Category: Lender Review

Explore detailed reviews of top mortgage lenders in Canada with Best Mortgage Online, comparing their rates, customer service, and loan options to help you make an informed decision.

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Lender Review

Tangerine Mortgage Rates and Reviews

Tangerine Mortgage Rates and Reviews
Tangerine Mortgage Rates and Reviews

What are Tangerine Bank Mortgages?

Tangerine Bank

Tangerine Bank, previously known as ING Direct Canada until rebranding in 2014, is a leading digital bank in Canada owned by Scotiabank.

With over 2 million clients nationwide, Tangerine offers online banking services, including savings accounts, credit cards, investments, and mortgage products.

Tangerine is known for providing competitive rates and flexible features on their key mortgage offerings: Fixed-rate mortgages, Variable-rate mortgages, and Home Equity Lines of Credit (HELOCs)

As an online-only bank, Tangerine provides clients with digital access to apply for and manage their mortgages. With no physical branches, Tangerine offers ease of access and competitive rates. However, some limitations exist around in-person support.

This comprehensive guide will examine Tangerine’s current mortgage rates, features, products, eligibility requirements, application process, customer reviews, and alternatives when considering your mortgage options for 2024.

What are current Tangerine Mortgage Rates?

Tangerine Fixed Mortgage Rates

Tangerine offers fixed-rate mortgages with terms ranging from 1 to 10 years. With a fixed rate, the interest rate stays the same over the full mortgage term, providing consistent monthly payments.

Below are Tangerine’s current posted fixed rates for insured mortgages as of October 2024, along with the lowest mortgage rates available in Canada for comparison:

TermTangerine RateLowest Rate in Canada
1-year fixed6.64%%5.69%
2-year fixed5.74%4.89%
3-year fixed4.74%4.09%
4-year fixed4.79%4.04%
5-year fixed4.84%3.99%
7-year fixed5.65%5.99%
10-year fixed6.05%5.79%
Tangerine Fixed Mortgage Rates as of October 2024

Keynotes:

  • The rates shown are for insured mortgages with a down payment of under 20%. Conventional mortgage rates may differ.
  • Tangerine offers a 120-day rate hold on pre-approvals.

Tangerine’s fixed mortgage rates are competitive, though other lenders may offer lower discounted rates in certain terms, such as 1, 3, and 5 years. Working with an experienced mortgage broker can help you secure the best possible rate for your specific situation.

Tangerine Variable Mortgage Rates

Tangerine also offers a 5-year variable-rate mortgage product. With a variable rate, the interest rate fluctuates based on changes to the prime rate, but monthly payments remain the same over the term. This provides potential savings if the prime rate drops significantly.

Here are the current posted variable mortgage rates with Tangerine:

TermTangerine RateLowest Rate in Canada
5-year variable5.95%5.20%
Tangerine Variable Mortgage Rates as of October 2024

Fixed vs variable rate example:

Based on current posted rates for a $300,000 insured mortgage with 25-year amortization:

RateMonthly Payment
Tangerine 5-year fixed 4.84%$1,717.59
Tangerine 5-year variable 6.00%$1,919.42

The variable rate increases the payment by $201.83 per month compared to the fixed rate option.

Tangerine Prime Rate

As of October 2024, the current Tangerine prime rate is 6.45%. Tangerine’s prime rate is aligned with the prime rates set by the Big banks based on the Bank of Canada’s overnight rate.

This key rate impacts the interest rates for many of Tangerine’s products:

  • Tangerine Mortgages
  • HELOCs
  • Credit cards
  • Personal loans
  • Savings account interest

For example, variable-rate mortgages fluctuate based on changes to the prime rate. If the prime rate goes up, variable mortgage rates follow, and monthly mortgage payments are higher because more goes towards interest charges.

Understanding and tracking the prime rate can help consumers make informed choices about managing interest rates with variable-rate products.

Special Tangerine Mortgage Products

Tangerine Mortgage Products
Tangerine Mortgage Products

In addition to standard purchase and refinance mortgages, Tangerine offers specialized products and programs.

Tangerine Home Equity Line of Credit

Tangerine provides access to a HELOC, a revolving line of credit that uses your home equity as collateral. As of October 2024, the current Tangerine HELOC rate is 6.95%, directly linked to the prime rate. [Source]

HELOCs require paying interest on any balance used, but you have flexibility in how much you borrow and when. It works similarly to a credit card for accessing available funds.

Tangerine Self-Employed Mortgage

Tangerine offers mortgage options for self-employed Canadians or those with non-traditional income sources.

You’ll need to provide proper income documentation, such as tax returns, notices of assessment, and financial statements. A larger down payment and a strong credit score also help secure approval.

What are Tangerine Mortgage Features?

In addition to competitive rates, Tangerine offers several features that set their mortgages apart from other lenders.

Tangerine Prepayment Options

Tangerine provides prepayment options to pay down your mortgage principal faster and reduce interest costs over the life of the loan:

  • Increase monthly payments – Tangerine allows you to increase your monthly mortgage payment by up to 25% of the original amount. You can put these extra funds directly against the principal.
  • Annual lump sum payments – You can pay up to 25% of the original mortgage amount as a lump sum annually for accelerated repayment on closed fixed-rate terms over three years. Most lenders allow 10-20% annual lump sum payments.
BankMaximum Annual Prepayment
Tangerine Bank25%
CIBC20%
RBC10%
Scotiabank15%
TD15%
National Bank10%
BMO20%
Tangerine Bank Maximum Annual Prepayment compared to other Big Banks

Tangerine Portable Mortgages

Tangerine mortgages offer portability protection if you sell your home before the term expires. You can port your existing mortgage to a new property without penalty or discharge fees, and your same rates, terms, and repayment schedule will be transferred to the new mortgage.

Portability provides flexibility if your life circumstances change. Other banks may charge a 1-3 months interest penalty for breaking a mortgage early.

Tangerine Mortgage Life Insurance

Tangerine offers optional mortgage life insurance through Canada Life Assurance Company. This insurance can pay off your mortgage balance if you pass away before the end of your term.

Monthly premiums are based on mortgage amount, age, and coverage options. Mortgage life insurance may provide peace of mind that your family and home are protected if tragedy strikes.

Tangerine Property Tax Payments

Tangerine can set up your property tax payments to be paid as part of your monthly mortgage payments. This avoids saving up for a large lump property tax bill when it’s due.

Tangerine will collect 1/12th of your monthly estimated annual property tax in your payments. When the actual tax bill is issued, they pay your municipality directly on your behalf.

How to Apply for a Tangerine Mortgage?

How to Apply for a Tangerine Mortgage?
How to Apply for a Tangerine Mortgage?

Tangerine has an online-only application process. Here are the key steps and requirements to secure a mortgage pre-approval or fully approved mortgage.

Documentation Needed

Prepare these documents before starting your application:

  • Government ID (driver’s license, passport)
  • Proof of income
  • Down payment source and amount
  • Length of employment
  • Other assets or debts

Getting Pre-Approved Online

To access mortgage applications online, you must first have an existing Tangerine client account. You cannot get pre-approved independently without an account.

Once logged into your Tangerine account, you can start the pre-approval application process and provide the required documents.

After submission, a Tangerine Mortgage Specialist will contact you to discuss the next steps. Once approved, pre-approvals are typically valid for 60-120 days.

In-Person Mortgage Applications

Tangerine offers no in-person banking or mortgage application options as an online-only bank. Everything must be done through their website or over the phone.

This limits the ability to meet face-to-face with a mortgage representative for guidance. However, their contact center (1-888-826-4374) is available to assist applicants.

Getting the Best Tangerine Mortgage Rate

Mortgage rates can vary significantly depending on individual profiles and situations. Here are some tips to help improve your chances of getting the lowest mortgage rate with Tangerine:

  • Maintain a strong credit score of over 700
  • Have a low debt-to-income ratio through managing other debts
  • Make a larger down payment if possible
  • Provide all required documentation upfront for a smooth application
  • Ask your Mortgage Specialist if they can match competitor rates

Improving your financial profile and completing your application strengthens your negotiating position to get the best possible rate.

Tangerine Mortgages Reviews

Customer reviews provide helpful insights into the pros and cons of choosing a mortgage lender. Here is an overview of feedback on Tangerine mortgage products:

Pros

  • Competitive rates on par with major banks
  • Unique features like portability and prepayment options
  • Good rates for new immigrants with limited credit history
  • Simple online application process

Cons

  • No in-person banking is available
  • Wait times to get issues resolved via call center
  • Use collateral mortgages, which cost more to transfer lenders
  • Mixed reviews on customer service responsiveness

While Tangerine offers digital convenience and competitive rates, the lack of in-person support remains a common complaint. Understanding limitations around collateral charges and access to support is important when evaluating options.

Checking sites like Google Reviews and the Better Business Bureau can provide balanced insights from existing clients on mortgage experiences with a lender.

Alternatives to Tangerine Bank Mortgages

Tangerine is not your only option. Here are two alternatives to consider for your mortgage needs:

Mortgage Broker

A mortgage broker can shop rates from multiple lenders and help customize options for your situation. This provides an easy way to compare rates and features across providers.

Major Bank

The Big 6 banks (RBC, TD, Scotiabank, BMO, CIBC, National Bank) offer varied online and in-branch mortgage options, including access to special discounted rates. Branch support provides personalized guidance.

Be sure to compare multiple providers beyond Tangerine to find your best mortgage fit!

Looking for the Best Mortgage Options? Discover our Best 15 Banks for Mortgages in Canada

Keys takeaway on Tangerine Mortgages

With competitive rates and digital convenience, Tangerine offers an excellent mortgage option for some borrowers. Key advantages include:

  • Digital applications from the comfort of home
  • Most rate terms available from 1 to 10 years
  • Unique features like portability and prepayment allowances

However, limitations around lack of in-person support and use of collateral mortgages may make other lenders a better fit depending on individual preferences and needs. Their online-only model also requires having an existing Tangerine account.

Now that you understand Tangerine mortgage rates and products for 2024, you can decide on the best option for your home financing needs. Comparing choices across multiple providers ensures you get the optimal rate and features to save money over the lifetime of your mortgage.

For personalized mortgage advice and to explore your best rates, connect with a broker today at Best Mortgage Online. Our team has helped thousands of Canadians find the right mortgage solution. We’re here to help you navigate the mortgage process for a stress-free home financing experience.

FAQs on Tangerine Mortgages

What types of mortgages does Tangerine offer?

Tangerine offers fixed-rate, variable-rate, and HELOC mortgages and niche programs for newcomers and the self-employed.

How do I apply for a Tangerine mortgage?

First, you must open an account. Then, you can apply online by completing the application form and submitting the required documents.

Does Tangerine have physical mortgage specialists?

No, Tangerine is an online-only bank without brick-and-mortar branches or in-person mortgage support.

What is Tangerine prepayment policy?

You can increase payments by 25% annually or prepay up to 25% of the original mortgage amount as a lump sum.

Can I transfer my Tangerine mortgage to a new home?

Yes, Tangerine allows you to port your existing mortgage to a new property without penalties.

What credit score is needed for a Tangerine mortgage?

Tangerine does not disclose its minimum credit score requirement publicly. 720+ is recommended.

