Rates
Bank and Credit Union Rates
| Provider | 5 Year variable | 5 Year fixed | 3 Year fixed |
|---|---|---|---|
CIBC
|
7.0%Prime -0.20% |
6.35% |
6.14% |
RBC Royal Bank
|
6.90%Prime -0.30% |
5.62% |
6.14% |
TD Bank
|
6.85%Prime -0.35% |
5.29% |
6.24% |
Bank of Montreal
|
6.72%Prime -0.48% |
5.19% |
5.19% |
Scotiabank
|
6.85%Prime -0.35% |
5.29% |
5.20% |
Please Note: Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. *O.A.C. & E.O
Private Mortgages
| First Mortgage | Up to 60% LTV | Up to 70% LTV | Up to 80% LTV |
|---|---|---|---|
| First Rate Starting From | 6.99% | 7.99% | 8.99% |
| Lender Fee Starting From | 1.00% | 1.25% | 1.50% |
| Second Mortgage | Up to 65% LTV | Up to 75% LTV | Up to 90% LTV |
|---|---|---|---|
| First Rate Starting From | 8.99% | 10.99% | 11.99% |
| Lender Fee Starting From | 1.25% | 1.75% | 2.50% |
Construction Financing Rates
|
First Mortgage Up To 4 million |
Up to 60% LTV | Up to 70% LTV | Up to 80% LTV |
|---|---|---|---|
| First Rate Starting From | 7.50% | 7.99% | 8.99% |
| Lender Fee Starting From | 1.00% | 1.50% | 1.75% |
|
Second Mortgage More Than 4 Million |
Up to 65% LTV | Up to 75% LTV | Up to 90% LTV |
|---|---|---|---|
| First Rate Starting From | 8.75% | 9.99% | 11.99% |
| Lender Fee Starting From | 1.25% | 1.75% | 2.50% |
Loan Over 4 Million
| First Mortgage | Up to 60% LTV | Up to 70% LTV | Up to 80% LTV |
|---|---|---|---|
| First Rate Starting From | 6.99% | 7.99% | 8.99% |
| Lender Fee Starting From | 1.00% | 1.25% | 1.50% |
| Second Mortgage | Up to 60% LTV | Up to 70% LTV | Up to 80% LTV |
|---|---|---|---|
| First Rate Starting From | 8.99% | 10.50% | 11.50% |
| Lender Fee Starting From | 1.25% | 1.75% | 2.50% |
Business Loans and Line of Credit
| Loan Type | Interest Rate Starting From |
|---|---|
| Business Loan | 10.50% |
| Business Line of Credit | 8.70% |
Reverse Mortgage Interest Rates
Flex PLUS Rates
| LENDER | TERM | RATE | APR |
|---|---|---|---|
| Equitable | 6 Month Fixed | 8.49% | 10.07% |
Flex Rates
| LENDER | TERM | RATE | APR |
|---|---|---|---|
| Equitable | 2 Year Fixed | 7.99% | 8.25% |
| Equitable | 5 Year Fixed | 6.84% | 6.88% |
CHIPMax
| LENDER | TERM | RATE | APR |
|---|---|---|---|
| HomeEquitable Bank | 1 Year Fixed | 9.89% | 10.31% |
| HomeEquitable Bank | 5 Year Fixed | 11.13% | 11.61% |
| HomeEquitable Bank | 6 Month Fixed | 9.49% | 9.89% |
Please Note: Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. *O.A.C. & E.O
FACTORS THAT CAN AFFECT
Your Interest Rate
Although there are a number of great mortgage rates and products out there, it does not necessarily mean that you can qualify for them. Esi Ghassemi can help you understand the criteria and how your personal financial status can affect the mortgage rate you are able to qualify for. Here are the criteria that determine the rate you can qualify for:
Your Down Payment
Down Payments less than 20% of the purchase price require you to get mortgage default insurance or CMHC insurance. Even though there is a cost involved with this insurance, it enables you to qualify for a lower mortgage rate.
Your Amortization Period
If you face difficulty qualifying for a mortgage at the traditional institutions, there is no need to panic. A private mortgage might just be the right choice for you
Your Credit Score
Your credit score determines which lender you can borrow from. If you have bad or poor credit, big banks and credit unions may be hesitant to lend you money. However, B lenders are more than willing to work with individuals that banks refuse to.
The Type of Mortgage
Whether your mortgage is for a new purchase and renewal or for a refinance further determines the rate you are offered. The mortgage rates are higher for a refinance than they are for a new purchase or even renewal.
Frequently asked questions
What Is a Fixed Interest Rate?
A fixed interest rate refers to an unchanging rate charged on a mortgage loan. Whether this interest applies to the entire term of the mortgage loan or for just part of the term, it stays the same throughout a set period of time. Another type of fixed interest rates is referred to as Hybrid. With hybrid, the mortgage loan can have a couple of interest rate options. Meaning, one portion of the term can have a fixed rate with the remaining of the mortgage loan having a variable rate. With a fixed interest rate, the individual can be put at ease since they know what to expect for the entire term of the mortgage loan. It is a great way to avoid the risk that comes with a variable interest rate. Variable rates as the name suggest can vary throughout the term of the mortgage loan and sometimes even unexpectedly.
What are the benefits of a fixed interest rate on a mortgage loan?
There is one main reason for choosing a fixed interest rate and that is the fact that the rate does not change throughout the entire loan term. This reason is an important one for most homebuyers and helps them avoid unexpected increases and payments.
What is a variable interest rate?
The variable interest rate mortgage loan is based on the banks’ prime rate and can vary over the course of 5 years. While there is the risk of the interest rate going up, borrowers also stay optimistic that the rates might go down. This is exactly what happened in 2020 where the rates dropped significantly due to COVID-19. The fixed rate option is good for those that do not like surprises and choose not to take a risk.
What are the benefits of variable interest rate?
The variable interest rate is typically the best mortgage rate offered by the Canadian banks. The variable mortgage rate is dependent on the banks’ prime rate and it is offered by almost all banks and lenders. Examined historically, variable rates have shown to be less expensive over the entire term of the mortgage even with the risk of fluctuations. Typically, your monthly payment does not get affected when the interest rate increases but rather a bigger portion of the amount goes toward the interest than the principal. Lastly, if and when a variable interest rate ever starts climbing at an alarming rate, you will have the option of locking into a fixed interest rate for the remainder of the mortgage term at any time.
