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Rates are based on an average mortgage of $300,001
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 5.74% | 4.79% | 4.79% | 6.63% |
5.99%
|
| 2-year fixed rate | 4.79% | 5.09% | 5.09% | 5.84% |
5.59%
|
| 3-year fixed rate | 4.24% | 4.14% | 4.14% | 4.69% |
4.79%
|
| 4-year fixed rate | 4.34% | 4.55% | 4.55% | 4.79% |
4.64%
|
| 5-year fixed rate | 4.04% | 4.09% | 4.04% | 4.04% |
4.34%
|
| 7-year fixed rate | 4.44% | 5.04% | 5.04% | 5.90% |
5.06%
|
| 10-year fixed rate | 5.19% | 5.29% | 5.29% | 5.80% |
7.14%
|
| 3-year variable rate | 5.55% | 5.65% | 5.55% | 5.55% |
7.85%
|
| 5-year variable rate | 5.20% | 5.30% | 5.25% | 5.25% |
5.55%
|
| HELOC rate | N/A | N/A | N/A | N/A | N/A |
| Stress test | 5.25% | 5.25% | 5.25% | 5.25% | N/A |
Updated
A mortgage is a loan taken on to buy a home, land, or other real estate. The borrower or purchaser of the home agrees to pay a lender (often a bank) the principal amount plus interest over a set period of time. The property serves as collateral to secure the loan, should the borrower default.
A fixed rate mortgage or loan, also called a term loan, is where the interest rate stays fixed for the entire length of the term (which you and your lender agree upon). For instance, if you get a fixed rate of 4% for a 5-year term, your interest rate and monthly payment will remain the same during those 5 years.
A variable rate mortgage is where the interest rate may change periodically during the mortgage term depending upon economic conditions and the Bank of Canada’s interest rate. While some lenders may keep your monthly payment fixed, other lenders may have your mortgage payment increase or decrease as variable rate fluctuates. This depends on the type of variable rate mortgage (VRM) you choose – between standard VRM, capped VRM and adjustable rate mortgage (ARM). A standard VRM is the one where the payment will be constant during the term with a fluctuating interest rate and the mortgage balance may increase or decrease depending on the rate alteration. The borrower is given adequate notice of the increase in interest rate. A capped VRM is one where the payment is constant during the term with a fluctuating interest rate but only up to the cap rate.
The choice of fixed or variable depends on your appetite for interest rate fluctuations. In a low interest rate environment, a variable rate could save you a lot of money, however if the opposite is true, a variable rate mortgage may seem daunting as your payments fluctuate with the changing rate. On the other hand, with a fixed mortgage rate you don’t have to worry about rate hikes or cuts during the term of your loan.
Within mortgages consumers can opt for closed or open mortgages. Closed mortgages penalize you for paying off all or part of your mortgage early whereas an open mortgage is flexible and allows you to increase your regular payments or pay a lump sum each year.
The most common amortization period in Canada is 25 years. But this has changed since the Bank of Canada rate hike spree began in March 2022.
The Bank of Canada notes that homeowners are beginning to stretch their budgets by looking for mortgages with amortization periods beyond 25 years. In 2019, the share of buyers seeking longer time frames was at 34% and in 2022 the number rose from 41% to 46% — nearing half of all buyers. In some cases, they are now going as high as 40 years. At the end of 2023, a historically low number i.e. 12% of new mortgages had a loan-to-income ratio above 450%. Also, 47% of new mortgages had an amortization period longer than 25 years, up from 34% in 2019.
The Bank of Canada says, “A longer amortization period reduces the size of monthly payments, helping lower debt-servicing costs, but increases the period of household vulnerability because equity is built more slowly.”
Most recently, the Government of Canada has introduced a new incentive that lets first-time home buyer purchase their first home in Canada with a longer amortization period. Starting August 1, 2024, lenders will be offering 30-year amortization to eligible first-time home buyers purchasing a newly constructed home in Canada.
Mortgage loan insurance is required for homeowners who purchase a home with less than 20% down payment. This insurance is meant to protect the lender, not you. Your lender pays an insurance premium on mortgage loan insurance. It’s calculated as a percentage of the mortgage and is based on the size of your down payment. Your lender will pass this cost on to you. You can pay it in a lump sum or blend it in your mortgage payments.
The benefit of mortgage loan insurance is that it allows you to buy a home even if you have under 20% of the purchase price saved for a down payment.
If you purchase a home with less than 20% down payment, you will need mortgage insurance. Your lender needs to protect itself from the risk in case you are unable to meet your loan commitment.
