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Evaluate Guelph's best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms.
Rates are based on a home value of $500,000
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 4.99% | 5.99% | 5.99% | 6.69% |
6.79%
|
| 2-year fixed rate | 5.67% | 5.39% | 5.39% | 6.04% |
6.39%
|
| 3-year fixed rate | 4.84% | 5.04% | 5.04% | 4.94% |
5.55%
|
| 4-year fixed rate | 5.09% | 5.14% | 5.14% | 5.09% |
5.29%
|
| 5-year fixed rate | 4.84% | 4.89% | 4.89% | 4.94% |
4.84%
|
| 7-year fixed rate | 5.60% | 5.70% | 5.70% | 5.65% |
5.90%
|
| 10-year fixed rate | 6.00% | 6.09% | 6.09% | 6.05% |
7.25%
|
| 3-year variable rate | 6.10% | 6.80% | 6.80% | N/A |
8.60%
|
| 5-year variable rate | 5.99% | 6.25% | 6.25% | 6.25% |
6.59%
|
| HELOC rate | 7.70% | 7.40% | 7.40% | 7.40% | N/A |
| Stress test | 6.74% | 6.79% | 6.79% | 5.25% | N/A |
Updated
Economic activity in Canada is slowing, as is around the world, due to rising inflation, and rising interest rates. High interest rates have led to higher mortgage rates, causing a significant decline in housing activity in the country. According to theBank of Canada's Monetary Policy Report October 2022, rising mortgage rates contributed to a sharp slowing of home sales after March 2022, and, by the middle of the year, economic activity started showing signs of moderation.
Borrowing costs have also increased significantly and the costs for those taking on a new mortgage are up markedly. Borrowers renewing an existing mortgage are facing the largest rate increases in 30 years, the report says.
The second quarter of the year saw a decline in homebuying, which is likely to continue in some degree through the first half of 2023. Home prices, which rose by just over 50% between in February 2020 and February 2022, have declined by about 10%, according to the Bank of Canada.
The decline in home prices in the second quarter of 2022 is likely because of the overnight rate hikes by the Bank of Canada and rising interest rates.
Besides that, in the second quarter of 2022, the average value of new mortgage loans in Guelph was $475,362, a 19% increase from $398,894 in the second quarter of the previous year. Guelph homeowners paid an average of $2,138 per month in mortgages in the first quarter of 2022, compared with $1,660 per month just a year before, which is a 28% rise annually. This increase in mortgage loans in the first quarter of the year can be attributed to high home prices in the last few months of 2021 and the first quarter of 2022. Home prices were significantly higher in January, February and March of 2022, followed by the Bank of Canada's interest rate hike spree that cooled the housing market.
If you are searching for the best mortgage rate in Guelph that fits your budget, rest assured you've landed in the right place. RATESDOTCA lets you see the best mortgage rate from leading lenders and mortgage brokers in the Guelph area. All you need to do is enter your mortgage requirements such as mortgage amount, home value, term, etc., and we’ll instantly bring you an array of rates and lenders that meet your criteria.
It is advisable that you pay attention to the nuances of the rates on offer and make an informed decision. Ask your lender as many questions as you want and be armed with all the possible knowledge before locking in a rate.
Even if the mortgage lender is outside of Guelph, do consider what they have on offer because sometimes you could be pleasantly surprised with a lower rate. More importantly, mortgages can now be closed digitally irrespective of where the lender is situated.
As per the available data for the second quarter of 2022, the average value of a new mortgage loan in Guelph is 26% higher than the national average. This gives a glimpse into the impact of competition on borrowing costs. There are traditional banks (the Big Six) or lenders which provide financial support to borrowers in the housing market. Besides the traditional lenders, there are some mortgage brokers like Mortgage Intelligence and True North Mortgage and smaller independent brokers that drive rate competition in smaller cities.
The country’s biggest lenders are the banks (RBC, TD, Scotiabank, BMO, CIBC) as well as challenger banks (like HSBC, motusbank and Tangerine).
The average value of new mortgage loans in Guelph has seen a significant increase in the last five years due to a robust housing market in the second quarter of 2022, the average value of new mortgage loans in Guelph was $475,362, a 19% increase year-over-year . This increase could be attributed to high home prices in the first few months of 2022. Housing activity saw a decline in the second quarter of the year likely due to the rise in Bank of Canada overnight rates since March 2022. By October 26, 2022, the Bank of Canada raised policy interest rates six times. this year.
