Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
User avatar
Feb 2, 2014
7775 posts
2157 upvotes
Toronto
snakkeyez wrote: Looking for a mortgage refinance:

-Roughly, what is the current market value of the property?
$610,000

-What is the current mortgage owing?
$188,000 (currently with TD Canada Trust. Mortgage mature April 1, 2021)

-How much do you want to borrow (refinance)?
$188,000 + $100,000 = $288,000
-Is the property owner-occupied or a rental?
Owner occupied
-Where is the property located?
St THOMAS, ON

-When do you want to close on the refinance?
June 2020

TD has offered me 3.01% to refinance with them The penalty to break my current mortgage would be roughly $1650. Just wondering if it would be worth while to switch lender or stay with TD once penalties are factored in? Thanks in advance
Try to get them lower if you can. They can do better than 3.01%.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Jan 17, 2019
70 posts
52 upvotes
CdnRealEstateGuy wrote: No, lending value is based on the LOWER of the purchase price or appraised value....unless you want to go for a pricey private loan.
So then would the only option be to get the mortgage at the purchase price, then refinance the property shortly after?
Jr. Member
Nov 24, 2019
151 posts
294 upvotes
Saskatoon
CdnRealEstateGuy wrote:
However, you need to have an accepted offer before you can get an approval for these rates.
So I'm in a similar boat to esaul17, being new to all this. You say you need an accepted offer before you can get those rates, is there a process to be fairly sure I can get those rates before making an offer? I don't really understand the thought of agreeing to buy a house before knowing if/how much I can get a mortgage for.

-What is the purchase price? $300-350k
-How much is the down payment? Up to 25%
-Where it the property located? Outlook, SK
-When is the closing date? Summer 2020
-Will the property be owner-occupied or a rental? Owner Occupied
Deal Fanatic
User avatar
Sep 13, 2011
5279 posts
2268 upvotes
Toronto
tedsel wrote: Mortgage quote for five year fixed and ten year as well SVP.
- What is the purchase price? - 999,000
- How much is the down payment? - 200,000 (can go to 30% if it saves on rate)
- Where it the property located? - Ottawa, Ont
- When is the closing date? - May 1st
- Will the property be owner-occupied or a rental? - Owner occupied
- More info: Combined income with spouse is $250k verifiable thru pay statements and tax records
- House originally built in 1800s
- Credit score is 800+
- One car loan at $500 month for next three years..
- Irrevocable Sale Date - 20 Feb 20

Interested in 25/30 year amortization offers for five year rate and 25 yr amortization for 10 year rate. Big 5 bank currently offering 2.69% for 25 and 2.74% for 30 yr with 20/20 prepayments.
The lowest 5 year fixed with a 20% down payment is 2.65%, with 25% down, the rate drops to 2.49%. The rate will not get lower with additional down payment over 25%. This would be for a max 25 year amortization. With 30 years, the lowest is 2.79% at the moment.

I would stay away from 10 year rates. Statistically speaking, odds are you will break your mortgage before the end of 5 years, let alone 10. 10 years is a LONG time to be locked in for the same mortgage. Circumstances change and sometimes life throws you curveballs.

You'll also want to pay very close to the terms and conditions on a mortgage of this size, especially on the penalty to break the mortgage early. The big banks have the harshest penalties to break a fixed rate mortgage, which can be up to 500% higher than most of the non-bank lenders. This could mean the difference between a $5,000 penalty and a $25,000 penalty. I'm not saying that these will be your penalties, but just wanted to give you an idea of how big the difference can be. All the rates quoted are with fair penalties lenders.

Here are some articles on big bank penalties:

https://www.theglobeandmail.com/investi ... r-penalty/

https://www.ratespy.com/fair-penalty-le ... s-05109252

https://www.theglobeandmail.com/investi ... l_U05HPbp0

http://www.theglobeandmail.com/…/the-hi ... e15774375/

http://www.cbc.ca/…/customer-fee-to-pay ... age-double

http://canadamortgagenews.ca/…/mortgage ... s-exposed-…/

http://www.cbc.ca/…/td-bank-client-deva ... 17-000-mor

http://www.canadianmortgagetrends.com/… ... ion-lawsui

Hope you find this helpful.

Paul
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Oct 13, 2011
26 posts
1 upvote
KITCHENER
Looking to renew with five year fixed.

-How much is the mortgage owing? 204K
-Roughly, what is the current market value of the property? 900K
-Which city is the property located in? Kitchener, 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 - 52K
-Is the mortgage CMHC insured? No
-When did you buy the property? Dec, 2010
-When is your renewal date? July 07, 2020

Thanks,

BigK75
Banned
Sep 19, 2012
1253 posts
1860 upvotes
Calgary
SaskCanesFan wrote: So I'm in a similar boat to esaul17, being new to all this. You say you need an accepted offer before you can get those rates, is there a process to be fairly sure I can get those rates before making an offer? I don't really understand the thought of agreeing to buy a house before knowing if/how much I can get a mortgage for.
You can still get an accepted offer that is conditional on you getting financing. Give yourself 10 business days (or whatever) to get financing arranged. A quick and dirty calculation to solve for your max(ish) loan is taking your provable income (greatest of: income per job letter, average of 2 years of T4s, or last year T4) and multiplying by 4.5. If you really don't feel comfortable reach out to a broker or banker and they'll give you a bit more comfort.
PaulMeredith wrote: The lowest 5 year fixed with a 20% down payment is 2.65%, with 25% down, the rate drops to 2.49%. The rate will not get lower with additional down payment over 25%.
That's not true for all lenders. It's true for XMC (and that's who people are quoting most of the time). In @tedsel's case, if the down payment is 45% (for example), there are lenders with interest rates as low as 2.44% for a 5-year fixed.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Deal Fanatic
User avatar
Feb 2, 2014
7775 posts
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Toronto
Rocket899 wrote: So then would the only option be to get the mortgage at the purchase price, then refinance the property shortly after?
Keep in mind:

1-You can only refinance up to 80% of the appraised value.

