Real Estate

The Official Mortgage Rates Thread

Sr. Member
Sep 20, 2003
685 posts
114 upvotes
I’m seeing lower rates for folks who purchased under 1m. Would CMHC be a requirement in those situations to get the lower rate?
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
DaveYYZ wrote: Hi,
I am looking into adding a HELOC to my mortgage. I am with BMO

Value of house: 1250000
Mortgage balance: 820000 (BMO)
Location: Toronto, Ontario

What’s the best rate I could get?
If you are not looking at moving your mortgage to a different lender, then you'll be very limited in options. I would start with BMO and see what they will offer you. You will likely be looking at legal and appraisal costs of roughly $1,000. Rate will likely be prime +0.50% (currently 7.20%). If you get them to do better than you're doing well. Alternatively, you could try Simplii Financial. Rate would also be prime +0.50%. but set up costs should be a lot less. You would need to direct your questions directly to Simplii on this one as none of the regular posting brokers on this board can assist with this.

The availability of HELOCs behind other lender's mortgages is quite slim, so shopping around for a better rate is not what I would call a productive use of time. You are of course welcome to try if you like, but you'll soon see that what I'm telling you is correct. BMO and SImplii are most likely the only two available options worth considering. Even if you did find another one, rate would likely be higher.

Hope this is helpful, good luck!

Paul
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
gdong wrote: I’m seeing lower rates for folks who purchased under 1m. Would CMHC be a requirement in those situations to get the lower rate?
Yes, the lowest rates are usually available with a purchase price under $1 million and amortization not exceeding 25 years. There is no borrower paid insurance premium when you have 20% or greater down payment. The lender purchases bulk portfolio insurance from one of the three insurers (CMHC, Sagen or Canada Guaranty). This is also known as securitization. While the lender covers the cost of the insurance premium, it reduces their cost of funds which they in turn pass on to you in the form of a lower rate.

The only drawback to the borrower is that you're limited by insurer guidelines. Hence the maximum purchase price of $1 million and 25 year maximum amortization. There are no additional costs involved.

Hope this helps explain. Let me know if you have any additional questions or if there is anything I can clarify. Always happy to advise. :)

Paul
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
KenNguyen wrote: Hi there,

FTHB

-What is the purchase price? 610k
-How much is the down payment? 160k
-Where it the property located? North york
-When is the closing date? June 30, 2023
-Will the property be owner-occupied or a rental? Owner occupied

Looking for 3 yr or 5 yr. rates, 30 yr am

Thank you!
The rates Paul quoted are for a 25 year AM. He might have missed the 30 year AM note in your post.

For a 30 year AM, you’re looking at 4.60% 5-year fixed and 4.80% 3-year fixed.

If you’re OK with a 25 year AM, cheaper rates are available.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Sep 20, 2003
685 posts
114 upvotes
PaulMeredith wrote: Yes, the lowest rates are usually available with a purchase price under $1 million and amortization not exceeding 25 years. There is no borrower paid insurance premium when you have 20% or greater down payment. The lender purchases bulk portfolio insurance from one of the three insurers (CMHC, Sagen or Canada Guaranty). This is also known as securitization. While the lender covers the cost of the insurance premium, it reduces their cost of funds which they in turn pass on to you in the form of a lower rate.

The only drawback to the borrower is that you're limited by insurer guidelines. Hence the maximum purchase price of $1 million and 25 year maximum amortization. There are no additional costs involved.

Hope this helps explain. Let me know if you have any additional questions or if there is anything I can clarify. Always happy to advise. :)

Paul
I truly appreciate the detailed answer! Thank you.
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
CdnRealEstateGuy wrote: The rates Paul quoted are for a 25 year AM. He might have missed the 30 year AM note in your post.

For a 30 year AM, you’re looking at 4.60% 5-year fixed and 4.80% 3-year fixed.