Article Sources
  1. Tangerine Bank Mortgage Rates & Reviews
  2. Tangerine Mortgage Rates & Review
Categories
Lender Review

Manulife Mortgage Rates and Reviews 2024

Manulife Mortgage Rates and Reviews
Manulife Mortgage Rates and Reviews

Introduction to Manulife Bank

Manulife Bank

Manulife Financial Corporation is Canada’s largest and most reputable financial institution. Founded in 1887, it offers a wide range of products and services, including insurance, banking, and wealth management, to over 30 million customers worldwide.

With over $1.3 trillion in assets under management, Manulife ranks among the top 15 largest life insurance companies globally.

Manulife Bank is the banking division of Manulife Financial Corporation, established in 1993. Manulife Bank offers a range of banking solutions including savings accounts, chequing accounts, term deposits, and commercial lending.

Current Manulife Mortgage Rates

Manulife mortgage rates are primarily based on the lender’s prime lending rate of 6.70% as of September 2024. This key rate acts as a starting point to then determine actual mortgage rates, which are calculated by adding a spread or margin above prime based on the specific product and terms.

Here is an overview of current rates for popular Manulife mortgage options:

Manulife Fixed Mortgage Rates

TermManulife RateLowest Rate
1-Year Fixed7.59%5.84%
2-Year Fixed6.74%4.89%
3-Year Fixed5.59%4.24%
4-Year Fixed5.54%4.29%
5-Year Fixed5.34%4.14%
7-Year Fixed6.44%N/A
10-Year Fixed6.69%5.79%
Manulife Fixed Rate Mortgages

Manulife Variable Mortgage Rates

TermManulife Bank RateLowest Rate Nationally
5-Year Variable5.95%4.99%
Manulife Variable Rate Mortgages

*Rates current as of September 2024 [Source]

When choosing between fixed and variable, keep in mind that variable rates come with some risk of increases but generally start lower. Fixed rates provide stable payments but may cost more overall if rates decline.

Manulife also offers unique rate incentives for certain borrowers:

  • New graduate program: Features a 5-year fixed rate up to 0.20% lower for graduates of the last 3 years. An income of at least $40,000 per year is required.
  • Loyalty program: Offers a rate discount of 0.10% for existing Manulife clients signing up for a new 5-year fixed mortgage.
  • Energy efficient homes: Borrowers with an energy efficient home certification can qualify for a 0.10% discount on 5-year fixed mortgages.

Manulife One Account

Manulife One

The Manulife One account provides an all-in-one integrated solution that combines your mortgage, home equity line of credit (HELOC), chequing and savings accounts into one single account.

This flexible product allows borrowers to seamlessly manage their day-to-day finances while also benefitting from potential interest savings. It uses a readvanceable mortgage structure that allows you to access extra funds from your home equity line of credit anytime you need them.

  • Consolidate debts at a lower interest rate under one account
  • Access extra funds from your home equity line of credit anytime
  • Make lump sum payments to reduce your mortgage principal rapidly
  • Offset savings deposits against your overall balance to lower interest
  • Daily interest calculation ensures deposits work to your advantage
  • Available credit rises automatically as you pay down the principal
  • No reapplication is needed to access additional equity

This integrated structure makes optimizing your finances and accelerating your debt repayment easier. However, discipline is required to avoid overusing your home equity line of credit.

With Manulife One, all your transactions, from bill payments to deposits, are easily managed through one central account. You can also use lump sum deposits to pay your mortgage principal faster and lower your interest expenses.

Manulife Bank Select

Manulife offers its Bank Select product for borrowers seeking a more traditional mortgage experience. This option lets you customize your mortgage by dividing it into up to five segments or “portions” with their interest rates, terms and payment schedules.

For instance, you may want part of your mortgage at a variable rate while keeping the remainder locked into a fixed-rate term. The flexible structure of Bank Select mortgages gives borrowers added control over their loans.

Features of Manulife Mortgages

Features of Manulife Mortgages
Features of Manulife Mortgages

Flexible Payment Frequencies

Manulife allows borrowers to select their preferred mortgage payment options, including weekly, bi-weekly, semi-monthly or monthly payments. Frequent payments can help you pay off your mortgage faster and save on interest charges.

Mortgage Protection Insurance

Manulife offers optional mortgage protection insurance to provide added peace of mind. This covers your outstanding mortgage balance in the event of death or a critical illness diagnosis. Policies are available for mortgages up to $1 million.

Property Tax Payments

Many lenders, including Manulife, offer borrowers the option of paying property taxes as part of their mortgage payment. This convenient feature avoids the hassle of budgeting for separate tax bills.

With Manulife, you can request to have your property taxes bundled into your regular mortgage payments. Manulife will then remit these funds to your municipal tax office when due. However, you won’t earn interest on the tax portion while held by the lender.

Applying for a Manulife Mortgage

Manulife offers three ways to submit a mortgage application:

  • Online through their website
  • By phone at 1-877-765-2265
  • Through an accredited mortgage broker

The required documents you’ll need to provide include:

  • Proof of income
  • Current bank statements
  • Details on debts and assets
  • Down payment source documents
  • Government ID
  • Home Appraisal

Once submitted, you can generally expect an initial approval decision within a few business days. However, the full underwriting process typically takes 30-60 days, including home appraisal, credit checks and verification of all income and assets.

Preparing your documents in advance can help speed up the approval timeline. Manulife also offers pre-approvals, allowing you to lock in a rate for up to 120 days while you search for your new home.

Alternatives to Consider

While Manulife mortgage products offer useful flexibility and features, it’s wise to explore alternatives from other top Canadian lenders as well.

Manulife One vs Traditional Bank Mortgage

The Manulife One account’s all-in-one structure differs greatly from a standard mortgage. Conventional mortgages have clear divisions between your lending, everyday banking and credit accounts. While this segmentation provides greater simplicity, it lacks the consolidated efficiency of the Manulife One.

Traditional mortgages also don’t allow easy access to extra home equity without requiring a full reapplication. In contrast, Manulife One borrowers can tap into these funds anytime as their principal is paid down.

On the other hand, some borrowers may prefer keeping their mortgage isolated from other financial obligations. And Manulife One’s flexibility requires strict discipline to avoid overusing your home equity credit.

Options from Other Lenders

Beyond the major banks, here are some top alternative mortgage lenders to consider:

  • Nesto – An online-only lender offering exceptional rates through digital applications and AI technology.
  • Motive Financial – Leading lender focused on flexible features and options for customization.
  • First National – Top broker with access to mortgages from over 25 lenders.

Comparing quotes from multiple lenders ensures you find both the best rate and product fit. A broker like First National can explore different options for you.

Discover our Best Banks for Mortgages in Canada

Customer Experiences with Manulife Mortgages

Overall, Manulife mortgage holders highlight the flexibility and convenience offered through their products. Specific benefits frequently mentioned in customer reviews include:

  • Ability to consolidate higher-interest debts into one lower-cost Manulife One account
  • Simplified finances with one central place to manage all accounts
  • Faster debt repayment through lump sum payments and savings offsets
  • Lower interest costs by linking everyday banking under their mortgage
  • Access to home equity without needing loan approvals each time

However, some borrowers caution that Manulife One loans require financial discipline. If you consistently carry high balances on your line of credit, interest expenses can quickly add up. Some other drawbacks cited include:

  • Potentially higher rates compared to competitors
  • Complex account structure less ideal for those seeking simplicity
  • Monthly fees apply unless your balance remains positive
  • Strict prepayment rules depend on your sub-account terms

Checking customer reviews can provide greater insight into the pros and cons of choosing Manulife for your mortgage needs.

Keys takeaway: Are Manulife Mortgages a Good Choice?

Based on their flexible features, Manulife mortgages are a strong option for borrowers wanting greater control over their finances. Primary advantages include:

  • Consolidation of all accounts for simplified management
  • Interest savings through balance offsets and lump sum payments
  • Penalty-free prepayments are possible on open-term portions
  • Home equity access without reapplying each time

However, these products require financial diligence to maximize their benefits without taking on excessive debt. Manulife’s rates also tend to be higher than those of some competitors.

Manulife One and Select loans are great choices for homeowners who actively manage their finances and want customizable mortgage features. But those seeking simplicity or rock-bottom rates may want to look at alternatives.

Overall, Manulife is a top pick thanks to its innovative mortgage structures and flexibility. However, comparing quotes from multiple lenders is wise to find your optimal match.

The mortgage experts at Best Mortgage Online can help you explore the ideal solutions for your unique situation. Get in touch today to start your journey towards mortgage freedom!

FAQs

Does Manulife offer mortgage pre-approvals?

Yes, Manulife provides pre-approved rates guaranteed for 120 days while you search for your new home. If you find a property within the set timeframe, this locks in a rate.

What fees and penalties does Manulife charge?

Manulife has standard closing costs, such as appraisal and legal fees. Prepayment charges vary based on your mortgage's terms. The Manulife One account has additional monthly fees if your balance goes negative.

How long does Manulife take to approve a mortgage?

Initial approval is within a few days, but full underwriting, including assessment and home appraisal, takes 30-60 days. Having all documents ready speeds up the process.

Can I make lump sum payments on a Manulife mortgage?

Yes, with certain Manulife mortgages, you can make extra lump sum payments to rapidly pay down your principal and reduce interest costs over time.

Does Manulife offer mortgage portability?

Manulife allows you to port your existing Manulife mortgage over to a new home in certain cases without requiring or paying penalties. Some terms and conditions apply.

What is Manulife One?

Manulife One combines your mortgage, HELOC, and daily banking into one integrated account for simplified financing management and access to your home equity.

How do I choose between Manulife fixed and variable rates?

Fixed rates offer stable payments, while variable rates usually start lower but carry some risk of increases if prime rate rises. Consider your budget and risk tolerance.

Can I make weekly or bi-weekly mortgage payments?

Yes, Manulife allows you to select weekly, bi-weekly, semi-monthly or monthly payment frequencies. More frequent payments help you pay off the mortgage faster.

Article Sources
  1. Manulife Bank Mortgage Rates & Reviews
  2. Manulife One Mortgage Review September 2024
Categories
Lender Review

Canadian Western Bank Mortgage Rates and Reviews

Canadian Western Bank Mortgage Reviews
Canadian Western Bank Mortgage Reviews

Introduction to Canadian Western Bank

Canadian Western Bank

Founded in 1988 and headquartered in Edmonton, Alberta, Canadian Western Bank (CWB) has grown into one of the top financial institutions in Canada.

With over $36 billion in assets as of 2024, CWB offers a full suite of personal and business banking services, including mortgages, bank accounts, credit cards, loans, and wealth management.

Initially starting as an Alberta-based bank, CWB expanded operations into British Columbia, Saskatchewan, Manitoba, and Ontario. They aim to diversify lending across provinces, with significant growth expected in Ontario.

CWB operates a network of branches across Western Canada, primarily in Alberta, and an online and mobile banking platform. This combines physical locations with digital accessibility, providing customers with flexible options for accessing CWB’s products and services.

What are Current Canadian Western Bank Mortgage Rates?

