Compare Big Bank Rates in Canada
Top Big
Bank Rates
The top 5 big bank rates all in one easy-to-view table. See their rates then beat their rates (or get $500) with nesto’s low rate guarantee.
nesto’s lowest vs Big Bank insured mortgage rates
Results
For today, {date}, nesto’s {term}-year {type} mortgage rate is {bps} bps ({bps_percent}) lower than the similar average at Canada’s Big 6 Banks. On a {mortgage_ammount} mortgage over a {amortization_period}-year amortization, with nesto, your monthly payment would be {nesto_monthly_payment}, saving you up to {monthly_savings} on your monthly payment. This equals {savings_interest} in interest saved while allowing you to pay down {extra_payment} extra on principal over your term.
Average Bank Posted Mortgage Rate History
Let’s time travel. Below is the history of posted mortgage rates and where they’ve stood throughout the years.
*Most Recent Prime Rate Shown
Source: BankofCanada.ca
What Is a Mortgage Lender?
A mortgage lender is a financial institution, mortgage company or corporation that extends credit as mortgage loans to individuals and businesses to purchase real estate. These institutions lend money to borrowers, who then use the funds to buy a property. The property is collateral against the loan, ensuring the lender can recoup the amount borrowed should the borrower default on their payments.
A Lenders
A lenders are characterized by their stringent lending policies. They have strict requirements for borrowers’ credit scores, income, and debt levels. While the terms and rates from A lenders can be attractive, not all borrowers will meet their high standards. Sometimes, A lenders may offer a suite of financial products and services beyond personal loans and mortgages. An A lender will offer customized pricing on their lender mortgage rates based on the borrower’s relationship with the lender. Although all A lenders may be interchangeably known as prime lenders, the reverse is only sometimes true.
How to Find the Best Mortgage
Choosing a bank for your mortgage involves considering several factors beyond the interest rate. Here are some key aspects to consider:
- Interest Rates: Compare the interest rates offered by different lenders. Remember, the lowest rate may only sometimes be the best option if it comes with unfavourable terms.
- Fees: Be aware of any additional fees the lender might charge. Though only sometimes optional, additional fees could include application fees, appraisal fees, and closing costs.
- Customer Service: Consider the lender’s reputation for customer service. This could include their response time, availability, and willingness to answer your questions.
- Loan Terms: Look at the terms of the loan, including the length of the loan, the type of interest rate (fixed or variable), and any penalties for early repayment (past your annual prepayment privileges).
- Flexibility: If you foresee needing some flexibility in your repayment plan, look for a lender that offers options such as double-up prepayments, match-a-payment, miss-a-payment, deferred payments, capitalization, longer early renewal period, blend and extend, mortgage porting, mortgage conversion or loan modification options.
How to Compare Bank Rates From Big Banks
Looking to get a mortgage from one of the big Canadian banks? There are many things to remember when researching a mortgage with a conventional or A lender. The best way to compare rates is to see which rate is the lowest first. A lower interest rate on your mortgage could reduce your monthly repayments and the total amount of interest you pay back over the lifetime of your loan. From there, the next step involves a little more digging into the lender and the mortgage you want. Our guides on Mortgage Basics will help take you through the process and explain the fundamentals.
Comparing Banks in Canada
| Banks | About |
|---|---|
| Royal Bank of Canada (RBC) | Largest mortgage lender and chartered bank in Canada |
| TD Canada Trust (TD) | Second largest mortgage lender and chartered bank in Canada |
| Bank of Montréal (BMO) | Third largest mortgage lender and chartered bank in Canada |
| Scotiabank (BNS) | Fourth largest mortgage lender and chartered bank in Canada |
| Canadian Imperial Bank of Commerce (CIBC) | Fifth largest mortgage lender and chartered bank in Canada |
| National Bank of Canada (NBC) | Sixth largest mortgage lender and chartered bank in Canada |
| Hong Kong and Shanghai Banking Corporation (HSBC) | Seventh largest mortgage lender and Schedule 2 bank in Canada |
| Laurentian Bank (B2B Bank) | Québec and New Brunswick full-service bank with broker channel presence through B2B Bank in the rest of Canada |
| Tangerine Bank | Digital-only banking subsidiary of Scotiabank |
| Canadian Western Bank (Optimum Mortgage) | Alberta and BC full-service banks with some branch presence in large regional cities. CWB has a broker channel presence throughout Canada through Optimum Mortgage. |
| Manulife Bank | Full-service bank with mortgages offered through the broker channel |
| Equitable Bank (EQB) | Canada’s seventh-largest bank with mortgages offered on prime and subprime lending exclusively through broker channels |
RBC
Royal Bank of Canada (RBC) is the largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit, and investment solutions.