If you’re OK with a 25 year AM, cheaper rates are available.
You're right, I missed the 30 year amortization request. Post corrected.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
gdong wrote: I truly appreciate the detailed answer! Thank you.
My pleasure, happy to help! :)
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Newbie
Jul 17, 2015
35 posts
3 upvotes
Sherbrooke, QC
Hello! I got a quote for this a few weeks back, but I would like to see how rates have changed.

Purchase price: $499k
Down payment: $220K
25 years amortization
Location: Sherbrooke, QC
Closing: July 10
Property: Owner Occupied

I am looking for 2, 3,4 and 5 year fixed as well as a 5 year variable. I will also be adding a HELOC.

Thank you!
Newbie
Apr 1, 2023
3 posts
Hi there, I have a renewal upcoming and am interested in what rates are available currently. Details below:

-How much is the mortgage owing? - $370k
-Roughly, what is the current market value of the property? - $1.3mil
-Which city is the property located in? - Burlington, ON
-Is the property owner-occupied or a rental? - owner occupied
-Who is your current lender? - RBC
-Do you have a HELOC tied to the mortgage? - Yes
-Is the mortgage CMHC insured? - No
-When did you buy the property? - Sept 2018
-What was the purchase price? - $720k
-When is your renewal date? - September 2023

Thanks in advance!
Deal Fanatic
User avatar
Jan 31, 2018
6551 posts
1247 upvotes
GaryMcMurray wrote: Hi there, I have a renewal upcoming and am interested in what rates are available currently. Details below:

-How much is the mortgage owing? - $370k
-Roughly, what is the current market value of the property? - $1.3mil
-Which city is the property located in? - Burlington, ON
-Is the property owner-occupied or a rental? - owner occupied
-Who is your current lender? - RBC
-Do you have a HELOC tied to the mortgage? - Yes
-Is the mortgage CMHC insured? - No
-When did you buy the property? - Sept 2018
-What was the purchase price? - $720k
-When is your renewal date? - September 2023

Thanks in advance!
You can get the below rates but you have to wait until 120 days out to lock

pr-1.10% 5yr variable
4.54% 3yr fixed
4.39% 5yr fixed
4.49% 4yr fixed

Any of the pros on the forum can assist
Last edited by rateconnect on Apr 2nd, 2023 12:01 pm, edited 1 time in total.
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3351 upvotes
Toronto
GaryMcMurray wrote: Hi there, I have a renewal upcoming and am interested in what rates are available currently. Details below:

-How much is the mortgage owing? - $370k
-Roughly, what is the current market value of the property? - $1.3mil
-Which city is the property located in? - Burlington, ON
-Is the property owner-occupied or a rental? - owner occupied
-Who is your current lender? - RBC
-Do you have a HELOC tied to the mortgage? - Yes
-Is the mortgage CMHC insured? - No
-When did you buy the property? - Sept 2018
-What was the purchase price? - $720k
-When is your renewal date? - September 2023

Thanks in advance!
You’re a bit too early unfortunately, as rates can only be held for 120 days. Try checking back sometime in May when you’re within 120 days of renewal.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
GaryMcMurray wrote: Hi there, I have a renewal upcoming and am interested in what rates are available currently. Details below:

-How much is the mortgage owing? - $370k
-Roughly, what is the current market value of the property? - $1.3mil
-Which city is the property located in? - Burlington, ON
-Is the property owner-occupied or a rental? - owner occupied
-Who is your current lender? - RBC
-Do you have a HELOC tied to the mortgage? - Yes
-Is the mortgage CMHC insured? - No
-When did you buy the property? - Sept 2018
-What was the purchase price? - $720k
-When is your renewal date? - September 2023

Thanks in advance!
Thanks for the post, and welcome to RFD!

You're still quite a bit early as the lowest rates can only be locked in for a maximum of 120 days. Best to repost at that time to find the lowest rates available to you. If we were within that window now, then the lowest 3 year fixed would be 4.54% or 5 year at 4.39%. Hopefully they will be lower once you're within 120 days but anything can happen of course.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Deal Fanatic
User avatar
Jan 31, 2018
6551 posts
1247 upvotes
muskarulz wrote: Hello! I got a quote for this a few weeks back, but I would like to see how rates have changed.