Canadian Western Bank Mortgage Rates
Canadian Western Bank Mortgage Rates

Canadian Western Bank CWB Fixed Mortgage Rates

Fixed-rate mortgages offer stability and predictability, making forecasting your long-term home financing costs easy. CWB provides fixed-rate mortgages with terms ranging from 6 months to 10 years.

The most popular options are 5-year and 3-year fixed terms. These provide an ideal balance of reasonably priced interest rates and flexibility before renewal. Below are CWB fixed mortgage rates compared to the lowest nationally advertised rates.

TermCWB RateLowest Rate
6 Months7.95%3.99%
1 Year6.64%5.84%
2 Years6.09%4.89%
3 Years5.14%4.29%
4 Years5.04%4.29%
5 Years4.84%4.14%
7 Years5.54%4.84%
10 Years6.04%5.54%
CWB Fixed Mortgage Rates (Insured)

*Rates current as of September 2024. Lower rates may be available for conventional mortgages or borrowers with excellent credit.

CWB offers competitive 5-year fixed mortgage rates, while longer and shorter terms are pricier.

Canadian Western Bank CWB Variable Mortgage Rates

Variable-rate mortgages fluctuate based on the prime rate. They offer lower initial rates but carry the risk of increased payments if rates rise.

CWB variable rate mortgages can be an attractive option for borrowers who can manage unpredictable payments. Here are CWB’s current variable rates:

TermCWB RateLowest Rate
3 Year5.15%4.79%
5 Year5.20%4.99%
10 Year5.65%5.15%
CWB Variable Rate Mortgages (Insured)

*Rates current as of September 2024. Lower rates may be available for conventional mortgages or borrowers with excellent credit. [Source]

CWB offers competitive 5-year variable rates. The 3-year variable is more expensive than alternatives.

Your monthly payment stays the same with variable-rate mortgages, but the split between interest and principal fluctuates. If prime drops, more of your payment goes to the principal. If prime increases, interest makes up a larger portion.

Canadian Western Bank CWB Prime Rate

The prime rate is the benchmark interest rate set by the Bank of Canada, which all significant lenders use to price variable-rate mortgages and other prime-based loans.

When the Bank of Canada increases or decreases the prime rate, CWB adjusts its prime rate by the same amount. Changes to prime immediately impact borrowing costs on CWB variable rate mortgages, lines of credit, and commercial loans.

As of September 4, 2024, the CWB prime rate is 6.45%. CWB takes their prime rate to determine mortgage rates and adds or subtracts a percentage based on market conditions and risk. For example, today’s 5-year variable mortgage rate is prime (6.45%) minus 1.25% for a discounted rate of 5.20%.

What is Canadian Western Bank CWB Homeworks?

Canadian Western Bank offers a unique product called Homeworks, which bundles a mortgage and home equity line of credit (HELOC).

With Homeworks, your mortgage and HELOC share the same collateral – your home equity. This provides easier access to a revolving credit facility with rates preferable to unsecured loans.

Benefits of CWB Homeworks:

  • Affordability: HELOC borrowing has lower interest rates than credit cards or personal loans.
  • Flexibility: Access extra funds anytime for large purchases or unexpected expenses.
  • Cost savings: Avoid legal/appraisal fees for separate HELOC applications.
  • Consolidation: Combine debts under one loan for simplified finances.

You can use CWB Homeworks funds for:

  • Home renovations
  • Debt consolidation
  • Major purchases like a car
  • Contributing to investments
  • Building an emergency fund

Having an integrated HELOC alongside your mortgage provides financial flexibility. The funds are there when you need them at below-prime interest rates.

Pros and Cons of Getting a Mortgage with Canadian Western Bank

Choosing Canadian Western Bank for your mortgage provides many advantages:

  • Established reputation: As a large national bank, CWB offers stability and trustworthiness developed over 30+ years in business.
  • Competitive rates: CWB offers competitive rates on popular 5-year fixed and variable mortgages.
  • Bundled offerings: CWB lets you bundle a mortgage with a HELOC through their Homeworks product for added flexibility.
  • Prepayment options: CWB offers prepayment allowances that allow you to pay your mortgage faster.
  • Portability: CWB mortgages can be ported to a new property without penalty.
  • Accessibility: With an extensive branch network, CWB provides in-person mortgage services.

Some potential drawbacks of a CWB mortgage include:

  • Rates: CWB’s rates may not be as low as those of some direct or online-only lenders for less familiar terms.
  • Limited footprint: CWB branches are concentrated in Western Canada, with fewer locations in Ontario.
  • Fewer options: CWB has a more limited selection of specialized mortgage products than monoline mortgage lenders.

What are the key features of CWB Mortgages?

Canadian Western Bank Mortgage Features
Canadian Western Bank Mortgage Features

CWB offers several features to help you save interest, reach mortgage freedom faster, and avoid fees.

CWB Prepayment Allowance

One of the most valuable features offered by CWB is the annual prepayment allowance. This allows you to prepay up to 20% of the original mortgage principal every calendar year without incurring penalty charges.

This flexibility allows borrowers to accelerate repayment and reduce the amount of interest paid over the mortgage’s lifetime.

The prepayment allowance is handy for those who receive occasional lump sums like bonuses or inheritance money. It also rewards disciplined borrowers who want to allocate extra funds to pay down their mortgage quickly.

LenderPrepayment Limit
CWB20%
TD Mortgage15%
Scotiabank15%
CIBC10% to 20%
RBC10%
BMOUp to 20%
National Bank10%
Prepayment Limit of CWB vs. Big Six Banks in Canada

CWB Mortgage Prepayment Charges

You will face prepayment charges if you break your CWB closed mortgage term early. However, no penalties apply for prepayments on CWB open mortgages.

Here are CWB’s prepayment policies:

  • Variable Rate Mortgage: 3 months interest penalty
  • Fixed Rate Mortgage: The greater of a 3-month interest penalty or the IRD penalty

The IRD – Interest Rate Differential – calculates losses to the lender from reinvesting at lower rates.

To estimate CWB’s IRD penalty, you can use this formula:

IRD Penalty Estimate = Mortgage Balance x (CWB Posted Rate – Your Contract Rate) x Remaining Months ÷ 12

For example:

  • Mortgage Balance: $300,000
  • CWB Posted Rate for Remaining Term: 5.49%
  • Your Contract Rate: 4.84%
  • Remaining Term: 27 months

IRD Penalty = $300,000 x (5.49% – 4.84%) x 27/12 = $5,175

Using CWB’s online penalty calculator provides the most accurate IRD estimate.

CWB Payment Frequency Options

CWB allows you to select between weekly, bi-weekly, and monthly payment frequencies. This lets you match your mortgage payments with your unique pay schedule and cash flow preferences.

Increased payment frequency saves on interest costs throughout the mortgage. Weekly or bi-weekly installments reduce the principal balance faster, allowing less interest to accrue. This can lower the total interest paid over a 5-year mortgage term by thousands of dollars.

The option for monthly payments still exists. Overall, CWB provides welcome flexibility in selecting the payment frequency that best fits your circumstances.

Read more: Mortgage Payment Options in Canada

CWB Mortgage Portability

Canadian Western Bank offers a mortgage portability feature when selling your current home and purchasing another property. This means your existing mortgage can be transferred to a new property purchase without facing any prepayment penalties. Your interest rate, remaining amortization, and mortgage balance remain the same.

Certain conditions apply to qualify for mortgage portability, including:

  • The new property purchase must occur within 120 days
  • The new mortgage cannot exceed the original approved amount
  • You must re-qualify for the mortgage amount based on affordability thresholds when porting to the new property

As long as you meet the requirements, portability offers major cost savings and convenience when moving homes before your existing mortgage term expires.

Optional Mortgage Insurance

Through its partnership with Canada Life, Canadian Western Bank offers optional mortgage life insurance and disability insurance that can provide valuable protection.

Mortgage life insurance covers your outstanding mortgage balance in the event of death. Disability insurance covers monthly mortgage payments if you cannot work due to illness, injury, or disability.

These optional insurance plans can help provide peace of mind by protecting your mortgage even in tragic, unexpected circumstances.

With its competitive rates, flexible features like prepayment allowances and payment frequency choices, portability, and optional creditor insurance, Canadian Western Bank offers a mortgage product set that can be customized to meet individual borrowers’ needs and goals.

Looking for more Mortgage options? Discover our Best Banks for Mortgages in Canada

Get the Best Canadian Western Bank Mortgage for You

Canadian Western Bank offers a reputable option for your mortgage needs. As one of Canada’s largest national banks, CWB provides competitive rates on popular terms alongside the convenience of branches and professional advisors.

Yet, comparing CWB to alternative lenders is essential to finding your best rate for specific terms and features. Connecting with an independent mortgage broker is the optimal way to ensure you secure the optimal mortgage product and rate for your situation.

You can make a wise mortgage decision based on the latest CWB rates, prepayment policies, offerings like Homeworks HELOC bundles, and the lender’s strengths as an established lender.

To determine the optimal CWB product for your situation, contact one of the mortgage experts at Best Mortgage Online today. Whether you want branch accessibility or purely digital service, we can suggest the right CWB mortgage and lender. Get started now with a free consultation!

FAQs

What are the most popular CWB mortgage terms?

The 5-year and 3-year fixed terms are the most popular due to their competitive rates and balance of rate stability with renewal flexibility.

Does CWB offer mortgages across Canada?

Yes, CWB provides mortgages coast-to-coast in Canada. However, they have more branch locations in Western provinces.

How quickly can I get a CWB mortgage pre-approved?

Applying through CWB's digital platform can result in a pre-approval decision in as little as 24 hours. In-branch pre-approvals are also very quick.

Can I make extra CWB mortgage payments?

Yes, CWB allows annual prepayments of up to 20% of your original principal without penalty. You can also increase regular payment amounts.

What CWB mortgage features help avoid penalties?

Portability lets you transfer your mortgage to a new home purchase without penalty. Open mortgages also allow extra payments without penalties.

Should I choose a fixed or variable rate from CWB?

Fixed rates provide stability, while variable rates offer potential savings, but with the risk of rising payments if the prime rate increases.

Is mortgage insurance required for a CWB mortgage?

Mortgage insurance is required on CWB mortgages if the down payment is less than 20% of the purchase price.

How do I contact CWB about getting a mortgage?

You can visit a CWB branch, call hotline, or apply online at cwbank.com. An independent broker can also assist you.

Can I switch my existing CWB mortgage to a different term?

Yes, CWB allows you to switch between fixed and variable terms but this may trigger prepayment penalties.

Article Sources
  1. Canadian Western Bank Mortgage Rates & Reviews
  2. Canadian Western Bank Mortgage Rates
Categories
Lender Review

Equitable Bank Mortgage Rates and Reviews 2024

Equitable Bank Mortgage Rates and Reviews
Equitable Bank Mortgage Rates and Reviews

Introduction to Equitable Bank Mortgages

Equitable Bank

Equitable Bank is a leading Canadian financial institution that offers a wide range of mortgage solutions for consumers and businesses nationwide. Founded in 1970 and headquartered in Toronto, Equitable Bank has grown to become Canada’s 9th largest independent Schedule I bank, with over $45 billion in assets under management.

Equitable Bank provides mortgage solutions, such as conventional mortgages, refinances, reverse mortgages, and more. It is known for its specialized products and flexible features.

