Best Mortgage Bank Rates in Canada

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

BMO 5-year Fixed Mortgage Rate

Rate Type5-Year-Fixed

Mortgage TypeClosed

Prepayment 20%

HSBC Best Mortgage Rates - Rates4u.ca

HSBC 3-year Fixed Mortgage Rate

Rate Type3-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

CIBC Best Mortgage Rates - Rates4u.ca

CIBC 5-year Variable Mortgage Rate

Rate Type5-Year-Variable

Mortgage TypeClosed

Prepayment 20%

Best Mortgage Broker Rates in Canada

citadel-mortgages

5 Year Fixed Rate
(High Ratio)

Rate Type 5-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

citadel-mortgages

3 Year Fixed Rate
(High Ratio)

Rate Type 3-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

citadel-mortgages

5 Year Variable Rate
(High Ratio)

Rate Type 5-Year-Variable

Mortgage TypeClosed

Prepayment 15%

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INSURANCE & FINANCIAL PLANNING NEWS

MORTGAGE PRE- QUALIFICATION TOOL

cANADA MORTGAGE RATES

How Do You Qualify For The Best Mortgage Rates?

A Good Credit Score: You will generally need a 650 to 720 Credit score or above. Any co-borrowers, on your mortgage application, 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.

 Employment Tenure: If you just started your job, you may not qualify with some of the mortgage lenders. Many mortgage lenders prefer to see at least a one-year job history if you’re salaried.

Clean Credit: Lenders want to see no derogatory items on your credit report. You want to make sure that no missed mortgage payments show on your credit report as lenders will not be comfortable lending at the best mortgage rates if this is an issue on your credit report. Also one missed payment in three years might be okay; five missed payments are not, especially if they went to collections.

Provable Income: A lender will usually ask you to prove your full income with tax documents and/or employer pay stubs. This is important you make think your income is fine, but you will need a two-year history of any bonus income, commissions, tips income or part-time income in order to be able to use it as part of your mortgage application. 

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. It is important to note that, 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 usualy requires a 680+ credit score.

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.

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cANADA MORTGAGE RATES

How Your Downpayment Can Impact Your Mortgage Rate?

For the most part, Canadians save at least 20% down payment when buying their first or second home. However, a downpayment of 20% usually leads to a higher mortgage rate.

 

Insured mortgages, often referred to as “High Ratio” with a downpayment of less than 20%, usually have the lowest mortgage rates. These mortgages are called high-ratio mortgages, are generally insured by the CMHC or a private mortgage insurer. Due to the lower risk, the insurance protects lenders and is willing to offer lower rates for these mortgages. However, you will have to pay CMHC insurance premiums on top of your mortgage which can more often than not cost more than your potential interest savings compared to a 20% downpayment option.

 

Mortgages with a downpayment of 35% or more also tend to have lower mortgage rates than a 20% downpayment mortgage. This is called risk management by the lenders; the larger downpayment gives a bigger buffer for the lenders and their risk, which lets them offer a lower mortgage rate.

 

Be sure to review all your options and speak to a mortgage agent to ensure you are making the best choice based on your mortgage needs.

MORE NEWS

BMO 5-year Fixed Mortgage Rate

2.39%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

5-Year-Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

20%

Pre-Payments

download__1_-removebg-preview

20%

Lump sum pre-payment

HSBC 3 Year Fixed Mortgage Rate

2.50%

HSBC Best Mortgage Rates - Rates4u.ca

3-Year Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

20%

Pre-Payments

download__1_-removebg-preview

20%

Lump sum pre-payment

CIBC 5-year Fixed Mortgage Rate

2.39%

CIBC Best Mortgage Rates - Rates4u.ca

5-Year-Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

10%

Pre-Payments

download__1_-removebg-preview

10%

Lump sum pre-payment

Citadel 5 Year Fixed Mortgage Rate

1.64%

citadel-mortgages

5-Year-Fixed

save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-Payments

download__1_-removebg-preview

15%

Lump sum pre-payment

Citadel 3 Year Fixed Mortgage Rate

1.39%

citadel-mortgages

3-Year-Fixed

save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-Payments

download__1_-removebg-preview

15%

Lump sum pre-payment

Get the Best Mortgage Rates

1.15%

citadel-mortgages

5-Year Variable
(High Ratio)

save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-Payment

download__1_-removebg-preview

15%

Lump sum pre-payment

Best Mortgage Rates In Canada

5-Year Variable Mortgage Rates

1.15%

5 Year Fixed Mortgage Rates

1.64%

save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-approval

download__1_-removebg-preview

15%

Lump sum pre-payment