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TD Bank

Fixed mortgage rates drop - From 1.78%

  • Last Updated:
  • Dec 21st, 2022 9:48 pm
Sr. Member
Aug 9, 2020
923 posts
502 upvotes
Jucius Maximus wrote: The use of "discount rates" together with IRD is what big banks use to take large amounts of your equity, if you refinance or sell before the fixed-rate mortgage term is over.
Here's an explanation of how it works (youtube): Exposing Big Bank Mortgage Prepayment Penalties

Paying an IRD for a fixed mortgage is a commonplace thing with any lender, but combined with the "discount rate," that's where you end up paying a lot.

A collateral mortgage is a different way of registering a mortgage, in which it enables the lender to more easily offer you other loan products, HELOC, etc., without having to take out another lein. It gets complicated when you want to refinance, because collateral mortgages require increased legal costs when you want to switch lenders. Also, with a collateral mortgage, it will be difficult if you want to get a HELOC from a different lender, since most of your equity is tied up in that collateral mortgage.

Collateral Mortgages and discount rates are different things, but they are both typical complications you could run into when dealing with big banks.
Thanks. MUch appreciated!
Deal Addict
Jan 23, 2006
3082 posts
2384 upvotes
Seems like market has finally realized that the yields are joke compared to what they should be. Bonds are down, so rates are going up again (although we’ve already seen few attempts to go higher, just to go back down again, so yeah…)
iamalittlepepper wrote: Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote: you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
Deal Addict
Jan 9, 2014
1099 posts
695 upvotes
Toronto
Was told that TD rates went up, so did RBC. Anyone know what they are now?
Sr. Member
User avatar
Apr 10, 2008
506 posts
526 upvotes
Toronto
I also got 1.15 from
scotia variable primary uninsured and wondering if I should bite. I have until february.

torwizard wrote: Who is offering 1.05% 5-year variable? Is it any of the big banks?
I have offer for 1.15% from Scotia, wondering if I can find any better rate...
Deal Fanatic
Jun 4, 2012
5034 posts
4469 upvotes
JetSwift21 wrote: I also got 1.15 from
scotia variable primary uninsured and wondering if I should bite. I have until february.
U like to gamble?!?
Member
Aug 26, 2019
404 posts
496 upvotes
Guelph-Kitchener-Wat…
djredhat wrote: Inflation’s through the roof, but we keep pumping cash and lowering the interest rates.

Makes perfect sense…
Hence why I am stacking physical silver and gold. This is unsustainable.
Deal Addict
User avatar
Jul 19, 2005
1918 posts
817 upvotes
Calgary
Azznflame wrote: Those are very good rates, I got my mortgage done last month. TD offered me a garbage 2.16% on a fixed 5 years and wouldn't budge. Just my experience from the beddington branch of TD.
Keep in mind rates vary by region.
Alberta always seems to be higher.
Member
Nov 14, 2011
213 posts
50 upvotes
Toronto
I renewed in March with bmo 5 year fixed at 1.49.

What I can't understand is why my penalty to cancel is so low (looking to move and might possibly need to break VS Port over)..the bmo guy said (in writing) it's around $2500 to break which seems so low for having 4 years left. But when I see this thread it sounds like it costs ppl way more to break their fixed mortgages. I read and re read through the contract and calculation and it sounds correct but I don't totally trust him and hearing everyone say it's really expensive worries me, how could it be so different?
Jr. Member
Nov 28, 2016
177 posts
174 upvotes
flamez1000 wrote: Got 1.15% variable 30 year, uninsured from a BMO Broker on this forum.
Can you please pm me the broker info? Thanks in advance!
Sr. Member
Nov 10, 2003
794 posts
251 upvotes
Concord
Variable rate is not a gamble.

With fixed rates you are paying for interest that may potentially be apply in the future. That is the gamble, you are hedging.

Variable is actual discounted rate today.
Last edited by xg3 on Oct 3rd, 2021 10:31 am, edited 1 time in total.
UNOO - Meet Canada's Premium Heated Jacket
Deal Addict
Mar 10, 2014
2803 posts
2900 upvotes
Bluejay3 wrote: I renewed in March with bmo 5 year fixed at 1.49.

What I can't understand is why my penalty to cancel is so low (looking to move and might possibly need to break VS Port over)..the bmo guy said (in writing) it's around $2500 to break which seems so low for having 4 years left. But when I see this thread it sounds like it costs ppl way more to break their fixed mortgages. I read and re read through the contract and calculation and it sounds correct but I don't totally trust him and hearing everyone say it's really expensive worries me, how could it be so different?
Ask him to give you an official doc showing the breakage fee. Normally, you can figure this out yourself. Go back to the posted rate - minus your rate reduction % = Interest Rate Differential (IRD). Use that to figure out on your balance of your mortgage remaining. I like to do the calculations myself in order to see if they are actually ripping you off.

Since you plan to break, they are ripping you off anyways. Never go with fixed rate mortgage if you think you will break sometime in the future. Banks encourage fixed rates so they have you locked in and know there is a higher percentage of you breaking in the near future than not.
Deal Addict
Jan 23, 2006
3082 posts
2384 upvotes
Bluejay3 wrote: I renewed in March with bmo 5 year fixed at 1.49.