Best for: wealthy mortgage borrowers seeking private capital market solutions.
Special rate offerings: RBC reserves discounts for their wealth and private clients.
Rate terms offered: RBC offers a full suite of real estate secured lending (RESL) solutions for all types of clients.
Limitations: RBC primarily offers mortgages called Homeline. Homeline requires a Collateral Charge registration, which has some advantages and many disadvantages for the borrower.
Compare RBC Mortgage Rates
RBC is another long-standing Big Five Canadian bank with a global reach and solid, consistent financial performance. RBC has a range of conventional lending products to suit various financial needs, from residential to commercial. Here’s an overview of RBC’s rate hold length and mortgage approval process.
- 120-day rate hold. RBC also offers a 120-day rate hold for most mortgages once you’re approved.
- Mortgage process. RBC recommends pairing up with an RBC Mortgage Specialist to help you figure out your finances and goals. Their specialists work flexible hours and have access to professionals like lawyers, realtors, and accountants who can help you in the homebuying process. From there, RBC has a relatively straightforward online pre-approval process, showing you how much mortgage you can qualify for before you go house hunting. RBC’s pre-approval typically lasts 60-120 days, with a rate hold guaranteed.
RBC Mortgage Products
Fixed Rate
RBC offers a range of closed, open, and convertible fixed-rate mortgages, so you can select a term that provides the best rate and level of security. RBC offers special rates on 2, 3, and 5-year fixed-rate closed-term mortgages.
Variable Rate
RBC’s variable rate mortgages are convertible, meaning they can be converted to another term at any time, giving borrowers greater flexibility. This includes switching to a longer closed term if your variable rate no longer suits your needs.
RBC Homeline Plan
The RBC Homeline Plan combines an RBC Mortgage and Credit Line into one product that allows borrowers to access the equity in their home. It provides flexible access to credit at a low interest rate, with flexible repayment options
CashBack Mortgage
RBC’s Cash Back Mortgage allows you to take out the cash you need to help pay land transfer taxes, lawyer’s fees, moving costs, closing costs and other expenses.
TD
Toronto Dominion Canada Trust (TD) is the 2nd largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit, and investment solutions for the Canadian market.
Best for: Everyone, especially those with longer preconstruction mortgage rate holds. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: TD reserves discounts on relationship-based pricing.
Rate terms offered: TD offers a full suite of real estate secured lending (RESL) solutions for all types of clients.
Limitations: TD primarily offers mortgages called Flexline. The Flexline requires a Collateral Charge registration, which comes with a few advantages and a multitude of disadvantages for the borrower.
Compare TD Mortgage Rates
TD is one of Canada’s longest-running and biggest banks. As part of the Big 5 Banks (or Big 6, depending on who you ask), TD is a conventional lender with strict lending guidelines and a number of residential mortgage products. Here’s a breakdown of TD’s mortgage process and what makes them unique.
- 120-day rate hold. Once pre-approved, TD will give you a 120-day rate hold. This holds the interest rate on your pre-approval term for 120 days, subject to all conditions, even if interest rates change.
- TD’s online mortgage pre-approval process lets you know how much you can afford. The process is straightforward and covers many of the same document requirements for a mortgage as nesto.
- Features of TD’s 5-step pre-approval process include an immediate response to your online application, zero credit score impact when you submit online, and a rate hold of 120 days.
TD Mortgage Products
6-Month Convertible Mortgage
This fixed-rate, 6-month convertible mortgage from TD lets you convert your mortgage to a longer-term closed mortgage at zero cost at any time within the first 6 months. It comes with various repayment schedules, from weekly to monthly, and there’s flexibility for prepayment and payment increase options throughout the term.
