Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
User avatar
Feb 2, 2014
7567 posts
2022 upvotes
Toronto
winjones wrote: Hi
I have a 590k mortgage CMHC insured with RMG due for renewal in May this year. The product listed on signed paperwork is RMG Low Rate Basic on variable rate. I transfered to RMG from NBC, so there is a collateral charge attached.

What is the best strategy comes May to minimize fees I would need to pay at the end should I prefer to make a switch?
Should I stay with RMG, switch to a non-collateral product which then makes it easy (no/low fees) to switch to a different institution? Not sure if possible, so just asking.

-How much is the mortgage owing? $590k
-Roughly, what is the current market value of the property? $1.2M
-Which city is the property located in? Mississauga
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? RMG/MCAP
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? Yes
-When did you buy the property? 2014
-When is your renewal date? May10, 2020
As Phil pointed out, you no longer have a collateral charge mortgage. And since the term is over, the LRB product has no effect on the transfer.

Best rate is 2.49% 5-year fixed.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Apr 20, 2011
536 posts
21 upvotes
Scarborough
PaulMeredith wrote: 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
Thanks that really helps! Are there any other different terms and conditions a mortgage brokerage would have vs. a big bank?
Deal Expert
User avatar
Oct 26, 2003
32279 posts
3125 upvotes
Winnipeg
rateconnect wrote: Any of the brokers on the forum can get you that rate or potentially lower.

Much depends on your situation please provide more details

Phil

-How much is the mortgage owing? $240k
-Roughly, what is the current market value of the property? $480K
-Which city is the property located in? Saskatoon
-Is the property owner-occupied or a rental? Rental
-Who is your current lender? CIBC
-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? May 1, 2020

If you can get this rate with CIBC for renewal then I won't need to switch provider, should be less paperwork.
Deal Fanatic
User avatar
Sep 13, 2011
5132 posts
1924 upvotes
Toronto
dainfamous41 wrote: Thanks that really helps! Are there any other different terms and conditions a mortgage brokerage would have vs. a big bank?
Great question! A mortgage broker (or brokerage) does not implement any terms or conditions themselves. They are simply licensed mortgage professionals that will work with the lender for you on your behalf. I suggest speaking with both a bank and a broker. Get a feel for the way each operate and get pricing quotes from each. Just keep in mind you should never have to fill out an application and do a credit check just to receive a mortgage rate quote. There is no need to fill out multiple applications with different banks and brokers. Do your shopping first, make a selection, then fill out your application with that person.

Here are some key things to keep in mind when making your final choice. 

When dealing with a bank, they can only talk about their products and their services. They are not going to tell you if there is another option available through a different lender that may be better suited to you. Brokers deal with non-bank lenders as well as major banks, so they can tell you specifics about each lender and what makes one better than another. In a sense, a broker is more of a one stop shop. You can shop many lenders with just a single credit check. 

Having access to so many different lenders allows us (brokers) to get lenders competing for your business. I you walk into BMO for example, they aren't going to tell you if Scotiabank has a lower rate than they do. Why would they? Brokers can take you to the lenders that have the lowest rates, right from the beginning, which is what the regular posting brokers on RFD specialize in (not every broker does this... yet they all say they do). 

With a broker, the entire process can usually be done by phone, fax and email. 99% of the time, there is no need to even have a face to face meeting. 

Some advantages to banks are that they have branches on every corner, but with today's technology, it's becoming less and less important to more and more people. Millennials in particular. If you have your other accounts with them, you can view them all on the same page. 

Lastly, they have a recognizable brand name, which really doesn't do anything for you at all.

For many brokers, it's not just our job. It's a career. And it's even more than just that. For many of us, it's our calling. It's what we are passionate about, and this passion will not go unnoticed by you. This is why so many of us can be reached evenings and weekends and we're usually pretty quick to answer your questions. 


Choosing a mortgage professional
There is a lot more to getting a mortgage than just rate. The lender you choose is important, and the person you choose to handle your mortgage for you can be equally as important. Purchasing a home is the biggest purchase you will ever make, and a mortgage is one of the largest financial decisions you will ever make, so it's important choose the right person to handle your mortgage for you. You can have a great experience with your mortgage, or you can have a nightmare. Your down payment is on the line, so you don't want to trust it to just anyone.

