Real Estate

The Official Mortgage Rates Thread

Deal Addict
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Jan 31, 2018
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budric wrote: 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.
What are the legal and or financial implications of signing an offer to hold the rate and then breaking the deal?

With most brokerages there would be no penalties at all . There are some brokerages that make you sign a document that state if you walk away
from the deal there are financial penalties and these are legally binding.



lenders will not increase the rate once you have signed a commitment

switching jobs prior to close is a material change to the original submission and can drastically impact your approval

There would not be a penalty to the lender - they approved you based on current job / salary if for example you switched jobs and the salary is lower
causing you to no longer qualify they will cancel the deal.

Better rates for sure you can switch happens all the time
Phil Cragg
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Apr 23, 2007
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PaulMeredith wrote: 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 :)
Thanks for the advice!

One other question for ya'll. Lets say today i lock in a rate with a lender, is there a penalty to change the rate later on lets say if rates lower?
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Newbie
Sep 6, 2019
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For a purchase of a property:

-What is the purchase price? 600,000
-How much is the down payment? 125,000
-Where it the property located? Etobicoke, Ontario
-When is the closing date? N/A, trying to get a pre-approval first. Estimated might be a month (give or take a couple of weeks)
-Will the property be owner-occupied or a rental? owner-occupied

Thanks all.
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Oct 26, 2003
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CdnRealEstateGuy wrote: 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).
ah so i should take the 2.84%? hmmm so much for that.
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Oct 26, 2003
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PaulMeredith wrote: Lowest 5 year fixed for your situation would be 2.65%, providing you have at least 25% down payment.
wasn't the rule 20%? when did it change to 25%?
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Jan 6, 2002
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hoob wrote: I've been mulling my options and randomly Tangerine sends me a HELOC P-0.50 promo (3.45% rate, not a teaser) and $1500 covered to refinance over from another lender. Their fixed rate sucks but still better than my variable rate right now, and the HELOC rate (given some potential use in the next 6 months) is a difference maker.

Is Tangerine pushing that hard to increase their book? What's the potential catches, besides the crappy 2.89% fixed rate?
CdnRealEstateGuy wrote: Prime -.50% is a fantastic rate for a loc especially with the $1500. Of course, their mortgage portion isn’t that competitive.

You have to crunch the numbers to see if it’s worth it. For example, if you won’t use the loc and have a big mortgage, it’s probably not worth it. On the opposite side, if you have no mortgage and plan to max out the loc, it’s a great deal. There’s obviously a break even which you have to calculate.
Finally got around to closing this collateral charge mortgage refinance/transfer from one collateral/HELOC vendor (RBC) to another one (Tangerine). Just as an anecdotal data point, here are the "costs" and "savings" involved. Numbers are approximate, and are from Ontario:

Total existing amount (RBC): 150,000
Legal Fees: 1070
Register Collateral Charge: 77
Title Insurance for new lender: 386
Appraisal for new lender: 250
Discharge and admin fee for RBC: 377
Prepayment penalty for RBC: 973
Promotion from new lender: -1500
Interest savings over 3-yr term: -980 (3.05% variable to 2.79% fixed)
Total new amount: 150,000

Out of pocket: 650

So the new result is I am out of pocket $650 ($2,150 if you exclude the Tangerine promotion) to move and refinance a collateral charge from one vendor to another. Summary for Ontario:

<out of pocket> = $2200 (transactions fees) PLUS <prepayment penaly> LESS <transfer promo> LESS <interest rate savings>


As benefits for this expense I:

* Get better prepayment terms on Tangerine (25/25) vs RBC (10/10)
* A much larger HELOC segment to facilitate some potential investments
* The HELOC segment at P-0.50% with Tangerine vs P+0.5% with RBC (net 1% drop)

