Real Estate

The Official Mortgage Rates Thread

Deal Fanatic
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Feb 2, 2014
7768 posts
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Toronto
shamfu wrote: Hi, I would be grateful for mortgage details for my upcoming purchase below.

Here is my information:
What is the purchase price? $375,500
How much is the down payment? 20% ($75,100)
Where it the property located? Hamilton, ON
When is the closing date? April 30, 2020
Will the property be owner-occupied or a rental? Primary and Owner Occupied.

Looking 5-year fixed rate or 5-year Variable rate.
2.65% 5-year fixed and Prime -1.05% (currently 2.90%) 5-year variable are the best rates with 20% down.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Jun 3, 2018
77 posts
104 upvotes
Looking for rates for new mortgage.

-What is the purchase price? - $625K
-How much is the down payment? - 20%
-Where it the property located? - Brampton
-When is the closing date? - Late April
-Will the property be owner-occupied or a rental? - Owner occupied
Property taxes? - Approx $4000

Looking for rates for 2/3/4/5 year fixed terms and possibly a lender with lower penalty if I decide to sell.
Newbie
Mar 25, 2010
66 posts
60 upvotes
Québec
-What is the purchase price?
350 000$
-How much is the down payment?
10%, 35 000$
-Where it the property located?
Sainte-Thérèse, QC. (North shore of Montreal)
-When is the closing date?
Late May
-Will the property be owner-occupied or a rental?
Owner-occupied

add. misc info:
household income: ~135k
credit scores: ~770

Fixed 5yrs please.
Deal Fanatic
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Sep 13, 2011
5275 posts
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Toronto
astute12 wrote: Looking for rates for new mortgage.

-What is the purchase price? - $625K
-How much is the down payment? - 20%
-Where it the property located? - Brampton
-When is the closing date? - Late April
-Will the property be owner-occupied or a rental? - Owner occupied
Property taxes? - Approx $4000

Looking for rates for 2/3/4/5 year fixed terms and possibly a lender with lower penalty if I decide to sell.
Thanks for the info! The lowest 5 year fixed rate for your situation is 2.65%. This is a fully featured mortgage with a fair penalty lender. Shorter term rates are quite a bit higher unfortunately.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
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Sep 19, 2012
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Calgary
shamfu wrote: Hi, I would be grateful for mortgage details for my upcoming purchase below.
Here is my information:
What is the purchase price? $375,500
How much is the down payment? 20% ($75,100)
Where it the property located? Hamilton, ON
When is the closing date? April 30, 2020
Will the property be owner-occupied or a rental? Primary and Owner Occupied.
Looking 5-year fixed rate or 5-year Variable rate.
I see 5-year fixed rates as low as 2.59%. The mortgage would have 20/20 prepayment privileges, no bonafide sales clause and a consumer friendly prepayment penalty (ie: it's "full featured"). Variable rates seem to be at p-1.15% (with certain MCAP brokers on their Value Flex).
astute12 wrote: Looking for rates for new mortgage.
-What is the purchase price? - $625K
-How much is the down payment? - 20%
-Where it the property located? - Brampton
-When is the closing date? - Late April
-Will the property be owner-occupied or a rental? - Owner occupied
Property taxes? - Approx $4000
Looking for rates for 2/3/4/5 year fixed terms and possibly a lender with lower penalty if I decide to sell.
Here's what I see: Tangerine at 2.59% and 2.64% for 2 and 3 years. 4 years looks like TD is best at 2.69%. 5-year fixed as low as 2.59%. The Tangerine mortgage would have 25/25 prepayment privileges, no bonafide sales clause and a consumer friendly prepayment penalty (ie: it's "full featured"). Same thing with the last one at 2.59% (except it's got 20/20 prepayment). TD is the worst option of the lot as it's got a pretty stiff prepayment penalty to terminate early.
ShinConker wrote: -What is the purchase price? 350 000$ -
How much is the down payment? 10%, 35 000$
-Where it the property located? Sainte-Thérèse, QC. (North shore of Montreal)
-When is the closing date? Late May
-Will the property be owner-occupied or a rental? Owner-occupied
add. misc info: household income: ~135k credit scores: ~770
Fixed 5yrs please.
From what I can see as low as 2.44% with select MCAP brokers (bonafide sales clause in this deal, so there is a restriction) and 2.49% with HSBC (restricted in a sense that the penalty to break the mortgage early is pretty harsh).
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Newbie
Aug 13, 2009
5 posts
6 upvotes
Thornhill
Hi, I would be grateful for mortgage details for my upcoming purchase below. I am in the market to find a rental property and would like to buy 3-5 properties in the next 3-5 years in places like Waterloo, Kitchener, Windsor, Kingston and I want to explore my options.

Here is my information:
What is the purchase price? Less than 1 million
How much is the down payment? 20%
Where it the property located? As mentioned above.
When is the closing date? Flexible
Will the property be owner-occupied or a rental? Rental. This would be a buy and hold property and with a mortgage rate of <5% it would be cash positive.
This is going to be an investment property. My wife and I run a specialized business for the last 10 years and we have a holding company that will own the property. My credit score per credit Karma is: 877.
House hold income is ~$100K but the net income of the cooperation is $500K-600K. Most of our income remains in the cooperation.
Current house hold net worth is: The holding company owns the clinic and we own our house: $2.5 Mil
Looking 5-year fixed rate and amortization of more than 20 years.
Thank you!
Deal Addict
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Jan 31, 2018
1766 posts
337 upvotes
ShinConker wrote: -What is the purchase price?
350 000$
-How much is the down payment?
10%, 35 000$
-Where it the property located?
Sainte-Thérèse, QC. (North shore of Montreal)
-When is the closing date?
Late May
-Will the property be owner-occupied or a rental?
Owner-occupied

add. misc info:
household income: ~135k
credit scores: ~770

Fixed 5yrs please.
Best rate for Quebec is 2.44% with the bonafide sales clause

20/20 prepayments

2.54% for a full featured product

5 yr fixed terms

Good Luck

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
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Jan 31, 2018
1766 posts
337 upvotes
shamfu wrote: Hi, I would be grateful for mortgage details for my upcoming purchase below.