What I can't understand is why my penalty to cancel is so low (looking to move and might possibly need to break VS Port over)..the bmo guy said (in writing) it's around $2500 to break which seems so low for having 4 years left. But when I see this thread it sounds like it costs ppl way more to break their fixed mortgages. I read and re read through the contract and calculation and it sounds correct but I don't totally trust him and hearing everyone say it's really expensive worries me, how could it be so different?
It is low because the rate are going up, so you are most likely paying only 3 months of interest.

The IRD is to protect the lender from people breaking their contract to get lower rates if the rates go down. When rates go up, they would be actually more tan happy if you break your contract so that they lend these money to someone else at higher rate.

Think of it as the bank depositing their money in GIC.
iamalittlepepper wrote: Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote: you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
Member
Mar 13, 2006
498 posts
479 upvotes
5 year variable uninsured @ 1.15% @ 1mm 30 year amortization + $2,500 cash back.

Closed Sep 16 @ TD for rental property.

Require $50k cash/liquid investments at time of closing. No obligation to buy TD investment products after closing. 15% prepayment per calendar year.

PM for contact in GTA (non broker; TD mortgage specialist)
Member
Nov 14, 2011
213 posts
50 upvotes
Toronto
djredhat wrote: It is low because the rate are going up, so you are most likely paying only 3 months of interest.

The IRD is to protect the lender from people breaking their contract to get lower rates if the rates go down. When rates go up, they would be actually more tan happy if you break your contract so that they lend these money to someone else at higher rate.

Think of it as the bank depositing their money in GIC.
Okay thanks, so I guess it seams realistic then given I got a lower rate than currently
Deal Addict
Apr 22, 2014
3738 posts
1543 upvotes
, ON
I got 1.4% 5 years variable 30 years amortization on $575 k, but I got 0.15% cash back from my broker upfront so technically I got 1.25% mortgage. Plus my bank gave me $1500 cash back.

Is this good deal?
Deal Expert
User avatar
Aug 18, 2005
21125 posts
5804 upvotes
Burlington-Hamilton
anotherbargainhunter wrote: I got 1.4% 5 years variable 30 years amortization on $575 k, but I got 0.15% cash back from my broker upfront so technically I got 1.25% mortgage. Plus my bank gave me $1500 cash back.

Is this good deal?
Depends on your goals... I have always held the philosophy that you should be running away from debt. I have traditionally made extra principal payments on this basis. Things like cashback are not 'free' and you are paying for it in one way or another. So getting cashback is not consistent with trying to go away from debt. If you look at the mortgage rates thread, lower variable rates (without cashback) are certainly available depending on your situation.

These days, some would argue that with inflation ongoing into the future, you're better off just investing money and minimizing debt payments, since those debts will be gradually inflated away. There's always talk of central banks raising prime rate, but I question if and when it will really happen, considering that it will affect government borrowing costs and the massive increases in government debt.

The world is weird right now and I have no idea which is best, and I don't know how your deal will pan out.
Last edited by Jucius Maximus on Oct 4th, 2021 8:55 am, edited 1 time in total.
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Newbie
Nov 27, 2017
51 posts
305 upvotes
BMO 5 year variable
1.12% for Military/DND Folks
25 Year Amortization
Also bonus cash back event right now depending on your mortgage amount.
Jr. Member
Aug 19, 2019
123 posts
95 upvotes
Toronto GTA
HI, little off topic but a genuine doubt as I am first time home buyer.

I would like to know if a car loan of monthly CAD 600 affects the total mortgage affordability. In another group, someone mentioned it may reduce mortgage more than 100k.
There are 2 mortgage agents I have initiated conversation with (one for td n other for national bank). Both said it doesn't affect much. On their site, when I put 600 in car loan debt, it doesn't affect much. Only 20k reduced from the total mortgage when I took off the car loan.

However, Today, I checked with true north Mortgage on their mortgage affordability calculator, Car loan debt (600 monthly) is reducing around 100k from total mortgage.
Appreciate if someone can advise?

If it really affects that much, I can actually pay off the Loan to get more Mortgage with lesser down payment than keeping the car loan with less Mortgage.

Calculators i tried:
https://www.canwise.com/calculators/mor ... calculator (Car loan does not affect much)
https://www.truenorthmortgage.ca/tools/ ... calculator (Car loan Affects a lot)

Thanks in Advance.
Sr. Member
Jul 20, 2012
757 posts
219 upvotes
Air Force One
donduck wrote: 5 year variable uninsured @ 1.15% @ 1mm 30 year amortization + $2,500 cash back.

Closed Sep 16 @ TD for rental property.

Require $50k cash/liquid investments at time of closing. No obligation to buy TD investment products after closing. 15% prepayment per calendar year.

PM for contact in GTA (non broker; TD mortgage specialist)
That is sick. I got a 1.3% on a 30 year amortization + $3k cb for a similar size mortgage back in March and thought that was amazing. I can't believe 1.15 is possible now for such a large mortgage!

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