Real Estate

The Official Mortgage Rates Thread

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May 4, 2017
474 posts
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Vancouver, BC
VictoryBoyxx wrote: have a mortgage closing coming in.
took variable interest for 5 years.
With mortgage interest raising, is it wise to change to fixed now?
later I may end up with huge fixed rate? pls guide
I will start by saying this is not financial advice, but it is my opinion as a broker.

A variable mortgage rate is not for the faint of heart. It involves volatility, and you should be comfortable with the potential for that volatility before entering into a variable-rate mortgage contract. In my opinion, it is not a good idea to lock the variable to a fixed rate as attempting to time the market is impossible. As much as economists, and the news media attempt to sway popular belief no one has any idea how the next few years will play out.

That being said, if you're already getting uncomfortable about having a variable rate mortgage then you might want to consider switching to fixed just to save yourself peace of mind and there is no issue with that. Just look at the spread between what is being offered, and then think about how many rate increases it would take to get there.

In the most aggressive predictions, they see 8 rate increases over by the end of 23'. My opinion on that is it's not possible for them to go that fast, but again just an opinion. That would put your current variable rate up 2% from today. Calculate your mortgage payment as if the rate is 2% higher and see if that's something you will still be able to tolerate. Mortgage Calculator

Also remember that mortgages are only 5 year terms in most cases, so at the end of the day you're always going to be at the whim of interest rate changes. So in 2026 on a fixed rate you will also be reset to the market rates at the time.

Hope that helps a bit!
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May 4, 2017
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saltqjibo wrote: Hi, we are in the 150 day renewal period with CIBC (but before 120 days) and trying to renew. They offerred 5 yr fixed at 2.72 and variable at 1.48. Leaning towards variable, would prefer a lower rate and it sounds like there may be lower out there. Am I likely to be able to lock in something this far out? Also a couple of things they said that surprised me:

- The monthly payment on the variable would be based on 1.48 + 0.5 = 1.98 -- to "protect against interest rate hikes". Is this normal? We wanted variable for cashflow reasons
- We had a 30 year and wanted to reamortize back out to 30 (at 27 now) but they said this was impossible until we get under 25. Is that correct?

Stats below, any info would be great. Thanks!


-How much is the mortgage owing? 461,000
-Roughly, what is the current market value of the property? 610,000
-Which city is the property located in? Toronto
-Is the property owner-occupied or a rental? Owner
-Who is your current lender? CIBC
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? April 2019
-What was the purchase price? $608,000
-When is your renewal date? April 2022
To me it sounds like they are leading you the wrong way, that being said I can't speak to their policies as CIBC doesn't work with brokers.

120days out is the longest we can lock a rate for, but you may find in the last month of your mortgage the penalty is very insignificant, so you might be able to get out slightly earlier depending on the lender's policies in the last month of the mortgage. Double-check that with them, and maybe we can get started sooner.

No lender that I know of will force you to pay more off the bat, some rates are ARM rates and they will actually change the payments as the rates change, but variable rates would just change the principal interest split. Now paying a little more isn't a bad idea, as it all banks towards the principal. But that's up to you with all lenders I work with.

You can amortize back to 30 years with lenders that brokers work with, you might not be able to do that on an early renewal with CIBC as I am not really sure of their policies.

For your situation, we should be able to do 1.25% 5-year variable the payment will not change on the mortgage, you can get 30yrs AM, and not have any additional principal to contribute if you don't want that. This comes from a big5 bank, standard 3mos interest penalty. Legals and appraisal covered.
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Jan 31, 2018
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Karthii wrote: Hi ,

I am renewing my mortgage, TD offered me 1.2 % for 5 years variable. What is the best rate available in the market from the top 5 banks .

Property located Brampton
Mortgage needed 580k
Property value 1.1M
Amortization period 25 years
Thats a decent rate from big banks you can get lower from large monolines .95% if your original PP was under a mill

Pretty big savings at a quarter point and standard charge vs collateral with TD

Phil
Phil Cragg
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kakro12 wrote: Hi, can someone please let me know what's the lowest mortgage rate I would be eligible for? I will be on the market soon and was thinking of getting a pre-approval.

For a purchase of a property:
-What is the purchase price? $550,000
-How much is the down payment? 5%
-Where it the property located? Halton, Ontario
-When is the closing: March-April 2022
-Will the property be owner-occupied or a rental? Owner Occupied (CONDO)
You can get below rates on a 120 day hold

.90% 5 yr variable
2.04% 5 yr fixed

Phil
Phil Cragg
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Mortgage Outlet Inc Broker License #12628
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Jan 10, 2012
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Ottawa
Hi,
Our house is paid off. I am looking to refinance and get a mortgage for investment. What are the 5-year rates I can get?

