Find the Best Mortgage
Rates in Granby

As of Monday, May 12, 2025, current interest rates in Granby are for a 5-year fixed mortgage and for a 3-year fixed mortgage. Shop around for mortgage rates to find the best offer.

Despite home prices in Granby remaining lower than the national average, high interest rates continue to make it challenging for Quebecers to qualify for a mortgage. Even higher qualifying rates make it harder for Granby residents to afford their mortgage. While it’s almost impossible to predict when rates will come down meaningfully, experts forecast that we should expect a gradual reduction over the next few years. 

Home prices remain high, with CREA reporting that the national average home price decreased 2.1% year-over-year to $712,200 in March 2025. Quebec’s average price increased 8.4% year-over-year to $520,800. As for Quebec’s largest city, the average selling price of a home in Montreal increased 6.9% year-over-year to $568,600.

Granby Mortgage Rate Trends: May 2025

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that we could see rates remain higher for longer. Forecasts suggest we won’t see interest rates return to the neutral rate range of 2 to 3% until the end of 2025. 

Bank of Canada Rate Announcement

The latest Bank of Canada (BoC) announcement on April 16th was a policy interest rate hold, leaving the rate at . This pauses the BoC easing cycle as uncertainty and unpredictability caused by consecutive tariff announcements and threats of escalation erode consumer and business confidence.

The BoC cited the need to maintain price stability for Canadians and the fact that monetary policy cannot resolve trade uncertainty or offset the impact of a trade war. The Governing Council will focus on ensuring price stability through supporting economic growth while ensuring that inflation remains controlled.

While inflation has eased, the growth in shelter costs, particularly rent and mortgage interest costs, is currently the most significant contributor to total inflation. The Governing Council continues to monitor core inflation numbers when assessing policy rate decisions to ensure sustained downward momentum in inflation.

The next announcement will be on June 4th. Using nesto’s proprietary overnight index swap and forward rate calculation data, bond markets are currently pricing a 50/50 probability of a 25 basis point cut.

Real Estate Market Update

On April 15th, the Canadian Real Estate Association (CREA) released its March home sales data. The data showed that home sales fell 4.8% compared to February, with the largest declines in Ontario and British Columbia. This sharp decline is attributed to buyers remaining on the sidelines as the trade war with the US and tariff uncertainty unfolds. Buyers appear to be waiting to make major financial decisions amid economic uncertainty.

March’s home sales activity reported that new listings increased 3% month-over-month to 165,800 properties. This is below the long-term average for this time of year.

CPI Inflation Update

Statistics Canada’s latest inflation data, released on April 16th, showed the Consumer Price Index (CPI) rose 2.3% year-over-year in March, up from 2.6% in February. March’s slowdown is attributed to lower prices for travel tours and gasoline. This was offset by the end of the temporary GST/HST break, which put upward price pressure on eligible products. Shelter continues to be the largest driver of inflation, up 3.9%.

Mortgage Statistics for Quebec

Home prices in Quebec have doubled compared to what they were 10 years ago. Here are some mortgage statistics for the housing market in the province:

• Average home value (as of March 2025): $520,800 (QPAREB)
• Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
• Number of home sales (as of March 2025): 9,741 (QPAREB)
• Number of new listings (as of March 2025): 14,658 (QPAREB)

Mortgage Options in Granby

Granby conventional mortgage: Conventional or uninsured mortgages require a downpayment of 20% or more. With uninsured mortgages, there is no limit on the purchase price, and you can amortize up to 30 years with prime lending. You will not be required to purchase mortgage default insurance as your downpayment is enough equity to protect the lender if you default. 

Granby high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with a downpayment of less than 20% and require mortgage default insurance to reduce the risk to the lender. With high-ratio mortgages, you will be limited to a purchase price of less than $1 million and an amortization of up to 25 years.

Granby fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. The principal and interest amounts are fixed, providing predictable and stable mortgage payments. Penalties are calculated based on the higher of the interest rate differential (IRD) or 3 months interest if you need to break the mortgage before the end of your term.

Granby variable-rate mortgage: Variable-rate mortgages have interest rates that change based on the Bank of Canada policy rate, directly impacting your lenders’ prime rate. Adjustable-rate mortgages (ARM) are variable mortgages that immediately adjust your mortgage payment to reflect the changes made to your lenders’ prime rate. The principal portion remains fixed, while the interest can increase or decrease when the prime rate increases or decreases. Variable-rate mortgages (VRM) are variable mortgages that have fixed mortgage payments despite changes to your lenders’ prime rate. The principal and interest on your fixed payment adjust with more going to interest and less to principal if the prime rate increases or more going to principal and less to interest if the prime rate decreases. 

