Best Mortgage Rates in Canada

 

Rates4u.ca shop the mortgage brokers, lenders, and banks in Canada to bring you today’s lowest interest rates. Our Canadian comparison charts always list current rates and are updated regularly throughout the day.

Today's Most Popular Rates

The best mortgage rates change almost weekly. And RATES4U.ca tracks them all to help Canadians in their mortgage journey.

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%

Best Mortgage Rates - Frequently Asked Questions

Getting the best mortgage rates you can qualify for is an essential step in buying or refinancing a home. Beyond just comparing mortgage rates, learning as much as you can about Canadian mortgages is the best thing you can do.

See each mortgage caters to an individual’s particular needs, so it’s essential to find the mortgage that suits you at the end of the day, but not all mortgage rates are created equal in today’s market. The mortgage terms and conditions can vary, as can the mortgage rate itself. Comparing mortgages before confirming your mortgage financing ensures that you won’t miss a mortgage with great features and a low rate.

This depends on you and your needs. See, closed mortgages are more prevalent in Canada as they have lower rates, but open mortgages have extra flexibility that you might need in the future, which is an important part. Here is more information on the differences between open and closed mortgages below:
Closed mortgages  can come in fixed and variable form, but place restrictions on the amount of principal you can pay down over each year of your mortgage. If you choose to pay off the entire principal in a closed mortgage before the set term, you will face a prepayment penalty that could be expensive.
Open mortgages are great products that allow you to pay off your entire mortgage balance at any time throughout the term of your mortgage. Most people opt for open mortgages if they plan to move shortly or expect a lump sum of money through a bonus or inheritance that allows them to pay towards the mortgage balance.

The main difference between fixed and variable mortgage rates is whether they can change over time. Fixed mortgage rates will stay the same over your mortgage term (usually common trend is five years), while variable rates can and will change alongside changes in your lender’s prime rate as the banks use this rate for there variable mortgage product.
See fixed mortgage rates are the most popular option, with 74% of all mortgages in Canada are using fixed rates in 2016 (Source: Statistics Canada). The benefit of a fixed-rate mortgage is that you are protected against interest rate fluctuations that may happen, so your regular payments stay constant over your term.
More often than not, variable mortgage rates are typically lower than fixed rates but usually will vary over the term. Variable mortgages are prone to market behavior (because of the prime rate), affecting your mortgage payments. That means your mortgage payment amounts can change over the time of your mortgage. In comparison, variable rates are generally lower, with better mortgage break fee options.

The mortgage rates you see on Rates4u.ca are updated every few minutes. Our mortgage rates are from two methods: Mortgage brokers can log in to our platform, update their rates, and source rates from Canadian bank websites.
Your mortgage prepayment options outline the flexibility that you have to pay down your mortgage or increase your monthly mortgage payments or pay down your mortgage principal as a whole. These terms are set in your mortgage offer.
The mortgage rate hold clause refers to how long before your new home shopping or mortgage renewal date you can lock in the mortgage rate, should that interest rate be a favorable one. The renewal date is when the term of mortgage expires.

There are advantages to getting your next mortgage directly from a mortgage lender like a bank and getting a mortgage through a mortgage broker. While going directly to your current bank lets you consolidate all your financial products with one financial partner, using a mortgage broker allows you to shop around quickly, at no cost to ensure your bank is not taking advantage of you because all your products are with them.
With Rates4u.ca you can speak to multiple banks and multiple mortgage brokers if you want to. Rates4u.ca compare the best mortgage rates in Canada from numerous lenders and mortgage brokers. 

How do you qualify for the best mortgage rates?

Getting the best mortgage rates requires five main things:

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.

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

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-Paymentsl

download__1_-removebg-preview

20%

Lump sum pre-payment

HSBC 3-Year Fixed Mortgage Rate

2.50%

HSBC Best Mortgage Rates - Rates4u.ca

HSBC 3-Year Fixed Mortgage Rate

Dislike_down_hand

No

Pre-approval

finance-13-5

20%

Pre-Payments

download__1_-removebg-preview

20%

Lump sum pre-payment

CIBC 5-Year Variable Mortgage Rate

2.45%

CIBC Best Mortgage Rates - Rates4u.ca

5-Year Variable Mortgage Rate

Dislike_down_hand

No

Pre-approval

finance-13-5

10%

Pre-approval

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

Citadel 5 Year Variable Mortgage Rate

1.15%

citadel-mortgages

5-Year-Variable

save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-Payments

download__1_-removebg-preview

15%

Lump sum pre-payment