Here is a list of good questions to ask:

1. How long have you been doing this for? 
I would look for someone who has been in the business full-time for at least a couple of years. If they have been doing it less than that, then you may want to ask a few more questions. You can also ask how many mortgages they have closed, which is more important than time. This will give you an idea of how active they have been. You could speak with someone that tells you they have been doing it for 10 years, but may only do 2 or 3 deals a year. Doesn't exactly make them a seasoned mortgage expert. 

2. Do you do this full or part time?
Don’t deal with anyone who is in the business part time. You want to ensure the person you are working with is committed to their profession and their mind is on YOU, and not on their primary income source. It is also very unlikely that a part-timer would have that much experience. They also may not be as available as you would like them to be.

3. Do you have any references or testimonials? 
It is always good to know that the professional you choose has a history of satisfied clients. If they have done a good job for their clients in the past, there is a better chance that they will do a great job for you as well. (this question really applies to brokers. Unlikely a bank mortgage person will have any testimonials). 

4. What kind of education or licensing do you have? 
Some professionals will have more education or training than others. Find out how well the person you are dealing with is trained before proceeding. 

5. How easy are you to get a hold of? How quickly do you return calls or emails? 
This is a good one to ask everyone. There are going to be times when you have questions, and you are going to want to have them answered quickly. 

6. What hours are you available? 
It can be helpful to know that the person you are dealing with is can be flexible and is willing to work with YOUR schedule, not theirs. 

7. How do you get most of your business? 
Ideally, most of their business should come from referrals. You want to know that their past clients are happy enough with their services that they are referring them to their friends and family. 

8. How are fixed mortgage rates determined?
This is simply a question to gauge their competence level and is something that any quality mortgage professional will know right away. If they can’t answer this, or if they have to ‘get back to you’, then I would move on to the next person. (The answer is bond yields.) 

Hope you find this helpful 
:)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5132 posts
1924 upvotes
Toronto
winjones wrote: Hi
I have a 590k mortgage CMHC insured with RMG due for renewal in May this year. The product listed on signed paperwork is RMG Low Rate Basic on variable rate. I transfered to RMG from NBC, so there is a collateral charge attached.

What is the best strategy comes May to minimize fees I would need to pay at the end should I prefer to make a switch?
Should I stay with RMG, switch to a non-collateral product which then makes it easy (no/low fees) to switch to a different institution? Not sure if possible, so just asking.

-How much is the mortgage owing? $590k
-Roughly, what is the current market value of the property? $1.2M
-Which city is the property located in? Mississauga
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? RMG/MCAP
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? Yes
-When did you buy the property? 2014
-When is your renewal date? May10, 2020
If it was a straight transfer you did from National Bank, then your current mortgage may not be a collateral charge. It sounds to me like you started with a one year term with National Bank and then switched to RMG a year later, is this correct?

You very well may be eligible for the 5 year fixed at 2.49%.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Apr 23, 2007
9370 posts
601 upvotes
Mississauga
I got a short question regarding sending in applications and credit checks;

Is there a short time frame where I can apply for multiple mortgages while only getting my credit dinged once?
RFD 39-0-0
Ebay 31-0-0
|Dance.Flirt.Music.Chill|
Deal Fanatic
User avatar
Sep 13, 2011
5132 posts
1924 upvotes
Toronto
XxXSnake23XxX wrote: I got a short question regarding sending in applications and credit checks;

Is there a short time frame where I can apply for multiple mortgages while only getting my credit dinged once?
Yes, generally 45 days, but can I ask your reasoning for wanting to apply with multiple lenders?
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Apr 23, 2007
9370 posts
601 upvotes
Mississauga
PaulMeredith wrote: Yes, generally 45 days, but can I ask your reasoning for wanting to apply with multiple lenders?
Isn't the advertised rate based on credit? And don't different lenders have different statistics for lending based on one's credit?

#Mortgagen00b
RFD 39-0-0
Ebay 31-0-0
|Dance.Flirt.Music.Chill|
Deal Fanatic
User avatar
Sep 13, 2011
5132 posts
1924 upvotes
Toronto
XxXSnake23XxX wrote: Isn't the advertised rate based on credit? And don't different lenders have different statistics for lending based on one's credit?