What Affects My Mortgage Rate in Granby

The mortgage rate you are offered is influenced by your credit score, income, capital, downpayment, and loan-to-value (LTV) ratio. Mortgage rates are also priced based on the risks associated with the mortgage, the purpose of the loan, and the property used as collateral.  Some of the most important determining factors affecting your mortgage rate include:

• Downpayment –  Your downpayment will determine your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgages have better interest rates as there is less risk of loss to the lender. Insured and insurable rates apply to properties valued at less than $1 million and amortizations up to 25 years. 
• Amortization – The amortization period on uninsured mortgages (downpayments of 20% or more) can go up to 30 years on prime lending. Uninsured mortgages typically have higher interest rates than insured and insurable mortgages to account for the added risk to the lender. The amortization on insured and insurable mortgages cannot exceed 25 years. 
• Property Usage – Your primary residence, known as owner-occupied, will generally have lower interest rates. Investment properties you intend to rent out will typically have higher interest rates. A primary residence with a second separate legally registered suite is considered an owner-occupied rental and will have access to the same rates as a primary residence. 
• Mortgage Type – Open mortgages have higher rates than closed rates due to the added flexibility. Refinances have higher rates than renewals and new mortgages. 
• Credit Score – Your credit score will impact the type of lender that approves you for a mortgage. If you have good to excellent credit, you can typically use prime lending and benefit from the best rates. If you have poor credit, you may need to consider alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Quebec

Quebec has programs and incentives available to assist first-time buyers with some of the costs of purchasing a home. Some programs are available through the province or municipality, while others are available across Canada. 

Home Buyers’ Tax Credit – First-time buyers are eligible for up to $1,400 when purchasing a qualifying home in Quebec. To qualify, you must be a resident of Quebec and intend to live in the home as your primary residence.

First-Time Home Buyers’ Tax Credit (HBTC) – This federal government program allows first-time buyers to claim up to $10,000 for a maximum $1,500 tax credit to help offset closing costs. 

Quebec City Family Access Program (Programme Accès Famille) – This program offers financial assistance through an interest-free loan of up to 5.5% of the property value. If the home is Novo-climate approved, an additional direct rebate of 3.5% (of the purchase price) will apply. The qualifying criteria will vary based on your family situation; however, your maximum gross income must be $150,000 or less, and the maximum purchase price cannot exceed $370,000. 

Home Purchase Assistance Program – First-time buyers purchasing in Montreal are eligible for up to $15,000 under this program. To qualify, you must not have owned a home in Quebec for the last 5 years and occupy the home as your primary residence. 

Land Transfer Tax in Quebec

Quebec’s land transfer tax is called Property Transfer Duties or Welcome Tax. The duties are collected by each municipality rather than the province. Each municipality (except Montreal, which can set a higher amount) can set its own rates, up to a maximum of 3%, on any amount over $500,000. Tiers are adjusted annually based on Quebec’s all-items Consumer Price Index (CPI). 

How to Find the Best Mortgage Rate in Granby

• Step 1: Understand your credit score:  Before you start looking for a mortgage lender or applying for a mortgage, check your credit score regularly. This will help you immediately report and remedy errors that could negatively affect your score. If necessary, improve your credit score to help with your mortgage approval.
• Step 2: Determine your borrowing capacity: To find the right mortgage solution, you’ll need to know how much you can afford based on your income and downpayment. 
• Step 3: Know your mortgage needs: Analyze different mortgage solutions’ features, risks, and costs. Careful research and comparisons of the available options can help you choose a mortgage that best meets your immediate and long-term financial needs.
• Step 4: Find a suitable mortgage strategy: Your mortgage strategy shouldn’t be based solely on the lowest rate. Get expert guidance to choose the best strategy for your homeownership goals, even if that means not getting the lowest rate. 
• Step 5: Compare rates and terms: Not all mortgages are equal. Choosing a lender like nesto for your mortgage can help you compare rates and terms for multiple lending solutions, ensuring you find the best fit. 
• Step 6: Get prequalified for a mortgage: Begin your journey towards homeownership by taking advantage of nesto’s prequalification process. By analyzing your downpayment and financial stability, nesto will provide you with a comprehensive prequalification outlining the maximum mortgage amount you qualify for. This information is crucial as it helps you set realistic expectations and narrow your search for a suitable home within your budget.