# Best Mortgage Rate Currently?



## KLR650 (Sep 12, 2010)

We are meeting with our bank next week to get approved for financing for a yet to be built new subdivision home. I think dealing with a mortgage broker would probably be best, however the bank has a deal where the appraisal fee is waived when buying from this builder. I know there are some mortgage brokers on here--what is the best rate we could expect for 5 yr fixed? Based on our financial situation, I see no reason that we would not qualify for the very best rate.

Thanks!


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## OurBigFatWallet (Jan 20, 2014)

You can easily find the lowest rate online using sites like rate supermarket or rate spy


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## KLR650 (Sep 12, 2010)

Thanks, I knew such websites existed. I guess what I am wondering, is it realistic to demand that one of the big 5 banks match the best rates posted, all else being equal? Say 2.3 or 2.4% for a 5 year fixed with similar pre-payment options?


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## birdman (Feb 12, 2013)

Would think that the word "demand" may be a bit strong and would you suggest you simply ask them to match it. At these low rates the banks are not really making a lot of money on your mortgage alone and you may wish to offer them some of your other business (cr card, chequing, RSP's, brokerage, etc) and of course say to you existing F/I that you need this rate or you will be forced to look elsewhere. Often F/I's look to the mortgage as a step in getting more of your business and then they get the higher rates on Cr cards, LOC's, service charges, SDB's, etc.


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## wendi1 (Oct 2, 2013)

I never succeeded in getting my bank to match the best online rate (so I have never taken out a mortgage with my banker). Just make sure you are comparing apples with apples: conventional mortages vs. collateral mortgages.

Also, I would never pay an appraisal fee - there are lots of lenders out there who do not charge them.


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## crr243 (Nov 2, 2015)

I'll be in the market for a renewal very soon myself. My term expires on March 1st, 2016.

I've had very good success with my broker at TD. 

In 2010, I bought a home in Saskatoon and mortgaged through him at prime - 0.9% (yup) with a 15/100 condition. This was the same as, or better, than anyone else at the time. Part of it might have been the fact that I had just switched _all_ of my finances to them a year or two prior.

When I moved to Alberta in 2012, I chose to sell in Saskatoon (I broke even after fees, thankfully) and buy in Calgary. Unfortunately I was right in that blip in late 2011, early 2012 where variable rates were prime - 0.25 _at best_, even at non-bank lenders. I regretfully (hindsight is 20/20) signed a 4 year fixed with TD at 2.99%, again with a 15/100 prepayment allowance, and they agreed to wave the cancellation penalty. The best fixed rates I could find through brokers at time time were 3.09%, and my TD broker was willing to beat it by a bit to keep me. 

I'm not sure what I'll do now, but it depends a lot on how much TD wants to keep me. I am seeing prime - 0.75 from quite a few lenders, though.


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## dougboswell (Oct 25, 2010)

KLR650 said:


> We are meeting with our bank next week to get approved for financing for a yet to be built new subdivision home. I think dealing with a mortgage broker would probably be best, however the bank has a deal where the appraisal fee is waived when buying from this builder. I know there are some mortgage brokers on here--what is the best rate we could expect for 5 yr fixed? Based on our financial situation, I see no reason that we would not qualify for the very best rate.
> 
> Thanks!


An appraisal fee is approx. $300-$400 depending on location, which lender it is and the value of the house. Your bank is being generous to say it is waived but the real question is whether the rate that they are offering you is competitive or not. You might save a lot of interest by going with another lender for 5 years which may save a lot more than the cost of the appraisal fee over the term. There are a lot of mortgage brokers that have you pay the appraisal fee upfront but reimburse it back to you after the home is built. As the home is still to be constructed, I would not let the bank try to use a free appraisal as the reason that you should go with that particular bank. As far as I know the builder has nothing to do with the appraisal and would not be giving free appraisals. . That is done by a company independent of the builder. The approval they are going to give is probably to lock in a rate. Unless they ask you for job letters, paystubs, NOAs etc it is not a guaranteed approval. Also there is no need to worry about this yet. Look around and talk to other mortgage agents or lenders to see what they can do for you. Rates went up at most lenders last Thurs and Fri. If you go to www.ratespy.com you can compare rates and also see what your bank is offering.


