Real Estate

The Official Mortgage Rates Thread

Newbie
Mar 16, 2015
88 posts
32 upvotes
Edmonton, AB
Is it crazy (or possible) to just get a HELOC (no mortgage) with Tangerine at Prime -0.1% and use it like Manulife all-in one product, basically using the HELOC as your checkings/savings account?

What would be some of the downsides?
Monthly compounding as opposed to semi monthly?
Lack of getting a better discount on prime at future date?
Give up on my CMHC insured mortgage?
Need at least 65% equity in your home?

Thoughts, am I missing anything else?
Newbie
Sep 26, 2016
12 posts
8 upvotes
jojo9098 wrote: Have the same question regarding to variable rate.
My RFA mortgage overall Payment(Principle+Interest) has decrease, however the principle amount has increased.
Shouldn't the principle stay the same?
When the total payment goes down, the principal portion must go up slightly to compensate for smaller principal payment in the later half of the amortization. Think equal-area trapezoids.
Newbie
Feb 26, 2006
94 posts
47 upvotes
Toronto
xxxronjames wrote: Going on RFD is really not good for my mental health. Our broker told us to with a fixed rate 3 weeks/month ago and now i'm stuck with %2.29. seeing people that have a full percentage point less feels like a kick in the nuts :(
2.29 fixed is really good, you can’t get that today (as far as I know). And the 1.16 and 1.34 ect that you are seeing people talk about are variable rates. P-1.29, p-1.11, not available now.
Newbie
Sep 27, 2017
35 posts
21 upvotes
Toronto
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 :)
I just signed up with Tangerine on a 3 year 2.19 rate in mid March. They gave me $250 to cover the appraisal fee and $750 to cover the legal and discharge fees. Doesn’t cover all the costs, but I only have to pay $350 out of pocket. They also gave me a 30 year amortization. Just ask for what you’re looking for and they’ll be happy to oblige. There was no push back whatsoever. Although, I did ask if they could give more than the $750 for legal and discharge fees and they declined that ask.
Newbie
Oct 12, 2005
81 posts
60 upvotes
BC
GurvinderS17748 wrote: 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
Those rates are all excellent and you should take the Scotia one if you still can. Rates have gone up quite a bit recently as you can see by the posts on here.
Newbie
Mar 29, 2020
1 posts
120 day rate hold starts today!

Renewal:

-How much is the mortgage owing? - $341,000
-Roughly, what is the current market value of the property? - $550,000
-Which city is the property located in? - Hamilton, ON
-Is the property owner-occupied or a rental? - Owner-occupied
-Who is your current lender? - TD
-Do you have a HELOC tied to the mortgage? - No
-Is the mortgage CMHC insured? - Yes
-When did you buy the property? - July 29, 2016
-When is your renewal date? - Aug 1, 2020

Looking for low rate (obviously) but open to fixed/variable and different years/terms.

Also, interested in HELOC for $50k-$100k (depending on appraisal home value); not a deal breaker though.

Appreciate any help you can provide.
Deal Fanatic
User avatar
Sep 13, 2011
5264 posts
2250 upvotes
Toronto
xxxronjames wrote: Going on RFD is really not good for my mental health. Our broker told us to with a fixed rate 3 weeks/month ago and now i'm stuck with %2.29. seeing people that have a full percentage point less feels like a kick in the nuts :(
Not sure I would use the words 'stuck' paying 2.29%. That is a great rate that we can only dream about now. True, there were lower variable rates at that time, but that doesn't mean that everyone should have been going variable. The choice between fixed and variable is a very personal decision. There are some who have very little tolerance for risk, and a fixed rate mortgage is often a better choice for those who fall into this category. While I can't speak for your broker, nor do I know your exact situation, brokers should not be telling you what to go with. We can advise, give our opinion, and can help you to make the decision that is best for you. But it's up the the borrower to then instruct us as to what they would like to move forward with. If a broker is suggesting a specific product, then he/she should be providing some insight as to why he/she is suggesting this product. Again, I can't speak for the other broker, nor do I know your exact situation, but these are my general thoughts. Again, 2.29% is still a great rate, so it still sounds like you did pretty good.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5264 posts
2250 upvotes
Toronto
weirdwing wrote: Do you guys think the rates will go down more for fixed or increased discount for the variable? The RBC 5 yr Variable rate I'm offered atm is at 2.35% (P=0.1%)?
Fixed rates may go down a little, but I wouldn't expect them to go down to the 2.14% - 2.29% we had a few weeks ago. As far as variable rates, there are still rates as low as prime -0.50% (1.95%), depending on your situation. Variable rate discounts are not going to get better than this. They are going to disappear altogether and most lenders have already gone from offering a discount off prime, to adding a premium to prime. I think that within the next couple of months, we'll see variable rates at prime +0.75% to prime +1.00%.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Newbie
Sep 6, 2012
20 posts
15 upvotes
WOODBRIDGE
Just confirming, that Streetcapital (RFA) has changed the interest rate to 2.45%: I have P-0.95, and when I logged in yesterday I could see my rate is 1.5%. I pay weekly, with April 2nd is the first payment of April. Now, I do not remember if I have ARM or VRM, but looks like the amount of payment stays the same according top payments schedule, just much less interest is taken, so the principal is paid off much faster.
Sr. Member
Mar 3, 2009
775 posts
263 upvotes
Ottawa, ON
anishladha wrote: I just signed up with Tangerine on a 3 year 2.19 rate in mid March. They gave me $250 to cover the appraisal fee and $750 to cover the legal and discharge fees. Doesn’t cover all the costs, but I only have to pay $350 out of pocket. They also gave me a 30 year amortization. Just ask for what you’re looking for and they’ll be happy to oblige. There was no push back whatsoever. Although, I did ask if they could give more than the $750 for legal and discharge fees and they declined that ask.
Thanks so much @anishladha ... this gives me some hope that they will cover some of the fees.