2-There will be a penalty if you break and refinance, assuming you get a closed mortgage.

3-Some lenders won’t allow you to refinance with them right away.
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
7775 posts
2157 upvotes
Toronto
SaskCanesFan wrote: So I'm in a similar boat to esaul17, being new to all this. You say you need an accepted offer before you can get those rates, is there a process to be fairly sure I can get those rates before making an offer? I don't really understand the thought of agreeing to buy a house before knowing if/how much I can get a mortgage for.

-What is the purchase price? $300-350k
-How much is the down payment? Up to 25%
-Where it the property located? Outlook, SK
-When is the closing date? Summer 2020
-Will the property be owner-occupied or a rental? Owner Occupied
You’re asking different questions here.

Is there a way to get those rates before having an accepted offer...no.

Is there a way to know how much you can qualify for before putting an offer...yes, you can get pre-approved for a mortgage.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Nov 24, 2006
315 posts
120 upvotes
london
CdnRealEstateGuy wrote:
Try to get them lower if you can. They can do better than 3.01%.
Can any brokers on this forum do better then 3.01% refinance?
Sr. Member
Jul 22, 2015
557 posts
166 upvotes
Ontario
CdnRealEstateGuy wrote: No, lending value is based on the LOWER of the purchase price or appraised value....unless you want to go for a pricey private loan.
I never knew this. Could you get a 6 month or 1 year mortgage and at the end of the term, do a refinance at the new market value?
Sr. Member
Jul 22, 2015
557 posts
166 upvotes
Ontario
I'm looking to renew either into a 2 year or 5 year term or whatever gives me the best rate.

-How much is the mortgage owing? It will be approx $215,000
-Roughly, what is the current market value of the property? $340,000
-Which city is the property located in? Kitchener, ON
-Is the property owner-occupied or a rental? Rental
-Who is your current lender? RBC
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? March 2018
-When is your renewal date? June 2020

We also have great credit and multiple rentals and prefer 30 year AM.

Thanks!
Newbie
Feb 4, 2014
45 posts
5 upvotes
I'm looking to renew a 5 year fixed term.

-How much is the mortgage owing? It will be approx $269,000
-Roughly, what is the current market value of the property? approx $575,000
-Which city is the property located in? Halifax, NS
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? RMG
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? March 2018
-When is your renewal date? May 2020

Thanks!
Member
Jul 27, 2014
341 posts
196 upvotes
Montreal, QC
ahlaker wrote:
You could get as low as 2.49% on MCAPs Value Flex (it has a bonafide sales clause). This would be a 5-year fixed. Lender wouldn't cover legal fees since you're in a RBC collateral charge, but you may be able to find a broker that'll throw in cash back to cover that cost.
I don't think my mortgage is collatoral, it's listed as Mortgage Loan - Conventional.
It's in the RBC homeline plan.

https://www.rbcroyalbank.com/mortgages/ ... -plan.html

I'm pretty sure we are free to go wherever once our 4 year term is up at the end of May.
Deal Addict
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Jan 31, 2018
1778 posts
338 upvotes
tedsel wrote: Mortgage quote for five year fixed and ten year as well SVP.
- What is the purchase price? - 999,000
- How much is the down payment? - 200,000 (can go to 30% if it saves on rate)
- Where it the property located? - Ottawa, Ont
- When is the closing date? - May 1st
- Will the property be owner-occupied or a rental? - Owner occupied
- More info: Combined income with spouse is $250k verifiable thru pay statements and tax records
- House originally built in 1800s
- Credit score is 800+
- One car loan at $500 month for next three years..
- Irrevocable Sale Date - 20 Feb 20

Interested in 25/30 year amortization offers for five year rate and 25 yr amortization for 10 year rate. Big 5 bank currently offering 2.69% for 25 and 2.74% for 30 yr with 20/20 prepayments.
You can get full featured products with 20/20 prepayments at the below rates

25 yr 2.65%

30 yr 2.74%

Reach out to any of the brokers on the forum to assist

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Jan 31, 2018
1778 posts
338 upvotes
BigK75 wrote: Looking to renew with five year fixed.

-How much is the mortgage owing? 204K
-Roughly, what is the current market value of the property? 900K
-Which city is the property located in? Kitchener, 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 - 52K
-Is the mortgage CMHC insured? No
-When did you buy the property? Dec, 2010
-When is your renewal date? July 07, 2020

Thanks,

BigK75
Best rate on a collateral switch is 2.54% for 5 yrs

Full featured costs covered to move over

20/20 prepayments

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

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