There are primarily three mortgage insurance companies in Canada that provide mortgage insurance. Canada Mortgage and Housing Corportation (CMHC), a government-owned entity that operates independently, provides mortgage loan insurance products on various property types including duplexes, condominiums, manufactured or mobile homes and many more, including rental and retirement homes. Private lenders Canada Guaranty and Sagen also provide mortgage insurance to Canadian homebuyers.
In this past decade, Canadian borrowers have seen interest rates go from historic lows to highs not seen in decades. This has had the effect of changing how buyers can qualify for mortgages and the stress tests placed on them to assess risk. Between March 2022 and July 2023, Canadian home buyers have seen Bank of Canada’s (BoC) policy interest rate hike at least 10 times, making mortgage interest rates reach historical highs. The BoC finally reduced interest rate in June 2024, the first time in two years and more rate cuts are expected going in to 2025.
The Canadian government introduced the Mortgage Stress Test back in 2016 for mortgage holders who were making a down payment of between 5% and 19% and were required to purchase mortgage default insurance. In 2018, the Office of the Superintendent of Financial Institutions — the government agency that regulates federally incorporated lenders — changed the stress test to include buyers who make a down payment of at least 20% and are uninsured.
The most recent changes to the stress test introduced a new mortgage qualifying rate for all uninsured and insured mortgage applications submitted on or after June 1, 2021. As per the new changes to stress test, buyers must prove they can handle payments based on either the benchmark rate of 5.25% or the rate offered by your lender plus 2% – whichever is higher.
But even with more stringent requirements getting the best mortgage rates requires five main things:
The best mortgage rates change weekly and RATESDOTCA tracks them all.
But getting the true best mortgage rate isn’t as simple as it seems. That’s because, contrary to popular opinion, the best mortgage rate is often not the lowest mortgage rate. The best mortgage rate is one that minimizes your overall borrowing costs. You can virtually never know that by merely looking at the rate itself. Prudent mortgage research entails more of a process.
It starts with finding the lowest mortgage rates for the most suitable term. That serves as your “shortlist” of mortgage options. You can then review the conditions and features that apply to each rate until you find a mortgage that checks all your boxes.
Deciding on the percentage of down payment is a very important part of your home ownership journey. The money you put towards down payment would determine your mortgage Loan-To-Value (LTV).
Generally, a 80% or higher loan-to-value (borrowers paying less than 20% down payment) means higher risk for the lender. This risk is offset by mortgage loan insurance offered by CMHC, Sagen or Canada Guaranty. The fact that the lender will make up for the loss in case of default can result in the lender offering lower mortgage rates.
When a borrower pays 20% or more down payment, the mortgage does not have to be insured. The borrower has higher equity in their property but the lender takes on the risk as there’s no mortgage insurance to cover them in case of default. A lower loan-to-value ratio can result in higher interest rates as the lenders’ risk is higher.
Having said that, the mortgage rate you receive can also be influenced by other factors such as your credit score, the type of loan, and current market conditions.
| Down payment percentage | Mortgage Balance | Mortgage Rate (Based on 5-year fixed rate) | Total Interest paid during the 5-years term | Monthly Payment | CMHC Premium |
|---|---|---|---|---|---|
| 5% | $570,000 | 4.79% (Insured) | $127,652 | $3,247 | $22,800 |
| 10% | $540,000 | 4.79% (Insured) | $120,933 | $3,076 | $16,740 |
| 20% | $480,000 | 5.04% (Uninsured) | $113,261 | $2,802 | $0 |
Calculators used: Mortgage Insurance Calculator and Canadian Mortgage Payment Calculator
Getting an online mortgage can be a great option for consumers who prefer a fully digital experience – from approval to renewal – compared to an in-person transaction at a traditional financial institution.
If you’re considering that approach, be aware of the advantages and disadvantages:
Buying your first home can be stressful. It’s likely the largest investment you’ll ever make. Here are some helpful mortgage tips to relieve some of that stress.
The Canadian economy, like other economies around the world, has been on a roller coaster ride since the COVID-19 pandemic. In response to the pandemic, the Bank of Canada significantly lowered its key interest rate to 0.25% in March 2020 to give impetus to the economy. Mortgage rates were at historic lows, with 5-year fixed rates dropping below 2%.
As a result, inflation began to rise to historic levels, and to control borrowing, the Bank of Canada tightened its monetary policy. Starting March 2022, the BoC began its rate hike spree to curb inflation so by the end of that year, the bank’s interest rate had risen to 4.25%.
