Real Estate

The Official Mortgage Rates Thread

Sr. Member
Dec 3, 2008
570 posts
33 upvotes
Elec2016 wrote: Effective April 2, 2020 MCAP Prime Rate is 2.45%.

That will make some of you happy :)
with 1.16% interest rate :) yeah we are happy. :)
Member
Nov 20, 2017
354 posts
272 upvotes
Applied for Tangerine 3 year at 2.39% (it was 2.29 a week before I applied). The mortgage agent put an application to have $1,000 of legal fees paid due to existing collateral charge mortgage. The additional $1,000 hasn't been approved. I won't be going with them if they don't cover the cost to switch from TD.

I am not a fan of them only offering collateral charge mortgage instead of a standard charge. It puts me in the same situation when I switch lenders of having the cover costs (wasn't aware of this as a first time home buyer when I bought in 2018). The mortgage agent referred to the "pandemic" many times when I brought up what they can do to cover the costs or give cash back.

Should I be shopping around elsewhere based on the term I want and the rate/incentives I am currently being offered?

Seems like the CSRs are using the current situation with COVID19 and the economy as a negotiating chip. How is this different than any other time... they've increased their rates lately to cover the risk so not sure how this can translate into limiting incentives.
Don't go broke saving
Banned
Sep 19, 2012
1253 posts
1864 upvotes
Calgary
lsnowre wrote: Looking for advice - PMs welcome.
-What is the purchase price? 610k
-How much is the down payment? 20%
-Where it the property located? Brampton, ON
-When is the closing date? May 2020 (tentative) - assignment sale
-Will the property be owner-occupied or a rental? Owner occupied + first-time buyer
Quoted 3.09% fixed 5 year 30 yr ammortization w/ monolender.
IMO, check out Canada Life as per @AnthonyC18's post (2.74%) if you want a fixed rate deal. HSBC will do 2.69%. These would both be 25 year amortizations and a 5-year fixed. You'd likely pay a premium to get it up to 30 years (maybe 0.1%). I think Canada Life would be better, FYI, because it's got a fair penalty.

Variable rates are also great as you can get p-0.5% (25-year) or p-0.4% (30-year) with Desjardins. They're super backed up so it depends on when in May you have your closing.

RATE UPDATE: Radius Financial, a broker channel lender, published a new rate sheet yesterday (http://radiusfinancial.ca/rates) and they are offering 2.29% on a 5-year fixed for an insured purchase closing within 45 days. These guys are available through brokers and buydown of the rate is possible. Pretty rad to see them publish the sheet online so you can totally see how much a broker would get paid on your deal.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Member
Mar 8, 2010
219 posts
100 upvotes
Vancouver, BC
canada6999 wrote: Industrial Alliance also updated their prime rate to 2.45%
Just wondering where did you see the update?
I just log in to online portal and it's still showing 3.45%
Banned
Mar 29, 2020
1 posts
The penalty on Low Rate Basic Products is incredibly high (if you were to break the term). So for a 0.05% difference I would suggest taking the regular rate as the savings would not outweigh the potential high penalty, again if you were to need to break the term.
Hope this helps :)
Member
Jul 17, 2008
230 posts
196 upvotes
Mississauga
jojo9098 wrote: Just wondering where did you see the update?
I just log in to online portal and it's still showing 3.45%
In Online portal
Images
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Sr. Member
Mar 3, 2009
785 posts
270 upvotes
Ottawa, ON
Jordanferras wrote: Applied for Tangerine 3 year at 2.39% (it was 2.29 a week before I applied). The mortgage agent put an application to have $1,000 of legal fees paid due to existing collateral charge mortgage. The additional $1,000 hasn't been approved. I won't be going with them if they don't cover the cost to switch from TD.

I am not a fan of them only offering collateral charge mortgage instead of a standard charge. It puts me in the same situation when I switch lenders of having the cover costs (wasn't aware of this as a first time home buyer when I bought in 2018). The mortgage agent referred to the "pandemic" many times when I brought up what they can do to cover the costs or give cash back.

