, you would be able to increase your payments to a maximum of $6,349.88 per month. So this works out to being significantly better than double up.

The issues with RBC's prepayment privileges is that they allow you to do 10% OR double up. So you can increase your payment up to an additional $134.99 OR $1,349.88 over your regular scheduled payment. Nothing in between. Then if you want to use the lump sum privilege, you need to wait until the maturity date to do so. This gives RBC the most restrictive prepayment privileges in the industry (with the rare 'no frills' exception, however these are almost non-existent).
Paul Meredith
Mortgage Broker, Author
(lic. 10532)
Newbie
Jan 1, 2016
8 posts
2 upvotes
New Westminster, BC
Have learned a lot from reading this thread, thank you all for sharing.

We are currently trying to work out a deal to purchase a home to live in and refinance our current condo mortgage at the same time (we'll be renting out the condo). Will appreciate some guidance into the process. Like for example, is there a way to have a high risk mortgage with our second property (will be owner occupied) and do the 20% down payment on the smaller one?

Current Mortgage
Property worth - $629,000
Remaining mortgage - $467,490
Property location - Coquitlam, BC
Willing to break current mortgage and pay penalties (already did our math)
Property will become a rental on August 17

New house
Property worth - $787,000
Available for down payment - $158,000 (in an ideal world, would only put $100K)
Property location - Langley, BC
Owner occupied
Closing date - August 15 2019
Deal Addict
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Dec 1, 2015
1966 posts
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Etobicoke, ON
On the new purchase you can get a 5y fixed at 2.69%
almaelise wrote: Have learned a lot from reading this thread, thank you all for sharing.

We are currently trying to work out a deal to purchase a home to live in and refinance our current condo mortgage at the same time (we'll be renting out the condo). Will appreciate some guidance into the process. Like for example, is there a way to have a high risk mortgage with our second property (will be owner occupied) and do the 20% down payment on the smaller one?

Current Mortgage
Property worth - $629,000
Remaining mortgage - $467,490
Property location - Coquitlam, BC
Willing to break current mortgage and pay penalties (already did our math)
Property will become a rental on August 17

New house
Property worth - $787,000
Available for down payment - $158,000 (in an ideal world, would only put $100K)
Property location - Langley, BC
Owner occupied
Closing date - August 15 2019
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
Member
Aug 7, 2006
216 posts
47 upvotes
Toronto
Considering breaking my variable mortgage to a better fixed rate.

How much is the mortgage owing? $310k
-Roughly, what is the current market value of the property? $1250k
-Which city is the property located in? Woodbridge, ON
-Is the property owner-occupied or a rental? Owner occupied
-Who is your current lender? Scotia STEP
-Do you have a HELOC tied to the mortgage? Yes ($0 balance)
-Is the mortgage CMHC insured? No
-When did you buy the property? Aug 2016
-When is your renewal date? Aug 2021
-Amortisation left? 16 yrs

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