Choosing the right mortgage lender is one of the most important financial decisions when buying a home or refinancing your mortgage. Finding the best lender that offers the rates, features, and services that fit your needs can be overwhelming.
This guide will outline the unique mortgage offerings of Canada’s 15 best banks for mortgages, including their key features and pros and cons, so you can decide on the best mortgage lender for your needs.
What to Consider When Comparing Mortgage Lenders?
When researching mortgage options, here are some of the key factors savvy borrowers compare between lenders:
- Mortgage Rates – The interest rate can vary significantly between lenders. Compare fixed, variable, and special offer rates.
- Fees – Look at application, appraisal, and prepayment penalty fees.
- Prepayment Options – How much extra can you pay annually without penalty?
- Mortgage Terms – Length and flexibility of rate hold, amortization periods, and term lengths.
- Mortgage Options – A range of mortgage types and specialty products are offered.
- Reputation & Service – Longevity, complaints, customer satisfaction, accessibility.
- Flexibility – How accommodating are they to unique financial circumstances?
Doing your mortgage research upfront lets you find the most ideal lender for your financial situation. Now, let’s dive into the top mortgage lender options in Canada.
Canada’s Big Six Banks Mortgage
Canada’s Big Six banks are the major national financial institutions offering accessibility, reputation, and product range. When looking for the best mortgage in Canada, most borrowers start with one of the well-known Big Six banks – RBC, TD, Scotiabank, BMO, CIBC, and National Bank, which hold over 65% of the market share. [Source]
Sometimes, the Big Six banks can be stricter about mortgage approvals. Smaller institutions like credit unions and online lenders can be easier to get mortgage approvals from, even if the interest rate is slightly higher.
Royal Bank of Canada (RBC)
- Rate lock: 120 days
- Term length: 6 months to 25 years
- Annual Prepayment Limit: 10%
As the largest bank in Canada, Royal Bank of Canada (RBC) is often one of the first places potential borrowers will get a mortgage pre-approval and rate quote. RBC has the most extensive branch network of any Canadian bank, with over 16 million clients in Canada, the U.S., and 34 other countries.
| Pros | Cons |
|---|---|
| – Flexible terms up to 25 years – Wide range of mortgage types, specialty products – Strong brand reputation and customer service | – Seen as less flexible in unique financial situations. – Restrictive $1 million cap on high-ratio insured mortgages |
RBC offers mortgage affordability tools and resources for first-time home buyers. You can get personalized mortgage advice by booking a free consultation at your local RBC branch.
Read full review: RBC Mortgage
TD Bank
- Rate lock: 120 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 15%
The second-largest bank in Canada, TD Bank (TD), offers an extensive range of mortgage products. TD has more than 10 million Canadian customers and a strong history in residential mortgages. In the third quarter of 2023, TD’s Canadian residential mortgage portfolio was worth $256 billion.
| Pros | Cons |
|---|---|
| – Offers very competitive 5-year fixed mortgage rates – Wide selection of mortgage options – Strong customer satisfaction ratings | – Receive lower interest on savings accounts – Limited amortization period of 25 years |
TD makes applying for a mortgage convenient through its online services and over 1100 branches in all provinces and territories of Canada. New customers can get pre-approved for a mortgage right on TD’s website.
Read full review: TD Mortgage
Scotiabank
- Rate lock: 120 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 15%
The Bank of Nova Scotia (Scotiabank) – another Big Bank in Canada, offers unique mortgage products tailored to new Canadians and recent immigrants.
| Pros | Cons |
|---|---|
| – Specialized programs for new immigrants and temporary residents – Combination Long & Short mortgage products | – Generally higher mortgage rates compared to other Big 6 Banks and some smaller lenders – No accelerated payment options |
Scotiabank wants to assist new Canadians in establishing their credit history and qualifying for a mortgage. Check if you qualify for Scotia’s StartRight Program for Newcomers to Canada.
Read full review: Scotiabank Mortgage
Bank of Montreal (BMO)
- Rate lock: 130 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: Up to 20%
Bank of Montreal (BMO) offers a wide range of mortgage options. BMO offers slightly more flexibility regarding prepayments and the ability to combine your mortgage with other lending products.
| Pros | Cons |
|---|---|
| – Higher annual prepayment limit of 20% – Can bundle with a HELOC in their Homeowner ReadiLine – Digital application and self-serve options | – Fewer branch locations than other Big 6 Banks – Lower savings account interest rates |
First-time home buyers can take advantage of BMO’s FirstHome programs and cash incentives available in many provinces.
