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Locked: [Royal Bank] RBC new 3-4-5 year mortgage rates

  • Last Updated:
  • Oct 27th, 2020 11:44 pm
Newbie
Sep 14, 2020
3 posts
Offed 4year fixed 1.79 5year fixed 1.89 today

I will take 5year fixed. Uninsured
Newbie
Dec 17, 2016
2 posts
1 upvote
Greatkim wrote: Offed 4year fixed 1.79 5year fixed 1.89 today

I will take 5year fixed. Uninsured
At RBC? New mortgage?
Newbie
Sep 14, 2020
3 posts
price31 wrote: The lowest I've gotten is 1.78% 5 years fixed with TD this is for a refinancing and 2300$ cash gift

BMO offered 1.74% 5 years fixed cash gift is only 700$
Hi there,

Can you share with me your contact at BMO? I just called yesterday and the person I talked to (in Toronto) said 1.9% 5 years fixed refinance! No cash gift!
Newbie
Sep 14, 2020
3 posts
Rbc New mortgage 35% down
Deal Fanatic
Apr 11, 2006
8162 posts
2852 upvotes
Mississauga
kurt16 wrote: I'm sure this question has been asked over and over again, so forgive my ignorance. How do mortgage broker rates and the overall total cost of the loan compare to banks like RBC? I ask because I have a friend that sells RBC mortgages and will just give us the best loan he can without any haggling. And it sounds like RBC is offering cash back, etc. Meanwhile, we've been referred to a highly successful and smooth talking broker in town that claims to not only help us find the right mortgage, but help us on the financial planning side of things.

We are looking to become first time home buyers in the new term, and looking at either buying a house with suite, house with suite potential, or possibly a legal but non-stratified duplex (where we live on one side, rent out the other, and ideally stratify and sell the units separately later). We both have good credit, the income to easily cover the payments in the price range we're looking at, job security, and we will be paying 20% down. I'm guessing we'd do a variable rate with a 30-year term, or 25-year if it makes more sense to do so.

It seems like our prospective broker talks a lot about "purchasing power" giving them an advantage as a wholesale customer with banks, that gives them an advantage over going with banks directly. But they haven't quoted us any rates, and are focused on getting our application processed first. I'm reluctant to do a hit on our credit without knowing a little more about what we're getting into. The broker also promotes his ability to help us with planning etc, and even with the stratification process if we take the duplex, as he's done the same thing with properties in the past. RBC seems to be offering competitive rates, as well as things like cash back, bundle discounts, etc (which I understand may end up being trivial in comparison to the overall loan). And it seems like a way less "salesy" relationship.

Any thoughts/recommendations? I'd very much appreciate input from people on here.
Mortgage brokers simply work with a number of lenders including banks, and big and small monoline lenders (as in they only do mortgages). The cost of the loan is going to primarily depend on the rate. Outside of the rate, the other aspect to look into is features of the mortgage, such as prepayment flexibility, payment amount change flexibility, and more importantly, penalty for breaking the mortgage as well as, portability conditions of the loan when moving.

So he may or may not be able to offer a better rate than what your friend at RBC is offering.
Jr. Member
Jan 3, 2008
194 posts
12 upvotes
Victoria
kenchau wrote: Mortgage brokers simply work with a number of lenders including banks, and big and small monoline lenders (as in they only do mortgages). The cost of the loan is going to primarily depend on the rate. Outside of the rate, the other aspect to look into is features of the mortgage, such as prepayment flexibility, payment amount change flexibility, and more importantly, penalty for breaking the mortgage as well as, portability conditions of the loan when moving.

So he may or may not be able to offer a better rate than what your friend at RBC is offering.
Thanks! I'm not super worried about the 3 months of interest penalty on a variable rate mortgage (famous last words), especially given the portability of the RBC mortgage and a handshake that if there's any gaps between a sale resulting in penalties and a future purchase down the road within a reasonable time frame, penalties would likely be credited back. It seems like the rate is the biggest difference maker. And RBC doesn't have super flexible repayment options, but if I had extra money on hand I'd likely do something other than try to repay my home more quickly.

What I'm hearing from RBC is 1.80% on a 5-year variable. I'm not sure what brokers have up their sleeves that can beat that. And on top of that, RBC has a "Fall Offer" of ~$1500 in cash back, plus through my wife's employer we'd also get enough RBC points for 2 return flights to Hawaii. In the grand scheme of the overall loan I realize that's not really a lot, but it's better than nothing - especially if it's already the best deal.
Newbie
Aug 12, 2018
44 posts
20 upvotes
kurt16 wrote: Thanks! I'm not super worried about the 3 months of interest penalty on a variable rate mortgage (famous last words), especially given the portability of the RBC mortgage and a handshake that if there's any gaps between a sale resulting in penalties and a future purchase down the road within a reasonable time frame, penalties would likely be credited back. It seems like the rate is the biggest difference maker. And RBC doesn't have super flexible repayment options, but if I had extra money on hand I'd likely do something other than try to repay my home more quickly.

