Real Estate

The Official Mortgage Rates Thread

Newbie
Jun 17, 2011
11 posts
3 upvotes
Aylmer, QC
Bump. Can anyone of the brokers advise on this?
RXmarc wrote: Looking to see what would be the best available rate for my up-coming renewal. I'd like to avoid overly harsh penalties, and pre-payment options are important to me.

-How much is the mortgage owing? 181k
-Roughly, what is the current market value of the property? 400k
-Which city is the property located in? Gatineau, QC
-Is the property owner-occupied or a rental? Owner occupied
-Who is your current lender? MCAP
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? July 2011
-When is your renewal date? April 3, 2020
-current rate: 2.49% (5 Year fixed)

Thanks!
Member
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Jan 31, 2009
276 posts
31 upvotes
Hi there. Looking to purchase a home to live in with my partner. We are actively looking but have not found one yet, and this will be the first purchase for either of us. Looking to see what rates there are for pre-approval and how large we can quality for. I answered questions I saw in previous posts, hope that’s fine.

Purchase price: Anywhere between 700K - 1.1million
Down Payment: Over 230k available for down payment (we'll put down 20% or more if needed)
Location: Townhouse, Toronto/North York
Balance on credit card/line of credit: No balances. Pay off credit cards in full each month.
Bank Loans/lease payments: None
Credit: Excellent for both
Situation: If this matters, my partner has only been working full time as of summer 2018.
Thanks for the help!
Last edited by JohHollar on Apr 17th, 2020 12:13 am, edited 1 time in total.
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Jan 31, 2018
1956 posts
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JohHollar wrote: Hi there. Looking to purchase a home to live in with my partner. We are actively looking but have not found one yet, and this will be the first purchase for either of us. Looking to see what rates there are for pre-approval and how large we can quality for. I answered questions I saw in previous posts, hope that’s fine.

Purchase price: Anywhere between 700K - 1.1million
Down Payment: Over 230k available for down payment (ideally we’d like to put down 20%)
Location: Townhouse, Toronto/North York
Gross annual income: 103k myself (addl. 7-10% bonus not included), 90k for her. Both salaried.
Balance on credit card/line of credit: No balances. Pay off credit cards in full each month.
Bank Loans/lease payments: None
Credit: Excellent for both
Situation: If this matters, my partner has only been working full time as of summer 2018.
Thanks for the help!
Pricing will be affected if over a million on the purchase price see below if you had a live deal today with 20% down

<million PP - 2.64% 5 yr fixed

>million PP - 2.74% 5 yr fixed

Reach our to Paul, Kevin or Myself to prequalify

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Jun 10, 2006
22 posts
1 upvote
My wife and I are planning to buy a house in the next year or so, focusing on south Mississauga in the $1.2 to $1.4 million range. We are likely to have a down payment of about $350K, and our combined income is about $310K per year (excluding annual bonuses, RSU payouts, etc. that can add another $60-70K per year).

I understand that a sliding scale may be applied by certain mortgage lenders if the house price is over a certain threshold, necessitating a higher down payment for mortgage approval. For those that lenders that have a higher threshold before the sliding scale kicks in (e.g. $1.5 million) is it fair to say that the interest rates through that lender would be higher? And higher by how much?

At this preliminary stage, we're just looking to understand if it's worth continuing to build the down payment just to satisfy certain lenders' sliding scale thresholds, or if the potential difference in interest rates isn't worth it.
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Jan 31, 2018
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jj1861 wrote: Hi,

Looking for some direction on lenders, rates, and how much I can be approved for a new property. (selling my current condo and buying a new home)

What is your gross annual income? For me: $111,500 salary + 30-60k commission (permanent full time) Have NoA and T4s for 3+ years confirming income range. My wife is a grad student and researcher with salaried income of 5800 and scholarships (non-taxed) at 40-50k.
How much money do you have available for down payment? $145,000 (immediately available savings, non registered), $35,000 (RRSP), $45,000 (TFSA) , $45,000 (gift from parents available in 1 week, OR $100k gift in 45 days), ~495,000 (proceeds from sale of current condo, available in next 3 months pending sale)
Current Condo origional Purchase price $361,500
Current Condo Value $530,000
Current Mortgage outstanding $0 (Mortgage paid out in full as of Nov 2019)
Current Condo location: North York
Do you carry a balance month to month on any credit cards or lines of credit? Or do you pay them off in full each month? Paid off each month
Do you have any bank loans, or lease payments? If so, what are the payment amounts and how much is owing? No debts
How would you rate your credit? (Good, fair, excellent, etc). 800+ for me and 780+ for my wife
Are you looking for a house or a condo? House
Is there anything unique about your situation that we should know about? Wife is grad student who makes smaller, non-permanent employment income and has non-taxed scholarship income
Location? Vaughan, Woodbridge
Price Range? 700,000- 850,000
I estimate property taxes for the new home to be around $4000
Owner-occupied
We are looking for the best rates fixed or variable, for products with prepayment privileges that will allow us to put in some of the proceeds from the condo sale towards reducing our principal amount.
Based on your salary alone you would qualify for approx. 775k mortgage amount using an avg annual income of 150k