So if I borrow more than $65,000 on the new HELOC for at least year, I have a net benefit (ignoring tax effects if used for investment.)
Last edited by hoob on Jan 21st, 2020 1:40 pm, edited 2 times in total.
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Dec 2, 2008
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divx wrote: wasn't the rule 20%? when did it change to 25%?
Are you referring to insured mortgages? Meaning if you put down less than 20% your loan must be insured by the CMHC

I believe Paul is quoting based on 25% down as many of the mono line lenders set their promotional rates based on the size of the down payment
Newbie
Jan 13, 2017
65 posts
11 upvotes
Are the posted rates different for self-employed?
My renewal is not till June just wondering what rates will be available for self-employed with good credit

Thanks
Newbie
Aug 30, 2010
23 posts
6 upvotes
What is the best rate I can get for a purchase of the following property:

-What is the purchase price? 645,000
-How much is the down payment? 250,000
-Where it the property located? Toronto - Downtown Core
-When is the closing date? Feb 15
-Will the property be owner-occupied or a rental? Owner Occupied

Thanks!
Newbie
Sep 16, 2018
23 posts
11 upvotes
Hi,
Any takers? Would be greatly appreciated!

Current Variable Mortgage with MCAP coming up for renewal.
Mortgage amount :$500,000
Approximate market value:$900,000
Original purchase date (month and year): May 2015
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment);No
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? No, but am thinking of getting one this time!
Current lender;MCAP
Is this your primary residence or a rental property? Primary
Location: Mississauga
Maturity date: May 4 2020

Thanks,
Andrew
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Jan 31, 2018
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andrewmp416 wrote: Hi,
Any takers? Would be greatly appreciated!

Current Variable Mortgage with MCAP coming up for renewal.
Mortgage amount :$500,000
Approximate market value:$900,000
Original purchase date (month and year): May 2015
Did you pay an insurance premium such as CMHC when you purchased the home? (meaning you had less than 20% down payment);No
Did you refinance your mortgage since you owned your home? If so, what was the year and month when you did the refinance? No
Do you have a second component such as a HELOC attached to your mortgage? No, but am thinking of getting one this time!
Current lender;MCAP
Is this your primary residence or a rental property? Primary
Location: Mississauga
Maturity date: May 4 2020

Thanks,
Andrew
Andrew best rates below

5 yr fixed 2.69%
20/20 prepayments
full featured product
no cost to switch

Phil
Phil Cragg
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Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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ageen wrote: What is the best rate I can get for a purchase of the following property:

-What is the purchase price? 645,000
-How much is the down payment? 250,000
-Where it the property located? Toronto - Downtown Core
-When is the closing date? Feb 15
-Will the property be owner-occupied or a rental? Owner Occupied

Thanks!
2.65% 5 yr fixed
full featured 20/20 prepayments

Move quickly to lock this rate given the closing

Any of the brokers on the forum can lock the rate

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
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ilostmyid wrote: Are the posted rates different for self-employed?
My renewal is not till June just wondering what rates will be available for self-employed with good credit

Thanks
It all comes down to qualification and whether you show enough income

Self employed will get the same rates( if you income qualify ) that you see posted by myself & other brokers

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
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Jan 31, 2018
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MoNaMi1 wrote: For a purchase of a property:

-What is the purchase price? 600,000
-How much is the down payment? 125,000
-Where it the property located? Etobicoke, Ontario
-When is the closing date? N/A, trying to get a pre-approval first. Estimated might be a month (give or take a couple of weeks)
-Will the property be owner-occupied or a rental? owner-occupied

Thanks all.
Reach out to any of the brokers on the forum to get you preapproved

The best rates that you see posted in the forum are on live deals once you have a firm offer

Best rate given the info provided (if you have a firm deal ) would be 2.74% 5 yr fixed term

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Jan 8, 2020
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DOES ANYONE KNOW A GOOD MORTGAGE COMPANY IN TORONTO? i got reffered to homewise mortgages from Justo Brokerage. Do you guys know if they are any good?

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