Best Mortgage Rates Canada

Canadian Mortgage Calculators

  • Find out how much interest you can save on your mortgage.

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  • Determine the amount of mortgage you can afford and qualify for.

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  • See how much you can save by increasing your down payment.

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  • Find out how much land transfer you need to pay in your Province.

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Mortgage Rates

Best Mortgage Rates Canada

There are a ton of options when it comes to choosing your mortgage provider, but that doesn't mean you need to use your valuable time looking at every single one. At CompareMyRates.ca, we do the hard work for you by shopping the most competitive brokers, lenders, and banks in Canada.

The best part: we provide this service completely free of charge.

We put them in easy-to-use comparison lists that are updated regularly, so you don't have to worry about whether the rate you're looking at is current. With just a few clicks of your mouse, you have access to comparisons from brokers, lenders, and banks coast to coast and anywhere in between.

Brokers can help you get exclusive mortgage offers that you wouldn't find anywhere else. Through their access to a variety of lenders, they are helping more Canadians find the best possible rates on their mortgages every year. Do you want to potentially save thousands of dollars a year? Then give our service a try. There's no cost to you and no obligations!

Why Compare Mortgage Rates before signing the dotted line?

Mortgage rates vary from time to time depending on some factors affecting the economy. In order to get the best mortgage rates, you need to compare those rates from various banks and lending institutions. There are also conditions stipulated in the contract that may be beneficial or aggravating in your situation.

How important is your credit score?

The ability to get credit cards, car loans, and of course mortgages all rely on how high your credit score is. The question many first-time homebuyers need to ask themselves: is their score ready to get a pre-approved mortgage, and if so, for how much?

The reason that a credit score is so important is it enables the lender to judge how “safe” it is to lend a person money. Generally speaking, if a person has a good credit history, aka pays bills on time, keeps debt minimal, and doesn’t apply too often for new credit, then they would be a much better investment on the lenders part.

Once you have that nailed down, then it’s time to start thinking about the different types of mortgages.

Top Bank Providing Lowest Mortgage Rates in Canada 

Banks that provide the lowest mortgage rates in Canada are the following:

These banks offer variable rate for a five-year term, and fixed rates on a three, five and ten-year terms.

Open or Closed mortgage, which one is best for me?

Are you expecting a large sum of money that could enable you to pay the balance of your mortgage early? Are you planning on moving in the near future and paying out the mortgage with the sale of your home? If you answered yes to either of those an open mortgage may benefit you.

With an open mortgage, you don’t receive any penalty for paying off the balance of your mortgage at any time throughout its term. You do pay a premium for the ability to do this, so a person must weigh the pros and cons of not having a payout fee vs. having a fee in a closed mortgage.

Just like it sounds, the closed mortgage is the opposite of an open one. Where you pay the premium of higher rates with an open mortgage in exchange for no payout fee, with a closed mortgage your rate is generally lower, but there is a fee for paying the balance early on a sliding scale based on current rates.

So once again, it is in your best interest to weigh the pros and cons of going with either mortgage.

Can I increase my payments?

Expecting a raise at work? A nice fat bonus perhaps? So you want to know if you can make extra payments or increase your monthly payments. Well, there are a couple options.

The first is a monthly prepayment option, which determines what you can increase your monthly payments to. For the sake of simple math, let’s say your monthly payment is an even $1000. If your prepayment allowance is 15% then that means you would be able to increase your payment up to $150, making your payment $1,150.

The lump sum prepayment option is exactly what it sounds like. The maximum principle you can pay on your mortgage annually. Again, for simple math, let’s assume you have a balance of $100,000 on your mortgage, and your prepayment allowance is 15% again. That would mean the maximum principle that you can pay off is $15,000.

What is a rate hold, and how will that benefit me?

So the end of the five-year term is fast approaching and you have been looking into the rates you can renew at. Unfortunately, interest rates have risen since you first signed the paperwork.

