Real Estate

The Official Mortgage Rates Thread

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Feb 2, 2014
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Toronto
Acheewawa wrote: Acheewawa wrote: ↑
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!



I currently have a 30 year AM, but it was a 2-year term ending in June. I'd like to renew it into a 30 year AM if there aren't additional fees, or at the very least, a 28 year AM.

3 rentals, plus 1 owner occupied. Thanks!!
If you increase the amortization to 30 years, it will be refinance and you will have to pay extra fees.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Oct 8, 2008
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Ontario
So is the usual process to get preapproved as a back up plan, put in an offer, then apply for a specific rate once the offer contingent on financing is in? Does it cost anything to go to a broker to get pre approved?
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Mar 12, 2006
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New Home Purchase

-What is the purchase price? 370, 000

-How much is the down payment? 75,000

-Where it the property located? Smithers, bc

-When is the closing date? March

-Will the property be owner-occupied or a rental? Owner-occupied

Thanks
Newbie
Feb 17, 2020
2 posts
1 upvote
Looking for mortgage quote for a five year fixed

- What is the purchase price? - 1,400,000
- How much is the down payment? - 400,000
- Where it the property located? - Vancouver, BC
- When is the closing date? - March 15th
- Will the property be owner-occupied or a rental? - Owner occupied

Interested in 25 year amortization offers for five year rate. Big 5 bank currently offering 2.79% for 25 with 15/15 prepayments.
Deal Fanatic
Nov 24, 2013
6142 posts
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Kingston, ON
c229chen wrote: Current variable rate is Prime -0.8% = 3.3%

I’m wondering whether I could refinance for more, say 100k + 250k + 200k (mortgage balance on my owner occupied property which has a maturity date of Apr 1, 2020). The reason for doing this is because mortgage interest can offset rental income to save tax.

I have attached images of my 2 mortgage statements. I’d like to know the cost/benefit of 2 situations:

1) Owner occupied property continue to amortize the remaining $200k balance. Rental property refinance for 100k + 250k

2) Refinance rental property for 100k + 250k + 200k. Pay off the 200k balance on the owner occupied property at maturity.
Not to derail the thread, but what a broker can help you refinance is a separate question from what you can deduct as interest expense against rental income. You can’t refinance for more money for personal use and deduct it just because it’s secured against the rental property.

If you’re borrowing to put the money back into the rental property (new windows, roof, etc) that’s one thing, but not to pay off your primary residence.
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Sep 19, 2012
1253 posts
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Calgary
shaolin_x wrote: Once you formally signed the paperwork for a given mortgage and it's respective interest rate (wether it's with a bank, credit union, broker etc) and say hypothetically rates drop a week or month later. Are you stuck with the intrest rate you signed up to or can you insist on getting the lower rate? If so, is there a financial penalty involved? What advice would you give regarding when to put the trigger?
Some brokerages charges a penalty if you don't go with the commitment they've issued. Be careful and make sure you read the agreement with your broker. Also, not all lenders offer "float downs" so if the same lenders rates drop in the interim you may not be able to get the better rate. Ideally you have a broker with access to a few of the cheap lenders so that you can take advantage of moves at different lenders. For example, I did a deal with an RFDer where they were originally with Think Financial but then switched over to XMC once rates dropped. I think the gents in this thread all have access to more than one "cheap" lender so they can all help in that way!

esaul17 wrote: So is the usual process to get preapproved as a back up plan, put in an offer, then apply for a specific rate once the offer contingent on financing is in? Does it cost anything to go to a broker to get pre approved?
Typically yes. Preapproval really isn't worth the paper it's printed on though. A lender doesn't need to honour that preapproval (perhaps they don't like the property you ultimately bought). When I bought my house I didn't bother with preapproval. It all depends on your risk tolerance. Theoretically the preapproval gives you some comfort that you can get the amount of loan you're looking for (doesn't mean you can get a loan for the property you end up buying or for the rate you want). Also - no direct fees involved in working with a broker. That said, remember that brokers get paid a commission based on the interest rate they sell you. No such thing as a free lunch right? Some brokers won't "buy down" the rate as much as others so ultimately you're paying something to them (ie: higher interest rate).
arsenaltown41 wrote: Looking for mortgage quote for a five year fixed
- What is the purchase price? - 1,400,000
- How much is the down payment? - 400,000
- Where it the property located? - Vancouver, BC
- When is the closing date? - March 15th
- Will the property be owner-occupied or a rental? - Owner occupied