What I'm hearing from RBC is 1.80% on a 5-year variable. I'm not sure what brokers have up their sleeves that can beat that. And on top of that, RBC has a "Fall Offer" of ~$1500 in cash back, plus through my wife's employer we'd also get enough RBC points for 2 return flights to Hawaii. In the grand scheme of the overall loan I realize that's not really a lot, but it's better than nothing - especially if it's already the best deal.
Fall offer for cash back for renewal?
Jr. Member
Jan 3, 2008
194 posts
12 upvotes
Victoria
WaleedS4429 wrote: Fall offer for cash back for renewal?
I think it's for first time customers but I'm not sure. I also don't know if it has rolled out yet.
Newbie
Jul 25, 2019
6 posts
2 upvotes
If youre military or police, you can sign up with BMO for the Defense Community banking plan...i called them a couple weeks ago and they quoted me 1.52% for a 5 yr closed variable. 1.79% on a 5 year fixed and 1.65% on a 3 yr fixed. Thats with a 25 yr amortization.
Newbie
Jul 21, 2017
95 posts
22 upvotes
Experts what is your view on the below when deciding Fixed vs Variable :
https://www.cnbc.com/2020/09/16/fed-mee ... rates.html

Key takes :
"As the central bank concluded its two-day policy meeting Wednesday, it said short-term rates would remain targeted at 0%-0.25%"

"Projections from individual members also indicated that rates could stay anchored near zero through 2023. All but four members indicated they see zero rates through then. This was the first time the committee forecast its outlook for 2023.

My view :
Probably the best scenario would be (assuming FED does what it says):
2020 = variable
2021 = variable
2022 = variable
2023 = Convert variable into 3 or 5 year fixed
2024 = Fixed
2025 = Fixed
2026 = Fixed
2027 = Fixed

xPosted
Deal Addict
Oct 9, 2005
1853 posts
201 upvotes
Mwong1229 wrote: If youre military or police, you can sign up with BMO for the Defense Community banking plan...i called them a couple weeks ago and they quoted me 1.52% for a 5 yr closed variable. 1.79% on a 5 year fixed and 1.65% on a 3 yr fixed. Thats with a 25 yr amortization.
Police don't qualify for this, only RCMP. No exceptions.
Jr. Member
Jan 18, 2011
109 posts
197 upvotes
montreal
Well thanks to you guys, here is what i got:

Currently on 5 year variable with BMO and was up for renewal in October:

5 year variable:
- told BMO that RBC offered me 1,74% 5 year variable. They matched it. They didnt ask for any written proof whatsoever
-in the meantime i was also with a mortgage broker, and he offered 1,70% 5 year variable with lendwise.

i took the 1,70% 5 year variable.
Newbie
Aug 11, 2016
47 posts
10 upvotes
eep832000 wrote: Got approved for 1.89% for 5 year fixed uninsured 30 year amortization from RBC with 2500 cash back and appraisal fees waived. They're also throwing in home insurance for 18 months.

On the other side, TD quoted me 1.78% for 5 year fixed uninsured 30 year amortization with 2500 cash back and appraisal fees waived.

This all started with me trying to get them to match my Scotia eHome rate of 1.78%. I suggest starting with this online application and trying to get the big banks to match.
I received the same offer for RBC, but not with the home insurance throw-in. Would you be able to elaborate on how you were able to get them to cover your home insurance for 18 months? I plan on calling them tomorrow, not sure how to approach them. Thanks in advance.
Deal Addict
User avatar
Jul 16, 2012
1259 posts
779 upvotes
Vancouver, BC Canada
Tangerine 1.84% 5yr fixed uninsured...come on RBC just because you're top dog doesn't mean there isn't competition for business get with the program.
Newbie
Dec 18, 2011
84 posts
26 upvotes
MISSISSAUGA
thatpersianguy wrote: I received the same offer for RBC, but not with the home insurance throw-in. Would you be able to elaborate on how you were able to get them to cover your home insurance for 18 months? I plan on calling them tomorrow, not sure how to approach them. Thanks in advance.
It's actually a home warranty and not home insurance. The specialist just added it on. I think it comes standard with RBC mortgages so it should be fine just asking for your RBC specialist for it.

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