Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Feb 2, 2014
7752 posts
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Toronto
insanefrost wrote: 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!
2.74% 5-year at fixed at a 25-year amortization and 2.94% 5-year fixed at a 30-year amortization.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
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Feb 2, 2014
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Toronto
conanl wrote: 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 ?
When is your renewal date?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Aug 20, 2006
74 posts
3 upvotes
Etobicoke
Hello everyone!

We have an upcoming renewal in July and was looking for options (leaning towards re-finance) to unlock $50-$60k. Thanks for your input!

-How much is the mortgage owing? $352k
-Roughly, what is the current market value of the property? $850k
-Which city is the property located in? Mississauga
-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? Yes
-When did you buy the property? 2015
-When is your renewal date? July 10, 2020
Deal Addict
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Jan 31, 2018
1755 posts
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Don_s wrote: Hello everyone!

We have an upcoming renewal in July and was looking for options (leaning towards re-finance) to unlock $50-$60k. Thanks for your input!

-How much is the mortgage owing? $352k
-Roughly, what is the current market value of the property? $850k
-Which city is the property located in? Mississauga
-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? Yes
-When did you buy the property? 2015
-When is your renewal date? July 10, 2020
You are still outside the 120 day window

If you were able to lock today you would have 2.49% 5 yr fixed with a $300 FCT fee

Full featured product
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
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Jan 31, 2018
1755 posts
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insanefrost wrote: 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!
Best rate on a 25 yr am is 2.65% 5 yr fixed full featured 20/20 prepayments

5 yr fixed 2.89% for 30 yrs

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
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Jan 31, 2018
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Chommas wrote: -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.
Best rate would be 2.59% on a 5 yr fixed term

Reach out to any of the brokers on the forum asap to secure the rate

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Jan 31, 2018
1755 posts
334 upvotes
conanl wrote: 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 ?
You can get a 30 yr am but this would then be a refi and best rates are 2.89% (payment 1651/mth) - you should qualify depending on your property tax annually
Any other debt ?

Or you can switch at 2.69% but you will be limited to remaining amortization - Did you start with a 25 yr and have 20 yrs left at renewal ?- if so $500 increased cash
flow on the 30 yr
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Member
Mar 3, 2007
337 posts
13 upvotes
Mississauga
rateconnect wrote: You are still outside the 120 day window

If you were able to lock today you would have 2.49% 5 yr fixed with a $300 FCT fee

Full featured product
Hi Phil...Im in the same boat as the member you replied to...live in the same city as well. Is 2.49% 5 year fixed the best rate right now?
Deal Fanatic
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Feb 2, 2014
7752 posts
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Toronto
Don_s wrote: Hello everyone!

We have an upcoming renewal in July and was looking for options (leaning towards re-finance) to unlock $50-$60k. Thanks for your input!

-How much is the mortgage owing? $352k
-Roughly, what is the current market value of the property? $850k
-Which city is the property located in? Mississauga
-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? Yes
-When did you buy the property? 2015
-When is your renewal date? July 10, 2020
I think Phil gave you a quote for a transfer, not a refinance.

For a refinance, you're looking at 2.89% 5-year fixed and you will lose your CMHC insurance. You also have to pay legal and appraisal fees.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
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Feb 2, 2014
7752 posts
2147 upvotes
Toronto
picturethismister wrote: Hi Phil...Im in the same boat as the member you replied to...live in the same city as well. Is 2.49% 5 year fixed the best rate right now?
Is your mortgage insured (ie CMHC insured)?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Mar 3, 2007
337 posts
13 upvotes
Mississauga
Its not :( ..I had put 20% down. Does that mean, I wont get the 2.49% rate (if its still available come time for my renewal in a few months)?
Newbie
Aug 7, 2019
25 posts
3 upvotes
What is the best rate I can get for the below property

-What is the purchase price? 217000
-How much is the down payment? 20%
-Amortization? 30 yrs
-Will the property be owner-occupied or a rental? Owner

RBC is quoting me 2.99% 5 year fixed.
Sr. Member
Apr 20, 2011
543 posts
23 upvotes
Scarborough
PaulMeredith wrote: 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
Yes it does, thank you for the information. I should have clarified. At time of purchase, my amortization was 25 years. Now its 19 years, 6 months.

So basically in my case because I am renewing and I am not concerned with lowering my payment, I should probably stick with the remaining amortization of 19 years, 6 months?
Newbie
Jan 16, 2020
2 posts
SpeakerSnow wrote: I have a renewal coming up April 30, and looking for lowest rate on 5 year variable vs fixed.

-How much is the mortgage owing? 210,000
-Roughly, what is the current market value of the property? 501,000
-Which city is the property located in? Kelowna, BC
-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? No
-When did you buy the property? 2015
-When is your renewal date? April 30, 2020

Thanks in advance!
Bump - I think my post got delayed - TIA!

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