Interested in 25 year amortization offers for five year rate. Big 5 bank currently offering 2.79% for 25 with 15/15 prepayments.
That's not terrible. You can get 2.74% with the broker channel but the big banks are going to be most competitive on > $1M purchases. Try the other banks (RBC, BMO, CIBC, HSBC) - I've seen CIBC offer 2.69% on a $1Million mortgage on a purchase to 80% (they agreed to cover legals and appraisal).
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Member
Apr 9, 2015
239 posts
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Mike15 wrote: Not to derail the thread, but what a broker can help you refinance is a separate question from what you can deduct as interest expense against rental income. You can’t refinance for more money for personal use and deduct it just because it’s secured against the rental property.

If you’re borrowing to put the money back into the rental property (new windows, roof, etc) that’s one thing, but not to pay off your primary residence.
I have rephrased my post, my question is more on my ability to refinance and at what rate, not so much on the tax side. I don’t know much about refinance that’s why I’d like to be educated first.
Newbie
Jun 10, 2008
15 posts
1 upvote
Have a question regarding porting and blended mortgage.

About to renew the current mortgage with MCAP (2.54% 5yrs standard fixed, 250k remaining on 500k house value).
However, have a plan to move in a year or 2 (selling the house and buy a new).
The new house will be higher price, so need another 250K top up.
Believe the MCAP standard mortgage is portable.

In my case, do I need to get a blended mortgage (of course assuming approved by MCAP) from the current lender only? I know in this case I cannot get the competitive rate for the topup from the lender.
To get the best rate, can I get a fresh new mortgage from other lender and break the current with penalty?
or can I get the top-up portion only with another lender so keep 2 mortgage on a single house?
Not sure how porting mortgage works though.
Sr. Member
Feb 11, 2013
716 posts
73 upvotes
BC
Can anyone comment on CanWise Financial?

I'm offered 2.65% variable which is the lowest i've seen. It almost makes me suspicious. I called to confirm details such as cancellation fees, structure of the loan, hidden costs, etc and nothing stood out. Google also has crazy good reviews.

Would love to hear from those that have gone with or avoided Canwise.

Thanks!
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Sep 13, 2011
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Toronto
icansteve wrote: Have a question regarding porting and blended mortgage.

About to renew the current mortgage with MCAP (2.54% 5yrs standard fixed, 250k remaining on 500k house value).
However, have a plan to move in a year or 2 (selling the house and buy a new).
The new house will be higher price, so need another 250K top up.
Believe the MCAP standard mortgage is portable.

In my case, do I need to get a blended mortgage (of course assuming approved by MCAP) from the current lender only? I know in this case I cannot get the competitive rate for the topup from the lender.
To get the best rate, can I get a fresh new mortgage from other lender and break the current with penalty?
or can I get the top-up portion only with another lender so keep 2 mortgage on a single house?
Not sure how porting mortgage works though.
When porting your mortgage, any top up required would have to be with the same lender. You cannot port your mortgage with one lender, and get the top up with another for example. Porting is not always the best option, and often it makes more sense to break the mortgage, pay the penalty, and get a fresh mortgage with a different lender. It really comes down to where rates are at the time, the blended rate you're being offered, and the penalty to break the current mortgage. I would not expect a deal if you are porting your mortgage, which is why it usually makes sense to break it and pay the penalty. Again, it really depends on each individual situation at the time you need to do the port.
Paul Meredith
Mortgage Broker, Author
(lic. 10532)
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Sep 13, 2011
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Pursuit2013 wrote: Can anyone comment on CanWise Financial?

I'm offered 2.65% variable which is the lowest i've seen. It almost makes me suspicious. I called to confirm details such as cancellation fees, structure of the loan, hidden costs, etc and nothing stood out. Google also has crazy good reviews.

