Real Estate

The Official Mortgage Rates Thread

Member
Dec 27, 2017
268 posts
82 upvotes
highway11 wrote: The variable looks very attractive - as long as rates don't blast back up at the end of the year as all the stimulus takes effect and restrictions end. That's where fixed still look decent/

Any opinions?
Except this time around, the hurt may hurt much longer and be more dire than 2008. So, I don't see the restrictions ending soon unless a magic vaccine shows up.

So, prices may go up, but growth will not.
I expect stagflation, which should keep policy rates low.
Jr. Member
Jan 20, 2019
105 posts
190 upvotes
Ajax, ON
Experts,
I am working to refinance current mortgage within same bank using blending rate option as prepayment penalty is high.
FA is not that smart and need to understand blending rate options.
If anyone could explain how 'Blend and extend' and 'blend to term' would work for below situation. Thank you.

Remaining Mortgage : 470,000
Total Term : 4 yrs
Remaining Term : 39 Months
Mortgage Rate : 2.79 for 4 yrs fixed
Current Available Rate: 2.59 for 4 yrs fixed, 2.49 for 3 yrs fixed, 2.69 for 5 yrs fixed
Newbie
Jul 17, 2018
31 posts
21 upvotes
sum321 wrote: Experts,
I am working to refinance current mortgage within same bank using blending rate option as prepayment penalty is high.
FA is not that smart and need to understand blending rate options.
If anyone could explain how 'Blend and extend' and 'blend to term' would work for below situation. Thank you.

Remaining Mortgage : 470,000
Total Term : 4 yrs
Remaining Term : 39 Months
Mortgage Rate : 2.79 for 4 yrs fixed
Current Available Rate: 2.59 for 4 yrs fixed, 2.49 for 3 yrs fixed, 2.69 for 5 yrs fixed
You cannot do the 3 years, because you have more than 3 years left in your term.

The calculation is simple:

(2.79 x 39 + 2.59 x (48-39)) /48 = 2.75 or 2.76 for the next 4 years

or

(2.79 x 39 + 2.69 x (60-39)) /60 = 2.76 for the next 5 years.

If I were you I would wait for the rates to go down more.
Deal Fanatic
User avatar
Feb 2, 2014
7775 posts
2157 upvotes
Toronto
MikuGirl wrote: It was explained to me that banks increased their mortgage rates to buffer for those other loses. Other loses include business loans and loses in investment due to the collapse in the markets.

Monoline lenders should not be increasing their rates, as mortgages are safe and their only business. So, it's time to go to the monoline lenders.
Banks will get the hit the hardest for sure. But again, they have the CDIC and feds to bail them out.

Monoline lenders will lose too. Mortgages are not 100% safe. Defaults and foreclosures/power of sales will be coming. It's not going to be pretty for anyone,
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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User avatar
Feb 2, 2014
7775 posts
2157 upvotes
Toronto
stevo05 wrote: Advice on variable vs fixed?

-What is the purchase price? $1,078,000
-How much is the down payment? 20%
-Where it the property located? Oakville
-When is the closing date? May 2020
-Will the property be owner-occupied or a rental? Owner-occupied

Offered either a 2.29% 5 year fixed or prime - 1.1% for a 5 year variable.
I've heard that variable comes out better 90% of the time, but still uncertain which option to select given the current circumstances. Thanks!
Did you get those rates locked-in?
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
Drmandeep01 wrote: Hi, I am looking to buy a old house for my family.
My offer got accepted today. Regarding details:

-What is the purchase price? 380,000/-
-How much is the down payment? 20% 76000/-
-Where it the property located? Edmonton
-When is the closing date? April 24th
-Will the property be owner-occupied or a rental. Owner occupied

I am looking for 5 yrs rates
Not sure fixed or variable
RBC offered 2.34 for 5yr fixed couple of days ago. I didnt confirm if they will be able to offer same rate today.
Thanks in advance.


@ahlaker (Nikola)
@CdnRealEstateGuy (Kevin)
@PaulMeredith
@rateconnect (Phil)
If it's still being offered, 2.34% 5-year fixed with 20% down is a good rate.
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
Some lenders have already increased rates THIS WEEKEND effective immediately.

I'm sure everyone is aware, we are in for some tough times.

Rates are dropping to help out the economy, but lenders are increasing mortgage rates. Lenders, especially the banks, are going to be in some big trouble. Lots of defaults will be coming. I suspect creditors will need help from their deposit insurer and government. Mortgage lenders need the margins on mortgages to offset these losses, so rates have been increasing...fast.

I won't get too much into real estate, but expect supply to go up compared to demand. Owner-occupied sellers will wait, as they don't want people walking through their homes now. But investors want to cash out....now. Buyers also don't want to go out and want to wait it out now. Number of sales and average sales price will probably drop. And this doesn't include foreclosures that will likely be happening once the dust settles.

Of course the longer this Corona thing lasts, the harder it will hit.

Get a mortgage rate secured now. For all those who were lucky enough to get a recent mortgage approval at some super low rates, take it!

PS-My apologies for the lack of replies to messages directed to me...been a very hectic past 1-2 weeks.
Last edited by CdnRealEstateGuy on Mar 22nd, 2020 3:31 pm, edited 2 times in total.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Apr 14, 2008
257 posts
27 upvotes
Toronto
My 5 year term will be up in July, currently on a variable mortgage with MCAP. I think my rate is prime - 0.85. We don't have a HELOC right now but want to add one. Currently 358k left on the house. I definitely want to go variable again if the discount is good enough but have no problem doing fixed.

Any advice? I like MCAP, never had an issue with them but money talks.
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User avatar
Feb 2, 2014
7775 posts
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Toronto
Stylz68 wrote: My 5 year term will be up in July, currently on a variable mortgage with MCAP. I think my rate is prime - 0.85. We don't have a HELOC right now but want to add one. Currently 358k left on the house. I definitely want to go variable again if the discount is good enough but have no problem doing fixed.

Any advice? I like MCAP, never had an issue with them but money talks.
Please answer the questions on page 1 for an exact quote.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Jul 5, 2010
357 posts
150 upvotes
Getting 2.44% fixed and HELOC at prime from RBC? Is this a good deal?
Deal Addict
Nov 2, 2011
2526 posts
1070 upvotes
I am looking to buy, but not in an immediate rush, as I already sold my place months back and staying with family temporary.

I have a couple of pre-approvals from Scotia ehome that have July expiry dates. I may not need the amount of mortgage or term that I requested on those, though.
Will I still be allowed to have that rate? Or it's a crap shoot?
Newbie
Mar 21, 2020
3 posts
Hi everyone. I'm purchasing a new home. Here's the details

-What is the purchase price? 335000$
-How much is the down payment? 67000$ (20%)
-Where it the property located? Quebec city
-When is the closing date? June 4th
-Will the property be owner-occupied or a rental? owner occupied

I'm looking for a 5 years fixed. Not sure I will be tempted to go variable. Presently, Desjardins offer me 2,64% for a 5 years fixed with a 1000$ cash back.

Thank you very much for your help!
Newbie
Dec 9, 2019
30 posts
14 upvotes
My closing is at the end of July and I'm starting to get nervous at the increasing rates. Are there any lenders that can help lock in rates longer than 120 days?
Newbie
Oct 8, 2014
20 posts
3 upvotes
Is it better to go fixed right now or variable? I got 2.34% variable 5 year, 2.51% fixed 3 year, 2.79% fixed 5 year

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