Real Estate

The Official Mortgage Rates Thread

Member
Oct 10, 2010
494 posts
347 upvotes
-What is the purchase price? $890k
-How much is the down payment? (20%)
-Where it the property located? Whitby North, GTA
-When is the closing date? Closed in Jan 2020 - breaking now
-Will the property be owner-occupied or a rental? Owner occupied
-Amortization: 30 years
- Mortgage left: 700k
- Current value: 1M (average)

Looking to break fixed mortgage and transfer over - please provide rate for 30 yrs. Thx
Sr. Member
User avatar
Jun 24, 2020
901 posts
166 upvotes
nik707 wrote: -What is the purchase price? $890k
-How much is the down payment? (20%)
-Where it the property located? Whitby North, GTA
-When is the closing date? Closed in Jan 2020 - breaking now
-Will the property be owner-occupied or a rental? Owner occupied
-Amortization: 30 years
- Mortgage left: 700k
- Current value: 1M (average)

Looking to break fixed mortgage and transfer over - please provide rate for 30 yrs. Thx
1.84% five year fixed is available for the transfer over on a 30 year amortization
Newbie
Oct 4, 2019
14 posts
1 upvote
I've been told that on here that 1.84% five year fixed rate is available for a 30-year amortization. Could anyone inform me on what variable rate is possible for a 30-year amortization? Also, given the current market conditions and the ability to move a variable rate to a fixed rate at any time, is it better to go variable right now?

Thanks for the help!
Last edited by diamondsRconfusing on Sep 15th, 2020 3:23 pm, edited 1 time in total.
Member
Jan 29, 2020
317 posts
335 upvotes
When I read that the CMHC will not guarantee a mortgage on a "second home," does it mean I can't qualify even if I have never had a CMHC-backed mortgage? I want to buy a 4 season cottage.
Newbie
Sep 14, 2020
1 posts
Looking for a good rate for my mortgage renewal. Here is my info:

- Current mortgage owing - $330K
- Current mortgage amortization - 25 years left (plan to keep same)
- Current lender? Scotiabank
- When is your renewal date? Sep 30, 2020
- Is the mortgage CMHC insured? No
- Home Equity Line of Credit (HELOC) - No
- When did you buy the property? 2010
- Which city is the property located in? Richmond Hill, Ontario
- Roughly, what is the current market value of the property? $1,000,000
- Is the property owner-occupied or a rental? Owner occupied
- Owner annual income - $140K+
- Owner credit score - high
Newbie
Jul 5, 2020
6 posts
1 upvote
For a mortgage transfer/switch:

-How much is the mortgage owing? 120,000
-Roughly, what is the current market value of the property? 600,000
-Which city is the property located in? Coquitlam BC
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? MCAP
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? 2011
-When is your renewal date? Dec 2023
Newbie
Sep 14, 2020
3 posts
1 upvote
-How much is the mortgage owing? 235,000 or there abouts
-Roughly, what is the current market value of the property? 425,000
-Which city is the property located in? Ottawa
-Is the property owner-occupied or a rental? Owner occupied
-Who is your current lender? Meridian Credit Union
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? oct 2017
-When is your renewal date? oct 2022

looking to transfer the mortgage and get a nice low rate. current rate is 2.74. not sure what the penalty is to break though as i would still have to contact Meridian (unless someone knows offhand)

Thanks!
Newbie
Sep 14, 2020
1 posts
Hi, I am looking to buy my first house and research what my best rate would be.

-What is the purchase price? ....not to sure ~$350,000
-How much is the down payment? 20%
-Where it the property located? Winnipeg MB
-Will the property be owner-occupied or a rental? Owner-occupied

Briefly spoke with canwise and they said I'd probably be able to get pre-approved for 2.34% on a 5yr fixed, or 1.94%-2.04% if I got approved when I made an offer.

TIA
Jr. Member
Aug 21, 2003
101 posts
13 upvotes
Toronto
General question for the brokers out there: Looking to refinance a traditional mortgage with one of the big five (just over a year left on the term). Instead of transferring to another lender, I have the option to pay off and discharge the mortgage without prepayment penalties. Thus would own free and clear and then look to get a tradional mortgage through the broker channel. Is this possible and/or worth the hassle of doing? Secondly, would I be able to get a mortgage with a non-standard amortization, say 23 yrs?
Sr. Member
User avatar
Jun 24, 2020
901 posts
166 upvotes
outlier wrote: General question for the brokers out there: Looking to refinance a traditional mortgage with one of the big five (just over a year left on the term). Instead of transferring to another lender, I have the option to pay off and discharge the mortgage without prepayment penalties. Thus would own free and clear and then look to get a tradional mortgage through the broker channel. Is this possible and/or worth the hassle of doing? Secondly, would I be able to get a mortgage with a non-standard amortization, say 23 yrs?

