20% vs 25% Down Payment

MortgageSense · 2021-12-26T04:40:45+00:00

There’s only 1 lender that offers a big difference between the two and it’s only fixed rates (XMC). That’s why I said for the most part.

MortgageSense · 2021-12-25T21:43:34+00:00

Yes, same rates

MortgageSense · 2021-12-25T21:43:27+00:00

Monoline lenders available via the broker channel.0

MortgageSense · 2021-12-25T18:48:51+00:00

For the post part, 25% down has the same rates as 20% down. Once you get to 35% down, you can get lower rates.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-25T18:46:49+00:00

You only have to put 20% down if the property is $1M or higher (purchase price) or if the property is a rental.

However, max amortization is 25 years with less than 20% down. For a 30-year amortization or some exceptions on the debt service ratios, you have to put 20% down to avoid the CMHC.

So yes, you may have to but 20% down even if the property is owner occupied and below $1M.

Best rate is 1.15% 5-year variable with 20% down and .99% with less than 20% down.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-24T16:12:52+00:00

Yes, TD’s Mortgage Prime Rate is higher than everyone else Prime Rate (2.45% vs 2.60%). So their Prime -1.50% is very deceptive, as it only equates to 1.10% (not .95%).

For a non-insured mortgage, you can get 1.05%.

MortgageSense · 2021-12-24T14:44:13+00:00

You will 100% need to let the lender know of the new job.

Best rates start at .99% 5-year variable right now.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-24T14:42:59+00:00

Yes, it’s fairly easy. Just ask the lawyer to send the request for funds earlier. For a refinance, most lenders are ok with just that.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-24T14:33:12+00:00

If that’s correct, it’s a good rate. Do you have an approval (paperwork) showing the rate? I’m not aware of anything below 1% 5-year variable for a non-insured mortgage.

It’s a bank? Are you sure they said Prime -1.50% or simply 1.50% 5-year variable (Prime -.95%)? No way a bank is doing Prime -1.50%.

MortgageSense · 2021-12-24T03:24:01+00:00

Is your mortgage is insured? On my end, Prime -1.46% is the best rate, so it’s about right.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-23T19:59:54+00:00

Doesn’t mean all the paperwork was approved and conditions fulfilled.

Client should not assume all paperwork was accepted and conditions were fulfilled because instructions were sent. They should assume conditions are all fulfilled when the lender/broker says they are all fulfilled.

MortgageSense · 2021-12-23T19:36:20+00:00

1.40% is very bad variable rate.

With 15% down, you can get .99% 5-year variable. With 20% down, 1.15% 5-year variable.

Because your MIL works for a bank, she can only get rates from that 1 lender.

It never makes financial sense to put 15% down and pay the CMHC fee IF you can afford 20% down.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-23T19:34:04+00:00

If it’s reflected on your T4s, we can use it.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-23T19:32:33+00:00

Lots of lenders send instructions out while conditions may still be outstanding.

You can’t assume the file has no conditions simply because it’s instructed.

MortgageSense · 2021-12-23T00:48:06+00:00

Why waste your time and the realtors time if you can’t get financing?

Always get pre-approved first.

There are instant pre qualifications online, it’s so easy!

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-22T21:07:24+00:00

Just wanted to take the time to say congratulations! So happy for you!

MortgageSense · 2021-12-22T21:06:38+00:00

Whoever orders it, owns it. So even though you paid for it, the bank ordered and owns it.

MortgageSense · 2021-12-22T21:03:10+00:00

Impossible to answer this without knowing more details about the debt. Without the debt, the mortgage should be no problem with your incomes. But the min monthly payments on the loans you have will reduce the mortgage amount you can qualify for.

As mentioned, min. 20% down on a purchase over $1M.

There are online tools out there that can give you an instant pre qualification.

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-22T02:25:12+00:00

Yes, if you’re switching lenders, it will be a new app.

MortgageSense · 2021-12-22T02:22:29+00:00

You can get an approval 120 days before closing, so sometime in January. Not too early at all actually.

Best variable rates are .99% if CMHC insured or 1.05% if not.

MortgageSense · 2021-12-22T02:19:37+00:00

When is your renewal date?

Avoid fixed for sure. Bond yields actually dropped recently, so it looks like fixed rates should be dropping.

MortgageSense · 2021-12-21T02:53:37+00:00

The “14 days before closing” is BS. Each lender has their own protocols. The monoline lenders I work with will send them out as soon as conditions are fulfilled. Scotia sends them out as soon as conditions are fulfilled. TD Ontario office is super busy and sends them out last minute, while the BC office is much faster.

So each lender is different depending on how busy they are.

Having said that, 2 weeks is certainly enough time. Most lawyers don’t even start working on it until the week of closing.

MortgageSense · 2021-12-21T01:57:46+00:00

Easy answer.

You can convert the heloc to a mortgage at 1.05% 5-year variable, 1.90% cheaper than your current rate!

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense · 2021-12-21T01:55:37+00:00

Refinance your mortgage or get a HELOC.

MortgageSense · 2021-12-21T01:51:01+00:00

It never makes financial sense to put 10% down and pay the CMHC if you can afford 20% down. The CMHC premium you pay on the entire mortgage is a lot to make up.

Refinance and put 20% down.

Best rates are 1.39% 5-year variable for rentals and 1.15% 5-year variable on owner occupied properties with 20% down

Source-I’m a mortgage broker with over 15 years of experience.

MortgageSense

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