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Find the Best Mortgage Rates in London

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Save the most on your mortgage in London.

Starting with the best rate.

Our main focus is to help you save on your mortgage. We do this in 5 ways:

1) Get the best mortgage rates in London

2) Ensure that you get the top advice to guide your mortgage strategy

3) Saving you time and money with a 100% virtual option

4) Added benefits to help you be mortgage free faster with all prepayment privileges as a standard offer

5) Expert mortgage advice and guidance to help you navigate the mortgage market

How to Save On Your Mortgage in London

1) Get the best mortgage rates in London: See nesto’s lowest rates and compare them against other lenders in Canada. Our Lowest Rate Guarantee guarantees that we can match any rate or pay you $500.

2) Ensure you get the top advice to guide your mortgage strategy. Where are the rates headed? What’s better for your situation right now: 3-years or 5-years fixed? Is it the right time to pick a variable or fixed rate? Have you read the fine print to avoid surprises based on your short and long-term goals? Quickly learn the basics to save yourself thousands in interest-carrying costs.

3) Saving time and money with a 100% virtual option. Schedule a time to chat with our experts, who will help you customize a mortgage solution that is as unique as you. Start your application, chat with an advisor and lock in your rate on the same day.

4) Added benefits to help you be mortgage-free faster with all prepayment privileges as a standard offer. We offer 150-day rate holds if you need to lock in the best rates sooner. All options are available with 1% cashback to give you a head start with your savings.

5) Expert mortgage advice and guidance to help you navigate the mortgage market with quick approval today and ongoing interest savings, service and support for years to come. We provide unbiased, transparent and honest advice from our qualified and licensed brokers. No matter where you are in London, we can tell you the best current mortgage rates for you today. Instantly get low rates for any term or type of mortgage — everything from 3-year fixed-rate mortgages to 5-year variable-rate mortgages.

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The top big bank rates are all in one easy-to-view table. See their rates, watch nesto beat them, or we’ll give you $500 cash with nesto’s Low Rate Guarantee.

*Toronto rates

Your Guide to Getting the Best Mortgage Rates in London

When you’re looking to find the best mortgage rates in London, nesto is your one-stop shop. Rates in London are very competitive due to its large and mature mortgage marketplace. You can always rely on us to help you understand how to navigate mortgages in any market and provide the best interest rate upfront.

About London

When you’re looking to find the best mortgage rates in London, nesto is your one-stop shop. You can always rely on us to help you understand how to navigate mortgages in any market and provide the best interest rate upfront.

London is a city located in Southwestern Ontario. It is situated along the Quebec City-Windsor Corridor and has a population of approximately half a million. The city’s rich history dates back to the early 1800s when it was founded as a small village. Over time, London grew into a bustling city with a diverse population and thriving economy.

Today, London is known for its vibrant arts and culture scene, numerous parks and nature preserves, and top-rated universities. The city offers residents and visitors various activities, such as visiting museums, attending concerts or festivals, exploring local shops and restaurants, or simply taking a stroll through one of its many parks. With its friendly community and high quality of life, it’s no wonder why so many people choose to call London home.

About the London Housing Market

Ontario’s housing market has experienced significant changes and trends in recent years, primarily influenced by inflation, immigration, interest rates, and government policies. Over the last couple of decades, the province has seen a dramatic increase in housing prices, primarily due to an influx of immigrants, creating a high demand for housing. 

Immigration has put pressure on the housing market, leading to an overall increase in real estate prices, compounded by lower interest rates seen in part of 2020 til the start of 2022. The Bank of Canada (BoC) increases in its Key Policy Overnight rates in the last half of 2022 and most of 2023 have temporarily limited the growth of mortgages throughout key markets in Canada, with marked temporary decreases in property prices.

The Bank of Canada plays a significant role in managing these trends through its monetary policies. The policy rate, or the interest rate at which major financial institutions borrow and lend “overnight” funds among themselves, has a direct impact on mortgage rates.  By adjusting the policy rate, the Bank of Canada can influence borrowing costs, directly impacting housing affordability. When the policy rate is low, it encourages borrowing and increases demand for housing, leading to price increases. Conversely, when the policy rate is high, it can discourage borrowing and reduce demand for housing, potentially stabilizing or reducing prices.