After a series of 10 rate hikes, Bank of Canada’s key interest rate recorded a peak of 5% in July 2023. Parallelly, mortgage rates continued to rise as well, making it difficult for new homebuyers to enter the market and existing borrowers strapped to make ends meet.
The Bank paused rate hikes between July 2023 and May 2024, finally taking a 25 basis points cut in June 2024. The inflation rate also slowly came down from 8% in June 2022 to 2.7% in June 2024, owing to the Bank’s tight monetary policy.
Let’s look at interest rates posted for selected products by the major chartered banks:
| Year | Conventional Mortgage - 5 Year | Conventional Mortgage - 3 Year | Conventional Mortgage - 1 Year | Prime Rate |
|---|---|---|---|---|
| 2024-08-28 | 6.59% | 6.75% | 7.64% | 6.70% |
| 2024-08-21 | 6.59% | 6.75% | 7.64% | 6.70% |
| 2024-08-14 | 6.79% | 6.94% | 7.74% | 6.70% |
| 2024-08-07 | 6.79% | 6.94% | 7.74% | 6.70% |
| 2024-07-31 | 6.79% | 6.94% | 7.74% | 6.70% |
| 2024-07-24 | 6.79% | 6.94% | 7.74% | 6.95% |
| 2024-07-17 | 6.79% | 6.94% | 7.74% | 6.95% |
| 2024-07-10 | 6.79% | 6.94% | 7.74% | 6.95% |
| 2024-07-03 | 6.79% | 6.95% | 7.84% | 6.95% |
| 2024-06-26 | 6.84% | 6.99% | 7.84% | 6.95% |
| 2024-06-19 | 6.84% | 6.99% | 7.84% | 6.95% |
| 2024-06-12 | 6.84% | 6.99% | 7.84% | 6.95% |
| 2024-06-05 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-05-29 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-05-22 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-05-15 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-05-08 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-05-01 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-04-24 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-04-17 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-04-10 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-04-03 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-03-27 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-03-20 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-03-13 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-03-06 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-02-28 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-02-21 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-02-14 | 6.84% | 6.99% | 7.84% | 7.20% |
| 2024-02-07 | 6.79% | 6.99% | 7.84% | 7.20% |
| 2024-01-31 | 6.89% | 7.04% | 7.84% | 7.20% |
| 2024-01-24 | 6.89% | 7.04% | 7.84% | 7.20% |
| 2024-01-17 | 6.89% | 7.05% | 7.84% | 7.20% |
| 2024-01-10 | 7.04% | 7.14% | 7.84% | 7.20% |
| 2024-01-03 | 7.04% | 7.14% | 7.89% | 7.20% |
| 2023-12-27 | 7.04% | 7.14% | 7.89% | 7.20% |
| 2023-12-20 | 7.04% | 7.24% | 7.89% | 7.20% |
| 2023-12-13 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-12-06 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-29 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-22 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-15 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-08 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-01 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-10-25 | 7.04% | 7.14% | 8.09% | 7.20% |
| 2023-10-18 | 7.04% | 7.14% | 8.09% | 7.20% |
| 2023-10-11 | 7.04% | 7.14% | 8.09% | 7.20% |
| 2023-10-04 | 7.04% | 7.14% | 7.84% | 7.20% |
| 2023-09-27 | 6.84% | 7.04% | 7.79% | 7.20% |
| 2023-09-20 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-09-13 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-09-06 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-08-30 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-08-23 | 6.79% | 6.89% | 7.89% | 7.20% |
| 2023-08-16 | 6.79% | 6.89% | 7.79% | 7.20% |
| 2023-08-09 | 6.79% | 6.89% | 7.79% | 7.20% |
| 2023-08-02 | 6.79% | 6.95% | 7.79% | 7.20% |
| 2023-07-26 | 6.49% | 6.54% | 7.49% | 7.20% |
| 2023-07-19 | 6.49% | 6.54% | 7.49% | 7.20% |
| 2023-07-12 | 6.49% | 6.54% | 7.69% | 6.95% |
| 2023-07-05 | 6.49% | 6.74% | 7.14% | 6.95% |
| 2023-06-28 | 6.49% | 6.54% | 7.14% | 6.95% |
| 2023-06-21 | 6.49% | 6.40% | 6.94% | 6.95% |
| 2023-06-14 | 6.49% | 6.40% | 6.94% | 6.95% |
| 2023-06-07 | 6.49% | 6.40% | 6.94% | 6.70% |
| 2023-05-31 | 6.49% | 6.24% | 6.34% | 6.70% |
