Compare the best Big 5 Bank mortgage rates

Getting a mortgage is a major financial commitment and can make big changes to your lifestyle. So, taking the time to choose the right mortgage is really important. For most Canadians, the Big 5 Banks are what they will think of first when they consider taking the mortgage plunge, but the big banks are not your only choice.

Below are some essential details about getting a mortgage from one of the Big 5 Banks, or from any other kind of lender.

Canadian housing market update: April 2024

The housing market in Canada has been markedly volatile over the past few months, but there are now early signs that indicate sales activity will pick up as expectations for rate cuts later this year by the Bank of Canada gather pace. Bond yields continue to be difficult to predict, as anxious investors react to various economic reports coming out of Canada, the United States and elsewhere. Following a brief tumble in December and January, they have mostly been on the rise since then, spurred in part by the US Federal Reserve’s “higher for longer” rate stance. Both fixed and variable mortgage rates remain historically high. If you’re looking to get a mortgage in Canada, here are some things you should be aware of.

Real estate update: On April 12, 2024, the Canadian Real Estate Association (CREA) came out with the March numbers for the Canadian housing market. The latest figures reveal that the housing market in Canada stayed relatively flat over the month of March.

Some 42,633 residential properties changed hands across Canada in March, representing a slight annual increase of 1.7%, and barely outstripping February’s total by just 0.5%. The 76,021 homes newly listed in March marked a -1.6% decline on a monthly basis, though this figure is up by 10% year-over-year as supply recovers from the historic lows seen in 2023. Nevertheless, buying conditions tightened slightly, as the nation’s sales-to-new-listings ratio (SNLR) rose to 57.4%, up from February’s 55.6%. CREA defines a ratio between 45 - 65% to reflect a balanced housing market, with above and below that threshold indicating sellers’ and buyers’ market conditions, respectively. The national average home price rose by 2% year over year to reach $698,520 in March.

Read more: Canadian home sales were flat in March, but rate cut boost expected

2024 Housing market forecast

With expectations of rate cuts growing and pent-up home buyer demand apparent, CREA has revised its forecasts for 2024 and 2025 upwards. 

CREA now expects that a total of 492,083 homes will change hands across Canada in 2024, up by 10.5% from 2023. Sales growth is projected to be most robust in markets where housing demand has been consistently strong, like Alberta. However, sales growth is also anticipated in markets that have hitherto been languishing due to historically low demand, such as Ontario, British Columbia and Nova Scotia. The average home price in Canada will rise by 4.9% to come in at $710,468 in 2024.

Housing market activity will gather further momentum in 2025, with sales forecast to hit 530,494 residential properties (an increase of 7.8%) and the average national home price expected to reach $760,120 (an increase of 7%).

 

Posted rates vs. best rates

When comparing bank mortgage rates, it’s important to know that these rates represent the banks' posted mortgage rates. The posted rate is simply the rate that the bank is advertising in public. However, banks are often able to offer even lower rates in order to secure a borrower's business. You may be able to access these discounted rates through negotiation, or by reaching out to a representative mortgage broker. Some banks offer rates several percentage points below what is posted, so it's worth taking the time to see if you can get a better offer.

Bank rates vs. broker rates

As you may have noticed, bank mortgage rates are almost always higher than those of mortgage brokers. That is because mortgage brokers have access to rates from multiple banks and credit unions, as well as insurance and trust companies. That means they can shop around for you. Brokers also receive bulk discounts from lenders based on the high volume of their business that they can pass along to you.

As a result, it’s unlikely that a bank will post a lower rate than a mortgage broker. However, if you present the lowest market rate to your bank as part of the negotiation process, they may offer to match it. That said, we don’t recommend pitting the banks and brokers against each other to compete for your business. What we do recommend is comparing broker mortgage rates and bank mortgage rates alongside each other, and deciding which offer is best for you.

Comparing mortgage rates with Ratehub.ca

Whether you're considering using a bank or broker, a variable or fixed mortgage rate, or a one to a 10-year term, we can help. Our tools find the best mortgage rates for every category and type of lender, personalized to you. Our goal at Ratehub.ca is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly and providing them with the best online application and offline customer service to close their mortgage all in one place. 

Posted rates vs. best rates

When comparing bank mortgage rates, it’s important to know that these rates represent the banks' posted mortgage rates. The posted rate is simply the rate that the bank is advertising in public. However, banks are often able to offer even lower rates in order to secure a borrower's business. You may be able to access these discounted rates through negotiation, or by reaching out to a representative mortgage broker. Some banks offer rates several percentage points below what is posted, so it's worth taking the time to see if you can get a better offer.

Bank rates vs. broker rates

As you may have noticed, bank mortgage rates are almost always higher than those of mortgage brokers. That is because mortgage brokers have access to rates from multiple banks and credit unions, as well as insurance and trust companies. That means they can shop around for you. Brokers also receive bulk discounts from lenders based on the high volume of their business that they can pass along to you.

As a result, it’s unlikely that a bank will post a lower rate than a mortgage broker. However, if you present the lowest market rate to your bank as part of the negotiation process, they may offer to match it. That said, we don’t recommend pitting the banks and brokers against each other to compete for your business. What we do recommend is comparing broker mortgage rates and bank mortgage rates alongside each other, and deciding which offer is best for you.

Comparing mortgage rates with Ratehub.ca

Whether you're considering using a bank or broker, a variable or fixed mortgage rate, or a one to a 10-year term, we can help. Our tools find the best mortgage rates for every category and type of lender, personalized to you. Our goal at Ratehub.ca is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly and providing them with the best online application and offline customer service to close their mortgage all in one place.