Read full review: BMO Mortgage
Canadian Imperial Bank of Commerce (CIBC)
- Rate lock: 120 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 10 to 20%
Canadian Imperial Bank of Commerce (CIBC) is another one of Canada’s major Big Five banks. It offers an array of mortgage offerings and provides competitive rates and innovative loan products.
| Pros | Cons |
|---|---|
| – Cashback mortgage options – Higher 20% prepayment limit on many products – Competitive fixed and variable rates | – Lower savings account interest rates – Shorter maximum amortization period of 25 years – Limited branch network outside of Ontario |
CIBC allows you to apply for a mortgage fully online through their digital platforms for a faster approval experience.
Read full review: CIBC Mortgage
National Bank of Canada
- Rate lock: 90 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 10%
The National Bank of Canada rounds out the Big Six banks. While smaller than the other major banks, National Bank still offers residential mortgages through branches across Canada. Their headquarters are located in Montreal.
| Pros | Cons |
|---|---|
| – Combination fixed/variable rate mortgages – Capped rate mortgages to limit rate fluctuations – Focused support in the Quebec market – Digital application capabilities | – Limited bank branches outside of Quebec – Higher fixed mortgage rates than competitors – No accelerated payment options |
National Bank brings a strong Quebec presence in both its banking and mortgage businesses across Canada. Check if National Bank’s all-in-one Tout-En-Un program fits your mortgage needs.
Other Top Banks for Mortgages in Canada
In addition to the Big Six banks, many other banks offer strong mortgage offerings for Canadian home buyers. Let’s overview some of the other popular bank options.
Desjardins
- Rate lock: 120 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 15%
Desjardins is the largest credit union in Canada. It is based in Quebec but operates branches across the country. Desjardins offers a wide range of personal and business financial products, including checking accounts, credit cards, investment services, and residential mortgages.
| Pros | Cons |
|---|---|
| – Member ownership provides personalized service – Competitive 5-year fixed mortgage rates – Offer double-up payments in Prepayment options | – Does not offer adjustable-rate mortgages – Limited presence outside of Quebec/Ontario |
Canadian Western Bank
- Rate lock: 120 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 20%
Canadian Western Bank is one of the largest regulated financial institutions headquartered in Western Canada, providing a broad range of personal and commercial services. Their residential mortgages are available nationwide with experts who understand the specific needs of each region.
| Pros | Cons |
|---|---|
| – National presence yet regional focus – Customized mortgage solutions, Alternative lending products – Options for self-employed individuals | – Limited branch locations – Online mortgage application lacks clarity – Less flexible than smaller lenders |
Laurentian Bank
- Rate lock: 120 days
- Term length: 6 months to 10 years
- Annual Prepayment Limit: 10%
Laurentian Bank of Canada is a regional bank based in Montreal that provides services across Canada. Their B2B Bank mortgage division offers a wide variety of residential and commercial mortgage loans.
| Pros | Cons |
|---|---|
| – Access to a wide range of mortgage options, such as cashback mortgage programs. – Flexible solutions for unique circumstances – Accelerated payment options available | – More limited branch locations – Seen as less flexible than smaller lenders – Francophone focus from Montreal headquarters |
Laurentian Bank wants to be your primary financial institution for all borrowing, investing, and daily banking needs.
Tangerine Bank
- Rate lock: 120 days
- Term length: 1 year to 10 years
- Annual Prepayment Limit: 25%
Tangerine Bank offers a popular online-only mortgage option. With lower overhead costs, Tangerine can pass along savings with lower mortgage rates and reduced fees.
| Pros | Cons |
|---|---|
| – Porting your mortgage without Penalty fees. – High Prepayment Limit – Programs for newcomers to Canada. – Easy online applications, responsive mobile support staff | – No brick-and-mortar branch locations – Only 1 variable rate option – Restrictions on rental properties |
As a digital bank, Tangerine makes taking out your first mortgage simple through online applications and mobile tools.