The BoC’s rate increases may have temporarily slowed the housing market in London, but we expect this to be short-lived, as it is reaching a turning point in its fight against inflation. Canada welcomed more than 2 million immigrants between 2022 and 2023, with some choosing to call London home. Over the shorter term – a combination of labour shortages, wage increases and demand due to population growth should intensify pressure on housing while the federal government seeks to tame inflation. 

However, despite the Bank of Canada’s efforts to control inflation and stabilize the housing market through changes in the policy rate, other factors, such as population growth due to immigration, continue to put upward pressure on house prices. Furthermore, the limited housing supply also contributes to the rising costs. Ontario’s and London’s housing market dynamics are complex and influenced by various economic and demographic factors.The Ontario and federal governments have also implemented measures to manage the situation. These include introducing tighter mortgage regulations, speculation tax, underused housing tax and foreign buyer ban to cool down the overheated market. However, these measures have had mixed results, and their long-term impact still needs to be determined. Factors, including inflation, immigration and policy rate adjustments by the Bank of Canada, will continue to shape Ontario’s housing market.

London Mortgage Strategy

Fixed rates are usually priced at 1 to 1.5% more than the bond yield. Long and short-term bond yields are not showing signs of relenting soon. Big banks have been pricing in risks as shorter-term rates rise due to their recent popularity. We expect the shorter-term rates to stay above expectations and borrowers to shift towards shorter-term fixed rates to curb risk if a purchase or renewal is on the horizon. 

The Bank of Canada (BoC) forecasting suggests that inflationary pressures will be checked back in place by the end of 2024 when we expect rates to start decreasing. In the current market, it would be advisable to go with a fixed rate over a variable one; or take on a shorter-term fixed rate to evade the market and then renew back into a variable rate once the inflationary pressures are off.

Land Transfer Tax & Rebates in London

In London, land transfer tax is applied based on the purchase price of the property. The land transfer tax rate is calculated as follows:

  • 0.5% on amounts less than or equal to $55,000
  • 1% on amounts greater than $55,000 and less than or equal to $250,000
  • 1.5% on amounts greater than $250,000 and less than or equal to $400,000
  • 2% on amounts greater than $400,000 and less than or equal to $2,000,000
  • 2.5% on amounts over $2,000,000

In London, first-time home buyers are eligible for a provincial rebate of up to $4,000.In addition, the city of Toronto has a similar, but separate, land transfer tax and a corresponding first-time home buyer rebate program, which provides eligible buyers with a rebate of up to $4,475 on municipal land transfer tax for properties purchased in Toronto.

First-Time Home Buyer Programs in London

Several first-time home buyer incentives and programs in London were explicitly designed to help lighten the financial burden for first-time home buyers. These programs will offset some home-buying costs and help fund your down payment, which is often one of the biggest hurdles in buying your first home. See: First-Time Home Buyer Programs in Canada

What are today’s mortgage rates in London?

The average 5-year fixed mortgage rate from big banks in Canada is 6.29%*, while nesto’s lowest 5-year fixed mortgage rate in London is .

The average 5-year variable mortgage rate from big banks in Canada is 7.07%*, while nesto’s lowest 5-year variable mortgage rate in London is .

The average 3-year fixed mortgage rate from big banks in Canada is 6.87%*, while nesto’s lowest 3-year fixed mortgage rate in London is

The average 3-year variable mortgage rate from big banks in Canada is 8.60%*, while nesto’s lowest 3-year variable mortgage rate in London is .

*Note: The average rate is calculated based on the posted insured rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

Why get London mortgage rates at nesto?

By consulting London mortgage rates on nesto, you’re always getting the most up-to-date information, which helps you save money as a homeowner.

When comparing mortgage rates in London, it’s essential to look at similarities and differences between similar types and terms. Comparisons must be made with complementary solutions, meaning a fixed rate with another fixed rate and vice versa. The mortgage term must also be aligned – compare a 5-year term with a 5-year one, and so on.

