I know it doesn't seem to make a lot of sense, but homes with a purchase price over $1 million will not qualify for the lowest rates unfortunately, regardless of how much you have for down payment. The reasoning is that lenders are unable to securitize the loan when the property is valued at over $1 million (meaning, break it up into smaller pieces or bundle whole mortgages together and then sell them off as mortgage backed securities, or MBS). The lenders ability to do this reduces the cost of funds to that lender, which is a savings they can pass on to the borrower in the form of a lower rate. This is why rates on properties valued at over $1 million are generally higher.SerenityNow168 wrote: ↑ Location: Greater Vancouver area
Looking to borrow: $1.05M
Able to put 20% down
What's the best 5 year fixed rate currently?
Working with a broker and was quoted 2.99% as the best. Was advised that anything lower would be for insured mortgages or special situations like >35% down.
How are people able to get 2.65% on the standard 20% down?
If the purchase price was under $1 million, you be able to get 2.65%. In your situation, the lowest rate would not be that much more, and would fall between 2.69% - 2.79%. Note that most brokers will offer higher rates than these, and your current broker may not even have access to the rates the brokers on this board have. The brokers on this board are willing to receive much lower compensation in order to bring you these lower rates.
Hope this explains.
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)