Real Estate

The Official Mortgage Rates Thread

Sr. Member
Jun 3, 2012
592 posts
239 upvotes
Scarborough
Bank of Canada rate remains steady. Does that mean most lenders will keep rates the same?
Deal Addict
Sep 19, 2012
1007 posts
867 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
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Sep 13, 2011
5052 posts
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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)
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Nov 24, 2013
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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
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Sep 13, 2011
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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
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CityCan Financial Corp (lic. 10532)
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Jan 31, 2018
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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
Newbie
Jul 17, 2018
54 posts
4 upvotes
Hello. Newbie here.

Is there a difference in mortgage rates between properties in Toronto vs Vancouver or Detached home vs townhouse?

I contacted a couple of mortgage brokers (friends of a friend of a friend type) who all want us to submit an application for pre-approval but and advised we can get better rates with a live offer. Is that just the process that all mortgage brokers have to go through? Being pre-approved allows for better negotiating power when there is a live offer. Does it make sense to submit pre-approval applications to various mortgage brokers or once you are pre-approved you can take the pre-approval to another broker if they can offer better live rates?
Newbie
Sep 12, 2013
60 posts
38 upvotes
Mississauga
rateconnect wrote:
You do not have a collateral charge with RMG

When you transferred from NB did you switch the amount owing over to RMG or did you refinance (take extra funds)

You could be eligible for 2.49% on a 5 yr fixed term

Phil

Thx Phil, CDNRealEstateGuy, Paul
This is a good surprise to me. I thought my collateral charge carried over when I switched from NBC to RMG/MCAP. I did not take any more money when I did the transfer.

I know you guys would know this via your responses. But is there a simple way to validate directly with RMG or checking my online portal?Or there is no need to 100% sure it is not a collateral mortgage?

Thx
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Feb 2, 2014
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Toronto
winjones wrote: Thx Phil, CDNRealEstateGuy, Paul
This is a good surprise to me. I thought my collateral charge carried over when I switched from NBC to RMG/MCAP. I did not take any more money when I did the transfer.

I know you guys would know this via your responses. But is there a simple way to validate directly with RMG or checking my online portal?Or there is no need to 100% sure it is not a collateral mortgage?

Thx
RMG doesn't do collateral. I know them extremely well, as do Paul and Phil. You're good, don't worry.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
PLATINUM CLUB Award Winner At Century 21 Innovative
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Feb 2, 2014
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Toronto
GooseAkuma wrote: Hello. Newbie here.

Is there a difference in mortgage rates between properties in Toronto vs Vancouver or Detached home vs townhouse?

I contacted a couple of mortgage brokers (friends of a friend of a friend type) who all want us to submit an application for pre-approval but and advised we can get better rates with a live offer. Is that just the process that all mortgage brokers have to go through? Being pre-approved allows for better negotiating power when there is a live offer. Does it make sense to submit pre-approval applications to various mortgage brokers or once you are pre-approved you can take the pre-approval to another broker if they can offer better live rates?
Toronto vs Vancouver, maybe. Most credit unions just operate in their province, and we all have different credit unions. Both BC and ON have a ton of different credit unions. So if the best rate is with a credit union in Ontario, you can't get it.

Detached vs townhome, no.

Best rates are for approvals only, which we often mention in this thread.

Lastly, you can still get pre-approved. Nobody is saying not to get pre-approved. But you won't get the best rates posted here until you have an accepted offer.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
PLATINUM CLUB Award Winner At Century 21 Innovative
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Feb 2, 2014
7353 posts
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Toronto
eronius_monk wrote: 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
Yes, those are fair rates for your transaction.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
PLATINUM CLUB Award Winner At Century 21 Innovative
Newbie
Jan 8, 2020
2 posts
-How much is the mortgage owing?
725K
-Roughly, what is the current market value of the property?
1.3 mil
-Which city is the property located in?
Halton, Ontario
-Is the property owner-occupied or a rental?
Owner
-Who is your current lender?
CIBC
-Do you have a HELOC tied to the mortgage?
Yes
-Is the mortgage CMHC insured?
No
-When did you buy the property?
2017
-When is your renewal date?
1st April,2020
Newbie
Jul 17, 2018
54 posts
4 upvotes
CdnRealEstateGuy wrote: Best rates are for approvals only, which we often mention in this thread.

Lastly, you can still get pre-approved. Nobody is saying not to get pre-approved. But you won't get the best rates posted here until you have an accepted offer.
Thanks. So if I'm confident that I will be approved for a mortgage, there's no point to get "pre-approved" first? I might as well wait until I have an accepted offer then apply for mortgage with a mortgage broker?

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