Then you must look beyond the rate – at the features, benefits and restrictions. Many low-rate mortgages have restrictions – such as pre-emptive qualifying criteria and prepayment penalties that are outside the normal if paid off or refinanced before the end of its term. Some restrictions go as far as to inhibit the ability to payout or renew early by adding a bona fide sale clause – meaning you can’t break the mortgage except to sell the property to an unrelated party.

Should I get an open or closed mortgage in London?

Whether you should select an open or closed mortgage in London depends on your specific life and financial circumstances.

When looking at open vs closed mortgages, it’s important to note that open mortgages are priced higher because they offer flexibility to pay the mortgage off at any time without facing a penalty. If you do not need to pay the mortgage off quickly, selecting a closed mortgage and benefiting from lower rates makes sense.

Should I use a mortgage broker or lender in London?

In London, a mortgage broker is a professional who can negotiate the best mortgage by comparing all the offerings from multiple lenders, including banks, credit unions and trust companies, and alternative and private funding specialists. In other words, the mortgage broker is an intermediary between the borrower and the lender.

A mortgage lender is one financial institution or bank that offers a single line of mortgage products directly to borrowers. The lender’s mortgage specialists only have access to their mortgage products.

nesto advisors offer the lowest rate upfront every time. Yes, we make less than the average broker or mortgage specialist, but we get the peace of mind of knowing that we helped you save thousands of dollars on your mortgage.

Should I find a mortgage with a rate hold in London?

If you plan to buy London property in the future, it’s wise to request that nesto secure a rate hold on your behalf so you don’t have to worry about interest rates rising while you’re home shopping.

Ensuring you have a rate hold in place is like having insurance on your mortgage rate – you no longer have to worry about the mortgage rate increasing while you find your new home over the next 90 – 150 days.

What Affects My Mortgage Rate in London?

Factors such as credit score, income, down payment and purpose of the loan play a role in determining how your mortgage rate is priced.

Mortgage rates in Canada vary depending on different factors such as the borrower’s credit, the property which is being used as collateral, the borrower’s income capacity to service the debt, the borrower’s capital in the form of savings/investments and down payment, and most importantly, conditions. Conditions such as the purpose of the loan and the loan-to-value (LTV) ratio – these two conditions will have the most impact on the rate. The mortgage rate is priced based on the risk associated with that mortgage, property and borrower.

The lowest rate is only one of the essential aspects of getting a mortgage that will save you the most interest. Sometimes the lowest rate is the “no frills” or “restricted” or “limited” mortgage that a lender offers, which beyond not having a high rate, doesn’t have any prepayment privileges or other features such as portability or assumability. 

Down Payment

The down payment size will determine your loan-to-value (LTV) ratio and whether you must also purchase mortgage default insurance. LTV is most important to mortgage rate pricing with insured or insurable lending criteria.

Insured and insurable mortgage rate pricing applies on properties valued at less than $1 million; the amortization is up to 25yrs. In such cases, the lender will provide a better rate as there is a lower risk of loss. 

You would need to purchase the insurance on the front end in the case of an insured purchase with less than a 20% down payment. To give you a lower rate, lenders can also purchase the insurance on the back end to lower the default risk on the mortgage if your down payment is more than 20%. 

An insured mortgage is qualified as such when your down payment is less than 20%. Therefore, you will need to purchase default (high ratio) insurance. Although this insurance is added to your mortgage, the taxes (PST) on purchasing this insurance are not.

Amortization Period

On the prime lending side, the amortization period can be at most 30 years. The maximum allowable amortization is 25 years on mortgages with less than a 20% down payment or equity in the property at the time of renewal. You can go up to 30 years amortization on mortgages with down payments of 20% or more. 

The longer the amortization, the lower your mortgage payment. The shorter your amortization period, the more money you save on interest over the term or life of the loan. The difference between two identical mortgages with different amortizations is the interest-carrying cost for the extended time the money is lent out.