Why not just do it as a straight transfer if you are going to get a mortgage anyway after you pay it off on renewal ? If you do it as such what you have described, it’s considered a refinance which just gives you higher rate premiums and legal and appraisal fees to pay; a switch gets you the lowest rates, as well as covering the fees to switch.
Sr. Member
User avatar
Jun 24, 2020
901 posts
166 upvotes
demoacc wrote: -How much is the mortgage owing? 235,000 or there abouts
-Roughly, what is the current market value of the property? 425,000
-Which city is the property located in? Ottawa
-Is the property owner-occupied or a rental? Owner occupied
-Who is your current lender? Meridian Credit Union
-Do you have a HELOC tied to the mortgage? no
-Is the mortgage CMHC insured? no
-When did you buy the property? oct 2017
-When is your renewal date? oct 2022

looking to transfer the mortgage and get a nice low rate. current rate is 2.74. not sure what the penalty is to break though as i would still have to contact Meridian (unless someone knows offhand)

Thanks!

Your eligible for 1.69% five year fixed or 1.60% five year variable. Best thing to do is find out directly from Meridian what the penalty is so that we can see if the savings offsets the penalty.
Member
Jan 3, 2008
243 posts
23 upvotes
Victoria
PaulMeredith wrote: Thanks for the question! Pretty much everyone in this industry works on commission, whether you are dealing with your bank directly, or dealing with a broker. This can be a good thing and it can be a bad thing. The good is that they have skin in the game, and this will force many to bend over backwards to ensure you're well taken care of. This is not always the case unfortunately. The bad is that you'll get many who may try to push you into the products that make them the most amount of money. This can happen equally on both the bank and the broker side. Bank personnel are often put under a tremendous amount of pressure from their superiors to produce, which has led to articles such as this one. Again, this can happen on both sides, so it's important to do your research. The person you choose to handle your mortgage can be one of the most important decisions in the process. While there are many who are focused on commission more than anything, there are also who are more consumer focused and who truly care about doing what is best for their clients. This is why it's good to speak with several people, both banks and brokers, and then make a decision based on who you feel most comfortable. It can also help to do a Google search of this person as well. A quick look at their Linkedin profile will give you an idea of how much experience they have working in the industry.

The broker you are speaking with seems to be saying that they can get better rates than you would be able to get with the same bank due to purchasing power. It's possible that he/she may be able to get you a lower rate with the same bank, but this is not always the case. Any decent broker should be able to give you a pretty decent idea of what rate you can expect prior to putting in an application. Any big bank mortgage specialist should be able to do the same. You should never have to put in an application and have your credit checked, just to get an idea of what the rates will be. If they can't at least give you an idea of what rate you can expect, then I would move on to someone else who is a little more in tuned with expected rates. Most should be able to be fairly bang on with the initial rate quote.... assuming qualifying income and credit of course.

There are many benefits to dealing with a broker. When dealing with a bank, they can only talk about their products and their services. They are not going to tell you if there is another option available through a different lender that may be better suited to you. Brokers deal with many different mortgage lenders, including some major banks, so we can tell you specifics about each lender and what makes one better than another. In a sense, a broker is more of a one stop shop. You can shop many lenders with just a single credit check.  Not all lenders are the same, and not all mortgages are the same. A good broker can help you to understand the differences, and can help you to make the right choice. 

Having access to so many different lenders allows us to get lenders competing for your business. If you walk into BMO for example, they aren't going to tell you if Scotiabank has a lower rate than they do. Why would they? Brokers can take you to the lenders that have the lowest rates, right from the beginning.  We can usually get you much lower rates than the banks as we have many different lender options. If you want to deal with a major bank, we have options there as well, and it's not uncommon for us get you lower rates than what you can get by speaking to your bank directly.  This is not always the case however.

With a broker, the entire process can usually be done by phone, fax and email. 99% of the time, there is no need to even have a face to face meeting. If you prefer to meet face to face, then that can be arranged as well. 
For many brokers, it's not just our job. It's our career. And it's even more than just that. It's our calling. It's what we are passionate about, and this passion will not go unnoticed by you. 

Often brokers will be able to get you lower rates than the banks, but this is not always the case. Sometimes banks can be very competitive. This is one of the reasons why I suggest reaching out to both. But again, you should never have to put in an application and have your credit checked just to get an idea of rate.

That being said, there is a lot more to a mortgage than rate, and choosing a mortgage based on rate alone can be a costly mistake. While rate is extremely important, the terms and conditions of the mortgage are more important than rate. Here are some common restrictions carried by some mortgages, and which lenders have them:


- Lack of bridge Financing (Equitable Bank).