Guelph homeowners paid an average monthly payment for new mortgage loan of $2,138 in the second quarter of 2022, compared with $1,734 same time last year, according to Equifax Canada data. This is an increase of almost 23% year-on-year.
| Geography | 2021 Q1 | 2021 Q2 | 2021 Q3 | 2021 Q4 | 2022 Q1 | 2022 Q2 |
|---|---|---|---|---|---|---|
| Canada | 335,462 | 351,862 | 371,584 | 358,717 | 371,822 | 374,635 |
| Guelph | 373,516 | 398,894 | 439,579 | 416,680 | 448,527 | 475,362 |
| Geography | 2021 Q1 | 2021 Q2 | 2021 Q3 | 2021 Q4 | 2022 Q1 | 2022 Q2 |
|---|---|---|---|---|---|---|
| Canada | 1,511 | 1,559 | 1,621 | 1,563 | 1,635 | 1,758 |
| Guelph | 1,660 | 1,734 | 1,840 | 1,736 | 1,921 | 2,138 |
The housing market in the city of Guelph has seen a downward trend since March 2022, like other cities in Ontario. The city is witnessing the aftereffects of Bank of Canada’s rate hikes and slowing real estate market. According to the Guelph and District Association of Realtors’ monthly market report, MLS home sales continued to decline in September this year, with only 268 total units sold, a sharp decrease of 27.6% from September 2021.
Home sales were 29.4% below the 5-year average and 28.6% below the 10-year average for the month of September. On a year-to-year basis, home sales totaled 3,240 units over the first nine months of the year, down sharply by 26.6% from the same period in 2021.
The average price of homes sold in September 2022 was $937,964, an increase of 7.4% from September 2021. The more comprehensive year-to-date average price was $1,028,731, a sizable gain of 18.2% from the first nine months of 2021.
The Bank of Canada has hinted at further interest rate hikes in the coming months, which has discouraged buyer’s interest and put financial pressure on potential as well as first-time homebuyers.
Buying your first home in Canada can be challenging and overwhelming considering the current interest rate and housing market situation. However, the governments of Canada and Ontario have some interesting incentives in place to make homebuying a little less challenging for first-time investors.
The government of Canada has a new program, First-Time Home Buyer Incentive, which offers:
By obtaining the incentive, the borrower may not have to save as large a down payment.
In Ontario, first-time homebuyers may be eligible for a refund of all or part of the land transfer tax. Beginning January 1, 2017, the maximum amount of the refund is $4,000 and the program is restricted to Canadian citizens or permanent residents only.
Besides, it is advisable to not rely on just one lender or one mortgage broker if you want to get the best deal. A mortgage rate comparison site like RATESDOTCA helps you get a broader view of the mortgage market and what’s best available to you.
Rate comparison shopping is the best way to get the lowest mortgage rates in Guelph. It is highly recommended to shop around and identify different mortgage lenders who are ready to negotiate the best deal for you.
RATESDOTCA boasts a comprehensive list of mortgage partners for you to choose from. It is especially important to have lots of options when you are trying to find the best current rates.
Here is a four-step process to help you secure the mortgage with the lowest borrowing costs:
2. Identify the lowest rates for your term of choice
3. Ask the mortgage lender to list all material features and limitations of the rate in question
Here's everything you would need to know more about mortgage rates in Guelph, Ont.
Comparing mortgage rates with RATESDOTCA could save you up to $11,944 over 5 years (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 Jan. 14, 2022). You can save hundreds of dollars too by comparing different rates. No two mortgage lenders will ever offer the same rate and it is best to negotiate on your terms and requirements.
RATESDOTCA offers a vast inventory of leading lenders and mortgage brokers in the Guelph area. All you need to do is enter your mortgage requirements (mortgage amount, home value, term, etc.) and you’ll instantly see a list of rates meeting those criteria.
Based on available data, the average scheduled monthly payments for new mortgage loans in Guelph was $2,138 in the second quarter 2022, this was slightly below the average of other cities Toronto ($2,612), Oshawa ($2,288) and Hamilton ($2,158). Guelph’s average is higher than other Ontario cities like London ($1,816), Kitchener-Cambridge-Waterloo ($2,093), Kingston (1,698).
Every homebuyer is faced with the crucial decision of choosing between a fixed rate mortgage and a variable rate mortgage. Whichever option you choose depends on your risk tolerance, ability to absorb interest rate shock, anticipated changes in interest rates and personal preferences. A fixed rate mortgage is a mortgage with an interest rate that is stable for the duration of the term. The rate is not affected by what happens with the general level of interest rates in the economy. On the other hand, a variable rate mortgage is a mortgage with an interest rate that fluctuates based on the prime lending rate. The prime lending rate is the rate used by banks to lend to their best customers. The prime rate is influenced by the key overnight rate set by the Bank of Canada.
Shivani is a Content Manager at RATESDOTCA, focusing on mortgages. She is an experienced communication and marketing professional who specializes in content strategy and SEO optimization. Shivani ensures that our written materials meet the highest standards of quality and relevance.
She 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.
Shivani has previously worked as a deputy digital productions editor with PMNA-The Canadian Press, and as an editor with The Globe and Mail, Toronto Star, and the Investor's Digest of Canada. She has also worked in reputed news media groups in India and the Middle East.
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