Whether you’re a first-time buyer or building your real estate portfolio, access to the best mortgage rates in Canada is critical. We’ve compiled a listing of mortgage rates from competitive lenders and brokers. With this information, you can browse and research your options and find the lowest mortgage rates for your next real estate purchase.
Here you can compare the best mortgage rates (Canada) for free.
1. Neo Financial
*Rates starting at 4.29% – APPLY NOW
Neo Financial offers digital financial services, including variable and fixed mortgage rates in Canada. In addition, they offer cashback cards and high-interest savings accounts. Neo’s services are 100% digital, ideal for borrowers on the go looking for an easy and fast solution and a competitive mortgage rate. They work with a network of lenders so they can find highly competitive rates.
Key features:
– Minimum 5% down payment
– $50,000+ purchase price
– Lock in a rate for 120 days while you shop
– Manage your mortgage online
– Neo representatives do not receive commission
– Perfect for borrowers looking for a fast turnaround
– A network of lenders allows them to find competitive rates
Drawbacks to consider:
Neo’s services are offered completely online. There are no in-person services and no physical branches.
2. Smarter Loans
*Rates starting at 4.45% – APPLY NOW
Smarter Loans is a reliable financial company offering a range of services. These services include business, vehicle, personal loans, and mortgages. They allow borrowers to access over 80 financial brands through their directory. Smarter Loans uses your credit score, gross monthly earnings, and other information to provide a pre-application interest rate. While they do not provide the loan itself, they are the point of contact between borrowers and banks, credit unions, and other lenders.
Key features:
– $50,000+ purchase price
– Good and bad credit welcome
– Get a pre-application mortgage rate
– Free loan calculator
– Allows you to compare mortgage rates
– Free to use
– Access to over 80 lenders
Drawbacks to consider:
Smarter Loans is not a lender. Instead, they are a loan information provider that partners with lenders to offer users information on the best mortgage rates in Canada. They do not have an affiliate program.
3. Spring
*Rates starting at 4.45% – APPLY NOW
Spring Mortgage is a relatively new mortgage broker that has access to competitive mortgage rates. Spring offers virtually any type of mortgage nationwide, including the best-fixed mortgage rates. Canada borrowers will find a solution for any kind of home financing situation. In addition, you’ll appreciate the ability to withdraw cash from your home equity and lock in a 130-day mortgage rate guarantee. They boast a high client success rate and offer $10,000+ savings on mortgages in Canada.
Key features:
– $50,000+ purchase price
– Withdraw up to 85% of home equity
– $500 referral bonuses
– Save $10K plus on mortgages
– 130-day mortgage rate guarantee
Drawbacks to consider:
As mentioned, Spring Mortgages is new to the mortgage market. As a result, they have limited customer reviews and references to offer new borrowers.
4. BMO
*Rates starting at 4.89% – APPLY NOW!
BMO is a recognized brand in Canada offering a range of mortgage solutions, including fixed and the best variable rate mortgages. Canada residents can benefit from their Homeowner ReadiLine solution, which combines a mortgage with the flexibility of a line of credit. BMO mortgages also offer other perks, including cashback offers and a 130-rate guarantee, which is one of the longest-rate guarantees of major Canadian banks. In addition, their process is simple, and you can learn if you’re pre-approved in 10 minutes or less!
Key features:
– $50,000+ purchase price
– Up to $4,200 cash back
– 130-day mortgage rate guarantee
– A range of payment options
– Fast pre-approval
Drawbacks to consider:
Though pre-approval is quick and easy, there are prepayment penalties if you leave the contract early. Speak with a BMO specialist to learn more about requirements and penalties.
5. Nesto
*Rates starting at 4.39% – APPLY NOW!
Nesto is another digital, online-based mortgage lender that offers a quick and easy mortgage application process. Nesto has access to over 1,000 lenders, allowing borrowers to find Canada’s best mortgage rates. Their agents are there to offer expert advice and help with the application process but do not receive a commission. That means the information they offer is completely non-affiliated and is offered with your best interest in mind. In addition, your inquiry and pre-approval application can be processed in less than 24 hours.
Key features:
– Commission-free advisors
– Up to $4,300 cash back
– Access to over 1,000 lenders
– Low mortgage rates
– Fast pre-approval
Drawbacks to consider:
Nesto searches for mortgages with a $156,000+ purchase price. While they offer non-commissioned mortgage advisors, switching advisors is not always free, and there has been some negative feedback about the level of customer service.
6. Loans Canada
*Rates starting at 4.54% – APPLY NOW!
