Real Estate

The Official Mortgage Rates Thread

Sr. Member
May 9, 2006
792 posts
119 upvotes
Mississauga
how much maximum loan a person get if salary is 60K provided good credit record, first time buyer, no debt and has 125K cash for downpayment?
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Jan 31, 2018
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abbyss wrote: Thanks Phil.
We would like to keep the current home.
Current homes property tax: 2900
No other debts.

Property tax for new home : 6.5k

Can I do more down payment by taking home equity loan on the current home.?

Thanks
Reach out to Myself, Paul or Kevin to run a full analysis of your situation
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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djjungly wrote: how much maximum loan a person get if salary is 60K provided good credit record, first time buyer, no debt and has 125K cash for downpayment?
The obligations on the new property cannot exceed 39% of your income or 23,400

This includes the mortgage payment at the stress test over 25 or 30 yrs
Property taxes
1500-1800 annually for heat

Rough estimate would be 290k mortgage amount depending on property taxes - using 30 yr am

Lower amount on a 25 yr 265k ish on a 25 yr am

Reach out to any of the brokers on the forum to assist

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Jr. Member
Feb 11, 2016
153 posts
167 upvotes
Very quick closing date coming up..please help advising best mortgage rate!
-What is the purchase price? $912K
-How much is the down payment? $184K
-Where it the property located? Scarborough
-When is the closing date? Feb 12, 2012
-Will the property be owner-occupied or a rental? Owner
Sr. Member
May 9, 2006
792 posts
119 upvotes
Mississauga
rateconnect wrote: The obligations on the new property cannot exceed 39% of your income or 23,400

This includes the mortgage payment at the stress test over 25 or 30 yrs
Property taxes
1500-1800 annually for heat

Rough estimate would be 290k mortgage amount depending on property taxes - using 30 yr am

Lower amount on a 25 yr 265k ish on a 25 yr am

Reach out to any of the brokers on the forum to assist

Phil
thank you so much, so the property will be condo in Mississauga , maintenance 575 monthly(includes heat and hydro) and pro tax is 2200 yearly. condo price is 537 and have about 160K with rrsp (35K) .
possible for mortgage with 60K salary? or I gotta save more?
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Jan 31, 2018
1766 posts
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djjungly wrote: thank you so much, so the property will be condo in Mississauga , maintenance 575 monthly(includes heat and hydro) and pro tax is 2200 yearly. condo price is 537 and have about 160K with rrsp (35K) .
possible for mortgage with 60K salary? or I gotta save more?
Those maintenance fees will reduce the mortgage amount significantly

Reach out
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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Feb 2, 2014
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Toronto
Xbowop wrote: Very quick closing date coming up..please help advising best mortgage rate!
-What is the purchase price? $912K
-How much is the down payment? $184K
-Where it the property located? Scarborough
-When is the closing date? Feb 12, 2012
-Will the property be owner-occupied or a rental? Owner
2.74% 5-year fixed is the best rate.

If you want to chat, my office is at Markham and Finch.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Apr 20, 2011
545 posts
24 upvotes
Scarborough
PaulMeredith wrote: True North is a mortgage brokerage, not a lender. They do however have Think Financial, which is a lender owned by True North Mortgage. You would be able to get the same rate through any regular posting broker on this board, which would not come with any unique or unusual terms or conditions.
What are the unique or unusual terms or conditions you are referring to?
Sr. Member
Apr 20, 2011
545 posts
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Scarborough
Bit of a newbie question, but thought I would ask anyways. During renewal, when does it make sense to increase your amortization period? Will you pay less interest if you don't change your amortization period at time of renewal?

My goal at this point like most people is to pay off my mortgage as fast as possible, but I don't understand the strategy of taking a 30 year amortization and making accelerated payments like its a "25 year amortization period". How exactly does this save me interest in the long run?
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Feb 2, 2014
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dainfamous41 wrote: Bit of a newbie question, but thought I would ask anyways. During renewal, when does it make sense to increase your amortization period? Will you pay less interest if you don't change your amortization period at time of renewal?

My goal at this point like most people is to pay off my mortgage as fast as possible, but I don't understand the strategy of taking a 30 year amortization and making accelerated payments like its a "25 year amortization period". How exactly does this save me interest in the long run?
You can’t increase your amortization for a transfer or else it’s a refinance. You will have to pay a higher rate, legal and appraisal fees for a refinance.

Typically you pay more interest, but have a lower monthly payment with a higher amortization.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Sep 13, 2011
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dainfamous41 wrote: What are the unique or unusual terms or conditions you are referring to?
Some mortgages can be more restrictive than others, which is why you should not choose a mortgage based on rate alone. The lowest rate mortgage does not always mean it will be the best fit for you, nor the lowest cost mortgage option. Here is a list of common restrictions found with major mortgage lenders, and which lenders carry these restrictions: 

- Bonafide sale clause where you can only break the mortgage early if you can sell your home (some products with MCAP and BMO). 

