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The Best Current Mortgage Rates in Canada

You could save up to $11,944 over 5 years.*

Today's top rates in:

5-Year Variable
5.89%
5-Year Fixed
4.79%
Select one of the following to get started!

Compare mortgage rates from lenders across Canada

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The Best Current Mortgage Rates in Canada

Evaluate Canada’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 an average mortgage of $300,001

Insured 80% LTV 65% LTV Uninsured Bank Rate
1-year fixed rate 4.99% 5.60% 5.60% 6.69%
6.79%
2-year fixed rate 5.59% 5.14% 5.14% 6.04%
6.39%
3-year fixed rate 4.79% 4.94% 4.94% 4.94%
5.55%
4-year fixed rate 4.94% 4.89% 4.89% 5.04%
5.29%
5-year fixed rate 4.74% 4.79% 4.79% 4.89%
4.84%
7-year fixed rate 4.94% 5.29% 5.29% 5.09%
5.90%
10-year fixed rate 5.74% 5.84% 5.84% 5.84%
7.25%
3-year variable rate 6.10% 6.70% 6.70% N/A
8.60%
5-year variable rate 5.90% 6.10% 6.10% 6.15%
6.59%
HELOC rate 7.20% 7.20% 7.20% 7.20% N/A
Stress test 6.74% 6.79% 6.79% 5.25% N/A
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Written By Joel Kranc

Contributing writer

Updated

What is a mortgage?

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.

Fixed vs Variable Mortgage Rate and Open vs Closed Mortgage Term

A fixed rate mortgage or loan, also called a term loan, is where the interest rate stays fixed for the entire length of one term (which you and your lender agree upon).

A variable rate mortgage is where the interest rate may change periodically during the term of the mortgage, but the monthly payment of the borrower will remain the same. As a result, payments towards the principal of your mortgage can increase or decrease depending on the interest rate.

The choice of fixed or variable depends on your tolerance for interest rate fluctuations. In a low interest rate environment, a variable rate could save you a lot of money, however if you like knowing your payments will stay the same, regardless of interest rate fluctuations, fixed is ideal.

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.

Common mortgage amortization periods

The most common amortization period is 25 years. As far as the big banks are concerned, the amortization period was historically 30 years for a borrower who made a minimum 20% down payment on their home.

But a stubborn inflation environment and continued high interest rates has changed the thinking on amortization periods. 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.

The Bank 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.”

What is CMHC (Canada Mortgage and Housing Corporation) insurance?

Mortgage insurance or CMHC insurance is required for homeowners who purchase a home with a down payment of less than 20%. This insurance is meant to protect the lender, not you. The benefit is that it allows you to buy a home even if you have less than 20% of the purchase price saved for a down payment.

How do I know if I need CMHC insurance?

If you decide on purchasing a home with less than 20% of the down payment saved, you will need CMHC insurance.

How do you qualify for the best mortgage rates?

In the past year and a half, Canadians 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.

The federal government introduced the 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 per cent and are uninsured.

The most recent changes introduced a new mortgage qualifying rate for all uninsured and insured mortgage applications submitted on or after June 1, 2021. 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:

  1. A good credit score: You will generally need a 680 to 720 FICO score or above. Your co-borrowers, if any, will also need good credit. Like anything else, there are exceptions to this. But the more exceptions you require, the lower your chances of getting the best rate.
  2. Clean credit: Lenders want to see few or no derogatory items on your credit report. One missed payment in three years might be okay; five missed payments are not, especially if they went to collections.
  3. Provable income: A lender will usually ask you to prove your full income with tax documents and/or employer pay stubs. You need a two-year history of any bonus income, commissions or part-time income.
  4. Reasonable debt ratios: If your monthly housing and payment obligations are more than 44% of your gross monthly income, you’ll seldom get the best rates. Moreover, your monthly housing costs (mortgage payment, property taxes, heat and half your condo fees) cannot be more than 39% of your gross monthly income. That 39% limit requires a 680+ credit score, by the way. Otherwise, it’s 35%. Remember this as well. To qualify for the lowest mortgage rates, you’ll have to pass the federal government’s mortgage stress test. All that means is that the lender will calculate your debt ratios using an inflated interest rate. If the lender is offering you a 3.25% rate, for example, it might stress test you to see if you can afford payments at a 5.25% rate.
  5. Sufficient employment tenure: If you just started your job, you may not qualify with some lenders. Many lenders prefer to see at least a one-year job history if you’re salaried. But again, there are exceptions for those who aren’t salaried. If you're self-employed, you'll likely have to reflect more information about your income and there may be an upper limit to how much you can borrow. See our guide to getting a mortgage as a self-employed person in Canada, here.

