Real Estate

The Official Mortgage Rates Thread

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Jan 31, 2018
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justDeals wrote: Hello,
Looking for mortgage renewal coming up in ~ 60 days.

-How much is the mortgage owing? ~ $400K
-Roughly, what is the current market value of the property? ~ $725K
-Which city is the property located in? - Markham, ON
-Is the property owner-occupied or a rental? - Owner-occupied
-Who is your current lender? - HSBC
-Do you have a HELOC tied to the mortgage? - No
-Is the mortgage CMHC insured? - No
-When did you buy the property? - March 2014
-When is your renewal date? - March 28, 2020

Lowest offer I have received is 2.84% on a 3 and 5 year fixed.

Looking to see if I can beat that here.

Thank you,
jD.
5 yr fixed term 2.64% full featured 20/20 prepayments

Phil
Phil Cragg
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deepdeepblue wrote: Out of curiosity for the following scenario, based on likely house-hunting later this year:

-What is the purchase price? 1,600,000 (also, does the rate change if it is 1,500,000 or lower?)
-How much is the down payment? 350,000
-Where it the property located? Oakville
-Will the property be owner-occupied or a rental? Owner-occupied
If you had a firm deal in place today rates would be likely in the 2.89% range 5 yr fixed term
Higher rates due to the property value over a million

Phil
Phil Cragg
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hymack wrote: Hello I am looking at renewing my mortgage
-How much is the mortgage owing? $538,000
-Roughly, what is the current market value of the property? $1.3M
-Which city is the property located in? Toronto
-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? No
-When did you buy the property? 2015
-When is your renewal date? May 22 2020

Looking for a fair penalty lender, may need to move in the next 5 years.

Thanks in advance
5 yr fixed 2.64% full featured 20/20 prepayment

Phil
Phil Cragg
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Sep 9, 2006
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rateconnect wrote: 5 yr fixed term 2.64% full featured 20/20 prepayments

Phil

Even if its an uninsured mortgage?

Are there any upfront costs to switch, like legal fee, appraisals et. al?
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
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Jan 31, 2018
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justDeals wrote: Even if its an uninsured mortgage?

Are there any upfront costs to switch, like legal fee, appraisals et. al?
Yes ---2.64% <65% loan to value or lower if previously insured
No cost to switch and typically appraisal is reimbursed on closing
This assumes you are not in a collateral mortgage
Phil Cragg
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hymack wrote: Hello I am looking at renewing my mortgage
-How much is the mortgage owing? $538,000
-Roughly, what is the current market value of the property? $1.3M
-Which city is the property located in? Toronto
-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? No
-When did you buy the property? 2015
-When is your renewal date? May 22 2020
Looking for a fair penalty lender, may need to move in the next 5 years.
Thanks in advance
You can get 2.59% on a 5-year fixed or 2.64% on a 3-year fixed. Both of those are fair penalty deals. Variable at p-1.2% (3 months interest at the contract rate being the penalty). All of these deals would have all costs to switch covered (including discharge).
nickwa wrote: -How much is the mortgage owing? $189,000
-Roughly, what is the current market value of the property? $389,000
-Which city is the property located in? Thunder Bay, ON
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? Meridian
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? 2013
-When is your renewal date? August 2021
Existing mortgage rate is 2.44% with renewal in August 2021.
We are looking to pull equity (80% of appraised value) to finance a house addition/renovation. Meridian can refinance with a draw mortgage that will roll into a 5 year fixed upon work completion, and rate is 3.04%.
We are also trying to find out if its better to go with a HELOC with Motusbank for the addition/renovation, and then combine everything upon renewal in August 2021. This would retain our 2.44% rate on the remaining $189k, and the HELOC (which would be fully utilized) would have a rate of prime - 0.2% + 0.25% (for being second position) = prime + 0.05%.
Can anyone help us calculate which way is best to access the 80% of equity we have right now? Thanks in advance!
You really need to know what the penalty is with Meridian before you can make a completely informed decision. @PaulMeredith is right, Meridian penalties tend to be quite stiff and in all likelihood the penalty will be big enough to offset any savings that you get refinancing. Again though, you can't be sure until you know the exact amount of the penalty. The 3.04% refinance (assuming they waive the break fees) is a pretty good deal and works out to almost the exact effective interest rate for using a Motusbank HELOC.
deepdeepblue wrote: Out of curiosity for the following scenario, based on likely house-hunting later this year:
-What is the purchase price? 1,600,000 (also, does the rate change if it is 1,500,000 or lower?)
-How much is the down payment? 350,000
-Where it the property located? Oakville
-Will the property be owner-occupied or a rental? Owner-occupied
I wouldn't pay more than 2.79% that's being advertised at Motusbank. You may also run into sliding scale issues with a lot of lenders (they only allow 20% up to $1M and then require a bigger downpayment for the purchase price > $1M). Rate delta, generally, will be at the $1M mark but bigger mortgages tend to attract more "discretion" from Big Bank lenders so you may get more love with a bigger mortgage.
justDeals wrote: Looking for mortgage renewal coming up in ~ 60 days.