High Ratio Mortgage
All TD mortgages are available as conventional or high-ratio mortgages, giving you flexibility about how frequently and for how long you want to make payments. A high-ratio mortgage is a loan higher than 80% of the property’s lending value.
Multi-unit Residential Mortgage
A specialist loan for people wishing to buy a building with five or more rental units or invest in more property. TD’s multi-unit mortgage gives flexibility and custom financing for investors and corporations. The loan is designed for people looking for finance of up to 75% of the property’s appraised value. It can be used to activate existing equity for personal or investment use, e.g. to diversify real estate holdings.
Agricultural Mortgages
TD has a dedicated team of agriculture specialists who help farmers get a mortgage. Typically, agriculture mortgages are used to expand or buy farmland or other capital projects related to farm operations, like equipment or livestock. TD offers customized terms and payment options, fixed or floating-rate loans, and annual prepayment options for fixed-rate loans.
BMO
Bank of Montréal (BMO) is the 3rd largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit, and investment solutions for the Canadian market.
Best for: Everyone, especially military and veterans. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: BMO reserves mortgage pricing discounts for their internal mortgage specialists.
Rate terms offered: BMO offers a full suite of real estate-secured lending (RESL) solutions for all types of clients.
Limitations: BMO primarily offers mortgages called Homeowner Readiline. The Homeowner Readiline requires a Collateral Charge registration, which has some advantages and many disadvantages for the borrower.
Scotiabank
Bank of Nova Scotia (BNS) is the 4th largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit and investment solutions for the Canadian market.
Best for: Everyone, especially those new to Canada, such as International students and temporary foreign workers (TFW). Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: Scotiabank reserves mortgage discounts for relationship-based pricing.
Rate terms offered: Scotiabank offers a full suite of real estate secured lending (RESL) solutions for all types of clients.
Limitations: Scotiabank primarily offers mortgages called the Scotia Total Equity Plan (STEP). The STEP requires a Collateral Charge registration comes with many advantages and disadvantages for the borrower.
Compare Scotiabank Mortgage Rates
Scotiabank is one of the Big 5 Canadian Banks, with branches and offices nationwide. It is a well-known bank with millions of customers and, like other big banks, offers the usual range of conventional mortgage products.
- 120-day rate hold.
- Mortgage process. Scotiabank pairs you with local mortgage Advisors through their online portal. Scotiabank lets applicants apply and search for a home online through their e-Home website.
Scotiabank Mortgage Products
Fixed Rate Mortgage
Scotiabank offers both closed-term and short-term/open fixed-rate mortgages. Their closed-term mortgages can be anywhere from 1 to 10 years, and open-rate mortgages can be 6 months or a year. Flexible closed-term mortgages are also offered at 6-month terms.
Variable Rate Mortgage
Scotiabank offers a range of variable-rate mortgages, including:
- Scotia Ultimate Variable Rate Mortgage – 3-Year Closed Term
- Scotia Flex Value Mortgage-Closed 5-Year Term
- Scotia Flex Value Mortgage-Open 5-Year Term
Each of these comes with different term lengths and payment options, depending on your goals.
Scotia Total Equity Plan (STEP)
STEP is essentially a flexible borrowing plan against the value of your home (up to 80%), similar to other home equity programs from other banks.
CIBC
The Canadian Imperial Bank of Commerce (CIBC) is the fifth-largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit and investment solutions for the Canadian market.
Best for: Everyone, especially those looking for a la carte mortgage pricing. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: CIBC reserves discounts for relationship-based pricing.
Rate terms offered: CIBC offers a full suite of real estate secured lending (RESL) solutions for all types of clients.
Limitations: CIBC primarily offers mortgages called the Home Power Plan. The Home Power Plan requires a Collateral Charge registration and comes with a few advantages and many disadvantages for the borrower.
Compare CIBC Mortgage Rates
CIBC recently rebranded to connect with its customer base and has tried to provide more flexible and diverse mortgage products in recent years. Here’s a breakdown of its rates and solutions.