What affects mortgage rates in Canada?

  • External factors – So much of the economy is intertwined with one element influencing others. Mortgages fall into this pattern and can be influenced by many factors. For example, as inflation has risen around the world, and here at home, central banks have raised interest rates to slow the market. As the Bank of Canada has raised rates to curb inflation, the major banks have followed suit and raised mortgage rates for consumers. This has had the effect of slowing demand and sales, leading to house prices falling as inventory grows.
  • Bank of Canada rate: Beginning in March of 2022, the Bank of Canada began raising its key overnight lending rate for which banks pay to loan money to each other. This has a direct effect on borrowing costs and home mortgage rates. In July 2023, the BoC raised overnight rates again to 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank said, that inflation dropped from a high of 8.1% to 3.4% in May. But a continued tight labour market, and high food prices, has influenced it to continue its policy of quantitative tightening.
  • Bond market: 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. Because the BoC has continued its strategy of quantitative tightening, interest rates remain relatively high and may do so throughout the year. A significant decrease in energy and food inflation may change the Bank’s thinking but so far that hasn’t happened.
  • Supply and demand on real estate: 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.
  • Factors that determine your own mortgage rate: Yes, inflation, supply and demand, and the Bank of Canada will influence mortgage rates and trends but there are factors that affect you personally. For example:

Credit score– This will show lenders your trustworthiness and how likely you are to pay down debt

Down payment – The more you save and have for a down payment, the lower your rate may be. Lenders want to reduce risk and so if you have more to put down towards your house, the more you may get a lower rate.

Type of rate – If you choose a fixed rate mortgage your payment and rate will stay the same throughout your full term. A variable rate mortgage will fluctuate based on the prime lending rate set by the lender.

Mortgage loan term – Choosing fixed rate mortgages can allow you to lock into lower rates if, for example, you choose a 5-year term versus a shorter 1-year term.

Personal Income – Mortgage lenders will want to know you have the ability to pay your mortgage and your debt to income ratio (percentage that evaluates your debt compared to your gross income) can sustain payments

Appraisal Value – Appraisals can change the value of the home you are purchasing and ultimately your mortgage rate. If you’ve saved 20% for a downpayment and then the appraiser values the home less than you thought, your downpayment becomes less than 20%, which could affect the risk factor and mortgage rate your lender would be willing to provide.

How to get the best mortgage rates

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.

Understanding your down payment

A down payment is the amount of money you pay upfront to the seller when buying a house. In Canada, if you buy a house under $1 million, you must pay a down payment of at least 5% of the selling price. You could pay more if you like! But if the house you are buying costs over $1 million you must pay at least 20% towards downpayment.

Deciding on a down payment is a very important part of your home ownership journey. The percentage of money you put towards downpayment would determine your mortgage Loan-To-Value (LTV). A homeowner with 80% of or higher loan-to value is considered to carry a greater financial risk to the lender. To offset this risk, the homeowner will be required to pay mortgage default insurance or what is commonly known as CMHC insurance.

The percentage you put towards your downpayment will decide what kind of a borrower you are considered by the lender. If you make a downpayment within 5% and 20%, the risk you put on the lender becomes less compared to someone who is stretching out to pay just 5% in down payment. You will still have to be insured, even if you pay 10% or 15% towards down payment. A downpayment of less than 20% makes you a high-ratio mortgage buyer and requires a mortgage default insurance. This will determine the mortgage rate that the lender has to offer. With an insured mortgage, a lender is more willing to offer a lower mortgage rate.

You may observe that in most cases, the mortgage rate offered for a high-ratio insured loan (where downpayment is less than 20%) will be lower than a low-ratio uninsured loan where downpayment is over 20%. This will make you wonder why you should save up more than 20% towards the down payment if the mortgage rate you are going to get for an uninsured mortgage is higher? The answer lies in the mortgage default insurance premium you end up paying if your downpayment is below 20%.