Property Usage

If you’re buying a home you intend to live in, this is considered your primary residence and will be known as owner-occupied. If you’re buying an investment property you intend to rent to others, you’ll pay higher interest rates than your primary residence. Or purchase a primary residence with a second separate legally registered suite. Your property will be an owner-occupied rental, with access to the lowest rates as a primary residence. 

The logic behind your higher rate for a mortgage on a property solely for investment purposes is if money is tight, people will pay the mortgage on their primary residence before other obligations. As such, lenders build added risk into the rates for rental properties.

Mortgage Type

The type of mortgage you select will significantly affect your mortgage rate. Mortgage types such as adjustable, variable, fixed, open, closed, standard charge or revolving home equity lines of credit (HELOCs) under a collateral charge are all personal choices based on your unique financial planning needs.

When looking at open versus closed mortgages, for instance, it’s important to note that open mortgages are priced higher because of the flexibility they offer to pay the mortgage off at any time without facing a penalty.

There are two types of variable-rate mortgages, those that have fixed payments and those that have variable or fluctuating payments. Fixed payment variable rate mortgages are more specifically called variable rate mortgages (VRM); variable rate mortgages with a variable payment, in which the payment adjusts with changes in the lender’s prime rate, are more accurately called adjustable rate mortgages (ARM). Commonly, they are both known as variable-rate mortgages.

Your Credit Score

nesto has a specific minimum FICO score requirement of 680 or 720 out of 900 to provide you with the best mortgage rate. Our strict underwriting guidelines do not permit missed payments, especially mortgage payments. To explain missed payments, you must show whether it was a mishap due to poor budgeting or cash flow.

Moreover, you must prove that your monthly obligations and carrying costs are within your income. Underwriters will want to know if you have implemented any practices to avoid any negative habits in the future.

What are the Different Types of Mortgages?

Open vs Closed Mortgage

With an open mortgage, you can prepay any amount anytime without a prepayment penalty. The compromise for having an open mortgage is that interest rates are higher to make up for the flexibility of paying it off at any time.

With a closed mortgage, on the other hand, the interest rate is more attractive than an open mortgage because you’re limited by how much extra you can pay toward your mortgage each year. The lender can also expect to make interest from you for a set amount of time versus the uncertainty of having your whole balance paid off at any time.

An open mortgage only makes sense for someone unsure about their short-term goals, such as being relocated for work or knowing that a separation or divorce is imminent after the maturity date. An open mortgage may be suitable for someone expecting a large inheritance earmarked for a prepayment – more than the annual allotment on their mortgage contract. It is best to complete a cost analysis to ensure that the interest saved with an open term exceeds the penalty due to a prepayment over and above your allotment.

Fixed Mortgages

London‘s most common mortgage term is 5 years, specifically the 5-year fixed-rate mortgage. While this is only sometimes the most economical option for everyone, it has become the most popular. A fixed-rate benefits budgeting and offers financial stability, given that mortgage payments always remain the same. 

Deciding on a fixed rate is a question of personal choice and risk appetite. We recommend speaking with a mortgage professional to assess any material risks that may pose a concern for you over the term of your mortgage. 

For a first-time home buyer (FTHB) who is getting used to all their new bills related to owning a home, it is recommended that they choose a fixed rate to provide some stability during the first term of their mortgage. By making their most significant monthly obligations (mortgage, condo/maintenance/strata fees and property taxes) static amounts, they can take the time to put together a financial plan and start to put aside some money towards their emergency savings.

Variable Mortgages

A variable rate mortgage has proven to save borrowers more money than a fixed rate over time. Every borrower’s circumstances and goals differ; therefore, an advisor should thoroughly discuss all current financial restraints and future considerations before deciding on the most suitable mortgage.

With a variable mortgage, the interest rate will fluctuate depending on benchmark rates, whereas a fixed rate remains the same throughout the mortgage term. Deciding on a variable is a question of personal choice and risk appetite. We recommend speaking with a mortgage professional to assess any material risks that may pose a concern for you over the term of your mortgage.

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 specialists that exceed the industry status quo. 

Unlike the industry norm, our agents are not commissioned but salaried employees. This means you’ll get 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’s 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.