The Best Mortgage Rates in Winnipeg

How banks and lenders determine Winnipeg mortgage rates

Banks and lenders in Winnipeg determine mortgage rates based on the same criteria other banks in other parts of the country do.

Lenders will look at the overnight rates of the Bank of Canada and determine their rates based on those numbers. As the BoC raises rates, so too do the lenders (in general). As rates come down so do the lender rates for mortgages in Winnipeg.

Lenders may also look at personal situations such as the type of house being purchased, the term of the mortgage, the financial stability of the borrower and their down payment. Each lender has the power to negotiate rates with their customers to provide the best mortgage rates in Winnipeg for each situation.

One of the most obvious changes as a result of high inflation and the Bank of Canada’s action to raise interest rates, and slow the economy, has been in mortgage lending rates.

The major banks have followed the Bank of Canada's lead and raised mortgage rates for consumers. This has had the effect of slowing demand and sales, leading to house prices falling as inventory grows.

The BoC has raised rates at least four times since March 2022 as part of an aggressive campaign to fight inflation.

Due to expectations of an economic downturn, bond yields, which lead fixed mortgage rates, have been falling. The thinking is that inflation may be nearing its peak, but the recession risk is real. In that case, lower growth and lower inflation could lead to lower mortgage rates later this year and into 2023.

Market demand can also affect mortgage rates. As demand heats up, prices for homes go up but competition from lenders could be a bonus for home buyers looking to buy homes, with banks offering lower rates to win business.

Tips on finding the best Winnipeg mortgage rates

While in 2022, the Bank of Canada may still be in rate-raising mode, consumers would be wise to shop around for the best Winnipeg mortgage rates possible.

• Using sites like RATESDOTCA is a great first start as it provides up-to-date comparisons and can connect you to a brokerage at the click of a button.
• Talk to your real estate agent about options that suit your specific needs and financing.
• Speak to your current bank or lender, if you have one, to see how they can assist you and if they will offer the best mortgage rates in Winnipeg.
• In general, the better your credit, the more likely you will find the best mortgage rates in Winnipeg. So, do what you can to improve your credit score by paying off credit card balances and other personal debts to the extent you can.
• The interest rate is important, but there's more to compare. Is there a prepayment penalty if you decide to refinance at some point? What are the total closing costs? Closing costs generally amount to 2% to 5% of the price of the home. If your home costs $150,000, expect to pay $3,000 to $7,500 in costs. That's a big range, so it would be wise of you to see what a lender typically charges.

Winnipeg mortgage regulation

Mortgage regulation in Winnipeg falls under provincial jurisdiction via the Manitoba Securities Commission. The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, is an independent agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.

The real estate division of the Manitoba Securities Commission registers real estate brokers, salespersons and mortgage brokers, monitors brokers' trust accounts, and investigates complaints against real estate brokers, salespersons and mortgage brokers.

The Mortgage Brokers Act regulates the activities of mortgage brokers. In order to be a mortgage broker, the business or individual arranging your mortgage must be registered with The Manitoba Securities Commission. Registration ensures the person you are dealing with has the proper training and resources necessary to conduct business in a way that will protect your interests. The Manitoba Securities Commission can also investigate complaints involving mortgage brokers and can often assist in resolving your complaint. The Commission can also hold hearings and issue orders to protect the public.

Winnipeg’s housing market

The Winnipeg housing market saw a considerable slowdown in the summer months.

July was a clear departure from previous months in indicating single-family home pricing peaked in May. This is the case with 3,700 active listings available at the end of July compared to half that amount in the first four months of 2022.

New MLS listings of 2,359 entered in July are an increase of 9% over July 2021. Strong listing activity since May has reduced the 25% first quarter deficit in listings entered compared to last year to under 7% for the first seven months.

In August, sales dropped from July and from the previous year. Sales of 1,375 are down 15% from August 2021 and 9% over the 5-year average. Year-to-date MLS listings of 10,962 were down 18% from the same time last year.

On the other hand, new listings in August are up 2% compared to August of last year, and in line with the 5-year average which had 2,249 listings, slightly higher than the 2,201 entered this August.

Despite the small climb of new listings in August, they are still well down from the 2021 record-breaking activity. Market frenzy slowdown can also be seen in the above-list price sales. In August, 63% of single-family home sales went for under list price, while 29% sold for greater than list price.