How much do you intend to put down you seem to have a large DP available

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Banned
Sep 19, 2012
1253 posts
1862 upvotes
Calgary
JohHollar wrote: Hi there. Looking to purchase a home to live in with my partner. We are actively looking but have not found one yet, and this will be the first purchase for either of us. Looking to see what rates there are for pre-approval and how large we can quality for. I answered questions I saw in previous posts, hope that’s fine.
Purchase price: Anywhere between 700K - 1.1million
Down Payment: Over 230k available for down payment (we'll put down 20% or more if needed)
Location: Townhouse, Toronto/North York
Gross annual income: 103k myself (addl. 7-10% bonus not included), 90k for her. Both salaried.
Balance on credit card/line of credit: No balances. Pay off credit cards in full each month.
Bank Loans/lease payments: None
Credit: Excellent for both
Situation: If this matters, my partner has only been working full time as of summer 2018.
Thanks for the help!
I know @rateconnect didn't mention me (I'm used to being ignored) but I can help and get you much better rates (especially if the purchase price is less than $1M). You can also reach out to @Canadian gal and @6ixMortgageGroup - they are brokers that frequent this thread even if they don't often get mentioned.

Here's a sample of rates that I see out there (less than $1M purchase):
  • 5-year fixed, fair prepayment penalty, 120 day rate hold, 20% DP, 2.59% (couple of lenders doing this).
  • 3-year fixed, fair prepayment penalty, 90 day rate hold, 20% DP, 2.79%
  • 5-year variable, fair prepayment penalty, 120 day rate hold, p-1.05%, or with a bonafide sales clause and 90 day rate hold you can get p-1.21%.
When I say "fair prepayment penalty", I mean that the penalty to terminate early is very consumer friendly. Have a look at the ratespy article here for details: https://www.ratespy.com/fair-penalty-le ... s-05109252

For deals > $1M brokers aren't the most competitive. Try HSBC, CIBC, BMO or RBC. Brokers generally only deal with TD and Scotia (some deal with HSBC and National, but that's limited). Also try the credit unions (Alterna, Duca and Meridian) directly. I've had clients report 2.59% on a 5-year fixed for purchase > $1M in Ontario with Meridian (directly). I've had another get 2.59% for 3-year fixed (with $4k cashback) from CIBC. I've got contacts at each of those (HSBC, CIBC, BMO, RBC) and would happily pass your name on.
deepdeepblue wrote: I understand that a sliding scale may be applied by certain mortgage lenders if the house price is over a certain threshold, necessitating a higher down payment for mortgage approval. For those that lenders that have a higher threshold before the sliding scale kicks in (e.g. $1.5 million) is it fair to say that the interest rates through that lender would be higher? And higher by how much?
At this preliminary stage, we're just looking to understand if it's worth continuing to build the down payment just to satisfy certain lenders' sliding scale thresholds, or if the potential difference in interest rates isn't worth it.
Each lender has their own sliding scale. Most start at 20% requirement for the first million, and then some percentage (50%, 40% etc) for any purchase price above that. Some lenders have no sliding scale (B2B is an example). Like I said in my post above, big banks are the bread and butter for deals > $1M. Yes, that is me kicking potential clients to the competition but it's the truth. Ask any broker who's rate they are quoting to get the 2.7x% for a 5-year fixed on a > $1M purchase, I betcha a donut it's Scotia or TD). Now, the real reason to avoid the big banks is because of the horrible penalty to terminate one of those deals early, but you have to ask yourself is that worth saving 0.2% (or so) on rate for a more flexible prepayment penalty.

Good luck everyone! Save some money!

PS: @RXmarc - MCAP is likely your best bet on a renewal. There's not a lot of competition in Quebec and your mortgage is small - put that together and you're probably going to be best staying with them.

EDIT: corrected link for @Canadian gal
Last edited by ahlaker on Dec 11th, 2019 4:27 pm, edited 2 times in total.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Newbie
Jun 30, 2019
5 posts
Hi, I'm looking for a mortgage preapproval as a first-time home buyer. Looking to get the best rates out there.

-What is the purchase price? approx 600k
-How much is the down payment? 20% or more if needed
-Where it the property located? Downtown Toronto
-When is the closing date? Still looking, probably Jan/Feb
-Will the property be owner-occupied or a rental? Owner-occupied
Sr. Member
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Dec 2, 2008
763 posts
283 upvotes
ahlaker wrote: I know @rateconnect didn't mention me (I'm used to being ignored) but I can help and get you much better rates (especially if the purchase price is less than $1M). You can also reach out to @Canadiangal and @6ixMortgageGroup - they are brokers that frequent this thread even if they don't often get mentioned.
‭Thanks for the shout out @ahlaker my handle is @Canadian gal not sure why it’s not tagging properly
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Jan 31, 2018
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xylonng wrote: Hi, I'm looking for a mortgage preapproval as a first-time home buyer. Looking to get the best rates out there.