On a side note, my RE lawyer is asking for $1500 to do the paperwork. Does this seem a bit high to anybody? Is it really that complicated to move a mortgage from one bank to another?
Deal Fanatic
User avatar
Sep 13, 2011
5264 posts
2250 upvotes
Toronto
jojo9098 wrote: Have the same question regarding to variable rate.
My RFA mortgage overall Payment(Principle+Interest) has decrease, however the principle amount has increased.
Shouldn't the principle stay the same?
This is correct. As the rate drops, the interest portion of your mortgage will drop, as will your payment. The principal portion of the mortgage will increase however. I know you would think it would stay the same, but it doesn't. If you run an amortization schedule, you will see that this is correct. :)

Paul
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
5264 posts
2250 upvotes
Toronto
kyleproject wrote: Yes, I have reached out to the broker and as in the past where I had basic questions like this, they have been useless to me. Tell me what you think of this conversation and the service provided by my broker:

March 20: Me to RFA
The central bank cut the overnight lending rate 50 basis points on March 3. Today is March 20 and despite checking my online account everyday, I have yet to see my variable rate reflect that interest rate change or the one the central bank made on March 13. Do you know when these two changes will start being reflected in the rates your variable mortgagees are paying?

March 24: Me to broker

I imagine RFA is swamped with inquiries from people looking for help - do you have any insight on the question I asked them?

March 24: Broker to me

Lenders have been absolutely slammed with inquiries, that much I do know. With respect to the Prime Rate question, there have been a few lenders that have not adjusted their Prime Rate as of yet. Am unsure if RFA is one of those lenders that are yet to move on the adjustment but that may very well be the case here.

I will see if I can dig up further information tomorrow and report back to you when I can confirm.

March 28 Me to broker
Any updates on this?

March 28 Broker to me
It has been my understanding from the industry information I can gather that they will change their prime rate on April 1. Whether or not they will pass along all of the adjustments we have seen this month remains to be seen.

Understandably, it’s very difficult to reach anyone at RFA/Street Capital given the current crisis as their focus is on helping people that cannot make their payments at this time.

From where I stand, there is no attempt to find out what my situation is or where I stand with the lender. I'd argue you and other brokers on here have served me better than my own broker has

I read an earlier post that you wrote that really resounded with me:



My broker told me almost the exact same thing at origination 4.5 years ago including selling the fact they were a VP at Street/RFA in a past life and would be able to leverage that experience to serve me better going forward. Early on in the term I reached out to them regarding an NSF charge that I wanted to reverse - they told me to call Street/RFA directly. About halfway through the term I asked about historical interest rates, namely what were the fixed rates offered by Street/RFA at the time of origination. After several weeks, they eventually got back to me with an answer that was based on their recollection rather than actually looking up the rate in their records or contacting Street/RFA for a definitive answer which I could of done myself by going to places like Ratespy.

Am I judging this broker too harshly or am I being under served?
Sorry for the delayed response as I was not able to review posts on RFD yesterday, so just seeing this now. To answer your last question, yes, you are being underserved. It does not sound like your broker is tuned in to what is happening, nor does it seem like they are making any effort for you here at all.

It's true that RFA, along with all mortgage lenders, including banks, are absolutely swamped with inquiries about payment deferral. Over 1 million Canadians have applied for EI. That's a lot of people that could potentially be facing challenges with making their mortgage payment. Then throw in all the others who are calling to ask about deferred payments who are not facing any personal crises, plus everyone who just has questions about it. It can take a week for them to even get back to you.

That being said, we as brokers have quick access, and should be able to get you the answers you need quickly and effortlessly. I would say within 24 hours at the very most, but often much quicker than that.

I'd be happy to look into this for you and get you the answers you are looking for. Can you please provide me with your payment dates? Is your most recent payment still not reflecting the change? If you give me a bit more info, i'll get on this right away for you and should be able to get you an answer TODAY. Feel free to shoot me a PM with the info.

Looking forward to helping you out! :)

Paul
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)
Sr. Member
Nov 8, 2011
657 posts
229 upvotes
NEPEAN
PaulMeredith wrote:
That being said, we as brokers have quick access, and should be able to get you the answers you need quickly and effortlessly. I would say within 24 hours at the very most, but often much quicker than that.

Hi Paul, Motusbank said they sent our HELOC application to underwriters last Tuesday (March 24). Do you know if there is any delay in that stage of the process, or is it normal for it to take ~2 weeks?
Newbie
Sep 27, 2017
35 posts
21 upvotes
Toronto
dr_torch wrote: Thanks so much @anishladha ... this gives me some hope that they will cover some of the fees.

On a side note, my RE lawyer is asking for $1500 to do the paperwork. Does this seem a bit high to anybody? Is it really that complicated to move a mortgage from one bank to another?
That’s definitely high. I would reach out to a few lawyers to compare pricing. Mines is a family friend so I get a nice discount, but regular would be under $1000. I can PM you his contact if you want it. He’s located in Scarborough.

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