ICICI Bank Canada
- Rate lock: 120 days
- Term length: 1 year to 5 years
- Annual Prepayment Limit: 10%
Founded in 2003, ICICI Bank Canada provides customized banking and mortgage solutions with a focus on the Indian expat community. They provide customized mortgage solutions focused on the needs of newcomers to Canada.
| Pros | Cons |
|---|---|
| – Tailored lending solutions for new Canadians – Regionally focused branch support – Competitive rates for unique situations – Options for self-employed individuals | – Limited national branch presence – The primary focus is the Indian expat community |
ICICI Bank wants to support the financial needs of new Canadians and the Indian expat community coast to coast.
Motusbank
- Rate lock: 90 days
- Term length: 1 year to 10 years
- Annual Prepayment Limit: 20%
Founded in 2002, Motusbank provides an online-focused banking experience that includes digital mortgages with competitive rates. Motusbank offers mortgages across Canada.
| Pros | Cons |
|---|---|
| – Can skip a full month payment – Cash back rewards on new mortgages – Competitive rate | – Only provide online service – Less flexibility – Restrictions on properties over $1 million |
Motusbank brings an innovative fintech approach to mortgages in the Canadian market.
Equitable Bank
- Rate lock: 120 days
- Term length: 1 year to 5 years
- Annual Prepayment Limit: 10 – 20%
Equitable Bank, Canada 7th largest bank is a growing Canadian bank that offers alternative lending solutions and is a direct provider of residential mortgages across Canada.
| Pros | Cons |
|---|---|
| – Alternative lending options – One of the only big banks in Canada that offer reverse mortgages – Options for the self-employed | – Limited to online and call center support – Higher minimum credit requirements |
Equitable Bank offers alternative mortgage options and readvanceable mortgages to provide borrowing flexibility for Canadians who are not served by bigger banks.
Peoples Bank
- Rate lock: 90 days
- Term length: 1 year to 5 years
- Annual Prepayment Limit: 20%
Peoples Bank is a Canadian bank based in the Vancouver area focusing on mortgage lending. They provide residential mortgages across British Columbia and Alberta.
| Pros | Cons |
|---|---|
| – Regional expertise in BC/Alberta markets – Flexible mortgage options, including stated income – Options for self-employed and unique situations | – Limited to Western Canadian locations – Higher interest rates than major banks – Primarily provides residential mortgages |
Current Rates of Canada’s Top Banks for Mortgages
Average 5-Year Mortgage Rates of Big 6 Banks in Canada
| Lender | 5-Year Fixed Rate | 5-Year Variable Rate |
|---|---|---|
| Big Six Average | 5.16% | 6.27% |
| RBC | 4.94% | 6.10% |
| TD | 4.84% | 6.19% |
| BMO | 4.84% | 6.11% |
| CIBC | 4.64% | 5.90% |
| Scotiabank | 6.59% | 7.15% |
| National Bank | 5.09% | 6.20% |
In general, major banks offer competitive rates, but they are not always the lowest. Online banks like Tangerine and smaller lenders often have lower overhead costs, which allows them to offer the best mortgage rates.
Provincial Rate Differences
Mortgage rates can also vary slightly between regions and provinces. Here are the average 5-year fixed rates by province:
- British Columbia – 5.31%
- Alberta – 6.30%
- Saskatchewan – 4.59%
- Manitoba – 4.84%
- Ontario – 5.40%
- Quebec – 5.73%
- Nova Scotia – 4.44%
- New Brunswick – 4.84%
Non-Bank Mortgage Lenders
In addition to banks, there is a growing number of non-bank mortgage lenders that provide residential mortgages in Canada. They serve borrowers who may not qualify for a mortgage with one of the major banks.
Popular non-bank mortgage lenders include:
- First National Financial Corporation
- MCAP Financial Corporation
- Home Trust Company
- Equitable Bank
- Street Capital Financial Corporation
- CMLS Financial
- First Ontario Credit Union
- Alterna Bank
These non-bank mortgage lenders have increased their lending and now hold over 25% of the mortgage market share in Canada. They provide an important alternative for borrowers unable to obtain mortgage financing through mainstream banks.
Choosing Between A vs B Lenders
When getting a mortgage in Canada, lenders are classified into two categories – A lenders and B lenders. What is the difference, and which is better for borrowers?