-What is the purchase price? approx 600k
-How much is the down payment? 20% or more if needed
-Where it the property located? Downtown Toronto
-When is the closing date? Still looking, probably Jan/Feb
-Will the property be owner-occupied or a rental? Owner-occupied
With 20% down best rate is 2.64% 5 yr fixed

Reach out to any of the brokers on the forum

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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Feb 2, 2014
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deepdeepblue wrote: My wife and I are planning to buy a house in the next year or so, focusing on south Mississauga in the $1.2 to $1.4 million range. We are likely to have a down payment of about $350K, and our combined income is about $310K per year (excluding annual bonuses, RSU payouts, etc. that can add another $60-70K per year).

I understand that a sliding scale may be applied by certain mortgage lenders if the house price is over a certain threshold, necessitating a higher down payment for mortgage approval. For those that lenders that have a higher threshold before the sliding scale kicks in (e.g. $1.5 million) is it fair to say that the interest rates through that lender would be higher? And higher by how much?

At this preliminary stage, we're just looking to understand if it's worth continuing to build the down payment just to satisfy certain lenders' sliding scale thresholds, or if the potential difference in interest rates isn't worth it.
There's quite a few "A" lenders out there with NO sliding scale. All you need is 20% down since the purchase price is over $1M.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Jun 23, 2003
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We are looking to purchase a home or duplex in next few months. Have preapproval from HSBC at 5 yr fixed for 2.79%.

Location: Burnaby BC
Purchase: 1,500,000
Down payment: 1,000,000
Planned Mortgage ~500k

Checked rate hub and it also shows 2.79 available for 5 yr fixed and wonder if there are better rates available.

Thanks
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Feb 2, 2014
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nuropa wrote: We are looking to purchase a home or duplex in next few months. Have preapproval from HSBC at 5 yr fixed for 2.79%.

Location: Burnaby BC
Purchase: 1,500,000
Down payment: 1,000,000
Planned Mortgage ~500k

Checked rate hub and it also shows 2.79 available for 5 yr fixed and wonder if there are better rates available.

Thanks
2.74% 5-year fixed, but only available for approvals (you need an accepted offer first).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Dec 10, 2019
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rateconnect wrote: Based on your salary alone you would qualify for approx. 775k mortgage amount using an avg annual income of 150k

How much do you intend to put down you seem to have a large DP available

Phil
Thanks much, Phil. That's good to know re: the mortgage. I have had some fluctuation with T4s reflecting 150k total paid out in 2016 and 115k in 2017 and 175k in 2018 due to the timing of commissions, but hopefully recent paystubs will speak to this better.

We intend to put down 20% initially (~165,000) and then based on prepayment privileges pay off a chunk of the principal in the first couple years of the term from the condo sale funds.
Jr. Member
Aug 24, 2014
199 posts
206 upvotes
Hello everyone. Just wanted to see what lower options are available before I consult with my local credit union tomorrow. They were advertising 2.59% for fixed 5yrs but who knows if they'll approve or not. RMG also pre-approved me for 2.79% but more options the better!

Anyways,
-What is the purchase price?
$880,000
-How much is the down payment?
$270,000
-Planned mortgage amount
$610,000
-Where it the property located?
Vancouver,BC
-When is the closing date?
February,2020
-Will the property be owner-occupied or a rental?
Owner-occupied
-Gross annual income
84k myself, and 48k from my wife totalling around $132k. Both stable position w/ 15+ yr experience
-Balance on credit card/line of credit
None. Always paid CC in full
-Bank Loans/lease payments
No debt whatsoever
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Sep 13, 2011
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lcyCold wrote: Hello everyone. Just wanted to see what lower options are available before I consult with my local credit union tomorrow. They were advertising 2.59% for fixed 5yrs but who knows if they'll approve or not. RMG also pre-approved me for 2.79% but more options the better!

Anyways,
-What is the purchase price?
$880,000
-How much is the down payment?
$270,000
-Planned mortgage amount
$610,000
-Where it the property located?
Vancouver,BC
-When is the closing date?
February,2020
-Will the property be owner-occupied or a rental?
Owner-occupied
-Gross annual income
84k myself, and 48k from my wife totalling around $132k. Both stable position w/ 15+ yr experience
-Balance on credit card/line of credit
None. Always paid CC in full
-Bank Loans/lease payments
No debt whatsoever
Lowest is a 5 year fixed at 2.64%, so if your local credit union is offering 2.59%, then that would be your lowest rate option. It's very possible that they are only offering that for high ratio (insured) mortgages, which they'll advise you in the meeting if that is the case.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

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