- Higher than normal penalties (Industrial Alliance, plus some products with Merix and RMG.  Plus, all of the big banks on fixed rate mortgages (penalties to break a mortgage with the big banks can be as much as 500% higher than most non-bank lenders).
 
- limited prepayment privileges (Industrial Alliance and RBC. Other major banks may also limit you to making a single lump sum payment per year)

- Higher than industry prime rate (TD). 

- Collateral mortgages (TD, Tangerine, National Bank, and HSBC.  Plus, a mortgage from any lender that contains a HELOC or second component of any kind). 

- Variable rate mortgage that is compounded monthly as opposed to semi-annually (Merix, CMLS, TD, RBC, BMO, CIBC, National Bank). 

The above covers just about everything.  Aside from that, most mortgages are fairly similar. Hope you find this helpful :)

Paul
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Sep 13, 2011
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Toronto
dainfamous41 wrote: Bit of a newbie question, but thought I would ask anyways. During renewal, when does it make sense to increase your amortization period? Will you pay less interest if you don't change your amortization period at time of renewal?

My goal at this point like most people is to pay off my mortgage as fast as possible, but I don't understand the strategy of taking a 30 year amortization and making accelerated payments like its a "25 year amortization period". How exactly does this save me interest in the long run?
Always ask! Never any such thing as a dumb, stupid or newbie question. Look at this as a judgement free board :)

The only time it would make sense to increase your amortization at renewal is if you needed to lower your payments or take out additional funds. It would require a refinance which usually comes at a higher rate, and will also incur additional fees such as legal and appraisal fees. If you have a mortgage coming up for renewal, it will make sense to just switch your mortgage and continue on from where your last mortgage left off most of the time.

If you are purchasing, and you have the choice between a 25 year amortization and a 30 year amortization at the same rate, then I suggest choosing the 30 years. You can then set your payments to match that of the 25 year amortization. If you do this from payment one, and carry those payments throughout the term, then it works out to being exactly the same as having a 25 year amortization as far as interest goes.
The benefit here is that it gives you the option to revert back to the lower payment you would get from the 30 year amortization at any time. If you found your cash flow tight, had an unexpected loss of income, or encountered a rough financial patch (this is not uncommon, and is rarely expected), then you can always revert back to the lower payment quite easily. If you had started with a 25 year amortization, then you would not be able to lower your payment. You would need to ensure the prepayment privileges with your mortgage are flexible enough to allow you to do this.

I would suggest a 30 year amortization over 25 when the rate is higher with 30 is if having a lower payment is more important to you than paying less interest. There are MANY people that fall into this category. If cash flow is going to be uncomfortably tight, then it can often make more sense to lower your payment by choosing a longer amortization, even if your rate ends up being higher. For example, a $400,000 mortgage at 2.65% with a 25 year amortization would have a monthly payment of $1,821.88. With a 30 year amortization at 2.94% for example, the payment would only be $1,669.67. A higher amortization will also allow you to qualify for a higher mortgage, which can sometimes mean the difference between getting the home that is right for you vs. a home you are settling for.

You asked how this will save you interest in the long run. Choosing a 30 year amortization and setting your payments to fixed is a flexibility strategy, not an interest saving strategy. It won't help you to pay your mortgage down quicker, nor will it save you any interest. It's just to build in that added bit of flexibility as mentioned above.

Hopefully this answers your question. Let me know if there is anything I can clarify, as i'm always happy to further explain if needed :)

Paul
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Jan 19, 2020
1 posts
-What is the purchase price? 375000
-How much is the down payment? 10%
-Where it the property located? Edmonton
-When is the closing date? Feb 24
-Will the property be owner-occupied or a rental? Owner

Need approval before Jan 30.
Newbie
Aug 12, 2010
34 posts
1 upvote
Putting down an offer today on a property, but would like to know whats the best mortgage rate available for both a 25 amortization and a 30 year amortization:

-What is the purchase price? $875K
-How much is the down payment? $235K
-Where it the property located? Vaughan
-When is the closing date? March 6, 2020
-Will the property be owner-occupied or a rental? Owner

Thanks!
Newbie
Feb 26, 2018
7 posts
Hi ,

I have a question on the renewal .
- Purchase Price - 670,000
- Current Market Price : ~750,000
- Amount Left at renewal - 400,000
- Current Amortization - 25 Years
- Current Household salary :- 80K

My objective during renewal is to minimize my monthly payment. For that I think I will look for 25 Years or 30 years of Amortization.

- For doing that , Do I need to go for Refinancing ? Can I do refinancing with my current bank ?
- If Yes, then Is 80K sufficient to get 400K mortgage ? I am self employed and still have time to play with the Annual income.
- Can I get 30 years of Amortization ?

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