Canadian Mortgage Rate Comparison Table
Below we have the rates for the top brokers and banks in Canada. Find out what the lowest interest rates are for fixed and variable rate mortgages in your province. Our list of current rates is updated every day and are provided by Canada's Mortgage Comparison website Ratehub.ca. Click and choose the type of mortgage, the term, the province that you live in, the home price, your down payment and the amortization period to get details on your estimated monthly mortgage payment.
Why compare mortgage rates when I can get a mortgage and/or renew my mortgage with my bank?
Sometimes your bank will give you a great rate, but sometimes the rates given to the bank's customers are less than great. An additional 0.50% on a $250,000 mortgage with a 2.44% interest rate amortized over 25 years will cost you an additional $62.97 a month or $755.64 a year. Even though you have paid an additional $3,778.20 during the five-year period, you will also be left with a $2,101.07 higher mortgage balance. In total that 0.50% difference ended up costing you $5,879. Always take a second look when it comes to comparing mortgage rates in Canada.
Is an open or closed mortgage better?
Generally, a closed mortgage will work better for most Canadians. The higher interest rate on open mortgages can only be beneficial if you are expecting to have a significant amount of money in the near term. It might also be a good idea to have an open mortgage if you are planning on moving in the near future, otherwise sticking with a closed mortgage is almost always the better option.
Is it better to go with a variable or a fixed mortgage rate?
Usually mortgages with a variable rate will work out better during the term of the mortgage, but today's fixed rate mortgages might be the better option. On a $250,000 mortgage the difference on your monthly payment between the five year fixed (2.44%) and five-year variable (2.10%) is $41.73 a month in favor of the variable rate mortgage. With a 0.34% spread it wouldn't take much of an increase in the prime rate for the fixed rate mortgage to come out ahead.
If you are looking for a three year term, then the fixed rate could be the better choice, unless you think there will be a cut to the prime rate. Currently the variable rate is only 0.04% lower than the fixed rate. The security of the fixed rate will cost only $1.94 a month for every $100,000 on your mortgage with a twenty-five year amortization.
Can I make extra payments on my mortgage without a penalty?
Yes, well at least I haven't found any mortgages without prepayment options. Typically, you will be able to increase your monthly mortgage payment and make additional payments as well. The amount varies depending on the mortgage terms, but it is usually between 15% to 25%. Using one or both of the prepayment options in tandem can take years off your mortgage. On a $250,000 mortgage with a 2.44% interest rate, making a $614 lump sum payment will reduce your mortgage amortization by one month. Adding 10% to your monthly mortgage payment with the same mortgage terms, will reduce your mortgage by three years.