Need help - Mortgage brokers and other experts - current residential mortgage rates in Ontario

housingrental

Frequent Forum Member
Registered
I'm looking to take out a small mortgage on my house.

Is it possible currently to do better than 2.85% with the scenario listed below?



What rates are possible and what lenders should be contacted?



What are the best rates available currently for mortgages with:



Ontario

5 year term

Fixed rate

Owner occupied

Non CMHC

Currently owned (ie not a new purchase)

Low mortgage amount / Low LTV (whatever amount will provide best rate)



I have seen advertisements for as low as 2.72% - on contact the actual rates available seem to be 2.8%-2.85% - with 2.8% only available if the mortgage is above $300,000.



Are there any lenders that will offer low rates with prepayment penalty less than greater of IRD or 3 months? (If so which / what is the prepayment penalty).
 

mortgageman

New Forum Member
Registered
Is there a particular reason you are interested in a five year term?

Five year terms are the most popular term but that doesn't mean a five year term is the best option for you.

Shorter or longer terms might make sense.



What are your plans for the property? How long will you own it?

Are there any changes expected to happen in your family or personal situation?

Do you have the ability and financial discipline to make large pre-payments?

Do you have the ability to double your payments from a household budget point of view?

Are you recently self-employed?

I raise these questions because they are examples of some of the factors to consider before you decide on an appropriate term.
 

housingrental

Frequent Forum Member
Registered
Jason - Looking for lowest interest rate - I prefer 5 year term - Will consider 4 if much cheaper which it doesn't seem to be - I'd consider longer but big rate premium - What can your firm do?
 

mortgageman

New Forum Member
Registered
If you're looking for the lowest rate there are a couple of lenders with good two year rates. With the increase on five year rates, you might consider going for a four year. One lender has 2.79 for a four year fixed. Keep in mind the qualifying rate is higher for fixed terms less than five years so it's possible that a person can't qualify for a shorter fixed term and be forced to take a five year term.
 

housingrental

Frequent Forum Member
Registered
Hi Greg

Home equity loan is at a higher interest rate



[quote user=invst4profit]Why not a home equity loan instead of a mortgage.
 

RobMacdonald

New Forum Member
Registered
After that last round of rate increases, you certainly couldn't get close to that rate today with a new lender. So that probably is your best option by far now.



Most lenders are now offering 3.29% for a 5 year. Some a little less if you close quickly.
 

mortgageman

New Forum Member
Registered
With the small .40 per cent spread between a five and a 10 year term, the 10 year is now a no brainer.
 
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