In this comprehensive guide, we will provide an in-depth look at Equitable Bank’s mortgage offerings for 2024, including:

  • Current mortgage rates for fixed and adjustable-rate mortgages
  • An overview of Equitable’s mortgage products
  • Key features of Equitable mortgages
  • The application process and qualifications
  • How Equitable compares to other top mortgage lenders in Canada

Whether you are looking to purchase a new home, refinance your mortgage, or simply want to learn more about Equitable Bank, this guide covers everything you need to know about getting a mortgage with this leading Canadian lender.

Equitable Bank Mortgage Rates

Equitable Bank offers competitive fixed and adjustable-rate mortgages. Here is an overview of their current mortgage rates compared to the lowest rates available in Canada as of September 2024.

Equitable Bank Fixed-Rate Mortgages

With a fixed-rate mortgage, your interest rate stays the same for the entire term, generally 1-5 years. This allows you to lock in a rate and provides payment stability.

TermEquitable RateLowest Rate in Canada
1-Year Fixed5.89%5.84%
2-Year Fixed5.64%4.89%
3-Year Fixed5.54%4.29%
4-Year Fixed6.74%4.29%
5-Year Fixed5.44%4.14%
Equitable Bank Standard fixed closed mortgage rates as of September 2024

*Rates are for insured mortgages in Ontario with less than 20% down payment. [Source]

As you can see, Equitable Bank offers competitive rates compared to the lowest rates in Canada. Their 5-year fixed rate is slightly higher than the lowest rate, but overall very reasonable.

Equitable Bank Adjustable Rate Mortgages

Equitable Bank offers 5-year adjustable-rate mortgages, with interest rates that float based on the prime rate. As of September 2024, Equitable’s prime rate is 6.45%. This benchmark is used to price various lending products, including mortgages.

Your monthly mortgage payments will fluctuate as interest rates fluctuate. This allows you to take advantage of decreases in interest rates but also exposes you to rate increases.

TermEquitable RateLowest Rate in Canada
5-Year6.95%5.30%
Equitable’s current 5-year ARM rate

Equitable’s 5-year ARM is competitive with the top rates in the market. The flexibility of an ARM may be appealing if you believe prime rates will fall.

What are Equitable Bank Mortgage Products?

Equitable Bank Mortgage Products
Equitable Bank Mortgage Products

In addition to fixed and adjustable rate mortgages, Equitable Bank offers a wide range of specialty mortgage solutions for unique borrowing needs.

Equitable Reverse Mortgages

Reverse mortgages from Equitable Bank allow homeowners over 55 to borrow against the equity built up in their homes. No ongoing monthly repayments are required.

The full loan plus all accrued interest is only due when the homeowner sells the home or passes away. This allows seniors to access extra retirement income while remaining in their current residence.

Read more: Equitable Bank Reverse Mortgage Reviews

Equitable Bank Short-Term Mortgages

In addition to standard longer-term mortgages, Equitable Bank offers short-term 6-month and 1-year mortgage options. These provide flexibility in certain situations, for example, if you expect to sell your home within a short time frame.

However, short-term mortgages typically come with higher interest rates than longer-term mortgages.

EQB Evolution Suite

The EQB Evolution Suite® from Equitable Bank offers specialized mortgage lending solutions for borrowers who may not qualify through traditional programs.

This includes new immigrants to Canada, individuals with past credit challenges, self-employed applicants, real estate investors, and others with unique income situations.

The Evolution Suite provides more flexible underwriting and competitive rates tailored to each borrower’s specifics.

TermEquitable Rate
1-Year Fixed7.44%
2-Year Fixed6.44%
3-Year Fixed4.79%
4-Year Fixed5.69%
5-Year Fixed5.69%
5-Year Variable5.45% (P – 1.00%)
Equitable Bank Evolution Suite rates as of September 2024

Equitable Bank Home Equity Lines of Credit (HELOCs)

Equitable Bank offers home equity lines of credit secured against a property’s value. A HELOC can be set up with an Equitable Bank mortgage or as a stand-alone credit product.

You only pay interest on the outstanding HELOC balance, providing access to a flexible source of low-cost financing for renovations, investments, and more.

Equitable Bank Commercial Mortgages

For business owners, Equitable Bank provides commercial mortgages for properties such as apartment buildings, retail spaces, hotels, and offices.

Both fixed and adjustable rate terms are offered, with highly competitive rates and options ranging from 6 months to 10 years. For commercial borrowers, there is also potential for high-ratio financing up to 85% loan-to-value.

Renewing and Refinancing with Equitable

When your term expires, you have a couple of options:

Renewal – Sign up for a new term with Equitable at their renewal rates. No mortgage approvals are required.

Refinancing – Pay out your Equitable mortgage in full and refinance it with new terms, lender, etc. This requires full approval.

Most choose to renew as it is the simplest option. However, refinancing can allow you to take advantage of better rates, cash out equity, or switch lenders. Make sure to review renewal vs. refinance to understand the implications.

Your mortgage broker can walk you through the renewal or refinancing process and help you get the best rates.

What are Key Features of Equitable Mortgages?

Payment Frequency

Equitable Bank allows you to choose to make mortgage payments monthly, bi-weekly, weekly or semi-monthly. Opting for bi-weekly or weekly payments means you end up making the equivalent of an extra monthly payment each year.

This accelerates the payment down of the mortgage principal and can save a significant amount of interest costs over the full term of the mortgage.

Portability Features

Mortgage portability with Equitable Bank lets you transfer your existing mortgage to a new property without penalty, providing convenience and flexibility.

To qualify, you must sell your current property and close the new purchase within 90 days. The new property must also meet eligibility criteria for an Equitable Bank mortgage. You avoid prepayment penalties and fees by porting the mortgage instead of breaking it.

Prepayment Options

Equitable Bank permits prepaying up to 15-20% of the original mortgage principal annually without penalty, depending on your specific mortgage product.

Double-Up: Make up to 1 additional payment per year on top of regular payment

Skip-a-Payment: Skip a payment up to once per calendar year

Having an assumable mortgage and payment flexibility provides more options when moving or managing cash flow.

This allows you the flexibility to make lump sum payments on your mortgage, allowing you to pay the balance down faster and save on interest costs over the term.

Mortgage Conversion

When your mortgage term comes up for renewal, Equitable Bank allows converting between fixed and adjustable interest rate terms. This provides flexibility to lock-in fixed rates or float with the prime rate depending on your forecast of future rates and personal situation. Converting may require updated documentation and a credit check.

Property Tax Payments

Equitable mortgages allow borrowers to pay property taxes as part of their mortgage payment. This funds a property tax account held by the lender to make annual tax payments on your behalf.

Cashback Offers

Equitable frequently offers cashback incentives on new mortgages to help with expenses. These range from a few hundred to several thousand dollars back.

Breaking Mortgage Early Penalty

Ending your term before maturity is called ‘breaking’ your mortgage. This incurs prepayment penalties with any lender, including Equitable.

Going beyond prepayment allowances triggers break fees calculated as:

Fixed Rate – Greater of 3 months interest or Interest Rate Differential (IRD)

Variable Rate – 3 to 5 months interest

Having prepayment options helps avoid full break penalties for small lump sums or increased payments.

How to qualify for an Equitable Mortgage?

Qualifying for an Equitable Mortgage
Qualify for an Equitable Mortgage

Equitable Bank looks at a variety of factors when determining mortgage eligibility. While specific program criteria differ, here are some key qualification guidelines:

  • Minimum credit score: 650 or higher in most cases
  • Down Payment: At least 5% down is required for CMHC-insured mortgages
  • Debt Service Ratio (GDS and TDS): Ideally, 38% and 42% or lower

Debt ratios may be flexible for strong applications. Having a co-signer with good credit can also improve qualifications.

Equitable offers alternative lending solutions through its Evolution program for those not qualifying for traditional mortgages.

Getting pre-approved can help you determine if you qualify for the mortgage amount you need. Speak to a mortgage broker to start the process.

How Equitable Mortgages Compare to Other Lenders?

While Equitable Bank offers solid mortgage options, comparing them against big banks and other alternative mortgage lenders is still useful.

Equitable vs Big 6 Banks

Equitable cannot match Canada’s largest banks’ total scope and scale. However, they compete aggressively on mortgage rates while offering more flexible programs for those with unique borrowing needs.

Equitable BankBig 6 Banks
Competitive ratesHigher rates on average
Alternative lending optionsStrict conventional qualifying
Smaller range of productsFull suite of financial products
Broker modelIn-branch and online applications

So, Equitable provides better rates and borrowing flexibility compared to big banks but less convenience and brand recognition.

Equitable vs Online Lenders

Newer digital lenders compete directly with Equitable in terms of rates, speed, and service. However, Equitable’s longer history and wider product suite give them an advantage.

For example, Equitable offers reverse mortgages and commercial lending, which most online lenders do not. And the broker model provides local human expertise that some appreciate over pure online lending.

Equitable generally provides competitive rates versus purely online alternatives while offering a combination of digital convenience and personal service.

Is an Equitable Bank Mortgage Right for You?

Here are some factors to consider when deciding if Equitable Bank could be the right lender for your mortgage:

You want specialized options – Equitable Bank has unique products like reverse mortgages and newcomer programs that big banks may not.

You value customization – Through an experienced broker, Equitable can tailor solutions specific to your needs.

You prefer a more consultative process – Brokers may take more time to understand your full financial picture.

You have unique borrowing needs – Alternative income programs available for self-employed, rural properties, vacation homes etc.

You want rate aggressiveness – Equitable Bank consistently offers very competitive below-market mortgage rates.

Equitable Bank may not be the ideal fit if you desire straightforward approval with a big bank. However, Equitable Bank is worth strong consideration for borrowers who want competitive rates alongside mortgage flexibility and customization.

How to Apply for an Equitable Mortgage?

Equitable Bank works primarily through independent mortgage brokers. To start the application process, you must find and contact a mortgage broker, who will be your main point of contact throughout the process.

Documents Needed

Your mortgage broker will advise you on documents needed from each applicant for the mortgage application, such as:

  • Identification (driver’s license, passport, etc)
  • Income verification (pay stubs, Notice of Assessment, etc.)
  • Down payment evidence (bank statements, deposit receipts, gift letter if applicable)
  • Credit report

Additional documents may be required in certain situations. Your broker will ensure you have everything needed for underwriting.

Timeline for Approval and Closing

Depending on your application and circumstances, mortgage approval times can range from a few days to a few weeks. Some general timelines:

  • Application submission to approval: 5-10 business days on average
  • Conditional approval to firm approval: 2-3 weeks on average
  • Firm approval to closing: As quick as 1 week, but allow 2-3 weeks to be safe

Communicate your desired closing date with your broker so they can coordinate appropriately with Equitable. Rush closings can sometimes be accommodated for a fee.

Get started with a broker early in your home-buying process to ensure no delays.

Connecting With a Mortgage Broker

There are a few ways to find a mortgage broker to work with:

  • Equitable Bank website: They provide a broker locator tool to search for brokers near you.
  • Referrals: Ask friends, family, realtors or other professionals for broker recommendations.
  • Online searches: Search for top mortgage brokers in your local area. Look at reviews and compare.