A mortgage default insurance or alternatively known as CMHC insurance premium adds thousands of dollars to your mortgage. This is explained better in the table below. Let’s look at the monthly cost of a house worth $600,000, with a 5-year fixed term and 25-year amortization. Here are the potential scenarios you may come across at the time of purchase:

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

The pros and cons of comparing mortgage rates online

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:

Pros

  • Convenience: With an online mortgage, you’ll never have to set foot in a bank or credit union. You’ll be able to apply for and secure your loan entirely online – either through an online application or app. The underwriting process may also be shorter, so your loan could be approved faster online.
  • Comparison shopping: If you’re looking for easy access to a wide-range of mortgage rates, an online mortgage application will make them easily available.
  • Discounts: Online mortgage lenders don’t have the same overhead costs as brick and mortar banks. As a result, they may be able to pass on savings to consumers.

Cons

  • Service: Keep in mind that while you may get service over the phone, such online brokers or lenders may not have a physical location you can visit to speak to someone. So, if that’s something you prefer, the online route may not be right for you.
  • Rate guarantees: While you may be offered a certain rate online, this rate is not a guarantee, as you have to go through further verification to get your final rate.
  • Safety: Hacking and data breaches are a potential vulnerability with all lenders since they are all online now. However, all financial institutions in Canada go to great lengths to ensure that customer data is protected.

Mortgage tips for the first-time homebuyer

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.

  1. Get a pre-approval: Go to your lender to lock in the lowest mortgage rates in Canada and amortization period before you make your purchase. Once you find the home of your dreams you’ll have already prepared yourself for the loan process to move quickly and smoothly.
  2. Don’t stress about the 20% down payment: You may qualify for CMHC or mortgage insurance that allows you to provide a lower down payment while providing your lender peace of mind that their loan is secured.
  3. Comparison shop: RATESDOTCA is your best place to compare mortgage rates from Canada’s top lenders. You’ll get quick quotes and be put in touch with a lender or broker who will be happy to help yo on your journey.
  4. Pay down debt: Before embarking on one of, if not the largest loan of your life, pay down other credit car debts to free capital. You’ll also help raise your credit score, which will be a positive place to start when talking to lenders.
  5. Review your budget: Knowing what you can afford will help you in your journey to get the best mortgage rates in Canada. Assess what the costs of home ownership will be to know what you can afford when you speak with lenders.

Historical Canadian mortgage rates

Ever since Canada saw a steady rise in inflation, the Bank of Canada has been raising rates. This began in March 2022 and continued up until July 2023, which amounts to 10 rate hikes.

The most recent rate increase from the Bank of Canada saw its benchmark interest rate go up by 25 basis points, marking the first time since April 2001 that the figure hit five per cent.

The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.

Mortgage Rates Posted By Major Chartered Banks in Canada

Year Conventional Mortgage - 5 Year Conventional Mortgage - 3 Year Conventional Mortgage - 1 Year Prime Rate
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

Frequently asked questions about mortgages in Canada

Have more questions about getting a mortgage in Canada? Get your answers here...

How can I find the best mortgage rates in Canada?

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.

Which mortgage type is the best for the first-time homebuyer?

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.

What is a high ratio mortgage?

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.

Are the lowest mortgage rates usually online?

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.

What is your prediction for Canadian mortgage rates in 2023?

The main predictor for interest rate, and mortgage rate changes, is by looking at the Government of Canada 5-Year bond yield. Currently, the Yield is pricing in a pause for interest rate hikes in 2023 as inflation numbers have come down from a peak of 8.1% to 3.4%. The market is also pricing in an interest rate drop, perhaps in the summer of 2024.

The next Bank of Canada meeting an announcement on interest rates will take place in September, which may give an indication of how things will go up to the end of 2023.

Who provides the best mortgage rate in Canada?

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.

How can I calculate my mortgage payments?

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.

Are “Low Frills” mortgages worth it?

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

Do I get a lower rate if I make a bigger down payment?

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.

Joel Kranc ,
Writer

Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.

He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.

He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."

Education
  • Master's of Political Science, University of Toronto
Featured in
  • Benefits Canada
  • Institutional Investor
  • Plan Sponsor Magazine
  • Global Finance Magazine
  • Infrastructure Investor
  • Private Equity Investor
  • The Globe and Mail
  • Fund Directions Newsletter
  • BenefitsPRO
  • HR Professional
  • Advisor's Edge
  • Institutional Investor
  • Employee Benefit Advisor
  • Investing in Infrastructure Magazine (i3)

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