Loans Canada is a full-service mortgage service offering some of the best mortgage rates in Canada (5-year fixed, 3-year fixed, variable, etc.) Their services allow you to compare rates across multiple lenders. In addition, you can submit a single application, and it gets checked against an extensive lender database. Then, you’ll receive the most competitive rates for your situation. Loan Canada’s system allows you to research matched lenders and even eliminate lenders that have negative reviews. Additionally, they offer a robust resource centre that can help improve financial literacy, reduce debt, and plan for the future.
Key features:
– Free service
– One application to view multiple lender options
– Good and bad credit welcome
– Comprehensive resource centre
Drawbacks to consider:
Loans Canada is not a direct lender but a resource to find mortgage rates from a network of lenders. The application process is online (through the website or an application) and not suitable for those that require in-person assistance.
7. WiiBid
*Rates starting at 4.45% – APPLY NOW!
WiiBid offers various mortgage solutions for Canadians, offering competitive and low-interest rates. They use an automated application process that sends your information simultaneously to several lenders. If you require a co-signer on your mortgage, the process allows you to include that information and improve your chance of approval. In addition, they offer a 25% referral reward through their affiliate program.
Key features:
– $50,000+ purchase price
– Co-borrower can be included in the application process
– 5-minute pre-approval
– 25% referral reward program
– Allows you to compare mortgage lenders
Drawbacks to consider:
WiiBids automated process allows for limited location coverage, excluding people outside of British Columbia, Alberta, and Ontario. In addition, you can only use WiiBids to find residential mortgages.
8. Coast Capital
*Rates starting at 4.69% – APPLY NOW!
Coast Capital is one of the most reputable credit unions in Canada. As such, they have over 50 branches nationwide and offer quick pre-approval time for both variable and fixed-mortgage options for new mortgages or renewals. In addition, they can help you switch your mortgage from another lender with a $1,500 cash bonus when you do so! Not only will they help you find one of the best mortgage rates in Canada, but they also offer other perks. These perks include cashback offers, bonuses, and co-borrower applications.
Key features:
– $50,000+ purchase price
– Co-borrower can be included in the application process
– $3,400 cash back
– $500 bonus to use towards fees
– $1,500 cash back for switching to a Coast Capital Mortgage
– 50 branches located across Canada
Drawbacks to consider:
Approval for a Coast Capital mortgage is a little trickier. Though the application process is streamlined and simple, a credit score of at least 620 is required for mortgage eligibility. In addition, you’ll need a downpayment of 20% for conventional and 5% for insured home purchases. They also charge $1.50 for electronic transfers.
9. Breezeful
*Rates starting at 4.54% – APPLY NOW!
Breezeful is a user-friendly online mortgage broker. The service offers various mortgage options, 5-minute pre-approvals, and flexibility between variable and fixed-rate mortgages. You’ll find competitive rates as you compare several mortgage lenders on Breezeful’s system. In addition, Breezeful offers a rent-to-own financing program and private options for self-employed borrowers.
Key features:
– $50,000+ purchase price
– 5-minute pre-approval
– Allows you to compare mortgage lenders
– Easy-to-use digital platform
– Free “closing cost” calculators to help you form a budget
Drawbacks to consider:
Like other online mortgage brokers, Breezeful does not have a physical branch, and in-person consultations are not available. Their database is also limited and might not include all available lenders.
10. Homewise
*Rates starting at 4.54% – APPLY NOW!
Homewise is an online mortgage broker, but they provide borrowers with two options: service through a brokerage or directly. Furthermore, they have access to top lenders, including private lenders, credit unions, and banks, and can help you find some of the best fixed and variable mortgage rates. Canada borrowers will appreciate their free mortgage services, resources, excellent customer service and quick and easy access. Additionally, customer service representatives can handle mortgage negotiations on your behalf.
Key features:
– $50,000+ purchase price
– Save an average of $10k on your mortgage
– Allows you to compare mortgage lenders
– Robust customer care program
– Free online resources
Drawbacks to consider:
Homewise serves most of Canada, but unfortunately, they do not offer their services in Quebec. In addition, because they are an online platform, in-person meetings are not possible.
11. Meridian
*Rates starting at 4.99% – APPLY NOW!
Meridian offers various lending services to Ontario residents, and their mortgage services are similar to large banks. Borrowers will appreciate low-interest rates, flexible payment plans, cashback programs, and a 120-day mortgage rate guarantee. In addition, Meridian can also assist with other financial services, including personal loans. They have accessible customer service available via a toll-free phone number.
Key features:
– $50,000+ purchase price
– Up to $50k cashback
– Pay off up to 20% per year
– 120-day mortgage rate guarantee
– Skip-a-payment privilege once per year
Drawbacks to consider:
Unfortunately, Meridian’s mortgage services are available to Ontario residents only. They also have a $48 delay charge on loans, including lines of credit.