Purchase price: $499k
Down payment: $220K
25 years amortization
Location: Sherbrooke, QC
Closing: July 10
Property: Owner Occupied

I am looking for 2, 3,4 and 5 year fixed as well as a 5 year variable. I will also be adding a HELOC.

Thank you!
Rates below for Quebec

Without HELOC

5yr fixed 4.49%
4yr fixed 4.49%
3yr fixed 4.69%
pr-1.05% variable

with HELOC

pr-80
5yr fixed 4.69%
3yr fixed 4.99-5.09% major bank

Any of the pros can help

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Member
Sep 12, 2008
372 posts
108 upvotes
Toronto
I see talk of 40 yrs amortization mortgages? Is that true to be in happening?
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
rahulpatel1987 wrote: I see talk of 40 yrs amortization mortgages? Is that true to be in happening?
That is a rumour. I would not expect to see amortizations longer than 30 years anytime soon unfortunately.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Newbie
Apr 1, 2023
6 posts
2 upvotes
Hey there, want to see the competitive rates for my situation.

FTHB

-What is the purchase price? $800,000
-How much is the down payment? 180,000
-Where it the property located? Downtown Toronto
-When is the closing date? July 31st, 2023
-Will the property be owner-occupied or a rental? Owner-Occupied

Looking for 3/5 year fixed on 25 year amoritization.
Deal Fanatic
User avatar
Sep 13, 2011
7037 posts
3631 upvotes
Toronto
MarkXYYZ wrote: Hey there, want to see the competitive rates for my situation.

FTHB

-What is the purchase price? $800,000
-How much is the down payment? 180,000
-Where it the property located? Downtown Toronto
-When is the closing date? July 31st, 2023
-Will the property be owner-occupied or a rental? Owner-Occupied

Looking for 3/5 year fixed on 25 year amoritization.
Thanks for the post! You'd be looking at 4.59% for a 5 year fixed or 4.64% for a 3 year. These are fully featured mortgages with full 20/20 prepayment privileges. These rates are available through any of the regular posting brokers on this board.
Paul Meredith
Mortgage Broker, Author - CityCan Financial Corp
(lic. 10532)
Newbie
Mar 10, 2013
5 posts
Brampton
HI,

Could you please provide quotes for 2, 3-yr fixed and 5-yr variable on 25year amortization. I would also like to add a HELOC.

This is for a mortgage renewal:

-How much is the mortgage owing? 400,000
-Roughly, what is the current market value of the property? 1.1mil
-Which city is the property located in? Brampton
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? BMO
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? 2018 May 31
-What was the purchase price? 710,000
-When is your renewal date? May 31, 2023

Thank you.
Deal Addict
User avatar
Jun 24, 2020
4121 posts
868 upvotes
Naverick1 wrote: HI,

Could you please provide quotes for 2, 3-yr fixed and 5-yr variable on 25year amortization. I would also like to add a HELOC.

This is for a mortgage renewal:

-How much is the mortgage owing? 400,000
-Roughly, what is the current market value of the property? 1.1mil
-Which city is the property located in? Brampton
-Is the property owner-occupied or a rental? Owner-occupied
-Who is your current lender? BMO
-Do you have a HELOC tied to the mortgage? No
-Is the mortgage CMHC insured? No
-When did you buy the property? 2018 May 31
-What was the purchase price? 710,000
-When is your renewal date? May 31, 2023

Thank you.

At the moment you have the following available:
- 4.54% 3 year fixed
- Prime - 1.10% 5 year variable

These rates do not come with a HELOC, however you could add one on separately through a lender that offers it as a stand alone product. There are some that do so at a competitively priced rate, like Simplii. Mortgage + HELOC products come with higher rates on the mortgage, so doing them separately could be a good option for you to secure lower rates(unless you need a readvanceable mortgage).

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)