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TD Bank

Fixed mortgage rates drop - From 1.78%

  • Last Updated:
  • Dec 21st, 2022 9:48 pm
Sr. Member
User avatar
Apr 2, 2008
696 posts
357 upvotes
b31770 wrote: My mortgage is not recent, so my variable rate is higher. I'm doing the math to see if it makes sense to lock in a lower fixed rate.

I read my contract, and have calculated the penalty to break it. But again, my question is what are the options if I wanted to STAY with TD and possibly convert my variable to a fixed. I truly don't know, so that is why I am asking.

Theoretically, the cost would be lower, and they would retain a mortgage, right?
No penalty to switch from variable to fixed with TD. I've done it before when the prime was increased like crazy few years ago.
Save a lot but end up spending more :confused:
Deal Addict
Apr 25, 2005
1152 posts
469 upvotes
Finally got the closing date for condo, and reached out to my mortgage reps to find the best deal. (HSBC, NBC, TD, RBC), all of them roughly the same rate, 2.54 for 5yr fixed, 1.4 (prime - 1.05) for variable, 25 year amortization, rental property, no cash back from any one of them.

Last time I checked with them midsummer it was 0.5 lower on fixed, 0.15 lower on variable.
This is crazy. I guess the bond markets are driving the fixed rates up quite a bit.

Unfortunately I couldn't fix a rate because the closing date was not known until now, so I'm Sol'ed.

Anyone has any better rates in their back pockets though their reps for a rental property? (Keep in mind there is roughly three weeks left)
Last edited by theshowman on Nov 2nd, 2021 10:11 pm, edited 1 time in total.
Banned
Apr 5, 2021
95 posts
212 upvotes
Lol I have the best rate 0% for the next 100 years, cant beat that euh
Deal Expert
User avatar
Aug 6, 2001
17095 posts
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Stuck in a Box
naticom wrote: Wow I got 1.24% variable for 5 yrs and thought it’s already the best one on the market
Me too. I got 1.24 in March from simplii
Deal Expert
User avatar
Aug 6, 2001
17095 posts
4896 upvotes
Stuck in a Box
theshowman wrote: Finally got the closing date for condo, and reached out to my mortgage reps to find the best deal. (HSBC, NBC, TD, RBC), all of them roughly the same rate, 2.54 for 5yr fixed, 1.4 (prime - 1.05) for variable, 25 year amortization, rental property, no cash back from any one of them.

Last time I checked with them midsummer it was 0.5 lower on fixed, 0.15 lower on variable.
This is crazy. I guess the bond markets are driving the fixed rates up quite a bit.

Unfortunately I couldn't fix a rate because the closing date was not known until now, so I'm Sol'ed.

Anyone has any better rates in their back pockets though their reps for a rental property? (Keep in mind there is roughly three weeks left)
Call up Michael Neal at northwest mortgages.
Member
Dec 23, 2008
221 posts
14 upvotes
theshowman wrote:
Unfortunately I couldn't fix a rate because the closing date was not known until now, so I'm Sol'ed.
If you got a pre-approval from your mortgage brokers before the rates went up (even if it was before closing), the lower rates are held for you for 120 days.
Deal Addict
Apr 25, 2005
1152 posts
469 upvotes
pepsi_dude wrote: If you got a pre-approval from your mortgage brokers before the rates went up (even if it was before closing), the lower rates are held for you for 120 days.
I don't know if they are telling me BS or not, but I have full approval with both NBC and RBC, but neither were able to do any rate holds, unless a fixed closing date was known. Believe me, I had asked them several times in the past 6 months (essentially since occupancy a few months back and my anticipation of rates going up until an unknown closing date by the builder), so I gave up hoping that the rates would remain the same.
But I guess it didn't turn out to be that way and there there has been quite a few recent hikes.
Deal Addict
Apr 22, 2014
3752 posts
1549 upvotes
, ON
djredhat wrote: Technically, you have to divide the 0.15 by 5 ;)
What do you mean? Can you elaborate?

They give me the difference between the cost of interest for 5 years on 1.4% vs 1.25%.
Newbie
Jun 22, 2020
20 posts
74 upvotes
Bc the cashback of 0.15 is a one time event but the interest is for 5 years. Therefore the 0.15% divided by 5.
Deal Fanatic
User avatar
Nov 23, 2005
8937 posts
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anotherbargainhunter wrote: What do you mean? Can you elaborate?