Once you have identified one or more brokers, contact them for initial consultations. Be prepared to provide details on income, desired loan amount, property value, debts, credit, and overall goals. The broker will help assess your situation and provide mortgage recommendations.

The Bottom Line

Getting a new mortgage is one of the biggest financial decisions Canadians make. It is crucial to do your research on the best rates, options, and lenders for your specific needs.

Equitable Bank is a top alternative lender known for great service, flexibility, and competitive pricing. If you’re looking for the best overall mortgage, we recommend adding them to your comparison shopping list.

To recap or get started on finding your best mortgage option, connect with our team of experts at Best Mortgage Online. We offer complimentary, no-obligation consultations to evaluate your situation and present smart mortgage strategies that save you money. Let us help guide you in making the most of your next mortgage.

Looking for the Best Mortgage Options? Discover our Best Banks for Mortgages in Canada

FAQs on Equitable Mortgages

What is the EQB Evolution Suite from Equitable?

The EQB Evolution Suite provides alternative lending solutions for new Canadians, self-employed, and those with past credit difficulties.

Does Equitable offer commercial mortgages?

Yes, Equitable Bank provides both fixed and adjustable-rate commercial mortgages with competitive terms and flexible lending criteria.

Can I transfer my Equitable mortgage to a new property?

Yes, Equitable allows mortgage portability in qualifying situations with no penalty. Some conditions apply around timing and new property.

How long does it take to close an Equitable mortgage?

Standard closing times range from 1-3 weeks after conditional approval. Quick closings under a week may be possible in certain situations.

Can I make extra payments on my Equitable mortgage?

Yes, you can prepay up to 15-20% of the original principal annually without penalty, depending on the mortgage type.

Can I get a mortgage pre-approval from Equitable?

Yes, your mortgage broker can help you get a pre-approval. This locks in a rate while confirming you qualify for the mortgage amount.

Does Equitable Bank have good mortgage reviews?

Yes, Equitable Bank scores well on Trustpilot, BBB, Google, and Reddit. Customers praise competitive rates, flexibility, and quality service.

Does Equitable Bank have an online mortgage application?

No, Equitable Bank works through mortgage brokers. You need to contact a broker to start the application process.

Article Sources
  1. Equitable Bank Mortgage Rates & Reviews
  2. Equitable Bank Mortgage Review 2024
  3. Compare Equitable Bank Mortgage Rates in Canada
Categories
Lender Review

Desjardins Mortgage Rates and Reviews 2024

Desjardins Mortgage Rates and Reviews
Desjardins Mortgage Rates and Reviews

As one of the largest financial cooperatives in Canada, Desjardins offers a range of products and services to millions of members across the country. Desjardins provides borrowers with competitive mortgage rates and flexible lending options regarding home financing. This 2024 review looks at everything you need to know about Desjardins mortgages.

An Introduction to Desjardins and Desjardins Mortgages

Desjardins

Founded in 1990 in Levie, Quebec, Desjardins is North America’s largest Canadian caisse populaire and credit union, with over $442 billion CAD in total assets.

Desjardins has the largest regional presence in Quebec and Ontario, with 204 local credit unions operating 661 points of service and serving more than seven million members and clients.

Desjardins offers a full range of personal and business banking products, investment services, and insurance policies. The cooperative maintains a strong community focus, emphasizing member education and social responsibility.

With this level of scale and experience, Desjardins offers borrowers competitive rates and knowledgeable support when financing a home.

What are Current Desjardins Mortgage Rates?

Desjardins offers borrowers different types of residential mortgages with both fixed and variable interest rates.

Desjardins Fixed Mortgage Rates

Fixed-rate mortgages have an interest rate that remains unchanged throughout the mortgage term. Desjardins offers competitive fixed rates with terms ranging from 6 months to 10 years.

Here are the current advertised fixed mortgage rates from Desjardins as of September 2024:

TermInterest rate
6 months7.99%
1 year7.24%
2 years6.84%
3 years6.49%
4 years | 4 years (special rate)6.44% | 4.69%
5 years | 5 years (special rate)6.49% | 4.79%
6 years6.59%
7 years6.69%
10 years7.14%
Desjardins Fixed Closed Mortgage Rates

These rates are for high-ratio mortgages with less than 20% down payment. Conventional mortgages with 20% down or more may receive discounted rates.

Desjardins 5-year fixed rates compared to Big Six Banks in September 2024:

Lender5-Year Fixed Rate
Desjardins4.89%
RBC5.34%
Scotiabank5.34%
TD4.79%
CIBC4.99%
HSBC4.64%
National Bank4.84%
Desjardins and Big Six Banks 5-year fixed rates

Desjardins Variable Rate Mortgages

Variable-rate mortgages fluctuate along with the prime rate. Desjardins offers 5-year variable-rate mortgages with the following options:

TermTypeInterest rate
5 yearsClosed protected mortgage6.70%
5 years Closed reduced mortgage6.45%
5 years (special rate)Closed reduced mortgage6.00%
Desjardins 5-year variable rates

(Source: https://www.desjardins.com/qc/en/mortgage/mortgage-rates.html)

Desjardins 5-year variable rates are competitive, beating most major banks.

Understanding Desjardins Mortgage Prime Rates

Like all lenders, Desjardins bases their mortgage rates on the Prime Rate, which is currently 6.45% as of September 2024. The Bank of Canada sets the Prime Rate and influences borrowing costs economy-wide.

Desjardins mortgage rates consist of the Prime Rate plus or minus a set percentage, known as the discount or spread. For example, a 5-year fixed mortgage rate of 4.79% is the 6.45% Prime Rate minus a 1.66% discount. Variable mortgage rates also follow the Prime Rate closely but fluctuate monthly as the Prime Rate changes.

By monitoring moves in the Prime Rate, borrowers can predict if Desjardins mortgage rates are likely to increase or decrease in the near future. Over the past two years, the Bank of Canada has rapidly raised rates, leading to higher borrowing costs at Desjardins and other lenders. But there are now signs of rate hikes slowing as inflation cools.

Other Desjardins Mortgage Options

In addition to fixed and variable mortgages, Desjardins offers alternative lending solutions, such as a HELOC and special payment plans, to help borrowers finance their homes.

Desjardins Home Equity Line of Credit (HELOC)

A home equity line of credit (HELOC) allows homeowners to borrow against the equity they’ve built in their property. As of September 2024, Desjardins offers HELOC rates as low as 6.95%.

Once 20% equity is reached, borrowers can access up to 65% of their home’s value with a Desjardins HELOC. This revolving line of credit secured against the home can be helpful for debt consolidation, renovations, or other large expenses.

Desjardins Rental Property Mortgage

Desjardins offers tailored financing options for real estate investors looking to purchase a rental property. Loan terms range from 1 to 10 years, with options for fixed, variable, or combined interest rates. Investors can also use other properties in their portfolio as collateral.

With the multi-project option, investors can reborrow up to the original loan amount. The loan amount is determined by the property’s value and quality and the investor’s specific needs, offering flexibility for landlords managing multiple rental properties.

Desjardins Hybrid Mortgages

Desjardins offers hybrid mortgages that allow you to customize interest rates, terms, and payment schedules. The flexibility of hybrid mortgages accommodates unique co-borrowing situations when financing a home with family members or buying a shared property, giving co-borrowers more control over their financing.

Desjardins Mortgage Features

Desjardins Mortgage Features
Desjardins Mortgage Features

Desjardins mortgages come with a variety of features and options to fit different borrower needs:

Desjardins Rate Locks

Mortgage rate locks allow you to secure a mortgage rate for up to 120 days while searching for a home. This feature is available on both fixed and variable-rate mortgages from Desjardins. Rate locks provide payment stability and protect against rate increases during the home-buying process.

Increasing Payments Amount and Frequency

Desjardins provides ways for borrowers to increase their mortgage payments and repay their loans faster. On closed mortgages, borrowers can raise their payment amount once annually, up to double their regular payment. There is no fee for this option.

Additionally, choosing more frequent payments, such as weekly or bi-weekly instead of monthly, can accelerate repayment, the same as making one extra payment per year. This feature reduces interest costs over the life of the mortgage.

Desjardins Prepayment Limit

Prepayment means paying down your mortgage principal faster by making lump sum payments. Desjardins offers up to 15% annual prepayment on closed mortgages. Paying above that limit will trigger prepayment charges.

LenderPrepayment Limit
Desjardins15%
TD Mortgage15%
Scotiabank15%
CIBC10% to 20%
RBC10%
BMOUp to 20%
National Bank10%
Prepayment Limit of Desjardins vs. Big Six Banks in Canada

Desjardins Prepayment Penalty Refund

Penalties are based on the Interest Rate Differential (IRD) formula, which looks at the difference between your mortgage rate and Desjardins’ posted rate. Borrowers are expected to pay 3 months of interest penalties on a variable rate mortgage or IRD penalties on a fixed.

However, prepayment penalties assessed can be fully refunded by Desjardins under certain conditions. To qualify for the penalty refund, you must apply for a new mortgage with Desjardins within 90 days of selling and closing your property. The new mortgage amount you get pre-approved for must be equal to or greater than the amount of your previous mortgage with the same mortgage terms.

Desjardins Green Homes Program

Desjardins provides up to $2000 cash back for LEED or Energy Star-certified homes. They also offer a free one-year mortgage payment plan and home assistance for sustainable and energy-efficient properties.

Desjardins Mortgage Protection Insurance

For borrowers looking to purchase a home, Desjardins offers optional mortgage protection insurance that provides life and disability coverage, adding an extra layer of financial security.

  • Helps cover mortgage payments if you become disabled and cannot work
  • Pays off some or all of the mortgage balance if you pass away
  • Useful for peace of mind and protecting family and property
  • Premium cost depends on coverage type, age, and mortgage amount

Why Choose a Desjardins Mortgage?

Why Choose a Desjardins Mortgage?
Why Choose a Desjardins Mortgage?

As a borrower, why might you consider financing your home with a credit union like Desjardins versus one of the big banks? Here are some of the top benefits.

Local Focus and Personalized Service

With its extensive regional branch network concentrated in Quebec, Desjardins emphasizes grassroots presence and community building. Mortgage advisors at local caisses populaires can provide personalized guidance and support based on borrowers’ unique needs and goals.

Competitive Rates and Flexibility

As shown above, Desjardins offers very competitive mortgage rates compared to Canada’s largest financial institutions. Their discounted Prime-linked rates reflect a cooperative structure’s efficiencies and lower costs.

Desjardins also demonstrates pricing flexibility on a case-by-case basis, meaning borrowers can potentially negotiate mortgage rates under certain conditions. This highlights the advantages of working with a smaller lender.

Credit Union Member Benefits

Desjardins members in good standing can receive patronage dividends based on interest paid. Borrowers also earn Member Advantages points on their mortgages that can be redeemed for rewards or cashback. Credit unions like Desjardins often invest more in local communities than banks.

Range of Products Under One Roof

In addition to competitive mortgages, Desjardins cross-sells various loan options, investments, insurance policies, and other financial products, all accessible through a single trusted provider. The convenience of bundled services makes Desjardins a one-stop shop for many borrowers.