| 2023-05-24 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-05-17 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-05-10 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-05-03 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-26 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-19 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-12 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-05 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-03-29 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-03-22 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-03-15 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-03-08 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-03-01 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-22 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-15 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-08 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-01 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-01-25 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2023-01-18 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2023-01-11 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2023-01-04 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-28 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-21 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-14 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-07 | 6.49% | 6.05% | 6.09% | 5.95% |
| 2022-11-30 | 6.49% | 6.14% | 6.09% | 5.95% |
| 2022-11-23 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-11-16 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-11-09 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-11-02 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-10-26 | 6.49% | 6.04% | 6.09% | 5.45% |
| 2022-10-19 | 6.49% | 6.04% | 6.09% | 5.45% |
| 2022-10-12 | 6.14% | 6.04% | 6.09% | 5.45% |
| 2022-10-05 | 6.14% | 6.04% | 6.09% | 5.45% |
| 2022-09-28 | 6.14% | 5.74% | 5.69% | 5.45% |
| 2022-09-21 | 6.14% | 5.64% | 5.69% | 5.45% |
| 2022-09-14 | 6.14% | 5.64% | 5.39% | 5.45% |
| 2022-09-07 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-31 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-24 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-17 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-10 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-03 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-07-27 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-07-20 | 6.04% | 5.39% | 4.74% | 4.70% |
| 2022-07-13 | 6.04% | 5.39% | 4.74% | 3.70% |
| 2022-07-06 | 6.04% | 5.39% | 4.74% | 3.70% |
| 2022-06-29 | 6.04% | 5.39% | 4.74% | 3.70% |
| 2022-06-22 | 6.04% | 5.24% | 4.69% | 3.70% |
| 2022-06-15 | 5.64% | 4.89% | 4.29% | 3.70% |
| 2022-06-08 | 5.39% | 4.49% | 3.79% | 3.70% |
| 2022-06-01 | 5.39% | 4.49% | 3.79% | 3.20% |
| 2022-05-25 | 5.39% | 4.49% | 3.79% | 3.20% |
| 2022-05-18 | 4.99% | 4.39% | 3.49% | 3.20% |
| 2022-05-11 | 4.99% | 4.39% | 3.49% | 3.20% |
| 2022-05-04 | 4.99% | 4.09% | 3.29% | 3.20% |
| 2022-04-27 | 4.99% | 4.09% | 3.29% | 3.20% |
| 2022-04-20 | 4.99% | 3.89% | 3.09% | 3.20% |
| 2022-04-13 | 4.79% | 3.89% | 3.09% | 2.70% |
| 2022-04-06 | 4.79% | 3.89% | 3.09% | 2.70% |
| 2022-03-30 | 4.79% | 3.69% | 2.99% | 2.70% |
| 2022-03-23 | 4.79% | 3.49% | 2.94% | 2.70% |
| 2022-03-16 | 4.79% | 3.49% | 2.79% | 2.70% |
| 2022-03-09 | 4.79% | 3.49% | 2.79% | 2.70% |
| 2022-03-02 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-23 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-16 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-09 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-02 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-26 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-19 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-12 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-05 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2021 | 4.79% | 3.49% | 3.09% | 2.45% |
| 2020 | 5.19% | 3.94% | 3.64% | 3.95% |
| 2019 | 5.34% | 4.29% | 3.64% | 3.95% |
| 2018 | 4.99% | 3.74% | 3.24% | 3.20% |
| 2017 | 4.64% | 3.39% | 3.14% | 2.70% |
| 2016 | 4.64% | 3.39% | 3.14% | 2.70% |
| 2015 | 4.79% | 3.44% | 3.14% | 3.00% |
| 2014 | 5.34% | 3.95% | 3.14% | 3.00% |
| 2013 | 5.24% | 3.70% | 3.00% | 3.00% |
| 2012 | 5.29% | 4.05% | 3.50% | 3.00% |
| 2011 | 5.19% | 4.15% | 3.35% | 3.00% |
| 2010 | 5.49% | 4.25% | 3.60% | 2.25% |
| 2009 | 6.75% | 6.25% | 5.60% | 3.50% |
| 2008 | 7.54% | 7.55% | 7.35% | 6.00% |
| 2007 | 6.45% | 6.40% | 6.30% | 6.00% |
| 2006 | 6.30% | 6.00% | 5.80% | 5.00% |
| 2005 | 6.05% | 5.60% | 4.80% | 4.25% |
| 2004 | 6.35% | 5.80% | 4.75% | 4.50% |
| 2003 | 6.70% | 6.00% | 4.90% | 4.50% |
| 2002 | 6.85% | 5.75% | 4.60% | 4.00% |
| 2001 | 7.95% | 7.80% | 7.70% | 7.50% |
All rates presented in this table are the most typical of those offered by the six major Canadian chartered banks in the beginning of each year.