-Where it the property located? Ottawa
-How much is it worth? 1.1M
-Will the property be owner-occupied or a rental? Owner Occupied
-Looking for around 500k mortgage.

Thanks
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Sep 13, 2011
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raaaaam wrote: Hi,
Our house is paid off. I am looking to refinance and get a mortgage for investment. What are the 5-year rates I can get?

-Where it the property located? Ottawa
-How much is it worth? 1.1M
-Will the property be owner-occupied or a rental? Owner Occupied
-Looking for around 500k mortgage.

Thanks
Thanks for the post! The lowest 5 year variable you can expect for a refinance right now is 1.25%, or 5 year fixed at 2.34%. The fixed has 20% prepayment privileges, and the variable has 15%, which is more than most will ever use. Any of the regular posting brokers on this board can get you set up, and provide full details on your options.
Paul Meredith
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Karthii wrote: Hi ,

I am renewing my mortgage, TD offered me 1.2 % for 5 years variable. What is the best rate available in the market from the top 5 banks .

Property located Brampton
Mortgage needed 580k
Property value 1.1M
Amortization period 25 years
May I ask why you are limiting yourself to the Big 5 Banks?
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Dec 1, 2008
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Windsor
How much is lowest 2-3 choices for 5 year fixed mortgage rate for $500k house lasalle ontario area? (Google is overwhelming for me - chemo brain). Also do you think variable rates are too risky compared to fixed if we plan to pay off in 5years? Newbie at this as we planning to buy a house soon. Thanks!!
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m2m wrote: How much is lowest 2-3 choices for 5 year fixed mortgage rate for $500k house lasalle ontario area? (Google is overwhelming for me - chemo brain). Also do you think variable rates are too risky compared to fixed if we plan to pay off in 5years? Newbie at this as we planning to buy a house soon. Thanks!!

It depends on the down payment you are putting, but at the moment 2.04% five year fixed with less than 20% down, and 2.19% five year fixed for 20% down or more are the current rates for a 25 year amortization.
As you are planning to pay off in 5 years, the variable may be a good option due to only carrying a 3 months interest penalty if you plan to put more towards your mortgage than the 20% in any given year that may be allowed as a lump sum prepayment. Alongside of this, the spread right now is quite large between fixed and variable so it certainly seems favourable, especially from a short term perspective.
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Oct 6, 2011
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TORONTO
AndrewHill wrote: To me it sounds like they are leading you the wrong way, that being said I can't speak to their policies as CIBC doesn't work with brokers.

120days out is the longest we can lock a rate for, but you may find in the last month of your mortgage the penalty is very insignificant, so you might be able to get out slightly earlier depending on the lender's policies in the last month of the mortgage. Double-check that with them, and maybe we can get started sooner.

No lender that I know of will force you to pay more off the bat, some rates are ARM rates and they will actually change the payments as the rates change, but variable rates would just change the principal interest split. Now paying a little more isn't a bad idea, as it all banks towards the principal. But that's up to you with all lenders I work with.

You can amortize back to 30 years with lenders that brokers work with, you might not be able to do that on an early renewal with CIBC as I am not really sure of their policies.

For your situation, we should be able to do 1.25% 5-year variable the payment will not change on the mortgage, you can get 30yrs AM, and not have any additional principal to contribute if you don't want that. This comes from a big5 bank, standard 3mos interest penalty. Legals and appraisal covered.
Super helpful. Thank you!
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Dec 26, 2008
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Looking for best rate on re-fi for rental:

-Roughly, what is the current market value of the property? - $1.1M
-What is the current mortgage owing? - $197k
-How much do you want to borrow (refinance)? $255k
-Is the property owner-occupied or a rental? Rental
-Where is the property located? Aurora, Ontario
-When do you want to close on the refinance? Current mortgage comes up for renewal on January 31st.