How to apply for a Desjardins Mortgage?

Ready to move forward with Desjardins for your home financing? Here are some tips for getting pre-approved and submitting your mortgage application.

Getting Pre-Approved

Getting pre-approved helps you understand how much mortgage financing you qualify for before making an offer. Desjardins offers pre-approvals online, by phone or in person at a Caisse populaire branch.

You’ll need to provide basic personal information and supporting documents to verify income, down payment funds, employment and credit history. The pre-approval process is free and takes 1-2 business days.

Applying for a Mortgage

Once you have an accepted offer on a property, you can proceed with formally applying for mortgage financing. Desjardins offers an online mortgage application that lets you securely upload all required documents electronically.

Required documents include:

  • Valid ID
  • Proof of income
  • Down payment deposit records
  • Home Appraisal
  • Mortgage default insurance, if required

Mortgage approval timelines range from 48 hours up to 15 days. You can monitor the status of your mortgage application through online banking. Expect faster approval times if you’ve been pre-approved.

Desjardins Mortgage: Is It the Right Choice for You?

For borrowers located in Quebec or Ontario who want personalized service and competitive rates, Desjardins represents an excellent mortgage financing option worth considering. Their cooperative member-ownership structure provides tangible advantages compared to dealing with shareholder-owned major banks.

However, Canadians outside Desjardins’ core regions may find more branch convenience when selecting a nationwide bank. Alternative lending options like online-only mortgage providers offer even lower rates through discount broker channels.

The best approach is to include Desjardins from multiple lenders in your rate comparisons. Look across banks, credit unions, mortgage brokers, and fintech lenders to find your optimal match for competitive pricing, product features, and customer service access. Desjardins consistently ranks among the top choices for borrowers in Quebec and Ontario.

Looking for the Best Mortgage Options? Discover our Best Banks for Mortgages in Canada

Compare Your Desjardins Mortgage Options Now!

Are you looking for the best mortgage rates in Canada? The expert team at Best Mortgage Online can help you identify your ideal financing solution from over 50+ lenders. Get matched with top-rated brokers or lenders that meet your unique needs and budget.

FAQs

What documents do I need to apply for pre-approval?

Required documents for pre-approval include valid ID, proof of income, down payment source records, employment confirmation letter, and authorization for Desjardins to access your credit report.

How long does it take to get approved for a Desjardins mortgage?

Approval timelines range from 48 hours to 15 business days once a full application is submitted. Those with pre-approval tend to get faster decisions.

Does Desjardins offer mortgages for rental properties?

Yes, Desjardins offers tailored rental property and investment mortgage options for real estate investors and landlords.

What is the maximum amortization period on a Desjardins mortgage?

The maximum amortization period is 25 years. This means the mortgage is spread out over 25 years for repayment, regardless of the chosen term.

Can I port my Desjardins mortgage to a new property?

Yes, Desjardins allows mortgage portability, where you can transfer the existing mortgage to a new property while maintaining the same rates and terms.

Can I make lump sum payments on my Desjardins mortgage?

Yes, you can prepay up to 15% of the original mortgage amount annually without penalty on most closed mortgages. This goes directly to the principal.

Does Desjardins offer cashback incentives on mortgages?

Desjardins provides up to $2000 cashback on mortgages for LEED or Energy Star certified sustainable green homes.

Article Sources
  1. Desjardins Mortgage Rates & Reviews
  2. Our guide to Desjardins mortgages
  3. Compare Desjardins Mortgage Rates in Canada
Categories
Lender Review

BMO Mortgage Rates and Reviews 2024

BMO Mortgage Reviews
BMO Mortgage Reviews

About Bank of Montreal Mortgages

BMO

The Bank of Montreal (BMO) is one of Canada’s Big Six banks and has operated since 1817.

Its head office is in Montreal, Quebec. The head executive offices are in Toronto, Ontario.

As Canada’s first bank, BMO offers a full suite of banking products, including personal banking, business lending, investing, and wealth management services. It also offers a wide selection of mortgage solutions.

BMO mortgages are available for purchasing or refinancing homes, rental properties, vacation properties, and land. You can choose from variable and fixed-rate mortgages, with flexible terms ranging from 6 months to 10 years. BMO also offers open and closed mortgages and specialty products like the Homeowner ReadiLine and mortgages for self-employed borrowers.

This article provides an extensive overview of BMO mortgage rates, features, fine print, and customer satisfaction. Read on for a detailed guide to help you make an informed decision on a BMO mortgage.

Best BMO Mortgage Rates

To secure the best rates, it is critical to consider the type and features of a BMO mortgage. Here are some key decision factors:

BMO Mortgage Prime Rate

BMO’s prime rate is currently 6.45%. Variable-rate mortgages and lines of credit move based on changes to the prime rate.

BMO Posted vs Discounted Rates

BMO’s posted rates are their standard rates, while discounted rates provide special savings off the posted rates. Things to consider:

  • Discounted rates are temporary and can disappear anytime.
  • You may need to meet eligibility requirements for special rates.
  • Posted rates provide a reliable benchmark for comparison.

Review both types when shopping for the best BMO mortgage rate.

BMO Fixed vs Variable Rate Mortgages

With a fixed-rate mortgage, your interest rate and payment stay the same for the full term. A variable rate fluctuates based on the prime rate.

BMO’s current 5-year fixed rate is 6.79%, while its 5-year variable is 6.45%. The variable offers lower initial payments but carries the risk of increases if the prime rate rises.

Read more: Fixed vs. Variable Rate Mortgage in Canada

BMO Smart Fixed Mortgages

One unique mortgage product BMO offers is the Smart Fixed mortgage, a closed fixed-rate mortgage. It offers a discounted rate compared to BMO’s standard fixed-rate mortgages in exchange for agreeing to some limitations on prepayment flexibility.

FeaturesSmart Fixed MortgageFixed-Rate Mortgage
Prepay in the first five yearsNoYes
Prepayment LimitUp to 10%Up to 20%
Interest rateLowerHigher

A Smart Fixed Mortgage’s lower costs and predictable payments may appeal to borrowers who want payment stability and do not foresee needing to make major prepayments during their term.

To be eligible for the Smart Fixed lower rate, you must meet specific criteria:

BMO Convertible Mortgages

BMO convertible mortgages let you change from a variable to a fixed rate during your term without penalty. This allows you to lock in a fixed payment later if variable rates increase.

Shorter vs. Longer Terms

Short terms (under 3 years) provide flexibility to renegotiate your rate sooner if market rates drop. However, you’ll have to renew more frequently.

Long-term (over 3 years) means rate and payment stability. But you’re locked in even if better rates become available.

BMO offers terms from 6 months up to 10 years. Choose based on your budget outlook and rate forecast.

Read more: Mortgage Term in Canada

BMO Closed vs Open Mortgages

Closed mortgages lock you into a contract with limited prepayment flexibility but at lower rates. BMO’s closed rates are 0.5% to 2% cheaper than its open rates.

Open mortgages allow prepayment anytime without penalties but have higher interest costs over the term. Open mortgages make sense if you plan to sell soon.

Rate vs. APR

Focus on the Annual Percentage Rate (APR), not just the base rate alone. The APR shows the total yearly borrowing cost, including fees. Even small APR differences significantly impact your long-term costs.

What are Current BMO Mortgage Rates?

Current BMO Mortgage Rates
Current BMO Mortgage Rates

BMO Posted Mortgage Rates

Term LengthBMO Posted Rate
1-Year Fixed7.74%
2-Year Fixed7.34%
3-Year Fixed6.95%
4-Year Fixed6.74%
5-Year Fixed6.79%
5-Year Smart Fixed6.69%
6-Year Fixed6.99%
7-Year Fixed7.05%
10-Year Fixed7.45%
10-Year Smart Fixed7.35%
BMO posted fixed closed mortgage rates as of Sep12, 2024

BMO Mortgage Products

In addition to its standard mortgages, BMO offers specialty mortgage solutions for unique borrowing needs:

BMO Self-Employed Homeowner Mortgage

Self-employed individuals qualify for the same BMO mortgage rates and terms as other borrowers. However, you’ll need to provide supplemental income documentation such as:

  • Last two years’ tax returns and Notices of Assessment
  • Audited financial statements
  • Statement of business activities
  • Notice to reader financial statements

BMO Investment Property Mortgage

For investment properties, BMO requires a minimum 20% down payment. If you occupy part of the property, you may qualify for as low as 5% down by obtaining mortgage loan insurance.

Other considerations for an investment property mortgage include:

  • Property valuation and capitalization rate
  • Location desirability
  • Expenses like taxes, insurance and maintenance

BMO US Mortgage

As a Canadian, you can leverage your Canadian credit history to qualify for a US mortgage through BMO’s American subsidiary, BMO Harris Bank. This helps if you have a limited US credit history.

You’ll need to provide financial documents including:

  • Tax returns and Notice of Assessments
  • Proof of income
  • Bank statements
  • IDs
  • Property tax and insurance details

US mortgage rates and terms vary. BMO Harris offers fixed and adjustable rate mortgages up to $2 million USD.

What are the key features of BMO Mortgages?

BMO Mortgage Features
BMO Mortgage Features

In addition to competitive rates, BMO offers several features that provide useful flexibility:

130-Day Rate Hold

BMO provides a 130-day rate lock on pre-approvals for fixed-rate mortgages, the longest offered among Canada’s major banks. This locks in your rate for 4+ months during the home-buying process.

Read more: Should I get a Mortgage rate lock?

BMO Mortgage Prepayment Options

BMO allows extra prepayments to pay your mortgage down faster.

1. Increase your payments – For most mortgages, you can increase your payments by up to 20% annually. For Smart Fixed mortgages, the limit is 10%.

2. Make lump sum payments – You can make lump sum prepayments up to 20% of the original mortgage annually (10% for Smart Fixed mortgages). These payments go directly against your principal.

BMO Accelerated payment options

You can make mortgage payments more frequently – weekly or bi-weekly – to reduce your principal faster. This lowers the amount of interest accrued between payments.

Mortgage Protection Insurance

BMO lets you add optional mortgage life, disability and critical illness insurance to cover payments if you cannot work.

Property Tax Payments

Your mortgage contract may require you to make monthly property tax payments to BMO in addition to your regular payments. This ensures taxes are paid on time.

BMO Homeowner ReadiLine

This product bundles a mortgage with a revolving home equity line of credit. As your mortgage balance decreases, your available credit increases. This consolidated option provides stability while allowing you to access funds if needed.

RBC Mortgage Cashback Offer

In addition to competitive rates, BMO also provides special offers for new mortgages that can provide further savings.

One of their current promotions is an attractive cashback reward of up to $4,100 for new mortgages of $500,000 and above with terms of 3 years or longer.

You must set up a new or existing BMO chequing account to make your mortgage payments to qualify. The cashback reward tiers are:

  • Mortgage amount up to $500,000: $1,000 cashback
  • Mortgage amount $500,000 to $750,000: $2,000 cashback
  • Mortgage amount $750,000+: $3,000 cashback
  • Mortgage amount $1 million+: $4,000 cashback

This cashback amount is deposited to your BMO chequing account within 90 days of funding your new mortgage. It provides an extra incentive to choose BMO for your new home loan.

