Find the best mortgage rate in Yukon

Getting a mortgage is a big financial commitment, but there are some sure-fire ways to get a better mortgage rate. The factors that contribute to a lower mortgage rate aren't a secret, so all you need to do is plan ahead.

Our mission at Ratehub.ca is to make it easy to compare rates from Canada's big banks, credit unions and smaller lenders. That makes it simple for you to choose better, at no cost to you.

What's the best mortgage rate in Yukon?

The best mortgage for you is the one that best suits your needs, and offers a great rate. It's important to remember that the best mortgage is not always the mortgage with the lowest rate. While a low rate is important and can save you thousands of dollars, you also need to make sure that the term, conditions, and features of your mortgage suit your needs.

What factors affect the mortgage rate I get?

While comparing mortgage products is an important part of getting the best possible mortgage rate, you’ll still need to personally qualify for your final offer. There are several factors that will affect the rate you’re able to qualify for. Here are some of the major ones:

• Down Payment: In Canada, property purchases require a minimum down payment of between 5% and 20%, depending on the purchase price. However, if your down payment is less than 20%, you’ll have to pay for mortgage default insurance. This will cost you more, but it will make your mortgage less risky, from your lender’s perspective. This generally results in a lower mortgage rate. Note that even with a lower mortgage rate, it's still worth avoiding the cost of mortgage default insurance, so you should always aim to have a down payment of at least 20%.
• Amortization period: Mortgages with amortization periods of more than 25 years generally have higher interest rates. This is because this type of mortgage can't be insured with mortgage default insurance. Despite this, mortgages with longer amortization periods can be more financially manageable, because they have lower monthly payments.
• The purpose of the property: You’ll generally be offered a higher rate on a mortgage for a property that you don’t plan to personally live in.
• Mortgage type: A refinanced mortgage, or a mortgage with features like a HELOC, will typically come with a higher rate than a mortgage for a renewal or new purchase.
• Credit score: A low credit score may mean you cannot get approved by an ‘A lender’, like a big bank or credit union. If you’re forced to take a mortgage from a ‘B lender’, you’ll probably be charged a higher rate.

Yukon mortgage rates: Historical trends

Yukon mortgage rates rise and fall, as do rates across Canada. Because Yukon is so remote and sparsely populated, the mortgage rates on offer may be different than in other provinces - be sure to check the comparison table above. With that in mind, here’s a quick snapshot of the lowest national mortgage rates over the past few years, to give you an idea of where we are today.

Source: Ratehub Historical Rate Chart

Land transfer tax in Yukon

There are a series of land transfer fees in Yukon, depending on the type and size of the property purchase. Some of these fees include:

• Transfer fees: These range from $0 to $750, depending on the purchase price.
• Mortgage fees: These range from $50 to $1,000, depending on the mortgage size.
• Assurance Fund fees: When applicable, this is a $20 charge for the first $10,000 of the purchase price, plus $10 for each $10,000, or part thereof, of additional declared value since the last transfer.

You can find the full schedule of fees here. It’s easy to contact the Yukon Land Titles Office for more information if you have any questions.

Yukon first-time home buyers

There aren't any programs exclusively available to Yukon first-time home buyers, but first-time home buyers in Yukon are still eligible for first-time home buyer programs at the federal level. These can result in significant savings, so it's well worth checking them out.

If you are planning on building a home outside of Whitehorse and are having trouble getting a mortgage, you might want to look into the Rural Home Ownership Program.