Finding the best mortgage in Ontario can be an enormous commitment, so you should shop around to compare rates from various lenders such as Big 5 banks, credit unions, and brokers.
Finding the best mortgage rate in Ontario could save you thousands over its lifecycle, which will depend on both economic factors and your unique financial circumstances.
Let’s take a look:
1. TD Bank
TD Bank, one of the country’s largest financial institutions, boasts more than 1,100 physical locations throughout East Coast states and offers competitive savings accounts, multiple checking options and other banking products to customers.
TD Bank’s in-house mortgage specialists and branch reps can negotiate mortgage rates case by case; however, for newcomers it may be easier to find an independent broker who will help bring rates down more effectively than an in-house specialist could.
TD Bank offers excellent rates to both new and existing clients alike with their promotional CDs, providing access to some of the highest rates possible. But even if you don’t qualify for those rates, regular CD offerings from this bank offer various terms with low minimum balance requirements and attractive interest rates depending on balance size; additionally they also have an appealing Growth Money Market account offering variable interest rates as you save more with them – plus a special relationship bump rate for high balance savers!
RBC is one of Canada’s premier banks, providing an extensive array of financial products and services. Their mortgage specialists can be invaluable resources throughout your mortgage journey.
RBC mortgage rates are determined by the Bank of Canada’s prime rate; however, like other lenders they charge an additional spread based on product and risk assessment.
Mortgage borrowers have the choice between variable and fixed rate mortgages, with some offering the option of splitting payments. Some RBC mortgages also allow an annual lump sum prepayment privilege of up to 10% of principal.
As with other major banks, RBC requires extensive personal and financial information before offering mortgages; this may prove challenging for borrowers with unorthodox finances. Furthermore, the bank charges high fees when sending money abroad.
3. Bank of Montreal
Bank of Montreal was established in 1817, making it one of Canada’s Big Five banks and offering conventional residential mortgages, bank accounts, credit cards, loans and investment platforms as part of its comprehensive product offering.
This company boasts an international presence, serving commercial, corporate, governmental, personal banking, insurance and wealth management clients around the globe. Activities conducted internationally include investing, underwriting and brokerage services.
BMO’s variable mortgage rates typically follow national trends similar to other major Canadian banks, in terms of rising and falling interest rates set by the Bank of Canada. Prior to 1959 when G. Arnold Hart was appointed Chief Executive Officer this title had been used instead.
4. National Bank of Canada
National Bank of Canada, one of Canada’s six biggest schedule I banks and privately owned commercial banking corporations with millions of personal clients across Canada, operates four key business segments from its Montreal base.
Canada’s Big 6 banks include National Bank, which offers mortgages and other lending products at competitive rates. Their variable loan interest rate is pegged to their prime lending rate as its basis, making most other rates and offerings such as credit cards quite similar in pricing structure. They also have high-interest savings accounts.
5. Bank of Canada
Home ownership can be an enormous financial commitment. One key component to consider when shopping around for mortgage rates from top Canadian banks is mortgage rate comparison.
Mortgage rates depend on many variables, including the economy and Bank of Canada interest rates. Variable mortgage rates generally correlate to overnight rates at banks while fixed mortgages respond to changes in bond markets.
As well as comparing mortgage rates from the top five banks, it’s also essential to take other factors into account, including application and pre-approval processes and CMHC insured mortgages which typically come with higher interest rates than their uninsured counterparts.