Real Estate

The Official Mortgage Rates Thread

Newbie
Jan 18, 2021
1 posts
First time poster here but finding the reading very informative. Not sure I can read through all the posts to find answers to my questions so may repeat previously asked ones.
  • Costs involved in changing lenders?
  • How to compare penalties and terms (things other than just the rates) between the existing offer and potential new lender?
  • Retired couple, any issues with obtaining financing? Excellent credit rating from what I've been told.
  • Special concerns as we're not sure if we'll even be at our current location in 5 years or downsized to smaller place and impact of having to end mortgage early
  • Considering rates will likely go up in the next few years - once Covid is under control - what's the thoughts on locking in now or going variable with plans to lock in when rates start to rise?
  • Other things we should consider?
Never dealt with a broker before, little wary of moving into a new sandbox. RBC has had our business for almost 40 years but they are offering us 1.82% on a 5 year fixed, 30 yr amortization which is actually higher than the rate we got 5 years ago (although that was a variable)! So much for loyalty.

How much is the mortgage owing? $219k
-Roughly, what is the current market value of the property? Likely in the $900k - $950k range
-Which city is the property located in? Bowmanville ON (waterfront)
-Is the property owner-occupied or a rental? O/O
-Who is your current lender? RBC
-Do you have a HELOC tied to the mortgage? Not sure? Homeline Plan has credit line included. New mortgage will consolidate outstanding mortgage and credit line for better rate on LOC
-Is the mortgage CMHC insured? No
-When did you buy the property? 2016
-When is your renewal date? March 9, 2021

Thanks in advance for any responses.
Newbie
User avatar
Jan 25, 2013
3 posts
PaulMeredith wrote: Not odd at all, and very common. It depends on how the new mortgage is set up. Most lenders will be able to do a blended rate, which is where they take the rate that you're paying on the current money owed ($100K in this case) and then blend it together with today's rate on the new money required. This eliminates the penalty, but doesn't always work out to be the most cost effective option as you usually won't get a 'deal' on the new money needed. Scotia however stopped doing blended rates a few years ago, so they wouldn't have been able to do this for you (I believe they are the only lender that doesn't offer them). What they would do now is add a second component to your mortgage for the new money needed, while keeping your current mortgage balance and rate intact. It's a little messy as you would then have two different maturity dates, which means that you'll never be able to leave them without paying a penalty. In many cases, it works out to being cheaper to pay the penalty, and get an entirely new mortgage. Every situation can be a bit different, and the best choice is obviously the one that would save you the most money.

These two scenarios are the only ways in which lenders will waive your penalty. For the way your mortgage is set up, Scotia should be giving you a 20% discount on the penalty, so I would reach out to them to ensure this was applied.

Hope this helps make a bit more sense of your situation. :)

Paul
Thanks Paul. I've brought this up with my bank and they are looking into options.
Why would they give me a 20% rebate on the prepayment? I shouldn't have to ask for that should I? It should be in good faith right?

Nothing like being with a bank for 40+ years to have them nickel and dime me to pay them more.
Newbie
Jan 11, 2021
3 posts
Curious to know why none of the experienced brokers on this thread are recommending the longer term 7yr fixed-closed mortgage option?

I understand the IRD penalty risk (with the longer term fixed tenure) but wouldn't a 7yr fixed-closed conventional (non-collateral) mortgage option at say 1.6%-1.7% compare favorably against a 5-year fixed @1.44% or even a variable @ Prime - ~ 1%+ discount rate?
Deal Fanatic
User avatar
Feb 2, 2014
8496 posts
2398 upvotes
Toronto
dubsadan wrote: Hi all,

Within 120 days of my renewal, so looking for some renewal rates. Will consider fixed or variable, 2 to 5 year terms.

Thanks in advance!

-How much is the mortgage owing?
450k
-Roughly, what is the current market value of the property?
1.2M
-Which city is the property located in?
Toronto
-Is the property owner-occupied or a rental?
Owner occupied
-Who is your current lender?
Meridian CU
-Do you have a HELOC tied to the mortgage?
No
-Is the mortgage CMHC insured?
No
-When did you buy the property?
May 2016
-When is your renewal date?
May 9, 2021
1.44% 5-year fixed and 1.40% 5-year variable with legal and appraisal fees covered!
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Nov 7, 2012
231 posts
85 upvotes
For renewal/refinance

-How much is the mortgage owing? 262k but hoping to withdraw 20k more for home improvements
-Roughly, what is the current market value of the property? 500k
-Which city is the property located in? Boisbriand, Québec
-Is the property owner-occupied or a rental? Owner Occupied
-Who is your current lender? BMO
-Do you have a HELOC tied to the mortgage? No but that is something I’d like to have if possible if no increase in rate
-Is the mortgage CMHC insured? No
-When did you buy the property? August 2016
-When is your renewal date? August 2021 but renewal period starts in February
Newbie
Jan 18, 2021
1 posts
Hi - looking for some renewal rates. Will consider fixed or variable, 2 to 5 year terms.