Source: Bank of Canada
Mortgage calculators
Have more questions about getting a mortgage in Canada? Get your answers here...
The first place to get the lowest and best mortgage rates in Canada is RATESDOTCA. We will help you compare mortgage rates in Canada and quickly provide quotes as you embark on home ownership.
You can also speak with mortgage brokers who are working for you and will bring you the best rates from a variety of competing lenders. They are not employed by lenders and are required to advise and help you find the best mortgage rates in Canada.
Everyone is different and operates in different circumstances. If you prefer to know your payments regardless of interest rate fluctuations, then a fixed-rate mortgage is best for you. If you can tolerate market fluctuations, perhaps a variable rate mortgage would suit you. It’s best to talk to your lender about options and what makes sense based on your financial means.
A high-ratio mortgage is when you make a down payment of less than 20%. This means you have a loan-to-value ratio of more than 80% form your lender. When this occurs, you will be required to take CMHC insurance to protect the lender.
Sites like RATESDOTCA can offer you comparison rates from a variety of lenders and usually provide the lowest rates available. Mortgage brokers can also provide advice and comparisons from a variety of lenders for the best mortgage rates in Canada.
Accurately predicting the future of mortgage rates is impossible as it depends on factors such as global economic conditions, inflation, and the Bank of Canada’s key interest rate. We have observed in the past that the key indicators of mortgage rates are Bank of Canada’s monetary policy as well as Canadian bond yields (for fixed mortgage rates). As a result of BoC’s monetary policy tightening from March 2022, when inflation rate peaked at 8%, interest rates touched historical highs. With inflation rate lowering to 2.7% in June 2024, closer to the BoC’s target for inflation, and BoC bringing its first rate cut in two years in June 2024 (BoC key policy rate now at 4.75%), we can expect interest rates to start lowering. It is hard to say if mortgage rates will go back to the pre-2022 levels, but we cannot be too sure of that scenario.
The best default insured rates (for people with down payments less than 20%) are typically quoted by mortgage brokers. The best uninsured rates, especially for borrowers with less than 20% down payments, generally come from banks. Some of the most competitive conventional lenders are the new e-banks, which we display in our rate tables.
This Mortgage Payment Calculator shows you your payments and amortization for any rate(s) you find on this website. You can even assume lump-sum prepayments to estimate how much faster you’ll be able to pay down your loan.
Restricted mortgages (a.k.a. “low frills mortgages") have boomed in popularity the last five years. Lenders realize that consumers want the lowest rate, so they’ve tried to strip out features from their mortgages to get the pricing lower. For some borrowers who plan no financing changes for five years, low-frills mortgages may make sense. For most Canadians, the small rate savings isn’t worth the much higher potential costs after closing. Those costs can bite you if you break, port, increase or otherwise refinance before your mortgage maturity date. Hence, for the majority of homeowners, it’s worth the small premium for a “full-featured” mortgage
Generally, not. The lowest rates in Canada are typically offered on default insured mortgages. Those are for people who put down less than 20% on their home purchase. Low insured rates are also available to people who transfer their already-insured mortgage to a new lender. Those who put down 20% or more get conventional rates, which are usually (but not always) higher than insured rates. Occasionally, however, someone putting down 35% or more on a home purchase under $1 million can get great rates similar to high-ratio rates.
*Based on the difference between estimated deep-discount 5-year fixed rates from Canada's top six banks and the lowest comparable rates on RATESDOTCA, as of January 14, 2022.
Shivani Kaul is a communications professional specializing in editing, writing, and content strategy, with a particular focus on personal finance and mortgages. Her expertise stems from a strong educational background and diverse international experience.Academically, Shivani holds a Digital Marketing Management certificate from the University of Toronto, a Business Communications certificate from the University of British Columbia, a Master's degree in Mass Communication from Symbiosis Institute of Media and Communications, and a Bachelor's degree in English from the University of Delhi.
Her professional journey is marked by significant roles in prestigious media organizations across multiple countries. She has previously worked as an editor at PMNA/The Canadian Press for The Globe and Mail, Toronto Star, and freelance writer for the Investor's Digest of Canada. Additionally, Shivani has contributed her skills to reputed news media groups in India and the Middle East. Her expertise in SEO ensures that the content she produces not only engages readers but also achieves optimal visibility in digital spaces.
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