Current Mortgage rates

Bogger · Nov 30, 2015

My renewal is in February so I can sign whenever...... What are the best available rates out there.

My bank is offering 2.69% on 5 year closed or 3.84% on 10 year closed.

I know we have some Brokers and financial folks on here so is the 2.69% where I want to be?

Bnorth · Nov 30, 2015

Just bought my first place at 2.43% for 5 year fixed.

SLEDBUNNYRACING · Nov 30, 2015

Mortgages....what's that?

Let it Snow....Let it Snow......Let it Snow

Bogger · Nov 30, 2015

Not all of us are old and debt free..... that's the plan but I'm 15 years away

SLEDBUNNYRACING said:
Mortgages....what's that?

Let it Snow....Let it Snow......Let it Snow

LennyR · Nov 30, 2015

Bogger said:
My renewal is in February so I can sign whenever...... What are the best available rates out there.

My bank is offering 2.69% on 5 year closed or 3.84% on 10 year closed.

I know we have some Brokers and financial folks on here so is the 2.69% where I want to be?

Depends on;
-Do you intend to pay this property off or upgrade and sell this and enjoy the appreciation
- stable marriage or partnership
- change careers or employment in future
-keep this home and purchase revenue properties
- keep this home and purchase recreational property or out of country property
- relocate or move away-
- anticipate any need to pull equity in future
-anticipate an inheritance in near future-
- your age
-your dependant family growth or reduction
- and probably more.

My thoughts, i want as many privileges and options , in my favour as possible. Lending institutions suck people in with the dazzle dazzle and hype about the difference between 2.6 percent and 2.9 0r 3.1 percent , and then backload the mortgage with a whole bunch of disadvantage possibilities for the borrower. 2.69 or 2.99, who cares, its nickel and dimes per month, pay attention to prepayment options, interest differential paybacks, is the rate you get a posted or discounted rate, recall options, and i'm sure people can add to this. Things change, life happens and if you're not prepared mortgage privilege wise , it can really hurt financially, and forgiveness is not usually an option. Banks , especially chartered banks are in my mind evil, licensed to steal institutions whose daily motivation is 100 % self serving, if you think they're there to help you, then bend over and make it easier for both of you.

Bogger · Nov 30, 2015

LennyR said:
Depends on;
-Do you intend to pay this property off or upgrade and sell this and enjoy the appreciation Forever home paid off in 15 years

- stable marriage or partnership Yes, we either live out our days happy or whoever buries the other first wins
- change careers or employment in future Nope, location for sure a no
-keep this home and purchase revenue properties
- keep this home and purchase or recreational property out of country property

- relocate or move away- NOPE

- anticipate any need to pull equity in future NOPE
-anticipate an inheritance in near future-
- your age
-your dependant family growth or reduction
- and probably more.

My thoughts, i want as many privileges and options , in my favour as possible. Lending institutions suck people in with the dazzle dazzle and hype about the difference between 2.6 percent and 2.9 0r 3.1 percent , and then backload the mortgage with a whole bunch of disadvantage possibilities for the borrower. 2.69 or 2.99, who cares, its nickel and dimes per month, pay attention to prepayment options, interest differential paybacks, is the rate you get a posted or discounted rate, recall options, and i'm sure people can add to this. Things change, life happens and if you're not prepared mortgage privilege wise , it can really hurt financially, and forgiveness is not usually an option. Banks , especially chartered banks are in my mind evil, licensed to steal institutions whose daily motivation is 100 % self serving, if you think they're there to help you, then bend over and make it easier for both of you.

I hear you but unfortunately at this point I need them...... only reason for looking at the 10 year is that who's to say that 5 years from now rates aren't at 6-7% insurance I guess, but so long as rates stay below 5.5% there is no advantage to the 10 year.