Got offered 2.19% 5-year fixed renewal offer for the $197k from HSBC, but for the incremental part of the re-fi they only offered 2.69% for the "second" mortgage.
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Nov 9, 2021
1 posts
Hello! Curious about possible rates for a new house purchase. We are exploring options with a broker, and one of the options they've suggested is a variable rate of 1.15% with 15% down and 2.8% mortgage loan insurance. Hoping for 25-year amortization with accelerated biweekly payments and some options for prepayments.
  • What is the purchase price? $700,000
  • How much is the down payment? Up to 20%
  • Where is the property located? Kitchener, Ontario
  • When is the closing: Jan 2022
  • Will the property be owner-occupied or a rental? Owner Occupied
Thank you!
Newbie
Nov 9, 2021
2 posts
Hi, my partner and I are starting to look for a property (townhouse) and are trying to shop around for mortgage brokers and get pre-approved ASAP. We're looking for a 5-year fixed interest rate. We met with a broker who tossed out 2.6% but I'm seeing lower numbers from lurking here recently. We'd like to lock it in now if possible. We have no debts, decent savings/investments, and 150k+ household income. What is the lowest rate available to us?

-What is the purchase price? $750-800k
-How much is the down payment? 250k or ~30%
-Where it the property located? New Westminster or Burnaby
-When is the closing: Sometime between Dec-March hopefully.
-Will the property be owner-occupied or a rental? Owner Occupied

Thanks!
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Mar 16, 2016
282 posts
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Signed an offer for the following
What is the purchase price? $610,000
-How much is the down payment? 20%
-Where it the property located? Mississauga, Ontario
-When is the closing: Feb 16, 2022
-Will the property be owner-occupied or a rental? Owner Occupied (CONDO)
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xtriawke wrote: Signed an offer for the following
What is the purchase price? $610,000
-How much is the down payment? 20%
-Where it the property located? Mississauga, Ontario
-When is the closing: Feb 16, 2022
-Will the property be owner-occupied or a rental? Owner Occupied (CONDO)
You currently have 1.10% five year variable or 2.19% five year fixed available in your scenario for full featured mortgages.
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nick227 wrote: Looking for best rate on re-fi for rental:

-Roughly, what is the current market value of the property? - $1.1M
-What is the current mortgage owing? - $197k
-How much do you want to borrow (refinance)? $255k
-Is the property owner-occupied or a rental? Rental
-Where is the property located? Aurora, Ontario
-When do you want to close on the refinance? Current mortgage comes up for renewal on January 31st.

Got offered 2.19% 5-year fixed renewal offer for the $197k from HSBC, but for the incremental part of the re-fi they only offered 2.69% for the "second" mortgage.

The renewal rate seems competitive for a rental property that you have been offered. On a refinance I would try to push them for a lower rate. You can currently get 2.54% five year fixed for a refinance(one mortgage component). Whilst it could be a better option for you to carry the $197k on a lower rate at 2.19% and take the second mortgage portion for the refinance on 2.69% as it averages out lower than the 2.54% for one component, you may find additional discharge/legal fees in the future if you ever wish to discharge both the first and second mortgage to transfer them to another lender as one component. I would try to see if the lender can issue you one mortgage component for the refinance on the total you need, that way you aren’t carrying two mortgages on the property. You could try to push them for a lower rate on the refinance in this case.
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Feb 2, 2014
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nick227 wrote: Looking for best rate on re-fi for rental:

-Roughly, what is the current market value of the property? - $1.1M
-What is the current mortgage owing? - $197k
-How much do you want to borrow (refinance)? $255k
-Is the property owner-occupied or a rental? Rental
-Where is the property located? Aurora, Ontario
-When do you want to close on the refinance? Current mortgage comes up for renewal on January 31st.

Got offered 2.19% 5-year fixed renewal offer for the $197k from HSBC, but for the incremental part of the re-fi they only offered 2.69% for the "second" mortgage.
2.19% 5-year fixed is their old rate for a rental...rates are significantly higher now.

So if they are still holding that rate for you, I would take it.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Sep 24, 2021
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I heard my payment won’t change even if the interest rates increases when it comes to borrowing with the top Banks.
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May 4, 2017
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Karthii wrote: I heard my payment won’t change even if the interest rates increases when it comes to borrowing with the top Banks.
Some but not all of the banks. The difference is usually marketed as "Adjustable Rate Mortgage"(ARM) payments will change throughout the term to keep you on the same amortization schedule. "Variable Rate Mortgage"(VRM) where the payments do not change but the principal interest split changes if the prime rate changes.
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Oct 8, 2021
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Hi, I currently have 5 year variable at 1.25% until March 2023 with Think Financial + 300k HELOC with Simplii at P+0.5%. I am looking to use the HELOC for downpayment for investment property - ~$200k

I am thinking about breaking my mortgage, refinancing and moving it to institution that can consolidate both mortgage + HELOC debt at the mortgage interest rate (1.25%) and also considering closing the Simplii HELOC since they cannot do both mortgage + HELOC combined.

Any recommendations on where to to go for a combined mortgage + HELOC product at low interest rate?

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