A lender consists of the major banks, credit unions, and other federally or provincially regulated lenders. They lend to borrowers with good credit (typically a minimum 680 score) and secure income sources.
Pros of A lenders:
- Better interest rates and low fees
- Easy to qualify based on good credit
- Flexible prepayment and portability
- Wide variety of mortgage offerings
- Strong reputation provides peace of mind
B lenders consist of smaller lenders and mortgage finance companies. They provide alternative lending solutions, but typically have higher rates and fees.
Pros of B lenders:
- Willing to lend to borrowers with imperfect credit
- More flexible debt ratios and income requirements
- Specialize in unique financial situations
- Quicker approvals and direct access to decision-makers
- Alternative mortgage products
When searching for a mortgage in Canada, borrowers with strong credit and income sources will get the best rates and options from A lenders. However, borrowers who don’t meet the typical lending criteria of major banks can still get mortgage financing from alternative B lenders.
How to choose the right Lender for You?
With all of these great mortgage options, how do you determine the best lender for your needs? Here are some tips on finding the right mortgage provider:
- Get pre-approved – Having a mortgage pre-approval done shows lenders you are a serious buyer and allows you to compare rates.
- Assess your situation – Do you need flexibility on income requirements? Specific lending products? Niche expertise?
- Compare offerings and rates – Compile a list of the best mortgage rates and product features from top lenders.
- Consider using a broker – An experienced mortgage broker can provide recommendations and negotiate on your behalf.
- Don’t limit yourself – Big banks aren’t always the best option. Compare smaller banks and online lenders as well.
The most important thing is to do your research and shop around! Determine what mortgage features matter most to you and then find the lender that best aligns with your financial situation.
While mortgage rates are generally consistent nationwide, regional competition between lenders can create small differences between provinces.
Find Your Best Bank to Get a Mortgage Today!
Finding the best mortgage lender that offers you competitive rates, features, flexibility, and service you need can make a huge difference. While the major banks provide convenience, borrowers shouldn’t limit their search to only Canada’s Big Six Banks when bigger savings could be found elsewhere.
Rates and products are always changing, so age research to find your best option. The most important thing is to shop around, assess your situation, and choose the mortgage provider that best fits your financial needs. Doing so can save you thousands over the lifetime of your mortgage.
For personalized advice and mortgage pre-approvals from Canada’s top lenders, connect with our expert at Best Mortgage Online to take advantage of current rates and get expert guidance at every step.
FAQs
What are the top banks for mortgages in Canada?
The top banks for mortgages in Canada include the Big Six: RBC, TD, Scotiabank, BMO, CIBC, and National Bank. Other top bank options are HSBC, Tangerine, Laurentian Bank, ICICI, and smaller credit unions.
Which bank has the lowest mortgage rates in Canada?
Tangerine Bank often offers some of the lowest mortgage rates in Canada. Smaller banks and online lenders can offer lower rates than the major banks.
How do I choose the best mortgage lender?
Choosing the best mortgage lender involves comparing interest rates, fees, reputation, flexibility, service and mortgage features between banks. Assess your financial situation.
What is the most accessible bank in Canada from which to get a mortgage?
The easiest bank to get a mortgage is often your existing bank, where you already have accounts. Smaller lenders may also have more accessible approval standards.
Should I use a mortgage broker to find the best rate?
Using an experienced mortgage broker can help you find better rates through access to more lending options, plus brokers negotiate rates on your behalf.
Is it better to get a mortgage from a big bank?
Not always. Big banks have name recognition but smaller lenders and online banks often offer lower interest rates on mortgages in Canada.
Should I get a fixed or variable-rate mortgage?
Fixed-rate mortgages offer stable payments, but variable-rate mortgages typically have lower rates. Choose based on market forecasts and your comfort level.
Can mortgage rates differ between provinces?
Yes, there can be small regional differences in mortgage rates between provinces in Canada based on local lender competition.
What are the current mortgage rates at top Canadian banks?
The average 5-year fixed mortgage rate at top banks ranges from 4.64% to 6.59%. The Big 6 bank average is 5.16%. Variable rates range from 5.90% to 7.15%.
How do I find the best mortgage rate in Canada?
Finding the best mortgage rate involves researching rates from major banks, smaller lenders, online banks, and credit unions and having a broker shop the market for you.