Tim's Mortgage News / Rates and FAQ's

[codetrap]

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[TimLacroix]

Originally posted by codetrap
Our renewal is coming up, and I've been talking with our existing provider trying to grind them a bit. They finally came back with .71 under prime, for 1.99%. on a 5 year variable with a heloc at prime. Is that decent?

Yes that is decent, the variable mortgage rate is fairly standard... but getting Prime on the HELOC is very good. Great job!

[codetrap]

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[Buster]

I've been a TD customer/mortgage customer for a long time.

But I'm likely going to seriously consider a new lender.

Their options are more restrictive than ever, and annoying.

We're going to be in the $1.5MM range for a new home.

My current facilities are a TD mortgage, and a HELOC (up to 80%, IIRC).

The TD branch rep (god these people are useless), says that the only option that is equivalent is their new flex product, which puts the whole loan on a heloc, but I'll have to pay 3.5% posted rate.

wut?

No thanks, TD.

EDIT: just realized (I guess I hadnt paid attention), that HELOCs can only go to 65% now.

[TimLacroix]

Originally posted by Buster
I've been a TD customer/mortgage customer for a long time.

But I'm likely going to seriously consider a new lender.

Their options are more restrictive than ever, and annoying.

We're going to be in the $1.5MM range for a new home.

My current facilities are a TD mortgage, and a HELOC (up to 80%, IIRC).

The TD branch rep (god these people are useless), says that the only option that is equivalent is their new flex product, which puts the whole loan on a heloc, but I'll have to pay 3.5% posted rate.

wut?

No thanks, TD.

EDIT: just realized (I guess I hadnt paid attention), that HELOCs can only go to 65% now.

Hi Buster... I will PM you to get a better idea of what you have and what may be available for you. Thank you for the post.

[holden]

If the Fed raises rates this month, does that have any effect on bond yields in Canada? If so, will this affect Canadian mortgage rates?

[Darkane]

I was under the impression we may yet see more reduction, another .15-.25.

In the states I think it'll go up .25.

[TimLacroix]

Originally posted by Darkane
I was under the impression we may yet see more reduction, another .15-.25.

In the states I think it'll go up .25.

There is no indication of any "mortgage" rate drops.

However, what you might be referring to is the Bank of Canada prime lending rate. BoC meets next week (Sept 9) to decide on whether the BoC rate will drop or leave their rates as is.

If this drops then the banks have to decide if they will drop and by how much. When and if this drops, then you will see Bank Prime rates drop... which today is 2.70%.

When this happens, variable mortgage rate holders will see their interest rate drop. Hope that helps.

[TimLacroix]

Heads up... we have been seeing lenders changing variable rate discounts.

Some of lowered their discounts from -0.65% to -0.50%.

Not all lenders have made changes... this is a heads up that there have been changes. If you have questions or would like to discuss, please do not hesitate to call.

[TimLacroix]

More adjustments to Variable discounts this week. Majority of lenders have adjusted to:

>> Prime - 0.50% on variable / adjustable mortgage rates for 5 year terms.

There is a couple of lenders still offering - 0.65% and 0.60% discounts with full privileges and available for both High Ratio and Conventional.

Lots of activity in the last couple of weeks.

[Buster]

Originally posted by TimLacroix
More adjustments to Variable discounts this week. Majority of lenders have adjusted to:

>> Prime - 0.50% on variable / adjustable mortgage rates for 5 year terms.

There is a couple of lenders still offering - 0.65% and 0.60% discounts with full privileges and available for both High Ratio and Conventional.

Lots of activity in the last couple of weeks.

What fundamentals are occurring behind the scenes to compel the banks to go for higher spreads?

[TimLacroix]

Originally posted by Buster


What fundamentals are occurring behind the scenes to compel the banks to go for higher spreads?

Higher short-term funding costs are largely to blame. BA (bankers acceptance) rates usually rise when traders expect Bank of Canada rate hikes. However since August 24, the Chinese stock market crash rattled financial markets worldwide, the 12-month BA rate is up 10 bps.

There is also a couple of other factors that might be putting pressure on lenders... some lenders may be rebalancing their portfolios after becoming overweighted in variable-rate loans this year and some lenders may be suffering from a shortage of short-term deposits (a key mortgage funding source).

[bigbadboss101]

I was thinking prime - 0.75 or more is good. Those are not being offered much now a days?

[TimLacroix]

Originally posted by bigbadboss101
I was thinking prime - 0.75 or more is good. Those are not being offered much now a days?

Not without restrictions and significant admin / penalty fees...