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## KLR650 (Sep 12, 2010)

That's what I was thinking...the appraisal fee being waived may just be a ploy to help mask a higher rate. Will definitely rate shop before actually taking out the mortgage.


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## noobs (Sep 27, 2015)

My mortgage broker got me prime -0.85 4 years ago on 5/variable. I'm up for next spring and he quoted me 2.54% on 5 year fixed


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## dotnet_nerd (Jul 1, 2009)

Thread bump...

Any suggestions on the current best mortgage rates?

I just renewed with National Bank. It's their "All-in-One" plan which combines the mortgage with a HELOC. I'm at 2.4% variable for 5 years.

Dummy me, I didn't read the fine print carefully enough. They're sticking me with a $12 service fee each month ($6 for each part). I asked them to waive this, they said they would but are dragging their feet.

I'm willing to switch and pay the 3 months interest penalty for a better rate elsewhere.

What's the best deal going? I want the lowest variable rate possible.

Update....
I see 1.74% on https://www.ratehub.ca/best-mortgage-rates/5-year/variable
Hmm, looks pretty good.


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## cashinstinct (Apr 4, 2009)

It depends of your property value and how much equity in % you have.

According to mortgage brokers on Redflagdeals forum (no affiliation), you can get around 1.85% variable (Prime - 0.85%) for a 35%+ equity mortgage renewal, if property is under 1 million $.

1.74% is possibly restricted to deals with less than 20% equity (so the deal is insured and paid by the person borrowing the moeny, therefore less risk for the financial institution).


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## WGZ (Feb 3, 2017)

HSBC appears to have 2.35%...the rest have raised to 2.6+


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## marina628 (Dec 14, 2010)

I have not had a mortgage in 3 years but shopping for one for our oldest now.TD quoted 2.4% on a 5 year variable is that as good as we will find ?


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## cashinstinct (Apr 4, 2009)

marina628 said:


> I have not had a mortgage in 3 years but shopping for one for our oldest now.TD quoted 2.4% on a 5 year variable is that as good as we will find ?


Renewal, refinance or new property?
How much downpayment in %?
Property of more than 1 M$?

The rates depend on many factors now, according to mortgage brokers I see posting in another forum.

Less than 20% downpayment = better rate 
Between 20% and 35% downpayment (or equity): less good rate, since deal in uninsured
More than 35% downpayment (or equity) : good rate

Less than 1 M$ value / price = better rate

Purchase = better rate
Refinance = less good rate
Renewal = good rate

_____

For example in my case, renewal with equity of 35%+ in the property, the best rate recently variable was 1.9% (Prime 2.7% - 0.8%) with a mortgage broker (rate from MCAP that is owned by BMO)

TD has a 2.85% prime rate for variable mortgage, while other banks are at 2.7%, sneaky on their part.


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## marina628 (Dec 14, 2010)

Brand new first home for my oldest under $500,000 Purchase Price and 20% down compliments of Mom and Dad


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## cashinstinct (Apr 4, 2009)

marina628 said:


> Brand new first home for my oldest under $500,000 Purchase Price and 20% down compliments of Mom and Dad


LESS than 20% = prime -0.95% (1.75%)
20 - 24.99% = prime -0.55% (2.15%)
25 - 29.99% = prime -0.70% (2.00%) 
30 - 34.99% = prime -0.75% (1.95%)
35% or greater = prime -0.80% (1.90%)

It should be prime - 0.55% in your case for a variable 5 year, 2.15% for now.


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## cheech10 (Dec 31, 2010)

What a perverse situation CMHC insurance has created: with the smallest down payment, a bank offers the lowest interest rate because the risk has been offloaded to a third party.


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## cashinstinct (Apr 4, 2009)

cheech10 said:


> What a perverse situation CMHC insurance has created: with the smallest down payment, a bank offers the lowest interest rate because the risk has been offloaded to a third party.


True... I understand the business logic, but it feels so unfair for the buyer that buyer pays higher interest on mortgage because he/she saved the 20%+ downpayment

(total cost is still lower for buyer because no CMHC insurance is paid, but still...)

On another forum, some people said well it's a proof you should not save for a 20%+ downpayment, totally forgetting buyer must also pay CHMC insurance in that case...


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