- Up to 120-day rate hold
- Mortgage process. CIBC recommends working with one of their Mortgage Advisors to help you through the approval process. Like other Big 5 Banks, CIBC has an online application process that begins with pre-approval and aims to have you hear back from an advisor within 1 business day
CIBC Bank Mortgage Products
Fixed Rate
CIBC offers closed, open, and convertible fixed-rate mortgages. Closed and convertible mortgages have up to 10% prepayment options, and the open mortgage allows you to prepay part of all of your mortgage. Payment terms include weekly, bi-weekly, semi-monthly, or monthly.
Variable Rate
CIBC offers a Variable Flex Mortgage and a Variable Open Rate mortgage. The Variable Flex Mortgage® has a low variable interest rate with the flexibility of higher prepayment privileges. The Variable Open Rate mortgage is a standard variable rate style term that lets borrowers capitalize on changing interest rates and flexible payment options.
5% Cash Back
This is offered on CIBC’s Fixed Rate Closed Mortgage and Variable Flex Mortgage and depends on your mortgage amount and term.
Home Power Mortgage
CIBC’s Home Power Mortgage is a refinancing package that lets you use your home equity to borrow more money on your mortgage. CIBC’s Home Power Mortgage allows you to borrow up to 80% of the value of your home with competitive interest rates.
National Bank
National Bank of Canada (NBC) is the sixth-largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit, and investment solutions for the Canadian market.
Best for: Everyone. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: NBC reserves discounts for relationship-based pricing.
Rate terms offered: NBC offers a full suite of real estate-secured lending (RESL) solutions for all types of clients.
Limitations: NBC primarily offers mortgages called All-in-Ones. These require a Collateral Charge registration and have some advantages and many disadvantages for the borrower.
HSBC
The Hong Kong and Shanghai Banking Corporation (HSBC) is the 7th largest Canadian mortgage lender, offering a full suite of mortgage, banking, credit and investment solutions for the Canadian market.
Best for: Everyone, especially their clients moving to Canada. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: HSBC reserves discounts for relationship-based pricing.
Rate terms offered: HSBC offers a full suite of real estate secured (RESL) lending solutions for all types of clients.
Limitations: HSBC primarily offers Equity Power Mortgages. These require Collateral Charge registration, which has a few advantages and a multitude of disadvantages for the borrower.
Compare HSBC Mortgage Rates
While it’s not considered one of the big Canadian banks, HSBC is a global bank with offices worldwide. With its headquarters in London, England, HSBC has become a popular bank for Canadian residents seeking mortgages. Here’s a breakdown of their rates and offerings.
- 120-day rate hold. Most HSBC residential mortgages come with an up to 120-day rate hold once pre-approved.
- Mortgage process. Speak to an HSBC mortgage specialist to get started, or apply online to get pre-qualified. Typically, you’ll require the same documents as you would with other conventional lenders, like proof of employment, SIN number, personal tax returns, bank account information, credit history, and financial statements if self-employed.
HSBC Bank Mortgage Products
HSBC Residential Mortgage
This is HSBC’s basic mortgage solution, designed for first-time homebuyers or those with limited downpayment options who want to build equity in their home. It includes flexible early payment options up to 20% of the original mortgage amount.
HSBC Power Equity Mortgage
Similar to other home equity mortgages from different lenders, HSBC’s Equity Power Mortgage lets you access up to 80% of the value of your home to renovate, consolidate debt, travel, or make other major purchases. Comes in fixed and variable term options.
HSBC Home Equity Line of Credit
HSBC offers a Home Equity Line of Credit (HELOC). These revolving lines of credit let you access cash whenever you need it, as much or as little as you need. You only pay interest on the amount you actually use with HELOCs, so they’re often a flexible solution for cash flow purposes.
Laurentian Bank
Laurentian Bank is a regional Canadian mortgage lender offering a full suite of mortgage, banking, credit and investment solutions for the Québec and New Brunswick markets. They offer mortgages through its B2B Bank broker channel operations through various brokerage networks in the rest of Canada.
Best for: Québec and New Brunswick residents, especially retirees. Its offerings include a wide range of mortgages and secured lending solutions.
Special rate offerings: Laurentian Bank reserves discounts for relationship-based pricing.
