Real Estate

The Official Mortgage Rates Thread

Newbie
Jan 20, 2020
1 posts
-What is the purchase price?
749,000

-How much is the down payment?
160,000

-Where it the property located?
Toronto, Ontario

-When is the closing date?
N/A, Still searching

-Will the property be owner-occupied or a rental?
Owner occupied or Rental. I would like to see rates for both

First time home buyer
Newbie
Mar 11, 2006
62 posts
1 upvote
Markham
Hi,

I have 2 mortgages on my house that are both up for renewal. The first was for my primary residence and the second was from my HELOC for a short term investment that can potentially carry on or I can pay back depending on rate. The reason why I converted the HELOC to a short term 6 month mortgage was to save a couple of points. Not sure if that was the right thing to do or not.

I would like to keep them separate if i decide to ride another term mortgage for accounting purposes.

Any ways see below.

Thanks!

-How much is the mortgage owing? Mortgage 1 - 175K, Mortgage 2 - 245K
-Roughly, what is the current market value of the property? 1.4mill
-Which city is the property located in? Aurora ON
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? RBC
-Do you have a HELOC tied to the mortgage? Yes
-Is the mortgage CMHC insured? No
-When did you buy the property? 2010
-When is your renewal date? Apr 27 2020
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
01s0uljah wrote: Hi All,

Looking for some advice here for upcoming pre-construction closing. We received a conditional mortgage approval back in 2017 with a lower appraised value (40k under).

Fast-track to present, the offer is still valid and we're getting a 3.04% 5-year fixed rate. I'd like to shop around however, a friend of ours that recently closed their property in the same development (and same house/price) got appraised substantially less (100k under). My concern is that if we get another quote and appraisal that we would have to come up with an additional 100K on top of our 20% which may be an issue.

House price: 870,000
Appraised value: 830,000
Down Payment: 174,000

What options do we have as our closing is in 2 months.

Thanks
This can happen, especially if home was bought back in 2017, which was the peak of the market. If the lender requires an appraisal, which is typically the case, then you would either need to complete this purchase with CMHC insurance (which would mean you would be eligible for the 5 year fixed at 2.49%). OR come up with the difference. With 20% down payment, the lowest 5 year fixed rate is 2.64%. For example, if you buy at $870,000 and the appraisal comes in at $830,000, then your 20% down payment would be based on the appraised value, which would be $166,000 in this case. You would then need to come up with the difference between the appraised value and the purchase price, which is an additional $40,000. Total required down payment to avoid the insurance premium would be $206,000.

If the appraisal came in $100K less, then you would need to come up with the $100K difference of course. Or, proceed with an insured mortgage.

Again, there are some lenders who may not require an appraisal.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Feb 2, 2014
7569 posts
2022 upvotes
Toronto
alphabetacharlie wrote: -What is the purchase price?
749,000

-How much is the down payment?
160,000

-Where it the property located?
Toronto, Ontario

-When is the closing date?
N/A, Still searching

-Will the property be owner-occupied or a rental?
Owner occupied or Rental. I would like to see rates for both

First time home buyer
You need to have an accepted offer before you can get a promo rate held for you.

With 20% down, you're looking at 2.74% 5-year fixed if it's owner-occupied or around 3% for rental.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
7569 posts
2022 upvotes
Toronto
Milkweed wrote: Hi,

I have 2 mortgages on my house that are both up for renewal. The first was for my primary residence and the second was from my HELOC for a short term investment that can potentially carry on or I can pay back depending on rate. The reason why I converted the HELOC to a short term 6 month mortgage was to save a couple of points. Not sure if that was the right thing to do or not.

I would like to keep them separate if i decide to ride another term mortgage for accounting purposes.

Any ways see below.

Thanks!

-How much is the mortgage owing? Mortgage 1 - 175K, Mortgage 2 - 245K
-Roughly, what is the current market value of the property? 1.4mill
-Which city is the property located in? Aurora ON
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? RBC
-Do you have a HELOC tied to the mortgage? Yes
-Is the mortgage CMHC insured? No
-When did you buy the property? 2010
-When is your renewal date? Apr 27 2020
2.69% 5-year fixed would be the best rate. However, the mortgages will be combined into one new mortgage.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
divx wrote: wasn't the rule 20%? when did it change to 25%?
Which rule are you referring to? In order to be eligible for the 2.65% 5 year fixed rate, you need to have a minimum down payment of 25%. This is not any sort of rule. It's just the requirement in order to get this rate on this particular mortgage product. With 20% down payment, the lowest 5 year fixed rate is 2.74%.

Hope this answers your question. Let me know if there is anything I can clarify for you. :)

Paul
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
Nov 24, 2013
5988 posts
2679 upvotes
Kingston, ON
PaulMeredith wrote: This can happen, especially if home was bought back in 2017, which was the peak of the market. If the lender requires an appraisal, which is typically the case, then you would either need to complete this purchase with CMHC insurance (which would mean you would be eligible for the 5 year fixed at 2.49%). OR come up with the difference. With 20% down payment, the lowest 5 year fixed rate is 2.64%.
Baseline question on insured- vs. non-insured rates and renewals (my renewal's still 6 months away):
If your original mortgage was CMHC-insured and you switch lenders at renewal point, do you still have access to the lower, insured rates? Is this different if it's a collateral "switch?"