12. Tangerine
*Rates starting at 5.74% – APPLY NOW
Tangerine is an online division of Scotiabank, offering a range of financial services. For mortgages, they offer a competitive interest rate upfront. You’re assigned an account manager who can walk you through all the numbers and provide advice. Their mortgage plan allows you to make lump sum prepayments of up to 25% of your original mortgage amount and increase your monthly payments by 25%. In addition, you can transfer your mortgage and your rate to a new property if you move.
Key features:
– $50,000+ purchase price
– No banking fees
– Pay up to 25% per year, and raise payments by 25%
– 120-day mortgage rate guarantee
– Dedicated account manager to assist
– Welcome bonus of $100
– 15% cashback using the Tangerine World Mastercard
Drawbacks to consider:
Even though Tangerine is a division of Scotiabank, it has no physical branch and is entirely accessible online. They also have a fund limit for using Interac e-transfers.
Purchasing a home has become more difficult, but not impossible. With access to information, multiple lenders, and competitive Canada mortgage rates, you can find a cost-effective option that meets your needs.
RenovationFind can save you time by providing a list of comparable mortgage brokers and services. Researching the options above will allow you to compare rates and learn more about all your options. Here we explain more about how mortgages work so that you can make an informed decision.
How does a mortgage work?
With a mortgage, you pay a down payment on the home and borrow the rest from a lender (like a bank, credit union, or private lender). Then, you pay the amount you borrowed back over time, with some additional interest. Of course, the higher the interest rate, the more you pay. That’s why researching the best mortgage rates in Canada is essential.
You won’t qualify for a mortgage if you do not have enough money for a downpayment. You must also prove you can make payments by providing information about your income, assets, and credit history. Every lender is different, but the typical downpayment amount is about 20% of the property’s purchase price.
Principle and Interest
The principal and interest are two key components to consider when paying off a mortgage.
The principle is the amount of money you borrowed to buy the home. For example, if you purchased a house for $450,000 and borrowed $400,000 from the bank, the principal is the $400K you owe the bank.
The interest is what the lender charges to lend you the money. You pay this to cover the cost of the principal.
Your monthly payments will include the principal and the interest. As you pay down the borrowed amount, you’ll see that your interest payments will also decrease.
Types of mortgages
There are two common types of mortgages: fixed-rate mortgages and variable-rate mortgages.
Fixed-rate Mortgage
A fixed-rate mortgage has the same interest rate “locked in” or “fixed” during the loan duration—usually five years at a time. If you’re on a fixed budget, this allows for predictability, and you know exactly how much you’ll pay each month. The key benefit is that rising interest rates won’t impact you. However, on the other hand, if the interest rates go down, you’re fixed at the higher rate until the end of that term.
Variable-rate Mortgage
A variable mortgage rate usually has a low introductory rate, but that rate can change according to market fluctuations. So, if rates skyrocket, your mortgage agreement will determine how much your interest rate will increase. If rates go down, you’ll benefit from paying less at that time.
Open vs. Closed Mortgages
A closed mortgage limits the amount of principal you can pay off each year but usually have lower rates. For example, you’ll be penalized if you decide to pay off the entire mortgage before your fixed term date. If you plan to aggressively pay down your mortgage by making large lump sum payments before the end of your term, a closed mortgage might not be for you.
Alternatively, an open mortgage allows you to pay the entire mortgage balance during your term. However, open mortgages usually come at a higher rate than closed ones. Nevertheless, an open mortgage is a good idea if you know you’ll be able to pay your mortgage off sooner.
Choosing the right mortgage for you
Choosing the best mortgage for you can feel daunting. First, consider how much of a down payment you have saved up for your purchase. Then, you can compare deals and the best mortgage rates in Canada to determine how much of a monthly mortgage payment you can afford.
Banks and major lenders might offer promotions like cashback or skip-a-payment privileges to entice borrowers. However, you must do your due diligence, read the fine print, and be thorough in your research. You want to be objective and learn about the benefits and drawbacks of each lender and its programs.
Thankfully, you can find most of the information you need online. However, if you need help understanding interest rates, applications, special conditions, and types of mortgages, speak with a trusted advisor. You can talk with experienced people in your personal network, like friends or family members. Alternatively, opt for a professional advisory service through your bank or mortgage broker.
Learn the difference between a variable and fixed-rate mortgage and understand the difference between an open and closed mortgage and which is best for you. Finally, know the instalment interest rate calculation so you know how much you will pay each month for your required mortgage loan. Several of these mortgage services will offer a mortgage calculator that will give you an idea of your monthly or bi-weekly payments.
Of course, make sure you’re able to make the mortgage payments. You don’t want to default on payments before the end of your term. In this instance, the bank can seize your home, and you’ll lose significant money. Plus, you want to live comfortably and not paycheck to paycheck while enjoying your new home.
This post first appeared on https://blog.renovationfind.com