- Mortgages with a bonafide sale clause where you can only break the mortgage early if you can sell your home (some products with MCAP, CMLS and BMO).

- Higher than normal penalties to break the mortgage early (Some products with Merix and RMG. Plus, all of the big banks on fixed rate mortgages (penalties to break a mortgage with the big banks can be as much as 900% higher than most non-bank lenders).

- Limited prepayment privileges (Industrial Alliance, RBC, and some products with BMO)

- Higher than industry prime rate (TD and Investors Group).

- Collateral mortgages (TD, Tangerine, National Bank, and HSBC. Plus, a mortgage from any lender that contains a HELOC or second component of any kind).

- Variable rate mortgage that is compounded monthly as opposed to semi-annually (Merix, CMLS, TD, RBC, BMO, CIBC, National Bank).


The above covers just about everything. Aside from that, most mortgages are fairly similar. Keep in mind this is a heavily regulated industry. There are many myths about non-bank lenders (most likely created by the big banks) such as extra fees, miss a payment and the lender will take your house, brokers charge fees, or if the smaller lender goes out of business then you will be facing a big headache and have to pay all sorts of fees to get out of it. Nothing of course could be further from the truth. If the small lender happens to go out of business, their mortgage portfolio would just get taken over by another lender. All the same terms and conditions would remain in place and the only difference to you is that the logo on your mortgage statement changes.

I mentioned above that big banks have much harsher penalty formulas if you found yourself in a situation where you needed to break your mortgage early (fixed rates only). Here are some articles:

https://www.theglobeandmail.com/investi ... r-penalty/

https://www.ratespy.com/fair-penalty-le ... s-05109252

https://www.cbc.ca/news/business/mortga ... eVGdSFNa0c

https://www.theglobeandmail.com/investi ... r-penalty/


Hope you find this helpful in your decision process. :)

Good luck!

Paul
Thanks so much for all this info. It sounds like if we go with RBC, we will get the following on a $780K mortgage (after 20% down - sale price $975K):

- variable rate of 1.80% for 5 years, 30 year term
- bi-weekly payments
- 10% lump sum penalty free payment per year
- 10% adjustment to monthly amount per year
- penalty of 3 months interest if we break the mortgage
- if there is a relatively short gap in time between breaking the mortgage and purchasing down the road, they can credit back any penalties
- "Fall Promo" cash back of $1500
- enough RBC rewards points for 2 round trip flights to Hawaii

From your experience, can a broker come up with better options than that for customers with good credit and enough income and job security to qualify them?

EDIT: I realize the cash back and points really only equate to one or two free months on what would be a 360 month loan. That said, any savings over time on the rate would have to be calculated backward to a present value to compare.
Last edited by kurt16 on Sep 15th, 2020 4:35 pm, edited 2 times in total.
Newbie
Dec 23, 2006
4 posts
7 upvotes
Hello,

My mortgage just came to the muturity point where a renewal is required in the next 45 days. I am starting to shop around for whatever best rate possible. It's highly appreciated if someone can inform what my ideal rate could be.

- Current mortgage owing - $413K; planning to refinance another 90k for renovation, which makes the total amount to be 503k
- Current mortgage amortization - 25 years left (plan to do either 25 or 30 years)
- Current lender? BMO
- When is your renewal date? Nov 01, 2020
- Is the mortgage CMHC insured? No
- Home Equity Line of Credit (HELOC) - No
- Which city is the property located in? York Region, Ontario
- Roughly, what is the current market value of the property? $950k - 1 million
- Is the property owner-occupied or a rental? Owner occupied
- Owner credit score - over 800 with Equifax, and closed to 900 with Trans Union.
Sr. Member
User avatar
Jun 24, 2020
901 posts
166 upvotes
csdropout wrote: Looking for a good rate for my mortgage renewal. Here is my info:

- Current mortgage owing - $330K
- Current mortgage amortization - 25 years left (plan to keep same)
- Current lender? Scotiabank
- When is your renewal date? Sep 30, 2020
- Is the mortgage CMHC insured? No
- Home Equity Line of Credit (HELOC) - No
- When did you buy the property? 2010
- Which city is the property located in? Richmond Hill, Ontario
- Roughly, what is the current market value of the property? $1,000,000
- Is the property owner-occupied or a rental? Owner occupied
- Owner annual income - $140K+
- Owner credit score - high
You will need a minimum 3 weeks to do the switch process. As your renewal is coming up in 15 days, it’s in your best interest to roll it into an open mortgage so you have time to complete the new application for the switch without having to incur any penalties after renewal. You can get 1.69% five year fixed or 1.60% five year variable

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