Thanks in advance,
Sr. Member
Jun 3, 2012
601 posts
241 upvotes
Scarborough
Bank of Canada rate remains steady. Does that mean most lenders will keep rates the same?
Deal Addict
Sep 19, 2012
1155 posts
1454 upvotes
Calgary
Mike15 wrote: Baseline question on insured- vs. non-insured rates and renewals (my renewal's still 6 months away):
If your original mortgage was CMHC-insured and you switch lenders at renewal point, do you still have access to the lower, insured rates? Is this different if it's a collateral "switch?"
Insurance survives on a switch (collateral or otherwise). A switch, IMO, is best defined as “not a refinance”. A refinance is an extension of the amortization or an increase in the borrowing.

Note that insurers generally allow you to increase the borrowing by $3k if you’re “capitalizing” transfer costs (legal, appraisal, discharge).
airmax95 wrote: Bank of Canada rate remains steady. Does that mean most lenders will keep rates the same?
Generally speaking when the overnight rate changes (or stays the same) lender funding costs don’t change so fixed rates don’t move.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
Mike15 wrote: Baseline question on insured- vs. non-insured rates and renewals (my renewal's still 6 months away):
If your original mortgage was CMHC-insured and you switch lenders at renewal point, do you still have access to the lower, insured rates? Is this different if it's a collateral "switch?"

Thanks in advance,
Yes, it sure does! As long as you didn't refinance your mortgage at some point after your original purchase. It does not matter if it's a regular switch or a collateral switch, you would still have access to the insured rates in 'most' situations. The reason why I say 'most' is because there are sometimes promotions that apply to purchases only. For the most part though, you'll get the lower, insured rates.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
Nov 24, 2013
5988 posts
2679 upvotes
Kingston, ON
ahlaker wrote: Insurance survives on a switch (collateral or otherwise). A switch, IMO, is best defined as “not a refinance”. A refinance is an extension of the amortization or an increase in the borrowing.

Note that insurers generally allow you to increase the borrowing by $3k if you’re “capitalizing” transfer costs (legal, appraisal, discharge).
PaulMeredith wrote: Yes, it sure does! As long as you didn't refinance your mortgage at some point after your original purchase. It does not matter if it's a regular switch or a collateral switch, you would still have access to the insured rates in 'most' situations. The reason why I say 'most' is because there are sometimes promotions that apply to purchases only. For the most part though, you'll get the lower, insured rates.
Thanks gents,

I'm in a situation where additional borrowing makes sense as a "refinancing" of existing debt, but it's sounding beneficial to keep the mortgage at insured rates and use a HELOC (preferably one you can lock a lower, fixed rate inside of) in 2nd position to consolidate the other debts.
Jr. Member
Oct 18, 2006
148 posts
20 upvotes
Ajax
Looking for a home renovation loan.
We own the $800,000 house outright.
Combo income around $130,000.
Reno including consolidating 2 fixed term loans $100,000
Looking to pay off in 10 yrs.
Currently with Td.

Offers so far.

2.85% on 5 yr fixed
Registration fee $600

2.85% of 5 yr fixed
$1500 in legal fees covered for switching banks
( would cost $200 to TD to break the 2 fixed term loans ).

Am i in the ballpark of a good deal with either or should i be striving for something better?

TIA
Newbie
Sep 19, 2011
1 posts
MISSISSAUGA
Re-posting as I did not see any replies for last post;

Looking for renewal options:

Mortgage owed - 307K
Current market value - $750K
Location - Brampton, Ontario
Owner-occupied or rental - Owner occupied
Current lender - TD
HELOC - Yes
CMHC insured - Yes
Year bought - 2014
Renewal date - March 20, 2020

Thank You
Deal Fanatic
User avatar
Sep 13, 2011
5168 posts
2056 upvotes
Toronto
feasiblepanic wrote: Re-posting as I did not see any replies for last post;

Looking for renewal options:

Mortgage owed - 307K
Current market value - $750K
Location - Brampton, Ontario
Owner-occupied or rental - Owner occupied
Current lender - TD
HELOC - Yes
CMHC insured - Yes
Year bought - 2014
Renewal date - March 20, 2020

Thank You
The lowest 5 year fixed rate for an insured switch is 2.49% at the moment.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Addict
User avatar
Jan 31, 2018
1677 posts
307 upvotes
feasiblepanic wrote: Re-posting as I did not see any replies for last post;

Looking for renewal options:

Mortgage owed - 307K
Current market value - $750K
Location - Brampton, Ontario
Owner-occupied or rental - Owner occupied
Current lender - TD
HELOC - Yes
CMHC insured - Yes
Year bought - 2014
Renewal date - March 20, 2020

Thank You
2.49% on a previously insured switch
20/20 prepayments
Full featured
Cost covered due to your collateral charge

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628

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