-How much is the mortgage owing?
168K
-Roughly, what is the current market value of the property?
500k
-Which city is the property located in?
Mississauga
-Is the property owner-occupied or a rental?
Owner occupied
-Who is your current lender?
TD Bank
-Do you have a HELOC tied to the mortgage?
No
-Is the mortgage CMHC insured?
No
-When did you buy the property?
Nov 2017
-When is your renewal date?
Nov 1, 2022
- current rate: 2.89% fixed
Jr. Member
Sep 15, 2016
193 posts
209 upvotes
-What is the purchase price? 890000
-How much is the down payment? 20%
-Where it the property located? Brampton, ON
-When is the closing date? March 1, 2020
-Will the property be owner-occupied or a rental? Owner occupied
Member
Jan 29, 2014
494 posts
537 upvotes
Toronto
Hello, can you please provide the rate for a 25 year and 30 year amortization? Thank you!

For a purchase of a property:

-What is the purchase price?
$560000

-How much is the down payment?
20%

-Where it the property located?
Toronto

-When is the closing date?
Mar 31

-Will the property be owner-occupied or a rental?
Owner occupied
Newbie
Jan 14, 2021
0 posts
Hello,

First time home buyer looking for some mortgage advice. I'm currently shopping around for a mortgage. How much does annual salary and condo fees impact the mortgage rate that is offered to someone? I see all these great rates but I'm not sure if I would be able to get them. I also have seen posts about cashbacks and appraisal fees being waived. How does one go about negotiating that?

So far I have been offered 5 year variable for 25 years at 1.45%, and 30 years at 1.47%.

Location: North York, On
Condo value: $540k
Downpayment: $150k
Owner occupied
Property taxes: $2k annual
Condo fees: $522/mth
Closing date: March 31st

Leaning towards variable and 25 year amortization.

I appreciate any advice I can get. Thanks!
Deal Addict
User avatar
Jun 24, 2020
1101 posts
205 upvotes
Jlchat wrote: Hello,

First time home buyer looking for some mortgage advice. I'm currently shopping around for a mortgage. How much does annual salary and condo fees impact the mortgage rate that is offered to someone? I see all these great rates but I'm not sure if I would be able to get them. I also have seen posts about cashbacks and appraisal fees being waived. How does one go about negotiating that?

So far I have been offered 5 year variable for 25 years at 1.45%, and 30 years at 1.47%.

Location: North York, On
Condo value: $540k
Downpayment: $150k
Owner occupied
Property taxes: $2k annual
Condo fees: $522/mth
Closing date: March 31st

Leaning towards variable and 25 year amortization.

I appreciate any advice I can get. Thanks!
Provided you qualify for a 25 year amortization, then the best rate available in your scenario would be 1.44% five year fixed. Most lenders only take 50% of the monthly condo fee into consideration when looking at qualifying you. 30 year amortization come with slightly higher rates in your situation.
Deal Addict
User avatar
Jun 24, 2020
1101 posts
205 upvotes
professormeth wrote: Hello, can you please provide the rate for a 25 year and 30 year amortization? Thank you!

For a purchase of a property:

-What is the purchase price?
$560000

-How much is the down payment?
20%

-Where it the property located?
Toronto

-When is the closing date?
Mar 31

-Will the property be owner-occupied or a rental?
Owner occupied
1.54-1.59% five year fixed available, or 1.40-1.45% five year variable.
Deal Addict
User avatar
Jun 24, 2020
1101 posts
205 upvotes
DewDew wrote: -What is the purchase price? 890000
-How much is the down payment? 20%
-Where it the property located? Brampton, ON
-When is the closing date? March 1, 2020
-Will the property be owner-occupied or a rental? Owner occupied
1.54% five year fixed or 1.40% five year variable available.
Deal Addict
User avatar
Jun 24, 2020
1101 posts
205 upvotes
yondu21 wrote: Hi - looking for some renewal rates. Will consider fixed or variable, 2 to 5 year terms.

-How much is the mortgage owing?
168K
-Roughly, what is the current market value of the property?
500k
-Which city is the property located in?
Mississauga
-Is the property owner-occupied or a rental?
Owner occupied
-Who is your current lender?
TD Bank
-Do you have a HELOC tied to the mortgage?
No
-Is the mortgage CMHC insured?
No
-When did you buy the property?
Nov 2017
-When is your renewal date?
Nov 1, 2022
- current rate: 2.89% fixed
Your very early to lock in to renewal rates, which are only for 120 day rate holds. With your renewal in 2022, do you know your penalty to break? Do inquire and let us know as we can then see if it makes sense financially to move the mortgage now provided the savings outweighs the costs to switch.

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