SLEDBUNNYRACING · Nov 30, 2015

Bogger said:
Not all of us are old and debt free..... that's the plan but I'm 15 years away

We went hard paying our Mortgage down for 10 years when we made our purchase, dos without a lot of stuff I'd like to have had. The result was at 13 years we were done....then I could afford to have a little fun.....lol

Let it Snow....Let it Snow......Let it Snow

tex78 · Nov 30, 2015

Yes watch where ya go, we decided with the rates low and trudumb in that after two years out of five, for a 1 % drop in interest and lock it in for 7 years

Our bank rough figured a 1900 penalty and the interest savings of 7000 towards principal

But we got a mortgage through canadiana mortgage brokers ( not a bank) , only to find the 3 years left payout penalty is 6000 because of the interest differential bull sh!t they hid in the contract ....

Even if we renewal with them ( which I would never do again fawkers) and they got the new mortgage again they still want the 6000.

Be careful bogger who and what's in the contract

gibsons · Nov 30, 2015

Shop around. You would be surprised but mortgage rates are negotiable. My bank I've been dealing with for 30 years, gave me their rate2 years ago when we were looking at moving. Went and seen a broker from another bank which gave us a considerably better interest rate. Went back to my bank and she matched it. Other broker didn't like that and came down a bit more........ In the end the house burnt down we were suppose to buy and haven't moved yet. lol. But we learned that we could negotiate rates.

Bogger · Nov 30, 2015

Talking to folks who recently signed 5 year fixed for in the 2.35 - 2.5% makes me unwilling to accept my banks 2.69% offer.

I read an article recently in the post that talked about how discount mortgage companies get an unnecessarily bad rep. I get the penalty angle and the fine print but if your plan is to lock in and stay, there is no risk to a discount place, they have loaned you the money and a contract is in place so long as you meet your end all is good.

That said my bank was quite good to us when we moved, transferred our mortgage so no early penalty and they blended the rate which actually lowered our rate substantially. Now I know that the numbers did that and not the institution but overall I like my current set up and would prefer to stay put.....but not at a 0.25% premium

I may just go back to my account manager with a polite WTF and see if that number changes

gibsons said:
Shop around. You would be surprised but mortgage rates are negotiable. My bank I've been dealing with for 30 years, gave me their rate2 years ago when we were looking at moving. Went and seen a broker from another bank which gave us a considerably better interest rate. Went back to my bank and she matched it. Other broker didn't like that and came down a bit more........ In the end the house burnt down we were suppose to buy and haven't moved yet. lol. But we learned that we could negotiate rates.

X-Treme · Nov 30, 2015

Absolutely negotiate your rates!! And, in MY opinion, use a broker. The bankers work for the bank (and only ONE bank). A broker works for YOU and can go to ANY bank or financial institution. I used a broker, and she was awesome! Did the entire deal via phone, text, email, and fax. Didn't even meet her face to face until a couple months after the deal when she brought her vehicle in to me to work on.

BEL · Nov 30, 2015

If you can predict what future interest rates will do then you have a better crystal ball than me.

As mentioned above one of the questions you should be asking is if it's a discounted rate. In other words, is the posted rate actually higher than what is being offered and they are "discounting" the rate because you are "such a good customer"? What this means for you is that if you do pay out the mortgage prior to the end of the term, the prepayment penalty will not simply be 3 months interest, it could end up being the amount of interest calculated by multiplying the "discount" by the amount being paid out over the unexpired term of the mortgage, which in my experience can be lots. I've had many clients sell their houses for work related moves only to realize the penalty can be multiple thousands of dollars.

Let's use 2.5% as an example, an lets say the amount of your mortgage is $300,000 when you go to pay it out. Unless it is an open mortgage (which you can prepay in full or in part at any time without penalty) then the penalty will be the greater of 3 months interest or the interest rate differential. Here the 3 month penalty would be $1,875. But let's say they had given you a discounted rate of 2.0% to get from 4.5% to the 2.5% because you were a "good customer", and for the sake of argument let's say you still had 3 years to go on a 5 year term, then voila, the penalty would be $18,000.

