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[TD Bank] TD fixed rate 2.54% mortgage

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  • Jun 26th, 2020 9:44 pm
[OP]
Member
Dec 26, 2015
359 posts
179 upvotes
Ottawa, ON

[TD Bank] TD fixed rate 2.54% mortgage

Hi guys, I didn't see anyone post this but I was recently able to get 2.54 percent rate for 5 year fixed term with 20 percent down payment on buying a new home. I was previously offered 2.75 and noticed that the rates for fixed term have finally dipped this week. There is no cashback just straight down . RBC is currently at 2.69 for same situation.
Last edited by systemdude on Apr 29th, 2020 10:30 am, edited 1 time in total.
240 replies
Deal Addict
User avatar
Oct 28, 2016
1331 posts
3883 upvotes
Albertariolandbec
Great rate, only problem for me would be that it's TD.
What's in your wallet?
Sr. Member
Jul 4, 2006
955 posts
281 upvotes
Oakville
Kind of ridiculous; interest rates have dropped twice since I renewed in February at 2.89% 5 year fixed.

Should be closer to 2.0 %.

Unbelievable how financial institutions could get away with such thievery.

They have number crunchers making the calculations where the bank always makes their margins.

Same with variable rates being high for mortgages.

If I didn’t have a low mortgage, my blood would boil. Kaboom.
Deal Addict
Aug 31, 2010
3518 posts
978 upvotes
Lobloco wrote: Kind of ridiculous; interest rates have dropped twice since I renewed in February at 2.89% 5 year fixed.

Should be closer to 2.0 %.

Unbelievable how financial institutions could get away with such thievery.

They have number crunchers making the calculations where the bank always makes their margins.

Same with variable rates being high for mortgages.

If I didn’t have a low mortgage, my blood would boil. Kaboom.
While I don't disagree rates should be lower, banks are also factoring in a higher risk of default for it's borrowers which translates into a not-so-low interest rate and lower spread on variables.

edit: Also, 289 isn't that low.
Last edited by hvc on Apr 29th, 2020 7:42 am, edited 4 times in total.
Deal Addict
Jul 7, 2016
2528 posts
2800 upvotes
going with broker is often a better rate as they know they have the resources in front of them but it is more expensive. I stick it to the bank if it comes down to the same thing at least the lawyer and the broker has its share.
unless you have 20% down bank take the bigger risk but the Canadian government insurance chmc and genworth will take the risk for most other mortgages.
also this is my mortgage rate right now and im due to renewal in a few months. so that was a 5 years ago rate right now it should be way lower.
Last edited by waven101 on Apr 29th, 2020 7:43 am, edited 2 times in total.
Member
Mar 28, 2010
226 posts
376 upvotes
vancouver
Lobloco wrote: Kind of ridiculous; interest rates have dropped twice since I renewed in February at 2.89% 5 year fixed.

Should be closer to 2.0 %.

Unbelievable how financial institutions could get away with such thievery.

They have number crunchers making the calculations where the bank always makes their margins.

Same with variable rates being high for mortgages.

If I didn’t have a low mortgage, my blood would boil. Kaboom.
Kind of ridiculous that people think fixed rates should drop when bank of Canada drops rates.
Fixed rates are determined by the bond market. Variable rates are set by the prime rate.
Deal Addict
Nov 14, 2006
2007 posts
977 upvotes
GTA
IMG-20200415-WA0035.jpeg
I went variable few weeks back , great rates
1.45 mortgage
2.65 secured line for credit if needed to borrow
Newbie
Sep 15, 2006
45 posts
38 upvotes
Toronto
The problem is that there are so many factors for certain rates . Is the mortgage high ratio, amount being borrowed , credit history , employment , etc . You have to be comfortable with your rate . The main problem is that great rates come with a minimum borrowing value . My house has value of 1 million but my mortgage is only 199 thousand , the banks really see no value in lending small mortgages as high % ones generate more $$$. The bank is a business and wants to pad it’s spread sheet with $$$$$ ( loan to value ) . The problem is now with vast number of population laid off ( potential ) of high unemployment and possible 2nd cova 19 wave it generates uncertainty. I’ve seen 5 yr closed , not high ratio , at 2.25 thru mortgage brokers but that’s attached with conditions ( money borrowed and closing parameters) .
Deal Addict
Aug 31, 2010
3518 posts
978 upvotes
hemiduty wrote: My house has value of 1 million but my mortgage is only 199 thousand , the banks really see no value in lending small mortgages as high % ones generate more $$$.
I don't believe this is necessarily true..high % loans don't generate more money.

Banks loan the insured high-LTV because the risk is lower (and why the rate is usually lower). Otherwise, I don't believe the LTV% affects the banks desire to lend money. Lending $1M through 5 low-LTV mortgages is less risky than an uninsured single $1M mortgage.
Sr. Member
Feb 14, 2019
641 posts
576 upvotes
lilmikey wrote:
IMG-20200415-WA0035.jpeg
I went variable few weeks back , great rates
1.45 mortgage
2.65 secured line for credit if needed to borrow
I also have 1.45% variable. I think it's a pretty good rate! I don't see them raising the interest rates for a while with how fragile everything is. Even when they do they'll have to go slow.

In the long run, isn't variable pretty much always the winner over fixed? I mean, at 1.45% the rate would have to go up 1.09% just to be the same as OP. Then go up over another % or more to be a worse deal. All in 5 years. Meanwhile I'm putting more towards my principle so even if it does go up I'll have a lower balance.
[OP]
Member
Dec 26, 2015
359 posts
179 upvotes
Ottawa, ON
Majokito wrote: I also have 1.45% variable. I think it's a pretty good rate! I don't see them raising the interest rates for a while with how fragile everything is. Even when they do they'll have to go slow.

In the long run, isn't variable pretty much always the winner over fixed? I mean, at 1.45% the rate would have to go up 1.09% just to be the same as OP. Then go up over another % or more to be a worse deal. All in 5 years. Meanwhile I'm putting more towards my principle so even if it does go up I'll have a lower balance.
Agreed but you assume the current situation will last year 5 years. I am on the side of if the current situation lasts more then 6 months we are all screwed. The real kicker is if we have a vaccine by next winter. If we do the interest rate will be going up by next year and in 2 years time they will be higher to push back against the inflation. So true that you would have put more towards your principal in the 2 years vs me but I will get to stick with a lower rate in year 3. That's what I am basing this on right now.
Deal Addict
Nov 14, 2006
2007 posts
977 upvotes
GTA
systemdude wrote: Agreed but you assume the current situation will last year 5 years. I am on the side of if the current situation lasts more then 6 months we are all screwed. The real kicker is if we have a vaccine by next winter. If we do the interest rate will be going up by next year and in 2 years time they will be higher to push back against the inflation. So true that you would have put more towards your principal in the 2 years vs me but I will get to stick with a lower rate in year 3. That's what I am basing this on right now.
That's why I went variable at 1.45 % as seeing what happens I can always break it for 3 months interest penalty and then go fixed but I see it taking few years if that for it to happen if it does.

Ive always been a variable person and have been ahead over my terms for the most part so will continue at this point.
Member
May 14, 2008
466 posts
189 upvotes
Toronto
too low, tangerine was offering GIC 5 yrs at 3.2%

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