They give me the difference between the cost of interest for 5 years on 1.4% vs 1.25%.
$692 over 5yrs per $100k borrowed.
Deal Addict
Apr 22, 2014
3752 posts
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, ON
boyoflondon wrote: $692 over 5yrs per $100k borrowed.
Ok….but what’s your original point? Did I make a mistake? Did I misunderstand the cashback? What are you trying to prove based on my original post? That’s what I don’t understand.
Deal Addict
Apr 22, 2014
3752 posts
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, ON
Spamgjm83 wrote: Bc the cashback of 0.15 is a one time event but the interest is for 5 years. Therefore the 0.15% divided by 5.
Like I said they give me the difference between interest of 1.4% vs 1.25% for 5 years. Did I not make myself clearer?
Jr. Member
Mar 6, 2018
119 posts
141 upvotes
Ontario
theshowman wrote: I don't know if they are telling me BS or not, but I have full approval with both NBC and RBC, but neither were able to do any rate holds, unless a fixed closing date was known. Believe me, I had asked them several times in the past 6 months (essentially since occupancy a few months back and my anticipation of rates going up until an unknown closing date by the builder), so I gave up hoping that the rates would remain the same.
But I guess it didn't turn out to be that way and there there has been quite a few recent hikes.
That is how the banks work, they cannot hold rates until and unless you have a firm closing/purchase, if you think it'll close within the next 120 days you can give the bank a closing date of sometime in February. You should be able to move the date up if required but you will not be able to move it past the 120 days.
REALTOR®
Member
Feb 22, 2017
424 posts
482 upvotes
Canada
Vaeregrae1 wrote: Lol I have the best rate 0% for the next 100 years, cant beat that euh
I mean, we can, if we invest the money you paid off on your mortgage in to something that yields at least 2%
Deal Addict
Jul 7, 2008
1070 posts
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My current mortgage is with CIBC and it's up for renewal.
Any advice who to go with?
Thanks in advance.
Jr. Member
Mar 6, 2018
119 posts
141 upvotes
Ontario
AceMagnet wrote: My current mortgage is with CIBC and it's up for renewal.
Any advice who to go with?
Thanks in advance.
Rates went up 3 times in the past 2 weeks already for most banks, I believe for TD it is going up tonight as well. Your best option will prob be BMO as they have cashback until Nov 15. Rates will be similar at all the banks right now.
REALTOR®
Member
May 15, 2018
225 posts
122 upvotes
anotherbargainhunter wrote: Like I said they give me the difference between interest of 1.4% vs 1.25% for 5 years. Did I not make myself clearer?
Interest rate of 1.4% means every year you pay the lender 1.4% of the amount owed. Over 5yr term, thats roughly 7% (i know interest calculations are more complicated but lets just do straight multiplication this time for easy to understand)
So the 0.15% you received up front makes it 6.85% u will need to pay meaning your rate after the cash back is more like 1.37% and not 1.25%. Or as the other person said your 0.15 divided by 5 (is 0.03) -> same result of 1.37.
Deal Addict
Apr 22, 2014
3752 posts
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, ON
Linhnd2000 wrote: Interest rate of 1.4% means every year you pay the lender 1.4% of the amount owed. Over 5yr term, thats roughly 7% (i know interest calculations are more complicated but lets just do straight multiplication this time for easy to understand)
So the 0.15% you received up front makes it 6.85% u will need to pay meaning your rate after the cash back is more like 1.37% and not 1.25%. Or as the other person said your 0.15 divided by 5 (is 0.03) -> same result of 1.37.
I think you guys didn’t understand. Ok just to test one more time to see if you understand me. Based on your understanding, how much cashback in dollar would I receive on $570k mortgage?
Deal Addict
Apr 25, 2005
1152 posts
469 upvotes
Dealgains wrote: That is how the banks work, they cannot hold rates until and unless you have a firm closing/purchase, if you think it'll close within the next 120 days you can give the bank a closing date of sometime in February. You should be able to move the date up if required but you will not be able to move it past the 120 days.
I'd tried but they needed proof which I wasn't able to provide. I'd suggested that just take any date upto 120 days in the future and I was told they weren't allowed. He made it sound like by reserving an interest rate it ends up costing the banks and as such any subsequent change in future to move the date would incur a higher rate for me. I was even fine (taking some risks) with that but he still wouldn't do it.
Next time, if any, have to find representatives that are more willing to bend the rules.

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