Rate terms offered: Laurentian Bank provides a full suite of real estate secured lending (RESL) solutions for all types of clients in Québec and New Brunswick.
Limitations: Laurentian Bank primarily offers mortgages called the Homeowner’s Kit. The Homeowner’s Kit requires a Collateral Charge registration, which comes with a few advantages and many disadvantages for the borrower. Outside Québec and New Brunswick, mortgage solutions are limited to their B2B broker network.
Tangerine
Tangerine is a mortgage lender offering a full suite of mortgage, banking, credit and investment solutions for the Canadian market.
Best for: Everyone, especially savvy borrowers looking for low-cost full-service banking. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: Tangerine reserves discounts for relationship-based pricing.
Rate terms offered: Tangerine offers a full suite of real estate secured lending (RESL) solutions for all types of clients.
Limitations: Tangerine primarily offers mortgages and HELOCs as separate Collateral charge registrations. Separate registrations may keep borrowers captive with multiple maturity dates and discharge fees.
CWB
Canadian Western Bank (CWB) is a mortgage lender offering a full suite of mortgage, banking, credit and investment solutions in Alberta, BC and some regional cities in Canada. Their Optimum Mortgage works through the broker channel to provide real estate-secured lending throughout Canada.
Best for: Everyone, especially savvy borrowers looking for low-cost full-service banking. Its offering includes a wide range of mortgage and secured lending solutions.
Special rate offerings: CWB reserves discounts for relationship-based pricing.
Rate terms offered: CWB provides a full suite of real estate secured lending (RESL) solutions for all types of clients.
Limitations: CWB primarily offers mortgages called Homeworks. Homeworks requires a Collateral Charge registration and has some advantages and many disadvantages for the borrower.
Manulife
Manulife Bank offers a full suite of mortgage, banking, credit and investment solutions for the Canadian market.
Best for: Everyone, especially self-employed business owners. Its offerings include a wide range of mortgage and secured lending solutions.
Special rate offerings: Manulife reserves discounts for relationship bundles through their Manulife One Account.
Rate terms offered: Manulife offers a full suite of real estate-secured lending (RESL) solutions for all types of clients.
Limitations: Manulife primarily offers mortgages called Manulife One. Manulife One requires a Collateral Charge registration, which comes with a few advantages and many disadvantages for the borrower.
EQB
Equitable Bank (EQB) is a mortgage lender offering a full suite of mortgage, banking and investment solutions for the Canadian market.
Best for: Everyone, especially savvy mortgage borrowers looking for full-service banking at no cost. Its offering includes a wide range of Standard Charge mortgages.
Special rate offering: EQB has completely transparent pricing while reserving discounts for their existing banking/investment clients. Mortgages are referred to partner sites through their internal mortgage portal.
Rate terms offered: EQB provides a selection of Standard Charge mortgages with various terms.
Limitations: EQB currently only offers Standard Charge mortgage registrations on their mortgages, making it difficult to add a HELOC to your mortgage mix. However, this is mainly to keep costs down for themselves and their clients. Standard Charge mortgage registrations come with low discharge and transfer fees.
Posted Rates vs Best Rates
Be mindful not to confuse posted rates from the banks and the best rates available. If you choose to go with a mortgage broker, you may be able to get a better rate on your mortgage, as they have relationships with lenders and are incentivized to find quality candidates for borrowing.
Generally, posted rates to retail customers looking for residential mortgages, online and in-store, are often less favourable than the best rates out there. In addition, posted rates are often up to a full percentage point more than the rates banks are willing to offer to suitable borrowers, so it’s worth talking with your advisor and seeing if there’s room to negotiate.
Fixed vs Variable Rates
Analyzing the Bank of Canada chart below can help you choose between a fixed or variable mortgage rate in today’s market. The Prime rate is used as a basis for a number of products like variable mortgages, credit lines, and credit cards. A Prime rate is the interest rate that commercial banks charge customers that represents the lowest level of risk. Prime rates are combined with a positive or negative spread (e.g. +/- 1.5%) for most lending products, depending on risk levels. Each bank sets the prime rate to determine the interest they charge customers. Although each bank sets its own prime rate, they generally try to keep their rates in line with each other.
Bank of Canada Policy & Prime Rate Changes
| Date of Rate Change | Key Overnight Target Rate (%) | Change (%) | Bank Prime Rate |
|---|---|---|---|
| June 2, 2010 | 0.30% | 0.25% | 2.50% |
| July 21, 2010 | 0.55% | 0.25% | 2.75% |
| September 9, 2010 | 0.80% | 0.25% | 3.00% |
| January 28, 2015 | 0.65% | -0.15% | 2.85% |
| July 16, 2015 | 0.50% | -0.15% | 2.70% |
| July 13, 2017 | 0.75% | 0.25% | 2.95% |
| September 7, 2017 | 1.00% | 0.25% | 3.20% |
| January 18, 2018 | 1.25% | 0.25% | 3.45% |
| July 12, 2018 | 1.50% | 0.25% | 3.70% |
| October 25, 2018 | 1.75% | 0.25% | 3.95% |
| March 5, 2020 | 1.25% | -0.50% | 3.45% |
| March 17, 2020 | 0.75% | -0.50% | 2.95% |
| March 30, 2020 | 0.25% | -0.50% | 2.45% |
| March 3, 2022 | 0.50% | 0.25% | 2.70% |
| April 14, 2022 | 1.00% | 0.50% | 3.20% |
| June 2, 2022 | 1.50% | 0.50% | 3.70% |
| July 14, 2022 | 2.50% | 1.00% | 4.70% |
| September 7, 2022 | 3.25% | 0.75% | 5.45% |
| October 26, 2022 | 3.75% | 0.50% | 5.95% |
| December 7, 2022 | 4.25% | 0.50% | 6.45% |
| January 25, 2023 | 4.50% | 0.25% | 6.70% |
| March 8, 2023 | 4.50% | 0.00% | 6.70% |
| April 12, 2023 | 4.50% | 0.00% | 6.70% |
| June 7, 2023 | 4.75% | 0.25% | 6.95% |
| July 12, 2023 | 5.00% | 0.25% | 7.20% |
| September 6, 2023 | 5.00% | 0.00% | 7.20% |
| October 25, 2023 | 5.00% | 0.00% | 7.20% |
| December 6, 2023 | 5.00% | 0.00% | 7.20% |
| January 24, 2024 | 5.00% | 0.00% | 7.20% |
| March 6, 2024 | 5.00% | 0.00% | 7.20% |
| April 10, 2024 | 5.00% | 0.00% | 7.20% |
| June 5, 2024 | 4.75% | 0.25% | 6.95% |
You can learn more about this topic by understanding how the Bank of Canada Policy Rate works.
Bank Rates vs. Broker Rates
Mortgage brokers have relationships with many lenders and access to lower rates through the lenders they work with. Generally, mortgage brokers can get better rates for applicants they work with since they do much of the leg work to get borrowers ready during the pre-approval process, thereby vetting candidates before they even reach the lenders. Banks and other lenders incentivize brokers to secure customers. As such, broker rates are typically more favourable than the banks posted rates. It’s worth speaking to both banks and brokers to see what they can offer regarding rates since your mortgage payments will be affected in the thousands if you can find a lower rate before you sign.
Renewal Process With Big Banks
One of the most common questions people ask about the renewal process with the Big Banks is this: do I have to renew my mortgage with my current bank? The answer? No. You can renew with any bank or mortgage provider at the end of your term. If you decide to renew your mortgage before your term has expired, this is known as refinancing. Refinancing involves breaking your term early and potentially paying significant prepayment penalties. However, if you’re just looking to renew your mortgage, waiting until the end of your term allows you to renew with your current or completely new lender.
At nesto, we help you find the best rates available on your mortgage, and we also lend directly. Our simple renewal process guide explains in more detail how to renew your mortgage with a new lender. To get started and renew your mortgage with nesto, start by finding the best rate available near you at least a couple of months before your current term expires. Once you’ve found a solution you’re interested in, get in touch, and a mortgage advisor will help you. Renewing with nesto is a simple, hassle-free process that could save you thousands over the lifetime of your mortgage compared to the Big Banks.
Frequently Asked Questions
Do big banks offer better mortgage rates?
Big Banks, or A-lenders, as they’re sometimes known, offer a range of mortgage solutions for different financial situations. Big banks can offer competitive rates, which also comes with more stringent lending criteria and approval processes. It’s worth comparing the rates from the Big 6 Banks in Canada to see which rates you can find or looking into using a mortgage broker who can help you find rates not usually available to retail customers.
nesto’s lowest vs Big Bank insured mortgage rates
Results
For today, {date}, nesto’s {term}-year {type} mortgage rate is {bps} bps ({bps_percent}) lower than the similar average at Canada’s Big 6 Banks. On a {mortgage_ammount} mortgage over a {amortization_period}-year amortization, with nesto your monthly payment would be {nesto_monthly_payment}, saving you up to {monthly_savings} on your monthly payment. This equals {savings_interest} in interest saved while allowing you to pay down {extra_payment} extra on principal over your term.
What was the all-time highest mortgage rate in Canada?
In 1982, the posted rate for a 5-year fixed-term mortgage was a staggering 19.25%. The 1980s, particularly the early 1980s, saw rampant inflation and interest rates were increased to slow the swell of huge price increases. While rates have increased recently for a similar reason, inflation is not quite as high as it was in the 1980s, and it’s unlikely we’ll see rates climb to these levels again any time soon.
Do different banks offer different mortgage rates?
While banks try to stay competitive with their posted rates, there’s always variance between what they offer. Conventional lenders provide similar interest rates on standard mortgage products but often have a range of other lending products that serve different customers with different rates. Lenders also have different approval criteria, and this may be reflected in their rates. At nesto, we help you compare the best rates from all of the Big Banks, and we also lend directly.
Can you negotiate a mortgage rate?
While banks have posted rates online and in store, often they may be willing to negotiate a better rate with suitable candidates. It also helps to work with a mortgage broker, who can negotiate with lenders on your behalf and may have relationships with lenders that give them access to better rates than those posted for the general public.
What is the difference between lenders and banks?
The main difference lies in the services they offer and their lending criteria. Banks are deposit-taking financial institutions that provide a wide range of products, including investments, guaranteed deposits, chequing and savings accounts, credit cards, lines of credit, mortgages, self-directed investments and loans. Banks typically have more stringent lending criteria. On the other hand, lenders primarily focus on credit and lending, such as mortgages and loans, and may have more flexible lending criteria.
What is prime lending?
Prime lending refers to mortgage rates priced using the Bank of Canada prime rate. Although fixed mortgage rates are independent of the central bank’s prime rate, they are directly linked to Government of Canada bonds, priced using the expectations and fluctuation in prime rates.
What is a federally registered financial institution (FRFI)?
Federally regulated financial institutions (FRFI) in Canada include banks, trusts, loan companies, insurance companies, and cooperative credit associations. They are regulated by the Bank Act and supervised by the Office of the Superintendent of Financial Institutions (OSFI). They are expected to have strong risk management to ensure their ongoing financial and operational resilience.
What is a chartered bank?
A chartered bank is a federally regulated commercial bank offering nationwide personal and business banking services. A charter bank is regulated by the Canada Bank Act and supervised by the Office of the Superintendents for Financial Services (OSFI).
What is a mortgage company?
Mortgage companies in Canada primarily aim to provide or service mortgage loans. They may be a variety of provincial lenders, federal lenders, credit unions, or registered private lending syndicates. In addition, Canadian mortgage companies may purchase mortgages from the original mortgage lender to service the mortgage loan.
What is a mortgage corporation?
A mortgage corporation is a lender typically affiliated with a bank, with the primary objective of providing mortgage loans. A mortgage corporation may also be a subsidiary of a lender providing mortgage loans. In addition, Canadian mortgage corporations may purchase mortgages from another lender to service the mortgage loan.
What is a mortgage trust?
A mortgage trust can be a variety of mortgage products and service providers. A mortgage trust may also be a lender’s subsidiary providing mortgage loans. In addition, Canadian mortgage trusts can buy or sell mortgages, repackaging mortgages to reissue them as pooled investments.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.