Should I be shopping around elsewhere based on the term I want and the rate/incentives I am currently being offered?

Seems like the CSRs are using the current situation with COVID19 and the economy as a negotiating chip. How is this different than any other time... they've increased their rates lately to cover the risk so not sure how this can translate into limiting incentives.
I'm currently in talks with Tangerine also. I also did not want a collateral mortgage, but my pre-approval with Tangerine is 2.19%. My thoughts are that even if I need to pay $1k to leave Tangerine in 3 years then I am still going to be ahead.

I'm sort of frustrated with First National. I have been with them for 5 years and they said "on an exceptional basis, we want to give you a highly discounted rate as a gesture of appreciation of 2.94%". I'm not sure I consider it a gesture of appreciation :)
Member
User avatar
Apr 19, 2006
361 posts
95 upvotes
jojo9098 wrote: Mine is still showing 3.45%.......
I just checked mine as well and it still says 3.45%. Is IA slowly rolling this out or selectively choosing who gets the discount?
Newbie
Apr 1, 2020
1 posts
First time home buyers, looking for opinions on what we've locked in so far and what's our best option including if another broker can offer a better rate.

What is the purchase price? $470,000
-How much is the down payment? $47,000
-Where it the property located? Brampton
-When is the closing date? May 29th
-Will the property be owner-occupied or a rental? Owner Occupied

Scotia Ehome - 5 year fixed 2.19%
RBC - 5 year fixed 2.34% or 5 year variable at prime-0.77 that the broker just contacted me about
Member
Nov 20, 2017
354 posts
272 upvotes
dr_torch wrote: I'm currently in talks with Tangerine also. I also did not want a collateral mortgage, but my pre-approval with Tangerine is 2.19%. My thoughts are that even if I need to pay $1k to leave Tangerine in 3 years then I am still going to be ahead.

I'm sort of frustrated with First National. I have been with them for 5 years and they said "on an exceptional basis, we want to give you a highly discounted rate as a gesture of appreciation of 2.94%". I'm not sure I consider it a gesture of appreciation :)
So it was the 2.19 I saw and my mind wasn't playing tricks on me. I thought it was 2.29.. literally only 5 days before I put my application in it went up .2%
Not the end of the world but I'm glad you feel the same about that. I may end up biting the bullet if I can't match this offer.

I don't think you have much to lose. Did you ask to see if they'll cover some of the costs to switch?

My online profile at TD says something similar (2.74% for 2 year fixed--my current term-- as a preferred rate). Not very competitive in the current market although it's lower than my 3.14% currently. I'm glad I didn't sign a 5 year when I bought my house. I had a feeling the rates would drop.
Don't go broke saving
Deal Addict
Jan 22, 2009
2869 posts
730 upvotes
RMG website and my mortgage rate in MyRMG still shows 2.95 prime rate. But if I click "Upcoming Activities" in MyRMG, my May payment has been changed to reflect 2.45 prime rate. I will be paying 1.35% mortgage rate starting May. No complaint here.
Sr. Member
Mar 3, 2009
785 posts
270 upvotes
Ottawa, ON
Jordanferras wrote: I don't think you have much to lose. Did you ask to see if they'll cover some of the costs to switch?
Yes, they agreed to waive the appraisal fee. I didn't even ask about that - they started by telling me they would waive it.

I asked about the legal fees. Waiting on a response. I was hoping a lawyer was not necessary but they are quite insistent.

There will also be a discharge fee from First National that looks to be ~$275ish as far as I can tell.
Newbie
Apr 10, 2018
71 posts
2 upvotes
Ontario
RBC offering RBC Homeline Plan, anyone has previous experience if it is good to have or not?

Can you please recommend advantage and disadvantages of
collateral mortgages vs traditional mortgage?

I have both options available with RBC and want your help to decide.

Thanks
Last edited by osu101 on Apr 3rd, 2020 10:41 am, edited 1 time in total.

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