Mortgage Rates | Page 2 | GTAMotorcycle.com

Mortgage Rates

timtune said:
Have you tried a broker? My last couple came through MCAP. It's rare I think that a broker can't beat the bank's price.
Also was that the price they gave or did you haggle some. They usually shave a 1/2% pretty quick if you push back a little.
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We're with MCAP, and I would highly recommend them to anyone.

Last discussion was 'oh hey, so I know I told you Prime - 1%, but it turns out there's a cool deal going on right now of Prime - 1.3%.'

I took it. And have regretted that decision ever since! LoL Hopefully rates drop back down soon enough to bring me back into the 3-3.5% range (so a Prime rate of 4.3-4.8%.
 
I'm with Scotia (only thing we do with them) and always had great service when it come to renewing.
Just got off the phone with an advisor and they gave me some good advise for my upcoming renewal.
Most of which we all know, but he did tell me about a "value plan" mortgage that they don't post rates for.
Might save me a few bucks, come the new year.
 
When we have done the math at a macro level the average monthly payment today indexed to inflation is roughly double historical averages (BUT most home buying households are dual income now vs single historical). I expect the trend will stay the same if the rates stay high. Sure average prices are way high indexed but what it comes down to is how much can people pay per month...

What does this trend mean for new buyers if the high rates are persistent.... House prices will come down but there will be no monthly cost winfall for the average new buyer as the higher rate they get will offset the lower cost. It does help on down payment. Finance $1M at 3% over 25 years, $4730 ish a month, finance $740K at ~6%, guess what $4730 ish a month.

For existing owners still paying, renew timing will determined costs and it may get ugly for some if the upward trend continues. For sellers expect less if the trend continues.

History repeats itself, not the first time this has happened.
 
Best advice I can give is to be careful about getting a collateral charge mortgage - usually when a HELOC (home equity line of credit) is combined with your mortgage by the same company. I've heard that there are some new options available, but in the past, you couldn't simply switch to a new lender at the end of your term, you had to discharge both the mortgage and HELOC, then refinance which involves additional discharge, legal and appraisal fees.

www.ratehub.ca

What is a Collateral Mortgage | Pros and Cons | Ratehub.ca

If a mortgage loan is registered as a collateral charge, it can only be registered or discharged (not transferred) from your lender.
www.ratehub.ca www.ratehub.ca

www.ratespy.com

A Tip for Those With a HELOC Who Want to Switch Lenders

In Canada, the cheapest mortgage rates are usually available on insured (or insurable) mortgages. But refinances cannot be insured thanks to rule changes in 2016.
www.ratespy.com www.ratespy.com
 
Relax said:
Best advice I can give is to be careful about getting a collateral charge mortgage - usually when a HELOC (home equity line of credit) is combined with your mortgage by the same company. I've heard that there are some new options available, but in the past, you couldn't simply switch to a new lender at the end of your term, you had to discharge both the mortgage and HELOC, then refinance which involves additional discharge, legal and appraisal fees.

www.ratehub.ca

What is a Collateral Mortgage | Pros and Cons | Ratehub.ca

If a mortgage loan is registered as a collateral charge, it can only be registered or discharged (not transferred) from your lender.
www.ratehub.ca www.ratehub.ca

www.ratespy.com

A Tip for Those With a HELOC Who Want to Switch Lenders

In Canada, the cheapest mortgage rates are usually available on insured (or insurable) mortgages. But refinances cannot be insured thanks to rule changes in 2016.
www.ratespy.com www.ratespy.com
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Last time I switched (five years ago) all the above cost ~$1000 in fees that I had the new lender pay for. HELOC balance was transferred over.
 
crankcall said:
They financed you a property and the shovel. You got to decide how deep the hole was going to be .


