Mortgages are significant as they can lead to a major change in your financial future. This is why it is necessary to get the best mortgage at the best possible rate.
Choosing the best bank for a mortgage can be a source of worry, especially if you have little information concerning the subject.
The truth is, everyone’s mortgage needs are different – so finding the bank with the best offer can be fulfilling.
Best Banks in Canada for Mortgage
Disclaimer: Rates and product offerings are always changing, so this article might not reflect the current market situation. Please contact your financial advisor before making any financial decisions.
In the table below, we have set side by side the present mortgage rates offered by some of the most popular banks for lengths less than 25 years. It is important to note that these rates are not constant and are likely to change frequently.
|Bank||1 year fixed (%)||3 year fixed (%)||5 year fixed (%)||10 year fixed (%)||5-year variable (%)|
|TD||3.14||3.49||4.59||5.60||1.97 (Prime – 0.48)|
|National Bank||2.69||3.54||4.79||5.79||2.45 (Prime + 0.00)|
|Scotiabank||3.09||3.79||4.79||5.89||2.65 (Prime + 0.20)|
|Laurentian||2.69||3.54||4.74||6.60||2.00 (Prime – 0.45)|
1. TD Canada Trust
TD Canada Trust is the commercial banking operations arm of the Toronto Dominion Bank, one of the big 5 banks in Canada.
TD mortgages provide you with the flexibility to choose how you would prefer to make your payment. You can make mortgage payments weekly, rapid-weekly, bi-weekly, rapid bi-weekly, semi-monthly, and rapid semi-monthly or monthly.
Find below the details of the mortgage programs offered by TD Canada Trust.
- Fixed-rate Mortgage
If you are after stability and desire peace of mind, you can consider this mortgage plan. Be rest assured that your interest rate won’t be affected for that period once you’ve selected your term—the term length you can choose ranges from 6 months to 10 years.
- 6 Month Convertible Mortgage
Are you interested in maximum flexibility? Are you more concerned with sticking to your fixed interest rate for a minimum term and not being committed to a long term interest rate? Then this may serve your need.
You can always choose to change to a longer-term anytime you want, especially when you feel the interest rates are favourable.
- TD Home Equity Flexline
This mortgage design combines the flexibility of the 6-month convertible mortgage with the stability of a fixed-rate mortgage.
2. National Bank of Canada
National Bank is the 6th largest commercial bank in Canada. They offer a variety of financial products for their customers.
Details of the mortgage programs offered by the National Bank of Canada are presented below.
- National Bank Fixed-Rate Mortgages
The risk of future interest rate fluctuation is reduced by “locking in” a specific interest rate for the term. Homebuyers find this offer particularly attractive due to the peace of mind associated with it.
- National Bank Variable-Rate Mortgages
You are provided with a fixed payment over the term. Note that the interest rate will fluctuate with any changes in the prime interest rate. For those expecting rates to fall in the nearest future, this can serve as a great financial tool.
3. Scotia Bank
The third-largest bank in Canada provides the following mortgage programs: the long and short mortgage.
- Long and Short Mortgage
This mortgage solution is right for you if you;
- require low-interest short-term rates.
- Prefer the security of a longer fixed-rate mortgage and can’t decide.
Long and Short Mortgage Features
- It provides two interest rates: fixed-rate, a closed term mortgage for one portion, and a Scotia Flex Value for the other.
- With this mortgage program, you may save hundreds of dollars yearly as you cut down the cost of your borrowing.
- You have the option to choose from weekly, bi-weekly, semi-monthly and monthly payment plans.
- It offers mortgage protection, which can help you secure the home you’ve worked hard for.
2. The Secondary Home Financing Program
It is available for those seeking a second home or getaway home to call their own.
3. The Scotiabank StartRight Mortgage Program
Temporary and permanent residents who are new to Canada can have their dream of getting a new home come true.
4. The Scotia Mortgage for Self-Employed
The needs of self-proprietors are met through this mortgage program.
4. Laurentian Bank
The Laurentian Bank has a subsidiary operating as its mortgage lending arm called B2B. The mortgage services provided by B2B Bank include:
- Variable-Rate Mortgage
Homebuyers searching for the least possible payments with the lowest available market rate can try out the variable-rate mortgage.
If you possess a flexible budget, feel comfortable with rate fluctuations, and are financially secure, this mortgage plan can work for you.
- Mortgage with Cashback
If you are ready to be a homeowner who wants to have funds available but is on a tight budget, you may want to consider this mortgage plan. It can be favourable for people who are seeking long term stability, who aren’t comfortable with rate fluctuations.
- Fixed-Rate Mortgage
You can go for this if you are a first time home buyer who wishes to enjoy the long term stability of a fixed rate but isn’t comfortable with rate fluctuations.
- Homeowner’s Kit
This product allows you to earn extra money to invest or make minor home improvements. By having at least 20 percent equity on your home, you could pay back loans, save money and fund new projects, which are benefits you could enjoy from an efficient leverage tool.
5. Equitable Bank
Like many Canadian banks, Equitable bank offers mortgage services that can be customized to fit your needs.
This bank finances mortgages for owner-occupied and investment properties across Canada.
Some of the mortgage services offered are:
- The EQB Evolution Suite
This is a prime mortgage offer designed to offer financial solutions that appeal to different categories of borrowers, including salaried, salaried with the commission, or self-employed individuals in search of residential property to purchase.
If you are an investor acquiring a rental property, a newcomer to Canada who wants to buy a home, or you want to purchase a vacation or second property, then you may want to try out this mortgage solution.
- Reverse Mortgage
Have you thought about maintaining your financial independence while at the same time planning your family’s future? Then pay attention- this offer may be just what you need.
What a reverse mortgage does is give you access to the equity which already exists in your home while turning a portion of it into an additional source of cash that is tax and payment-free. Those eligible for a reverse mortgage are;
- Canadians who are 55 years old and over.
- Those who live in major urban centres in British Columbia, Alberta, Ontario or Quebec.
- Those who live in their homes for more than 6 months per year.
- Homes whose value is at least $250,000.
What to Consider When Getting a Mortgage
When shopping for a mortgage, make sure you understand the options and features your mortgage broker or lender provides you with. Doing so will help you choose a plan that best suits your needs.
Also, know that mortgage brokers will charge a penalty fee when there is a breach of contract.
Except you plan to own your home only when you’ve paid in full, you may need some level of flexibility on your mortgage.
Below are options to help you decide if your mortgage has flexibility.
The open mortgage has more flexibility if you plan on putting extra money toward your mortgage. It usually has a higher interest rate.
A closed mortgage has a lower interest, limiting the number of extra funds you can put toward your mortgage each year.
Your mortgage option can port if you can transfer your existing mortgage balance after selling your home to buy another one.
An assumable mortgage allows you to take over or assume someone else’s mortgage and their property and vice-versa.
- Has Standard or Collateral Charges
Standard charges permit you to secure only the mortgage, while collateral charges allow you to secure multiple loans with your lender.
Is it better to get a mortgage from a bank or lender?
While some mortgage lenders may overcharge you, they usually offer better rates compared to banks. However, banks give better accountability as well as special discounts for existing customers.
What is the best bank in Canada?
It is difficult to say which bank is the best because different banks offer different products and services, leaving the best down to individual preferences.
Which bank has the lowest mortgage rate in Canada?
Mortgage rates in Canada vary from person to person rather than from bank to bank. There is no single bank that exclusively offers the best rate. It is important to compare different banks’ rates to make the best choice and get the best offer.