[TimLacroix]

Current Rates to Open Week Oct 26, 2015

CHANGE to Prime Rate - 2.70%

Special Rate Offers

3 Year Fixed - 2.25%

5 Year Fixed - 2.54%
*Owner Occupied Only - some restrictions apply

5 Year Fixed - 2.59%
Quick Close - Close 45-60 Day - Full Privileges

Full Feature Rates -- 90 to 120 day rate protection
Starting at:
2 Year Fixed - 2.09%
3 Year Fixed - 2.34%
4 Year Fixed - 2.54%
5 Year Fixed - 2.64%

3 Year + ARM - 2.15% * Maturity is May 2018
5 Year ARM/VRM - 2.05%

HELOC Rates Prime +0.25%

Builder - New Home Mortgage Rates
5 Year Fixed - 6 Month Rate Hold - 2.74%* High Ratio and Conventional
5 Year Fixed - 12 Month Rate Hold - 3.09%* High Ratio
5 Year Fixed - 12 Month Rate Hold - 3.19%* Conventional

NO FEE Refinances -- 90 day rate protection
Starting at:
5 Year Fixed - 2.79%
5 Year VRM - 2.15%

Call or PM for MORE "UnPublished" rates or other term information.

OAC, some terms and conditions may apply, rates subject to change without notice

[TimLacroix]

HEADS UP --- Pressure on rates this week. We have seen 1 or 2 lenders change 5 year fixed.

5 Year Bond Yield is up and putting pressure on spreads. It is likely promotional rates may be going away...

Email or call if you have questions.

[TimLacroix]

It has started - Rates are rising !!

The 5 Year Bond Yield has continued to rise and lenders have started to increase rates.

Variable and Fixed rates are increasing. PM or Call if you have questions.

[TimLacroix]

Current Rates to Open Week Nov 16, 2015

CHANGE to Prime Rate - 2.70%

Special Rate Offers

3 Year Fixed - 2.24%

5 Year Fixed - 2.64%
Quick Close - Close by Jan 29, 2016 - Full Privileges

Full Feature Rates -- 90 to 120 day rate protection
Starting at:
2 Year Fixed - 2.24%
3 Year Fixed - 2.24%
4 Year Fixed - 2.54%
5 Year Fixed - 2.69%

3 Year + ARM - 2.15% * Maturity is May 2019
5 Year ARM/VRM - 2.15%

HELOC Rates Prime +0.50%

Builder - New Home Mortgage Rates
5 Year Fixed - 6 Month Rate Hold - 2.89%* High Ratio and Conventional
5 Year Fixed - 12 Month Rate Hold - 3.09%* High Ratio
5 Year Fixed - 12 Month Rate Hold - 3.19%* Conventional

NO FEE Refinances -- 90 day rate protection
Starting at:
5 Year Fixed - 2.79%
5 Year VRM - 2.25%

Call or PM for MORE "UnPublished" rates or other term information.

OAC, some terms and conditions may apply, rates subject to change without notice

[TimLacroix]

Current Rates to Open Week Nov 23, 2015

CHANGE to Prime Rate - 2.70%

Special Rate Offers

3 Year Fixed - 2.24%

5 Year Fixed - 2.64%
Quick Close - Close by Jan 29, 2016 - Full Privileges

Full Feature Rates -- 90 to 120 day rate protection
Starting at:
2 Year Fixed - 2.24%
3 Year Fixed - 2.24%
4 Year Fixed - 2.54%
5 Year Fixed - 2.69-2.74%

3 Year + ARM - 2.15% * Maturity is May 2019
5 Year ARM/VRM - 2.20%

HELOC Rates Prime +0.50%

Builder - New Home Mortgage Rates
5 Year Fixed - 6 Month Rate Hold - 2.89%* High Ratio and Conventional
5 Year Fixed - 12 Month Rate Hold - 3.14%* High Ratio
5 Year Fixed - 12 Month Rate Hold - 3.24%* Conventional

NO FEE Refinances -- 90 day rate protection
Starting at:
5 Year Fixed - 2.79%
5 Year VRM - 2.25%

Call or PM for MORE "UnPublished" rates or other term information.

OAC, some terms and conditions may apply, rates subject to change without notice

[TimLacroix]

Current Rates to Open Week Dec 7, 2015

CHANGE to Prime Rate - 2.70%

Special Rate Offers

3 Year Fixed - 2.24%

5 Year Fixed - 2.64%
Quick Close - Close by Jan 29, 2016 - Full Privileges

Full Feature Rates -- 90 to 120 day rate protection
Starting at:
2 Year Fixed - 2.24%
3 Year Fixed - 2.24%
4 Year Fixed - 2.54%
5 Year Fixed - 2.69-2.74%

3 Year + ARM - 2.15% * Maturity is May 2019
5 Year ARM/VRM - 2.25%

HELOC Rates Prime +0.50%

Builder - New Home Mortgage Rates
5 Year Fixed - 6 Month Rate Hold - 2.89%* High Ratio and Conventional
5 Year Fixed - 12 Month Rate Hold - 3.14%* High Ratio
5 Year Fixed - 12 Month Rate Hold - 3.24%* Conventional

NO FEE Refinances -- 90 day rate protection
Starting at:
5 Year Fixed - 2.84-2.89%
5 Year VRM - 2.35%

Call or PM for MORE "UnPublished" rates or other term information.

OAC, some terms and conditions may apply, rates subject to change without notice