Make sure you understand just what your lender is offering you, and make sure to clarify any questions with your lawyer when you are signing your documents.

Good Luck

tex78 · Nov 30, 2015

BEL said:
If you can predict what future interest rates will do then you have a better crystal ball than me.

As mentioned above one of the questions you should be asking is if it's a discounted rate. In other words, is the posted rate actually higher than what is being offered and they are "discounting" the rate because you are "such a good customer"? What this means for you is that if you do pay out the mortgage prior to the end of the term, the prepayment penalty will not simply be 3 months interest, it could end up being the amount of interest calculated by multiplying the "discount" by the amount being paid out over the unexpired term of the mortgage, which in my experience can be lots. I've had many clients sell their houses for work related moves only to realize the penalty can be multiple thousands of dollars.

Let's use 2.5% as an example, an lets say the amount of your mortgage is $300,000 when you go to pay it out. Unless it is an open mortgage (which you can prepay in full or in part at any time without penalty) then the penalty will be the greater of 3 months interest or the interest rate differential. Here the 3 month penalty would be $1,875. But let's say they had given you a discounted rate of 2.0% to get from 4.5% to the 2.5% because you were a "good customer", and for the sake of argument let's say you still had 3 years to go on a 5 year term, then voila, the penalty would be $18,000.

Make sure you understand just what your lender is offering you, and make sure to clarify any questions with your lawyer when you are signing your documents.

Good Luck

Yes that right there is my issue

Problem is we had a rush on getting mortgage ect when we got it, no time to go over stuff, just about missed buying the house and selling our other one by 3 hours lol

Lessons learned

LennyR · Nov 30, 2015

BEL said:
If you can predict what future interest rates will do then you have a better crystal ball than me.

As mentioned above one of the questions you should be asking is if it's a discounted rate. In other words, is the posted rate actually higher than what is being offered and they are "discounting" the rate because you are "such a good customer"? What this means for you is that if you do pay out the mortgage prior to the end of the term, the prepayment penalty will not simply be 3 months interest, it could end up being the amount of interest calculated by multiplying the "discount" by the amount being paid out over the unexpired term of the mortgage, which in my experience can be lots. I've had many clients sell their houses for work related moves only to realize the penalty can be multiple thousands of dollars.

Let's use 2.5% as an example, an lets say the amount of your mortgage is $300,000 when you go to pay it out. Unless it is an open mortgage (which you can prepay in full or in part at any time without penalty) then the penalty will be the greater of 3 months interest or the interest rate differential. Here the 3 month penalty would be $1,875. But let's say they had given you a discounted rate of 2.0% to get from 4.5% to the 2.5% because you were a "good customer", and for the sake of argument let's say you still had 3 years to go on a 5 year term, then voila, the penalty would be $18,000.

Make sure you understand just what your lender is offering you, and make sure to clarify any questions with your lawyer when you are signing your documents.

Good Luck

Exactly, and this should be illegal, it's extortion in my mind. The interest on the 2 % between discounted rate and your rate , is money that would never have been enjoyed by the lender if the contract ran to term,. Plus banker reps and lawyers doing the mortgage for the buyer do a crappy job of highlighting things like this, cause a great number of people would balk if this was made clear. And yes I also agree with the point made , use a Broker, and make sure they explain how they get paid, by commission, volume bonus points or buy down points they have available to them that may be used to benefit you. The
bankers rep, ultimately end of the day , works for the lender, whether you get a mortgage or not , good rate or bad, he gets paid end of the month, sometimes even more if he can sweeten the lenders position in the deal.
Bogger, that's kinda the bait and switch kinda thing I was talking about , difference between 2.35 % and 2.69 % is a big deal when they're selling it to you , reality on a 25 year amm mortgage it's about $49 /month $600/ year. So you're risking a lot that something in your life , your fault or not, isn't gonna change within that time period to cause you to need to renegotiate, good odds for them, stats show, not so good for us. Cha ching for the lender.

