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Big 5 Bank Mortgage Rates
Rates updated:
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Provider | 5 Year variable | 5 Year fixed | 3 Year fixed |
---|---|---|---|
Best market rate | 4.70% Prime -1.25% | 3.99% | 4.19% |
5.86% Prime -0.09% | 4.45% | 4.74% | |
5.44% Prime -0.51% | 4.49% | 4.57% | |
5.25% Prime -0.70% | 4.69% | 4.64% | |
5.05% Prime -0.90% | 4.44% | 4.74% | |
5.15% Prime -0.80% | 4.34% | 4.79% |
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Big 5 Banks: Frequently asked questions
Why do banks offer different mortgage rates?
Not all banks offer the same mortgage rates. In fact, some banks can offer very different rates for what is otherwise the same product. For example, the advertised rate for a 5-year fixed-term mortgage could be 0.50% higher from TD Bank than from BMO (or vice versa).
Why is this the case? Well, it’s because each bank has different lending criteria and is comfortable with different amounts of risk. Other factors like desired market share, competition and marketing policy will also change a bank’s pricing strategy. This is why you need to shop around and compare rates from multiple banks whenever you get a new mortgage, renew your mortgage or refinance.
Which bank has the lowest mortgage rate?
While lenders certainly compete on their mortgage products, particular banks don’t tend to have higher or lower rates as a rule. In Canada, rates are more likely to vary from person to person, rather than bank to bank. To get the best mortgage rate, as well as the mortgage with the right features for you, it’s important to compare mortgages from multiple providers.
How do I get a mortgage with one of the big banks?
There are two ways to apply for a mortgage with one of the big banks. You can either go directly to a particular bank, or you can apply through a mortgage broker. Using a mortgage broker gives you the added benefit of being able to compare mortgage rates and products between different lenders, as well as the chance to speak to an independent mortgage expert.
Can you negotiate a mortgage rate?
Yes, you can negotiate a mortgage rate. The rate you’re offered is not always the best rate you can get, especially in the case of a mortgage renewal offer from your current lender. If you’re uncomfortable with negotiating your own mortgage rate, it’s a good idea to speak to a mortgage broker, who can negotiate on your behalf.
Let us help you determine which rate best suits your individual needs by answering a few short questions about your home and financial history.
Want to learn more? Check out our comprehensive education centre
Comparing bank mortgage rates
Jamie David, Sr. Director of Marketing and Mortgages
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 mortgage market update: October 2024
The normally busy summer housing market in Canada was noticeably quiet, as buyers stayed on the sidelines and awaited lower mortgage rates. With the Bank of Canada having carried out a third quarter-point policy rate cut on September 4 (the first two rate cuts since March 2020 having been implemented on June 5 and July 24), many market observers are expecting activity to pick up.
Variable mortgage rates dropped by roughly the same amount as the policy rate, and, with markets anticipating another rate cut in October, further downward pressure on rates is expected.
Fixed mortgage rates are tied to the bond market rather than directly to the Bank of Canada and its rate decisions, and in response to the Bank of Canada’s September 4 rate cut (and some economic reports out of Canada and the US), bond yields have dropped. This in turn has allowed some lenders to reduce their fixed mortgage rates.
Still, though, from a historical perspective, both variable and fixed mortgage rates remain elevated. Anyone shopping for a mortgage rate in Canada right now should be aware of the economic factors below.
- Real estate update: On October 15, 2024, the Canadian Real Estate Association (CREA) released the September 2024 numbers for the Canadian housing market. The latest data reveals that the market gained momentum in September as buyers started to return, spurred by the Bank of Canada’s three consecutive rate cuts between June and September. A total of 37,733 residential properties changed hands across Canada, representing a 1.9% increase from August and a 6.9% rise year-over-year, reflecting stronger demand. New listings also increased by 4.9% compared to August, although inventory levels remained slightly below historical averages at 4.1 months of supply. With new listings rising and buyer activity picking up, the national sales-to-new-listings ratio (SNLR) came in at 51.3%, down from 52.7% the previous month but still well within CREA’s definition of a balanced market, which ranges between 45 - 65%. The national average home price rose by 2.1% year-over-year, coming in at $669,630. The MLS® Home Price Index saw a small monthly gain of 0.1%, reflecting stable pricing as the market adjusts to the new interest rate environment.
Read more: National home sales rise in September following summer rate cuts
- CPI update: On October 15, 2024, Statistics Canada released the September Consumer Price Index (CPI) report, revealing inflation slowed to 1.6%, down from 2% in August and below the forecasted 1.8%. This marks the lowest increase since early 2021, bringing inflation well under the Bank of Canada’s 2% target — a level considered sustainable for the economy. A major factor behind the decline was a -10.7% drop in gas prices. Mortgage interest costs also continued to decrease, falling to 16.7% in September from 18.8% in August. Meanwhile, Canadians are still feeling the strain from high rent prices and groceries, which have continued to rise, putting pressure on household budgets. Economists are now predicting that the Bank of Canada may cut rates by 50 basis points to stimulate the slowing economy, which would lower the overnight lending rate to 3.75%. Such a move would provide relief for borrowers, particularly those with variable-rate mortgages, but reduce returns on savings products tied to prime rates.
Also read: Canadian CPI falls to 1.6% in September, increasing chance of half-point rate cut
Canadian mortgage reform update
On September 16, 2024, the federal government announced sweeping changes to mortgage qualification rules for first-time home buyers, as well as those purchasing newly-constructed homes.
As of December 15, 2024:
- 30-year amortizations will be available for all first-time home buyers, regardless of whether they have an insured mortgage. These extended amortizations are also available for any purchase of new construction.
- The maximum purchase price for an insured mortgage (where less than 20% down is paid) will be increased to $1.5 million, from the current $1 million.
These are some of the most impactful mortgage reforms announced since 2012, and are anticipated to increase first-time home buyers’ affordability and access to the housing market.
Learn more about these new mortgage rule changes on the Ratehub.ca blog
October 2024 affordability update
According to Ratehub.ca’s latest, in August 2024, Canadian home buyers saw improved affordability in many cities due to falling mortgage rates and softening home prices. This positive trend was largely driven by the Bank of Canada’s recent rate cuts, which brought the average five-year fixed mortgage rate down to 5.16% while the mortgage stress test rate eased to 7.16%.
These changes made buying a home more attainable for Canadians. For example, in Toronto, the required income to purchase a home fell significantly as prices dropped by $15,100. The effects were felt nationwide, with cities like Vancouver and Victoria also experiencing similar improvements.
Looking ahead, future rate cuts could further improve affordability, and new mortgage qualification rules will offer longer amortization periods and higher insured mortgage purchase caps. These updates are expected to enhance affordability, especially in Canada’s higher-priced housing markets.
Read more: Dropping mortgage rates improved home affordability in August
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.
Jamie David, Director of Marketing and Head of Mortgages
Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio