Comparing Mortgage Brokerages in Canada
Top 5 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.
*Toronto rates
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 Posted Mortgage
Rate History
Let’s time travel. Below is the history of posted mortgage rates and where they’ve stood over the years.
| Year | Mortgage 5 Year | Mortgage 3 Year | Mortgage 1 Year | Prime Rate |
|---|---|---|---|---|
| 2022 | 5.24% | 5.39% | 5.44% | |
| 2021 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2020 | 4.94% | 3.89% | 3.19% | 2.45% |
| 2019 | 5.34% | 4.29% | 3.64% | 3.95% |
| 2018 | 5.34% | 4.29% | 3.49% | 3.95% |
| 2017 | 4.64% | 3.39% | 3.14% | 3.20% |
| 2016 | 4.64% | 3.39% | 3.14% | 2.70% |
| 2015 | 4.64% | 3.39% | 2.89% | 2.70% |
| 2014 | 4.79% | 3.75% | 3.14% | 3.00% |
| 2013 | 5.24% | 3.73% | 3.14% | 3.00% |
| 2012 | 5.24% | 3.95% | 3.20% | 3.00% |
| 2011 | 5.39% | 4.35% | 3.50% | 3.00% |
| 2010 | 5.42% | 4.15% | 3.55% | 3.00% |
| 2009 | 5.79% | 4.45% | 3.80% | 2.25% |
| 2008 | 7.15% | 7.00% | 6.95% | 3.50% |
| 2007 | 7.19% | 7.30% | 7.05% | 6.00% |
Canada’s mortgage market has seen a surge in the number of lenders offering a wide variety of mortgage products. From traditional banks to credit unions, mortgage finance companies, monoline and online lenders, potential homeowners have many options. However, given the vast array of choices, finding the right lender can require a lot of homework. This Canadian mortgage lenders guide has been designed to help you find the best mortgage lenders who offer the most suitable mortgage solution for your needs.
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 their money 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.
B Lenders
B lenders, alternative or subprime lenders, offer more flexibility in their lending policies. Subprime lenders are often the go-to option for those who cannot meet A lenders’ strict requirements. Their prospective clients may include individuals with lower credit scores, high debt levels, or unconventional income sources. Some A lenders may offer B lending products to private or corporate clients.
Private Lenders
Private lenders offering mortgages are an alternative form of financing provided by private individuals, a group of investors or companies. They are often used as a last resort by borrowers who may have been rejected by both A and B lenders. Private lenders are often the go-to for borrowers who qualify for an A lender but require exceptional creativity, speed to funding, or special consideration for their property type/project. While private mortgage loans can provide quick access to funds, they usually come with higher interest rates and fees due to the increased risk involved.
How to Choose a Mortgage Broker
Choosing a mortgage broker 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.
Mortgage Brokerages in Canada
Canadian mortgage brokerages offer a variety of mortgage solutions. Beneath each table, we have illustrated some small but important details for each mortgage brokerage.
Comparing Brokerages in Canada
| Brokerages | About |
|---|---|
| Ratehub | Largest brokerage and Canada’s original financial products comparison website |
| True North Mortgage | Mortgage brokerage serves Canada with physical locations in the largest cities |
| nesto | Mortgage brokerage was the first to pioneer a 100% virtual application process |
| Dominion Lending Centres | Extensive broker network serving Canadians with physical locations in all provinces. |
| Mortgage Architects (DLC) | Large broker, part of the DLC network, serving Canadians with physical locations in all provinces. |
| The Mortgage Centre (DLC) | Large broker, part of the DLC network, serving Canadians with physical locations in all provinces. |
| Mortgage Alliance (M3) | Large broker, part of the M3 network, serving Canadians with physical locations in all provinces. |
| Multi-Prêts Hypothèque (M3) | Large broker, part of the M3 network, serving Canadians with physical locations in all provinces. |
| Mortgage Intelligence (M3) | Large broker, part of the M3 network, serving Canadians with physical locations in all provinces. |
| Verico Mortgage (M3) | Large broker, part of the M3 network, serving Canadians with physical locations in all provinces. |
| Invis (M3) | Large broker, part of the M3 network, serving Canadians with physical locations in most provinces. |
| Pineapple | Large broker network serving Canadians with physical locations in all provinces. |
| Rocket Mortgage Canada | A Full-service mortgage broker providing mortgage solutions throughout Canada. |
| Super Brokers | Broker, part of the DLC network, serving Canadians with physical locations in all provinces. |
| Perch | Brokerage, part of the Pineapple network, serving all provinces in Canada. |
Ratehub
Ratehub is a full-service mortgage brokerage and fintech aggregator throughout Canada. They provide their mortgage brokering services through their brokers nationally. Ratehub has 2 locations in Toronto and 1 in Kingston.
Best for: borrowers seeking flexibility on residential prime and subprime pricing.
Special rate offerings: Ratehub provides a variety of discounts based on lender volume pricing.
Rate terms offered: Ratehub provides a full suite of real estate-secured lending solutions for residential clients.
Limitations: Ratehub provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
True North Mortgage
True North Mortgage is a full-service mortgage brokerage providing mortgage solutions throughout Canada. True North has locations in Calgary, Edmonton, Toronto, Montréal, Vancouver, Ottawa and Halifax.
Best for: borrowers seeking flexibility on residential prime and alternative lending with subprime pricing.
Special rate offerings: True North provides a variety of discounts based on lender volume pricing.
Rate terms offered: True North provides a full suite of residential real estate-secured lending solutions.
Limitations: True North provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
nesto
nesto is a 100% digital full-service mortgage brokerage and lender throughout Canada. They provide transparent mortgage lending services through their brokers. They are the first mortgage broker to offer lending with level pricing in all 10 provinces.
Best for: borrowers seeking flexibility on prime residential lending with Canada’s lowest insured and insurable rates.
Special rate offering: nesto doesn’t offer special pricing, but further discounts may apply for higher mortgage balances.
Rate terms offered: nesto provides standard discounted pricing for all prime lending residential clients.
Limitations: nesto doesn’t offer HELOCs yet. They provide mortgages only on Standard Charge registrations, keeping mortgage transfer and switch costs low for both borrower and lender.
Dominion Lending Centre (DLC)
Dominion Lending Centre (DLC) is a full-service mortgage brokerage with lending and locations throughout Canada. They provide their mortgage lending services through broker channel operations nationally, with physical locations in all the provinces.
Best for: borrowers seeking flexibility on prime residential and subprime lending, including boutique, alternative, commercial or agricultural borrowing solutions.
Special rate offerings: DLC offers a variety of discounts based on their lender volume pricing.
Rate terms offered: DLC provides a full suite of real estate-secured lending solutions for residential, agricultural and commercial clients.
Limitations: DLC provides options with lenders offering Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Mortgage Architects (DLC)
Mortgage Architects is a full-service mortgage brokerage that is part of DLC Group. They provide their mortgage lending services through broker channel operations nationally, with physical locations in most provinces.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offerings: Mortgage Architects has various discounts based on lender volume pricing.
Rate terms offered: Mortgage Architects provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Mortgage Architects provides options with lenders offering both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
The Mortgage Centre (DLC)
The Mortgage Centre is a full-service mortgage brokerage of DLC Group. They provide their mortgage lending services through broker channel operations nationally, with physical locations in most provinces.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offering: The Mortgage Centre has various discounts based on lender volume pricing.
Rate terms offered: The Mortgage Centre provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: The Mortgage Centre provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Mortgage Alliance (M3)
Mortgage Alliance is a full-service mortgage brokerage that is part of M3 Group. They provide their mortgage lending services through broker channel operations nationally, with physical locations in all provinces.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offerings: Mortgage Alliance offers various discounts based on lender volume pricing.
Rate terms offered: Mortgage Alliance provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Mortgage Alliance provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Multi-Prêts Hypothèque (M3)
Multi-Prêts Hypothèque is a full-service mortgage broker on the M3 network exclusively serving the Québec market. Provincially, they provide their mortgage lending services through broker channels and physical locations.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offerings: Multi-Prêts offers various discounts based on lender volume pricing.
Rate terms offered: Multi-Prêts provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Multi-Prêts provides options with lenders offering both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Mortgage Intelligence (M3)
Mortgage Intelligence is a full-service mortgage brokerage that is part of M3 Group. They provide their mortgage lending services through broker channel operations nationally, with physical locations in all provinces.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offerings: Mortgage Intelligence offers various discounts based on lender volume pricing.
Rate terms offered: Mortgage Intelligence provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Mortgage Intelligence provides options for lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Verico Mortgage (M3)
Verico Mortgage is a full-service mortgage brokerage that is part of M3 Group. They provide their mortgage lending services through broker channel operations nationally, with physical locations in all provinces.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offerings: Verico offers various discounts based on lender volume pricing.
Rate terms offered: Verico provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Verico provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Invis Mortgage (M3)
Invis Mortgage is a full-service mortgage brokerage that is part of M3 Group. They provide their mortgage lending services through broker channel operations nationally, with physical locations in most provinces.
Best for: borrowers seeking flexibility on prime residential or commercial lending.
Special rate offerings: Invis offers various discounts based on lender volume pricing.
Rate terms offered: Invis provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Invis provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Pineapple
Pineapple is a full-service mortgage brokerage network throughout Canada. They provide their mortgage lending services through broker channel operations nationally, with various brokerage locations working as a network.
Best for: borrowers seeking flexibility on prime residential lending, as well as boutique, alternative, commercial or agricultural with subprime pricing.
Special rate offerings: Pineapple has a variety of discounts with lender volume pricing.
Rate terms offered: Pineapple provides a full suite of real estate-secured lending solutions for residential, agricultural and commercial clients.
Limitations: Pineapple provides options with lenders offering Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Rocket Mortgage
Rocket is a full-service mortgage brokerage providing mortgage solutions throughout Canada. They have 1 physical location in Windsor and provide a 100% digital mortgage experience.
Best for: borrowers seeking flexibility on prime residential lending.
Special rate offerings: Rocket has various discounts with lender volume pricing.
Rate term offered: Rocket provides a full suite of real estate-secured lending solutions for residential clients.
Limitations: Rocket provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Super Brokers
Super Brokers is a full-service mortgage brokerage on the Mortgage Architects (DLC) Brokerage Network. They provide lending options in all 10 provinces but do not have any physical locations.
Best for: borrowers seeking flexibility on prime residential and commercial lending.
Special rate offerings: Super Brokers has various discounts with lender volume pricing.
Rate term offered: Super Brokers provides a full suite of real estate-secured lending solutions for residential and commercial clients.
Limitations: Super Brokers provide options with lenders offering both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Perch
Perch is a full-service mortgage brokerage on the Pineapple Brokerage Newtwork. They provide their mortgage lending services through broker channel operations nationally.
Best for: borrowers seeking flexibility on prime residential lending.
Special rate offerings: Perch has various discounts and broker volume pricing.
Rate term offered: Perch provides a full suite of real estate-secured lending solutions for residential clients.
Limitations: Perch provides options with lenders that offer both Standard Charge and Collateral Charge mortgages. There may be additional fees charged on non-prime lending solutions.
Frequently Asked Questions
What does a mortgage lender do?
A mortgage lender loans the funds for a borrower to purchase a property. The property itself serves as collateral for the loan. The borrower then pays back the loan, with interest, over a set period.
How can I find a local mortgage lender in my neighbourhood?
The easiest way to find a local lender is by searching online or asking for recommendations from friends or family. Consider working with the best mortgage brokers who can help you find suitable lenders in your area.
What is the 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 Superintendent for Financial Services (OSFI).
What is a credit union?
Credit unions or caisses populaires in Canada, are provincially regulated financial cooperative corporations providing traditional banking services. The credit union is collectively owned by people who use their services. The owners of a credit union are referred to as members and, as such, share in its profits and decision-making process.
What is a monoline lender?
A monoline lender only provides mortgage financing, that being their only area of business. A monoline lender may also service their mortgage loans or purchase a portfolio of mortgages from another lender to service those loans.
What is a mortgage investment corporation (MIC)?
A mortgage investment corporation (MIC) is a pooled investment fund specializing in private mortgage lending. MICs are an asset class comprising corporate or individual investors who pool their money to lend out to individual borrowers in the form of syndicated mortgages.
What is a mortgage finance company (MFC)?
A mortgage finance company primarily aims to provide or service mortgage loans. A mortgage finance company is a monoline lender solely providing mortgage loans to individuals. In addition, Canadian mortgage finance companies may purchase mortgages from another mortgage lender to service the mortgage loan. MFCs are non-deposit-taking financial institutions with cooperative and competitive relationships with chartered banks. They typically work through licensed brokers and provide access to prime and alternative lending solutions.
What is a mortgage company?
Mortgage companies in Canada primarily aim to provide or service mortgage loans. A mortgage company may be a variety of provincial lenders, federal lenders, credit unions or registered private lending syndicates providing mortgage loans. 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 mortgage lender typically affiliated with a bank, with the primary objective of providing mortgage loans. A mortgage corporation may be a subsidiary of a lender providing mortgage loans. In addition, Canadian mortgage corporations may purchase mortgages from another mortgage 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.
What is a mortgage investment entity (MIE)?
A mortgage investment entity can be a mortgage pool or investment corporation. They typically pool Canadian diversified residential mortgages to repackage as an investment. The interest they receive from borrowers is paid out to unitholders as dividends, creating a tax advantage for Canadians who hold them.
What is an NHA-approved lender?
An NHA-approved lender refers to a lending institution designated as an approved lender by the Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act (NHA). Only NHA-approved lenders may qualify for CMHC mortgage default loan Insurance. These institutions are approved to lend, underwrite, and administer CMHC-insured housing loans.
What is a mortgage syndicate?
A mortgage syndicate, also known as a syndicated mortgage, is a form of real estate secured lending (RESL) that involves multiple lenders, usually as separate or a group of individuals. In this type of mortgage, the risk is shared among the lenders, each exposed to risk proportional to their ownership.
What is a real estate investment trust (REIT)?
A real estate investment trust (REIT) is a company that owns a pool of residential, commercial or industrial income-generating real estate. They are publicly traded companies or private investments that allow you to invest in real estate without needing to manage properties. They pass their net income from collected rents as dividends to their unitholders, which is tax advantageous for the Canadian investor.
How nesto works
At nesto, all of our commission-free mortgage experts hold concurrent professional designations from one or more provinces. Our clients will receive the best advice and care when they speak with experts exceeding the industry status quo.
Unlike the industry norm, our agents are not commissioned but salaried employees. Our honest and transparent advice guarantees free, unbiased advice on the most suitable mortgage solution for your unique needs. Our advisors are measured on the satisfaction and quality of advice they provide to their clients.
nesto is working hard to change how the mortgage industry functions. We start with honest and transparent advice, followed by our best rates upfront. We can offer you these best rates by using technology by providing a virtual and 100% online process to reduce our overhead costs.
By working remotely across Canada, all our mortgage experts and staff spend less time commuting to work and more time with their friends and family. This makes for more dedicated employees and contributes to our success with happy and satisfied clients.
nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.
Reach out to our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.