#Mortgagen00b
If your credit is weak or 'borderline' then options may be a bit more limited. However, as long as your credit is 'good' then your rate will not be dependent on credit. You either qualify or you don't. If you don't, then rate shopping should not be your area of focus. It should be qualifying. If you have decent credit, then you will not get different rates if your score is higher. For example, you would not get any preferential treatment or lower rates if your score was 850 vs a score of 680. If you want to shop around for rates, you just need to answer the questions posted on page one of this board and we can let you know what the lowest rates are. Makes shopping quite easy :)
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Feb 2, 2014
7567 posts
2022 upvotes
Toronto
divx wrote: -How much is the mortgage owing? $240k
-Roughly, what is the current market value of the property? $480K
-Which city is the property located in? Saskatoon
-Is the property owner-occupied or a rental? Rental
-Who is your current lender? CIBC
-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? May 1, 2020

If you can get this rate with CIBC for renewal then I won't need to switch provider, should be less paperwork.
Unfortunately 2.69% 5-year fixed is for owner-occupied properties only. For a rental, rate will be around 3% (give or take a bit).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Feb 27, 2018
67 posts
59 upvotes
Selkirk
Hi,

I am new here to this thread and also first time home buyers. We are looking on buying a 400k pre construction house here in Winnipeg with possession date of October, 2020. We have a down payment of 10% now and maybe we'll be able to add 5% more in before October. I got a pre-approval from Butler Mortgage for 2.49% 5 year fixed. Is that good enough? The problem is they can only hold the rate up to 120days. We read a lot regarding buying a house but we are still confused on the steps..
Last edited by bokchoy17 on Jan 21st, 2020 10:48 am, edited 1 time in total.
Newbie
May 21, 2018
16 posts
15 upvotes
-What is the purchase price? $732,551
-How much is the down payment? $205568 (or 20-30% depending on rates available)
-Where it the property located? Milton, ON
-When is the closing date? March 25, 2019
-Will the property be owner-occupied or a rental? Owner Occupied

Hello, I am looking for the best rates on my pre-con purchase that is closing March 25. I can put down between 20-30% but this depends on the rates available.
Member
Jan 18, 2007
337 posts
24 upvotes
What are the legal and or financial implications of signing an offer to hold the rate and then breaking the deal?

Can the lender pull out, last minute? Maybe the rates go up and they'd like to make more money. Or say, the client changes jobs, and now there's a probation period as opposed to a long steady work history. Any penalties to the lender for backing out?

How about the client? Say, as a client in 120 days I find a better deal.

Thanks.
Deal Addict
User avatar
Jan 31, 2018
1663 posts
287 upvotes
bokchoy17 wrote: Hi,

I am new here to this thread and also first time home buyers. We are looking on buying a 400k pre construction house here in Winnipeg with possession date of October, 2020. We have a down payment of 10% now and maybe we'll be able to add 5% more in before October. I got a pre-approval from Butler Mortgage for 2.49% 5 year fixed. Is that good enough? The problem is they can only hold the rate up to 120days. We read a lot regarding buying a house but we are still confused on the steps..
The max hold is 120 days

The builder may have some in house affiliations that can hold a rate for a longer period

You could then switch to better rates at the 120 mark

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Fanatic
User avatar
Sep 13, 2011
5132 posts
1924 upvotes
Toronto
bokchoy17 wrote: Hi,

I am new here to this thread and also first time home buyers. We are looking on buying a 400k pre construction house here in Winnipeg with possession date of October, 2020. We have a down payment of 10% now and maybe we'll be able to add 5% more in before October. I got a pre-approval from Butler Mortgage for 2.49% 5 year fixed. Is that good enough? The problem is they can only hold the rate up to 120days. We read a lot regarding buying a house but we are still confused on the steps..
You'll find that you'll need to wait until you are within 120 days of the closing date before competitive rates can be offered to you. You could always look at getting the approval done through a bank (who will be able to hold rates longer) and then come back and post again once you are within 120 days.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

Top

Thread Information

There are currently 10 users viewing this thread. (4 members and 6 guests)

yangpa, 6ixMortgageGroup, 209Sr001, NCR-Manchester