-How much is the mortgage owing? ~ $400K
-Roughly, what is the current market value of the property? ~ $725K
-Which city is the property located in? - Markham, ON
-Is the property owner-occupied or a rental? - Owner-occupied
-Who is your current lender? - HSBC
-Do you have a HELOC tied to the mortgage? - No
-Is the mortgage CMHC insured? - No
-When did you buy the property? - March 2014
-When is your renewal date? - March 28, 2020
Lowest offer I have received is 2.84% on a 3 and 5 year fixed.
Looking to see if I can beat that here.
There are a number of lenders out there doing 2.59% on a 5-year fixed in your situation. You can get a consumer friendly early prepayment calculation and all fees covered. The coronavirus fears are laying waste to 5-year bond yields and I wouldn't be surprised to see more lenders lowering their rates PDQ.

Good luck all!
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
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Aug 16, 2006
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CdnRealEstateGuy wrote: A big bank can issue a builder mortgage which is a mortgage approval with an extended rate hold period.
Could I approach a big bank directly and get a Mortgage Commitment, then as the closing date approaches, start shopping around for a better rate with other lenders?
If so, any downfall to going about it this way?
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dbreaka wrote: Could I approach a big bank directly and get a Mortgage Commitment, then as the closing date approaches, start shopping around for a better rate with other lenders?
If so, any downfall to going about it this way?
Yes and yes. You can get the builder mortgage/approval/commitment letter to appease the developer and then shop around for better rates once you're within 120 days of closing...no downfalls.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
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CdnRealEstateGuy wrote: Yes and yes. You can get the builder mortgage/approval/commitment letter to appease the developer and then shop around for better rates once you're within 120 days of closing...no downfalls.
Does obtaining this letter of ‘Mortgage Comittment’ from a big bank require a credit check?
Trying to avoid two credit checks, but if it’s unavoidable, then it is what it is.
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ahlaker wrote: You really need to know what the penalty is with Meridian before you can make a completely informed decision. @PaulMeredith is right, Meridian penalties tend to be quite stiff and in all likelihood the penalty will be big enough to offset any savings that you get refinancing. Again though, you can't be sure until you know the exact amount of the penalty. The 3.04% refinance (assuming they waive the break fees) is a pretty good deal and works out to almost the exact effective interest rate for using a Motusbank HELOC.
Meridian said there's no penalty for the refinance, though there is ~$1,500 for appraisal and legal fees. Someone did note that instead of rate + 0.1% for a refinance, they actually offered me rate + 0.15% and that additional 0.05% was likely to make up for the lack of 'penalty'. That could be speculation, I am not sure, but wife and I are both financially sound with great credit scores.

The other thing to consider, and I know it is impossible to know, is whether mortgage rates in August 2021 will be better than 3.04% that I would be entering into for 5 years. 2.44% on existing remaining mortgage + HELOC for 1.5 years would be good if I can roll it all into one regular mortgage at <3.04%.