This offer is available from September 5, 2024, to November 5, 2024. Check BMO’s website for full details and any changes to the offer terms.

(Source: https://www.bmo.com/main/personal/mortgages/special-offers/)

Cashback rewards help reduce your overall mortgage costs. When shopping different lenders, make sure to see what current promotions are available, as attractive signup bonuses can provide substantial saving

How do you get pre-approved for a BMO mortgage?

Getting pre-approved starts the mortgage process off right. Here are your options with BMO:

Online – BMO allows full online pre-approval by submitting documents through their website. The online process is straightforward.

In-person – You can also meet with a mortgage specialist at one of 900+ BMO branches. This allows you to ask questions and get personalized advice.

Documents needed – Provide financial information such as tax returns, pay stubs, IDs, and property details.

Once approved, you can shop knowing your budget and terms. Take advantage of BMO’s industry-leading 130-day rate hold to lock in your rate.

Tips to Get the Best BMO Mortgage Rate

Here are some tips that may help you get approved for better BMO mortgage rates:

  • Improve your credit score – A higher credit score signals you are at lower risk.
  • Make a larger down payment – 20%+ down avoids mortgage insurance.
  • Reduce existing debts – Less debt improves your ability to carry a mortgage.
  • Provide strong financial records – Documents that demonstrate you can make payments.
  • Consider having a cosigner – Having a second borrower with good credit can help.
  • Negotiate – Discuss getting the best possible rate for your situation.

The stronger your financial profile, the better mortgage rate you can qualify for.

What are Alternatives to BMO mortgages?

BMO is just one option among hundreds of mortgage lenders in Canada. Here are some strong alternatives to consider:

Mortgage Brokers – A broker shops multiple lenders and negotiates on your behalf. They can access better non-bank rates you can’t get directly.

Credit Unions – Credit unions offer very competitive rates and excellent customer service. First National and Meridian Credit Union are the top options.

Monoline Lenders – Specialized mortgage lenders like MCAP and First National provide online applications and low rates.

Online Banks – Digital banks like Tangerine feature fast e-approvals and discounted promotions.

Shop around and compare quotes to find your best fit.

More Guide on Top Banks for Mortgage in Canada

Looking for the Best Mortgage Options? Discover our Best Banks for Mortgages in Canada

The Bottom Line

As one of Canada’s largest banks, BMO provides various mortgage products, competitive rates and valuable features. Comparing quotes from alternative lenders ensures you get your best personal deal. With smart shopping, a BMO mortgage could suit your home loan needs.

For personalized mortgage advice on BMO Mortgage for your unique situation, contact our mortgage brokers at Best Mortgage Online, who can help you find the best mortgage option and save thousands.

FAQs

What is the minimum down payment for a BMO mortgage?

The minimum down payment for properties under $500,000 is 5% of the purchase price. For properties between $500,000 and $999,999, it is 5% on the first $500,000 plus 10% on the remainder. Over $1 million requires a minimum 20% down payment.

What credit score is needed for a BMO mortgage?

BMO generally requires a minimum credit score of 600 for mortgage approval. Those with scores below 600 may need to consider alternative lenders. The higher your score, the better rate you can qualify for.

Can I get a pre-approval for a BMO mortgage online?

Yes, BMO allows you to complete the entire mortgage pre-approval process online by submitting your financial information through their website. You can also meet with a mortgage specialist in person.

Does BMO offer mortgages for investment properties?

Yes, BMO provides mortgages for rental properties and investment properties. You will need a minimum 20% down payment on investment properties financed through BMO.

What term lengths are available for BMO mortgages?

BMO offers mortgage terms ranging from 6 months to 10 years. The most common terms are 1-year, 3-year, 5-year, and 10-year fixed-rate mortgages.

Can I break my BMO mortgage contract early?

You can prepay a certain amount annually without penalty if you have a closed fixed rate mortgage. To fully break the contract early, you will pay a prepayment charge depending on your mortgage type. An open mortgage allows prepayment anytime without penalty.

Does BMO offer mortgages for new immigrants?

Yes, BMO offers mortgage options tailored to newcomers to Canada with alternative credit history documentation. Their multilingual mortgage specialists can also assist in multiple languages.

What mortgage insurance options does BMO offer?

BMO offers optional mortgage life, critical illness, disability, and job loss insurance to cover payments in case you cannot work or pass away.

Article Sources
  1. BMO Mortgage Rates & Reviews – wowa.ca
  2. BMO Mortgage Review 2024 – nerdwallet.com
  3. BMO Mortgage Rates 2024
Categories
Lender Review

National Bank Mortgage Rates and Reviews 2024

National Bank Mortgage Reviews
National Bank Mortgage Reviews

About National Bank of Canada – NBC

national bank of Canada

National Bank is one of the Big Six banks in Canada, offering a wide range of mortgage options to borrowers nationwide. With headquarters in Montreal and over 20,000 employees, National Bank has grown to be the 6th largest bank in Canada, with $350 billion in assets under management.

When it comes to mortgages, National Bank provides both fixed / variable rates and other unique options, with competitive interest rates and flexible features. This comprehensive guide will provide an in-depth look at National Bank mortgage rates, reviews, eligibility requirements, penalties, and how to get the best deal in 2024.

Current National Bank Mortgage Rates

National Bank Mortgage Prime Rate

As of September 2024, the National Bank prime rate is 6.45%. This prime rate is used to determine the actual interest rates for variable-rate mortgages and lines of credit.

For example, a variable-rate mortgage may be the prime rate minus 0.5%. So, if the prime rate is 6.45%, that mortgage would have an interest rate of 5.95%.

The prime rate also indicates the direction of variable mortgage rates. If the prime rate goes up, variable mortgage rates will also increase.

National Bank can adjust its prime rate at any time, so it’s important to monitor changes if you have a variable-rate product.

Let’s explore the current mortgage rates offered by National Bank as of September 2024.

National Bank Fixed Mortgage Rates

TermNational Bank RateLowest of Big 6 Banks
6 month7.84%7.84%
1 year7.64%6.19% (RBC)
2 year7.14%5.78% (BMO)
3 year6.74%4.99% (RBC)
4 year4.89%4.89%
5 year4.94%4.64% (CIBC)
6 year6.85%5.34% (BMO)
7 year6.85%5.49% (BMO)
10 year7.25%5.68% (BMO)
National Bank Mortgage fixed rates as of 2024

National Bank Variable Mortgage Rates

TermNational Bank RateLowest of Big 6 Banks
5 year6.45%5.65% (CIBC)
National Bank Mortgage variable rates as of 2024

*Rates are subject to change

(Source: https://www.nbc.ca/personal/mortgages/rates.html)

How National Bank Mortgage Rates Compare?

Compared to the other Big 5 banks, National Bank tends to have higher interest rates on 1 to 5-year fixed-rate mortgage terms. For example, for a 5-year fixed rate mortgage, National Bank’s rate is 4.94%, while most other major banks are between 4.64% to 4.99%.

However, National Bank offers more flexibility and options, with 6-month, 6-year, and 7-year fixed rate terms that may not be available at all banks.

National Bank’s 5-year variable rate of 6.45% for variable-rate mortgages is moderately higher than competitors like RBC at 5.5% or CIBC at 5.95%.

Overall, National Bank provides competitive rates but is not always the most affordable major bank option. The flexibility of term options can be an advantage for specific borrowers.

Get the Best Mortgage Rates with National Bank

While published rates provide a starting point, you can often negotiate a lower interest rate with National Bank. Here are some tips to get the best possible deal:

  • Shop around – Get rate quotes from other lenders to negotiate with National Bank.
  • Ask about promotions – Enquire about any limited-time discounts or bonuses.
  • Increase down payment – The higher your down payment, the better your rates.
  • Boost your credit score – Credit scores over 760 qualify for the best rates.
  • Lower your debt – Reduce debts and credit utilization for better rates.
  • Consider a shorter term – You may get a lower rate with a 1 or 2-year term.
  • Monitor rate trends – Apply when fixed rates are dropping to lock in low rates.
  • Negotiate, negotiate, negotiate – Ask National Bank directly if they can beat the rates you’ve been quoted elsewhere.

With some preparation and negotiation, securing a National Bank mortgage below their posted rates is possible.

National Bank Mortgage Options

National Bank Mortgage Options
National Bank Mortgage Options

National Bank offers a variety of mortgage products to suit different needs and situations. Here is an overview of the main mortgage options available:

Fixed Rate Mortgages

Fixed-rate mortgages have an interest rate set for the entire mortgage term, typically 1 to 10 years. National Bank offers terms of 6 months up to 10 years for closed fixed-rate mortgages.

The main advantages of fixed-rate mortgages are their interest rate stability and payment predictability. However, they also have strict prepayment rules and potential penalties if broken before maturity.

Variable Rate Mortgages

With a National Bank variable-rate mortgage, the interest rate fluctuates based on changes to the prime rate. Variable-rate terms up to 5 years are available.

Variable-rate mortgages generally come with lower interest rates than fixed mortgages in exchange for the flexibility to pay off the balance anytime without penalty. This makes them a good option if interest rates are expected to decrease.

Read more: Fixed vs. Variable Rate Mortgage in Canada

HELOCs

National Bank offers home equity lines of credit (HELOCs) through its All-In-One product. This revolving line of credit uses the equity built up in your home as collateral and provides flexible access to funds for any purpose.

Self-Employed Mortgage

For borrowers who have been self-employed for over two years, National Bank offers tailored mortgages that consider factors beyond tax returns to determine eligibility and affordability.

Newcomer Mortgage

This mortgage option is designed for new immigrants or non-residents purchasing their first home in Canada. It provides flexible options for those with a limited Canadian credit history.

Construction Mortgage

National Bank offers construction mortgages to finance building a new home. The funds are provided in stages based on the progress of construction.

Second Home Mortgage

For those looking to purchase a second property, National Bank offers mortgage financing up to 90% of the value of the second home. This allows existing home equity to be used for a down payment.

National Bank Mortgages Features

National Bank offers several features and flexibility options to help you pay off your mortgage faster or access home equity.

Payment Acceleration Options

To repay your mortgage faster, National Bank provides:

  • Prepayment option – Pay up to 10% of your original principal annually.
  • Double-up payments – Double your payment up to 100% without penalty.
  • Increase payment frequency – Switch from monthly to weekly or bi-weekly payments.

Accessing Home Equity

With the All-In-One HELOC, you can access your home’s equity for other purposes.

You can also refinance or take out a second mortgage to access equity for renovations, debt consolidation, or investing.

Portability

Unfortunately, National Bank does not allow you to port your existing mortgage to a new home. You would need to get a new mortgage for your next home.

Mortgage Protection Insurance

National Bank offers optional mortgage protection packages that can cover your payments if faced with unemployment, disability, illness or death.

National Bank Mortgage Penalties

If you need to break your mortgage term before maturity or make any prepayments over your allowed limit, penalties will apply. Here are the National Bank mortgage break penalties:

Fixed Rate Mortgage Penalties

Fixed-rate mortgages come with steep penalties if broken early:

  • 3 months of interest
  • Or the IRD (interest rate differential) penalty, which is calculated based on the difference between the interest rates on the day the mortgage was taken and the current rates on the day it was broken.