Sent from my iPhone using GTAMotorcycle.com
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That is a great analogy. Luckily I’m still above the surface.
 
backmarkerducati said:
Last time I switched (five years ago) all the above cost ~$1000 in fees that I had the new lender pay for. HELOC balance was transferred over.
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I've gone through at least 4 refinances at the end of my terms due to having collateral mortgages where I never actually used the HELOC, and always went with a lender who was willing to pay those fees. But that also meant not getting the absolute best rate. Cost wise, it may not have been much, but it certainly was a hassle.
 
Relax said:
I've gone through at least 4 refinances at the end of my terms due to having collateral mortgages where I never actually used the HELOC, and always went with a lender who was willing to pay those fees. But that also meant not getting the absolute best rate. Cost wise, it may not have been much, but it certainly was a hassle.
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Good timing for these convos...just had a HELOC offer pop up on my online platform. And i'm tempted to apply "just to have it" but the current state of the rates makes it less...appetizing. And now THIS type of story is making it even less tempting
 
Relax said:
I've gone through at least 4 refinances at the end of my terms due to having collateral mortgages where I never actually used the HELOC, and always went with a lender who was willing to pay those fees. But that also meant not getting the absolute best rate. Cost wise, it may not have been much, but it certainly was a hassle.
Click to expand...
I always went for the best rate and then got the costs covered.

The only wrinkle I have had, when I last moved they changed my HELOC to a fixed amount instead of the cap growing as the mortgage was paid down. Originally I had thought about doing a Smith Manoeuvre but for obvious reasons never actually did it. If I wanted it to keep growing then the mortgage rate would have been slightly higher (like 0.1%). In the end $250K for the HELOC cap was plenty and needing more would mean I have some other serious problems....
 
backmarkerducati said:
I always went for the best rate and then got the costs covered.

The only wrinkle I have had, when I last moved they changed my HELOC to a fixed amount instead of the cap growing as the mortgage was paid down. Originally I had thought about doing a Smith Manoeuvre but for obvious reasons never actually did it. If I wanted it to keep growing then the mortgage rate would have been slightly higher (like 0.1%). In the end $250K for the HELOC cap was plenty and needing more would mean I have some other serious problems....
Click to expand...

Was it reasons with the Smith Manoeuvre itself, or just current real estate and market conditions?
 
Relax said:
Was it reasons with the Smith Manoeuvre itself, or just current real estate and market conditions?
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I built models and ran the numbers over and over and the upside was too low for me compared to the risk in market (stock not housing) fluctuations.

In hindsight, everyone I know that did it came out even or just a bit up, with lots of risk to do so. The math rang true...
 
LePhillou said:
Good timing for these convos...just had a HELOC offer pop up on my online platform. And i'm tempted to apply "just to have it" but the current state of the rates makes it less...appetizing. And now THIS type of story is making it even less tempting
Click to expand...
I've got a HELOC as a just in case. Effectively around 200k just sitting there to be used as I see fit.

Viper - yes please
Reno - maybe
Divorce - see #1
 
I went through the PITA , had a manulife 1 account which essentially for those that dont know is a mortgage/bank account/LOC all in one. When I switched houses my mortgage gal pal set me up with Scotia for a mortgage and a LOC. I had to close out the Manulife LOC portion and credit option and re-up with Scotia , all fees were waved but what a pain.
Had I paid attention, I could have just called Manulife and upped the credit limit $150K and been done. But then my gal pal would have missed out on her payday, given that I gave her real estate friend $40K for literally two phone calls, house sold while she was on holiday, I should have been smarter.
But we paid out the 100k mortage I ended up with in 18months and now have a $600k LOC which I'm pretty sure I'll never need .

My biggest pain with using a real estate agent (friend) that was on holiday, her assistant calls and says " hey for this deal to close today we need a certified cheque for $50,000.00 " , in the office at noon, she calls me at 10am. old LOC at manulife closed out, new one wont be in effect to the house closes. Oh crappola . I call a playmate and ask to borrow $50k cash for three days , oh and I need you to leave work and meet me at the bank right now. He made me pay the $12.00 to certify the cheque, which seemed fair.
 
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