Lots to consider!!
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dbreaka wrote: Does obtaining this letter of ‘Mortgage Comittment’ from a big bank require a credit check?
Trying to avoid two credit checks, but if it’s unavoidable, then it is what it is.
Yes, a credit check will be required. You cannot get a mortgage approval without having a credit check done unfortunately. It's great that you want to protect your credit, but you really don't need to be overly concerned with having a couple of checks as the impact it has on your score is quite minimal. This is usually only a concern if your credit is on the weak side to begin with. Providing that you have strong credit, there is nothing to be concerned about.

Let's say for example you have a credit score of 750 and the credit check drops you to 746. The result is meaningless. I'm not saying that this is the amount that it will drop, but it's a reasonable estimate. Everyone is a little different as the credit reporting agencies have an algorithm for calculating the exact amount of the drop. Regardless, only 10% of your credit score is affected by credit checks. Your score will tend to fluctuate as it is. For example, you could have one credit check done, then have another a month later and your score could potentially be higher the next time it's pulled.

Hope you find this helpful :)

Paul
Paul Meredith
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Mortgage owed - 370K
Current market value - $675K
Location - North York / Toronto, Ontario
Owner-occupied or rental - Owner occupied
Current lender - MCAP
HELOC - No, but want to add
CMHC insured - Yes
Year bought - 2015
Renewal date - April 24, 2020
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Looking for a 5-year fixed rate quote based on the following. Thank you in advance to all the helpful Brokers on this amazing thread!

For a purchase of a property:
- What is the purchase price? ($1,395,000)
- How much is the down payment? ($400,000)
- Where it the property located? (Toronto, Ontario)
- When is the closing date? (April 30, 2020)
- Will the property be owner-occupied or a rental? (Owner-occupied)

Thanks again!
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hozer wrote: Mortgage owed - 370K
Current market value - $675K
Location - North York / Toronto, Ontario
Owner-occupied or rental - Owner occupied
Current lender - MCAP
HELOC - No, but want to add
CMHC insured - Yes
Year bought - 2015
Renewal date - April 24, 2020
Thanks for the info! Lowest 5 year fixed for your situation would be 2.49%. If you wanted to add a HELOC, then this would be considered a refinance, therefore rate would be higher. What i'd suggest doing is switching the current balance to the 2.49%, and then adding the HELOC with a different lender after closing. This way, you can take advantage of the lower rate.
Paul Meredith
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nickwa wrote: Meridian said there's no penalty for the refinance, though there is ~$1,500 for appraisal and legal fees. Someone did note that instead of rate + 0.1% for a refinance, they actually offered me rate + 0.15% and that additional 0.05% was likely to make up for the lack of 'penalty'. That could be speculation, I am not sure, but wife and I are both financially sound with great credit scores.

The other thing to consider, and I know it is impossible to know, is whether mortgage rates in August 2021 will be better than 3.04% that I would be entering into for 5 years. 2.44% on existing remaining mortgage + HELOC for 1.5 years would be good if I can roll it all into one regular mortgage at <3.04%.

Lots to consider!!
Yes, that definitely needs to be considered as well. Without looking at future rates, it makes sense for you to keep the mortgage intact and add the HELOC with Motus, as mentioned. At the end of 1.5 years when your mortgage matures, you're pretty close to breaking even. Once you add in the $1,500 legal and appraisal fees, you're behind.

The question is, where will rates be in 1.5 years? No one can say this for sure. It's likely that rates will be at low levels for years to come, however no one can be certain what will happen. There is really not that big of a difference between the 3.04% and 2.89% if you wanted to switch to a different lender. By your renewal date, rates could be 2.50% or they could be 4%. So the question is, how much risk are you willing to take? If you are concerned about where rates might be next summer, then you may want to consider the 3.04%. It's unlikely the difference between 3.04% and 2.89% will be enough to offset the penalty, but the only way to know for sure is if you contact Meridian to find out what your penalty will be.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)

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