This is where a rate hold comes in. Let’s say you have signed a mortgage that includes a 60-day rate hold. This means that within sixty days of your 5-year term’s expiration, you have the option to lock in your interest rate at your current rate, saving you from dealing with soaring interest rates as you continue to pay down your mortgage.

Fixed-rate or variable-rate mortgage, which is better?

Another thing to consider when you start shopping around for a mortgage is whether you are going to opt for a fixed-rate or a variable-rate mortgage. Each has its pros and cons, but you need to decide which type of mortgage will suit your short and long-term goals.

A fixed-rate mortgage allows you to lock into a specific rate for a predetermined amount of time. Five-year terms are some of the most common, but there are others, which is why it is so important to figure out exactly what your goals. At the end of the day, getting a mortgage is an investment and is best done with lots of planning.

With a variable-rate mortgage, you can potentially save more money initially and in the long run, if rates remain steady. However, because you are not “locked in” on a rate, the prime may increase which would increase your monthly interest.

Fixed-Rate Mortgage

Variable-Rate Mortgage

 

Pros

Cons

Pros

Cons

The interest rate is “locked in” and will not change.

Interest rate is usually a little higher.

Lower monthly payments.

Payments may change over time, becoming higher.

Lower risk when compared to variable rate potential changes.

Higher payout fees for breaking the contract.

Only three months of interest for breaking the contract early.

Harder to budget for potential changes in rate.

 

 

 

 

What are the different rate options available for my mortgage in Canada?

There are a wide variety of rate options available for rate type and terms. Most popular rates in Canada are 5 Year Fixed, 5 Year Variable 3 year Variable & 3 Year Fixed, You should consult your mortgage broker who can help you assist in making the right decision on choosing the rate that would suit your financial situation and needs.

Housing Market Stats in Canada 

Based on the data provided by Canadian Real Estate Association (CREA), there’s a drop in home sales in Canada as of May 2016 compared to the previous month. To be more specific, the percentage went down by almost 3% .

Within the same period, the number of properties newly listed dropped by 3.2%. Two of the provinces that may be contributing to the decrease are Ontario and British Columbia, where inventory was also low, an indication that supply may be hurting sales. Supply was also reported to be lower in Montreal, Victoria, and Fraser Valley. The price of homes also increased by 12.5% in year-on-year in May. 

Mortgage Stats in Canada 

A mortgage makes up the bulk of household debt at 71% followed by a line of credit at 18%. Despite the huge percentage, mortgage in arrears are no more than a percent and that more than 15% paid more than what they owe per month to their mortgage, which all means that Canadians are capable and are wise in spending and paying the debt.

Being able to pay more also allows them to build equity faster, in which case many now have at least 70% of the property value. In 2015, the mortgage average was $154,090, and the debt was higher in urban areas as prices of properties increased.

About Canada

Canada is one of the biggest countries in the world in terms of total and land area. It comprises half of North America and is made up of three territories and ten provinces with Ottawa as the capital. As part of the developed country, it has one of the highest gross national products and consistently scores high in development and livability indices.

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Managing your Credit Score

How to Manage Your Credit Score? Your credit score is one of the first things a creditor will consider when determining whether or not you’re a good candidate for a mortgage. It shows creditors their level of risk if they …
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Is it Better to Rent or Buy a Home

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Land Transfer Tax Rebate

As a homebuyer living in the provinces of Prince Edward Island, British Columbia, and Ontario or in the city of Toronto, you can avail of a land transfer tax rebate. A facility available to people buying a home for the …
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First-Time Home Buyer Programs

If you’re buying a home for the first time, it is advisable that you make inquiries into the different programs available that can help you save money on the buying procedures. These programs can include applicable rebates, the minimum amount …
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Banks vs. Mortgage Brokers

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Calculating Debt Service Ratios: GDS & TDS

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First-Time Home Buyers’ Tax Credit 

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Latest Mortgage News & Blog

Best Canadian Mortgage Rates For First Time Buyer

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