drew562 · Dec 1, 2015

I've been pretty loyal to Td bank for along time. Multi mortgages and business /personal banking. I ground them pretty hard and in August signed a 2 year 2.14. I didn't shop around cause I've been banking so long at Td. The option the renew is technically 20 months. I can't se interest going up enough in that time to accept a 5 year at a higher rate. If it starts to creep up maybe I'd consider locking in long term. Ive also increased my payment on both mortgages at the lower rate of today's interest since so much goes to the principal.

dylandoo · Dec 1, 2015

I've been a realtor here in Calgary for years and I've always heard good things when my clients use td. I agree shop around... I've had many clients get told a rate by the first mortgage pro they talk to then after shopping they find a rate almost half a point lower. Some banks bulk buy their mortgages. Best fixed rate I've had a client get in the last two months was 2.39.

brutematt750 · Dec 1, 2015

I just renewed two weeks ago for 2.54 % over 4 years. They also offered 2.14% over 2 years and 2.64% over 5. The difference in payment between the 2.54 and 2.64 was $26 by weekly.
On a side note interest rates went up .1% 3 weeks ago. So anybody that got a better rate a few months ago did because interest rates where .1% better. I had called and looked into it one week and then was looking into some other options and by the time I called back I had missed the previous rate by 2 days. Fawk !

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800HMX · Dec 1, 2015

5% is a very low mortgage rate. Build your budget around this payment and if you are able to get a 5yr amortization around 2.5%, you will be able to pay the place off sooner. Building a budget at historically low rates could be risky in the long term.

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Bigblack · Dec 1, 2015

BEL said:
If you can predict what future interest rates will do then you have a better crystal ball than me.

As mentioned above one of the questions you should be asking is if it's a discounted rate. In other words, is the posted rate actually higher than what is being offered and they are "discounting" the rate because you are "such a good customer"? What this means for you is that if you do pay out the mortgage prior to the end of the term, the prepayment penalty will not simply be 3 months interest, it could end up being the amount of interest calculated by multiplying the "discount" by the amount being paid out over the unexpired term of the mortgage, which in my experience can be lots. I've had many clients sell their houses for work related moves only to realize the penalty can be multiple thousands of dollars.

Let's use 2.5% as an example, an lets say the amount of your mortgage is $300,000 when you go to pay it out. Unless it is an open mortgage (which you can prepay in full or in part at any time without penalty) then the penalty will be the greater of 3 months interest or the interest rate differential. Here the 3 month penalty would be $1,875. But let's say they had given you a discounted rate of 2.0% to get from 4.5% to the 2.5% because you were a "good customer", and for the sake of argument let's say you still had 3 years to go on a 5 year term, then voila, the penalty would be $18,000.

Make sure you understand just what your lender is offering you, and make sure to clarify any questions with your lawyer when you are signing your documents.

Good Luck

I layman's terms: many mortgages, if you pay early, you still owe the vig. I have a Scotia mortgage right now...no penalties for early pay, no issues with extra payments.

firstdoo · Dec 1, 2015

Our renewal was coming up next march. I was already looking around when our bank contacted us offering to resign 6 months early with no penalties. i called a broker with the offer we were getting (Prime minus .55 on a 5 year closed variable). Was told that I couldn't do any better. 3 month interest penalty to cancel (approx $2300) no matter what happens to the interest rates. 15% prepayment/year, 15% payment increases at any time (all based on the original mortgage amount that we took out when we built). On top of all that, be negotiated our first mortgage to have them beat BMO when they started a mortgage war 4 years ago (With ridiculous charges and penalties to get out of BMO if you ever wanted to take your mortgage elsewhere)

Start negotiating early with your bank. Variable rate can save you a lot of money on interest if you're not worried about interest going up. Talk about penalties and prepayments if thats your goal. We have the option of switching to a fixed rate mortgage at any time, the only penalty is we must sign for 1 additional year more than we have remaining.

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