Here is my information:
What is the purchase price? $375,500
How much is the down payment? 20% ($75,100)
Where it the property located? Hamilton, ON
When is the closing date? April 30, 2020
Will the property be owner-occupied or a rental? Primary and Owner Occupied.

Looking 5-year fixed rate or 5-year Variable rate.
Best rates below

2.65% 5 yr fixed full featured
Prime - 1.10 or 2.85% 5 yr variable

Both full featured
20/20 prepayments

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Deal Addict
User avatar
Jan 31, 2018
1766 posts
337 upvotes
astute12 wrote: Looking for rates for new mortgage.

-What is the purchase price? - $625K
-How much is the down payment? - 20%
-Where it the property located? - Brampton
-When is the closing date? - Late April
-Will the property be owner-occupied or a rental? - Owner occupied
Property taxes? - Approx $4000

Looking for rates for 2/3/4/5 year fixed terms and possibly a lender with lower penalty if I decide to sell.
5 yr fixed 2.65% full featured 20/20 prepayments

Short term rates are priced higher

Regular penalty if you were to break

Variable prime - 1.10% or 2.85% with 3 months penalty

Good luck

Phil
Phil Cragg
Mortgage Broker
Mortgage Outlet Inc Broker License #12628
Newbie
Feb 15, 2020
6 posts
Hi everyone, thanks to those who have responded to my previous post with rates and PMs. I wanted to clarify, I see multiple references to "full featured" or "standard" mortgages. What features do these refer to specifically (or generally)?
Newbie
Feb 25, 2020
1 posts
Hi everyone,

my wife and I are looking at purchasing our first home in Toronto this year. Should we get a preapproval before shopping around? If so, is it better to get preapproval at the bank or from a broker here? Could a broker here provide us with a preapproval? Thank you in advance to all the helpful Brokers!
Banned
Sep 19, 2012
1253 posts
1859 upvotes
Calgary
ramanathshenoy86 wrote: Area: Kitchener
Price: 740K
Mortgage: 550K
XMC - 2.42% via intelligmortgage
Is XMC reliable good?
Yep yep! Perfectly fine lender. That rate is downright unbeatable and I’d take it!!
ckininec wrote: Hi everyone, thanks to those who have responded to my previous post with rates and PMs. I wanted to clarify, I see multiple references to "full featured" or "standard" mortgages. What features do these refer to specifically (or generally)?
I can’t speak for anyone else got to me a “full featured” mortgage is one that:
  • has no bonafide sales clause
  • has a consumer friendly early termination penalty
  • has 20/20 (at least) prepayment privileges.
  • has porting features (increase, decrease, straight) within 30 days.
  • has an online banking/portal platform (ya I know, we live in the 21st century and some lenders need you to call in an early prepayment!)
IMO each of those features has value: the only question is what are they worth to each individual borrower.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Newbie
Feb 15, 2020
6 posts
ahlaker wrote: Yep yep! Perfectly fine lender. That rate is downright unbeatable and I’d take it!!



I can’t speak for anyone else got to me a “full featured” mortgage is one that:
  • has no bonafide sales clause
  • has a consumer friendly early termination penalty
  • has 20/20 (at least) prepayment privileges.
  • has porting features (increase, decrease, straight) within 30 days.
  • has an online banking/portal platform (ya I know, we live in the 21st century and some lenders need you to call in an early prepayment!)
IMO each of those features has value: the only question is what are they worth to each individual borrower.
Thanks for that summary, very helpful! Anyone else like to share their opinion?
What would be considered a good or bad termination penalty? I don't really have a reference point for this value.
Banned
Sep 19, 2012
1253 posts
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Calgary
ckininec wrote: Thanks for that summary, very helpful! Anyone else like to share their opinion?
What would be considered a good or bad termination penalty? I don't really have a reference point for this value.
Read a great summary here:
https://www.ratespy.com/fair-penalty-le ... s-05109252

TL;DR: if you’re worried about breaking your mortgage early: stay away from the big banks, some credit unions) and those loans from lenders that charge 2.5%-3% of the mortgage balance as a penalty.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
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Feb 2, 2014
7768 posts
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Toronto
ckininec wrote: Thanks for that summary, very helpful! Anyone else like to share their opinion?
What would be considered a good or bad termination penalty? I don't really have a reference point for this value.
Basically comes down to 2 things:

1-Banks and credit unions who take in account the “discount” from the posted rate you received when calculating the IRD penalty...this makes the IRD penalty much higher vs FAIR PENALTY LENDERS (ie monoline lenders).

2-Promo products that take 2.75% or 3% of the balance for the penalty calc.

Try to take a fair penalty lender without the crazy 2.75%. or 3% penalty assuming the rates are equal.

Now, if you’re in your final home and it’s high unlikely you will break, then perhaps a higher penalty is worth paying a lower rate if available. Speaking as a broker who’s financed a ton of deals, it really is a case by case basis depending on your personal circumstance.
Last edited by CdnRealEstateGuy on Feb 27th, 2020 12:28 am, edited 2 times in total.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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