Would love to hear from those that have gone with or avoided Canwise.

Thanks!
Canwise is a mortgage brokerage, not the lender. They are definitely reputable, but they are not the ones lending you the money. You can also get the same rate from any regular posting broker on this board.
Paul Meredith
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Jun 15, 2015
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Edmonton, AB
I need some advice and I'm late on asking it;

Existing house A, to be a rental after:
Assesment worth? - 600k
Remaining mortgage? - 220k
Current Loan details? TD fixed, 2.69, 6 months left

New House B;
What is the purchase price? - 770000
- How much is the down payment? - 20% using refinancing from existing house.
- Where it the property located? - BC
- When is the closing date? - March 10
- Will the property be owner-occupied or a rental? - Owner occupied

Our Broker has suggested paying off remaining TD mortgage and doing two new with Scotia. Using house A to finance house B down payment.

Rates said;

House A, 5 year fixed 3.36% ( saying it's higher because of dedicated.rental house)

House B, 20% down, 5 year fixed 3.14%

These rates seem...high?
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Sep 13, 2011
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FIREfly83393 wrote: I need some advice and I'm late on asking it;

Existing house A, to be a rental after:
Assesment worth? - 600k
Remaining mortgage? - 220k
Current Loan details? TD fixed, 2.69, 6 months left

New House B;
What is the purchase price? - 770000
- How much is the down payment? - 20% using refinancing from existing house.
- Where it the property located? - BC
- When is the closing date? - March 10
- Will the property be owner-occupied or a rental? - Owner occupied

Our Broker has suggested paying off remaining TD mortgage and doing two new with Scotia. Using house A to finance house B down payment.

Rates said;

House A, 5 year fixed 3.36% ( saying it's higher because of dedicated.rental house)

House B, 20% down, 5 year fixed 3.14%

These rates seem...high?
Yes, the rates you are being quoted are crazy high. If you were to refinance the rental, the lowest 5 year fixed is currently 2.89%. On the new purchase, the lowest 5 year fixed rate would be 2.65%.

Closing is starting to get tight, so I would suggest you get started on getting your financing in order ASAP to ensure there is enough time to get everything done in time for closing.
Paul Meredith
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Jun 15, 2015
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Edmonton, AB
Thank you for your prompt reply I really appreciate it .

I'll be speaking with him tomorrow to quote the rates your mentioned.

Does it matter that the house we are in now isn't a rental?

Basically he's saying Pay off our existing mortgage, and pull two new ones. The new house at 3.14%

And the house that we are currently living, turned into rental becomes 3.34% - saying that because it's a rental the rate is higher.

Before constructing a phone call I'd just like some more information to quote. He should be able to reach these rates I see on here or Ratespy, etc. Anything above 3.00%on a fixed 5 year it raised my alarms.
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Sep 13, 2011
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FIREfly83393 wrote: Thank you for your prompt reply I really appreciate it .

I'll be speaking with him tomorrow to quote the rates your mentioned.

Does it matter that the house we are in now isn't a rental?

Basically he's saying Pay off our existing mortgage, and pull two new ones. The new house at 3.14%

And the house that we are currently living, turned into rental becomes 3.34% - saying that because it's a rental the rate is higher.

Before constructing a phone call I'd just like some more information to quote. He should be able to reach these rates I see on here or Ratespy, etc. Anything above 3.00%on a fixed 5 year it raised my alarms.
My pleasure! It doesn't matter if it's not a rental at this moment. The purpose of the refinance is to source your down payment on a new owner occupied property, so it needs to be refinanced as a rental. The rates he is quoting you are ridiculous and there are many lenders who will come in lower than those rates on a rental property. Yes, they are higher for a rental. But not 3.34% higher. Thats crazy. Assuming everything qualifies on credit and income of course.

You should be able to get the rates that we're quoting you on this board. These should be similar to what you see on the rate sites. Keep in mind that each quote is specific for a purpose, which is why you'll see some quotes on here (and on the sites) for 2.44%, 2.49%... etc. With 20% down, the lowest is 2.65% for an owner occupied property. Note that not all brokers will be able to access this rate.
Paul Meredith
Mortgage Broker, Author
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