Whichever penalty amount is higher will apply.

Variable Rate Mortgage Penalties

Breaking a National Bank variable-rate mortgage early results in a 3-month interest penalty calculated based on the current prime rate.

Mortgage Port-Out Penalties

Porting out your existing mortgage comes with the same penalties as breaking your term and taking your mortgage elsewhere.

Always weigh the break penalty cost against any savings from getting a new lower rate. Breaking your term only makes sense if the long-term savings outweigh the penalty.

National Bank Mortgage Eligibility Requirements

National Bank Mortgage Eligibility Requirements
National Bank Mortgage Eligibility Requirements

To qualify for a mortgage with National Bank, you will need to meet certain eligibility criteria. Here are some of the key requirements:

Down Payment

Your minimum down payment depends on the purchase price:

  • Up to $500,000 – Minimum 5% down
  • $500,000 to $999,999 – 5% on the first $500,000 + 10% on the remainder
  • Over $1 million – Minimum 20% down

Debt-to-Income Ratio (GDS & TDS)

Your total monthly debt payments compared to gross monthly income should not exceed 39% for the total debt ratio and 44% for the total debt service ratio.

Credit Score

National Bank looks for a minimum credit score of 670, with scores over 800 considered excellent.

Other Criteria

Other factors that National Bank considers include your credit management history, stable employment history, and asset amount.

Meeting the minimum eligibility criteria does not guarantee approval. Before applying, work on improving your credit score and debt levels well before applying.

National Bank Mortgage Pre-Approvals

National Bank offers pre-approval certificates that guarantee your rate and approval for up to 90 days while you search for a home.

Pre-approvals come with these key benefits:

  • Lock-in rates – Your rate is secured even if rates rise during your 90-day term.
  • Strengthen offers – Sellers know you can secure financing.
  • Act fast on homes – No need to rush the mortgage application after finding a home.

National Bank must see updated financial information and property details before finalizing the mortgage. But you can shop with confidence, knowing you have already been approved.

Pros of National Bank Mortgages

Here are some of the advantages of getting a mortgage through National Bank:

  • Many term options – With terms from 6 months to 10 years, National Bank offers more flexibility than some lenders that max out at 5 years.
  • Access to equity – The All-In-One mortgage and HELOC product provides easy access to your home’s equity.
  • Online application – Get pre-approved fully online without visiting a branch.
  • Self-employed options – Special programs exist for self-employed borrowers.
  • Newcomer options – New immigrants can qualify with a limited Canadian credit history.
  • Second home financing – Access up to 90% financing for a second property.

Cons of National Bank Mortgages

There are also some potential drawbacks to consider with National Bank:

  • Higher rates – Interest rates tend to be higher than competitors on fixed mortgages.
  • Low prepayment limits – You can only prepay up to 10% of your mortgage annually before penalties apply.
  • Short rate holds – Rate holds last 90 days, while some lenders offer 120 days.
  • No portability – You can’t port your mortgage to a new property with National Bank.
  • High penalties – Mortgage break penalties at National Bank can be higher than other lenders.

Alternative Mortgage Lenders to Consider

While National Bank is a leading banking option, here are some alternative mortgage lenders in Canada to consider:

  • Mortgage brokers – Brokers shop rates from lenders on your behalf for free and can find you the most competitive rate for your situation.
  • Credit unions – Local credit unions are a good option for personalized service and competitive rates.
  • Alternative banks – Options like Tangerine offer unique products like no-penalty variable rate mortgages.
  • Private lenders – For those who don’t qualify with traditional lenders, private lending is an option with higher rates.
  • Online lenders – Companies like Ratehub and Borrowell offer online-only mortgages with low rates.

No matter what type of lender you choose, make sure to compare offers from multiple providers.

More Guide on Top Banks for Mortgage in Canada

Looking for the Best Mortgage Options? Discover our Best Banks for Mortgages in Canada

Making the Best Decision for Your Mortgage Needs

Choosing the right mortgage lender and product is an important decision. Here are some final tips when weighing National Bank against other options:

  • Compare interest rates and features from at least 3 mortgage providers
  • Calculate the costs for your specific mortgage amount and term
  • Consider your plans and budget for repaying your mortgage
  • Review National Bank’s rates and penalties policies thoroughly
  • Look for additional discounts if you have other accounts with National Bank
  • Get personalized advice from a mortgage broker or advisor
  • Go with the mortgage that best balances affordability, features, and long-term costs

While National Bank can be a suitable option, you should explore both banks and alternative lenders to find your best fit.

Get your National Bank Mortgage today!

If you feel a National Bank mortgage meets your needs, you can get started with their online pre-approval process. With a pre-approval certificate, you can shop for your dream home knowing your financing is secured.

For personalized mortgage advice and to explore alternatives to National Bank for your unique situation, contact our mortgage brokers at Best Mortgage Online, who can shop on your behalf from a wide range of lenders.

To get started, simply fill out our quick online form detailing your financing needs. From there, we take care of the rest, including:

  • Reviewing your situation and goals
  • Shopping rates from our extensive lender network
  • Negotiating on your behalf for the lowest rate
  • Guiding you through the mortgage process from start to finish

There is no obligation or cost for this service! Connect with us today to explore your mortgage options and get pre-approved to purchase your dream home this year!

FAQs

What are the best National Bank mortgage rates?

The lowest National Bank rates are typically on shorter 1-2 year fixed-term mortgages and 5-year variable mortgages. However, always shop around and negotiate, as advertised posted rates are rarely the best deal available.

How do I apply for a mortgage with National Bank?

You can apply online or in person at a National Bank branch. Have all required documents ready and fill in the application forms to get a quick pre-approval decision.

What credit score is needed for a National Bank mortgage?

National Bank requires a minimum credit score of 670, but scores above 760 will qualify for the best rates.

Does National Bank do mortgages for self-employed?

Yes, National Bank offers a self-employed mortgage program for borrowers who have been self-employed for over 2 years.

Can I break my National Bank mortgage early?

You can break your National Bank mortgage term early but will face steep penalties - either three months' interest or the IRD penalty amount.

What National Bank mortgage terms are available?

National Bank offers a wide variety of terms for fixed-rate mortgages, from 6 months to 10 years. Variable-rate terms up to 5 years are also available.

Can I port my existing mortgage to a new home with National Bank?

Unfortunately, the National Bank does not offer mortgage portability. You would need to get a new mortgage for your next home.

How do I access the equity in my home with National Bank?

The All-In-One mortgage product from National Bank provides access to a home equity line of credit that uses your home's equity as collateral.

What is the maximum amortization period for a National Bank mortgage?

The maximum amortization period available is 25 years. This means you can spread repayment on the mortgage up to 25 years into the future.

Article Sources
  1. National Bank Mortgage Rates & Reviews – wowa.ca
  2. National Bank Mortgage Review 2024 – nerdwallet.com
Categories
Lender Review

CIBC Mortgage Rates and Reviews 2024

CIBC Mortgage Rates and Reviews
CIBC Mortgage Rates and Reviews 2024

Introduction to Canadian Imperial Bank of Commerce – CIBC

Canadian Imperial Bank of Commerce (CIBC) was formed in 1961 by merging the Canadian Bank of Commerce and the Imperial Bank of Canada. It is one of the Big Six Banks in Canada, with over $737 billion in assets as of April 2024.

CIBC offers a wide range of financial services, including retail and business banking, wealth management, and capital markets. The bank has over 1000 branches across Canada and serves over 11 million clients.

When it comes to mortgages, CIBC offers a variety of mortgage solutions, including:

  • Fixed and variable rate mortgages
  • Mortgages for newcomers to Canada
  • Refinancing and renewal options
  • Mortgages for rental/investment properties
  • Mortgages for second homes/vacation properties
  • Cashback mortgages
  • Mortgage life and disability insurance

CIBC offers mortgages for 2024 to a range of borrowers, from first-time homebuyers to real estate investors. Keep reading to learn more.

What are current CIBC Mortgage Rates?

CIBC Mortgage Rates
CIBC Mortgage Rates

The interest rate you pay on your mortgage significantly impacts your overall costs. CIBC mortgage rates are influenced by several factors, including the Bank of Canada benchmark rate, market conditions, and borrower profiles.

CIBC Prime Rate

The CIBC Prime Rate is the benchmark interest rate used for variable-rate mortgages and other credit products. As of August 2024, it was 6.70%.

Effective DateCIBC Prime Rate
January 20193.95%
March 20202.45%
March 20222.70%
October 20225.95%
July 20237.20%
June 20246.95%
July 20246.70%
CIBC Historical Effective Prime Rate

(Source: https://wowa.ca/banks/cibc-mortgage-rates)

The Prime Rate will follow suit when the Bank of Canada raises or lowers its overnight lending rate. Variable rate mortgages fluctuate based on changes in the Prime Rate.

CIBC Fixed Mortgage Rate

CIBC offers fixed-rate mortgages with terms ranging from 6 months to 10 years. With a fixed rate, your interest rate and monthly payment stay the same for the entire term, providing stability and predictability.

TermRate
6 month Fixed8.25%
1 Year Fixed6.69%
2 Year Fixed5.99%
3 Year Fixed5.24%
4 Year Fixed5.09%
5 Year Fixed4.64%
10 Year Fixed7.64%
CIBC mortgage fixed rates as of August 2024

(Source: https://www.cibc.com/en/personal-banking/mortgages/fixed-rate-mortgages.html)

Fixed rates provide stability, but you cannot take advantage of them if interest rates fall during your term.

CIBC Variable Mortgage Rate

With a CIBC variable-rate mortgage, your interest rate changes when CIBC’s Prime Rate goes up or down. Your monthly payments stay the same, but more of your payment goes toward interest when rates rise and more toward paying down your principal when rates fall.

TermRate
3 Year Variable5.95%
5 Year Variable5.65%
Current CIBC variable mortgage rates

Variable-rate mortgages offer flexibility, but they also carry the risk that payments could rise significantly if interest rates spike.

(Source:

Read more: Fixed vs Variable-rate Mortgages in Canada

CIBC Mortgage Rates Compared

How do CIBC’s rates stack up against the competition? Here’s a comparison of CIBC’s lowest advertised special offer rates versus the lowest rates currently offered by Canada’s other Big Six banks:

TermCIBC RateLowest of Big 6
1-year fixed6.39%6.34% (RBC)
2-year fixed5.88%5.64% (TD)
3-year fixed5.09%4.79% (TD)
4-year fixed4.99%4.79% (TD)
5-year fixed4.64%4.59% (Scotiabank)
10-year fixed5.78%5.34% (National Bank)
3-Year Variable5.95%5.95%
5 Year Variable5.65%5.65%
CIBC Mortgage rates vs. Other Big Banks

Based on current advertised rates, CIBC offers very competitive 5-year fixed rates but falls slightly behind on shorter 1-3-year terms. However, mortgage rates can change frequently, so it pays to shop around.

CIBC Mortgage Products

In addition to standard fixed and variable rate mortgages, CIBC offers specialty mortgage solutions.

CIBC Mortgages for Newcomers

CIBC offers three mortgage options tailored for new immigrants and foreign workers:

  • Newcomers to Canada Mortgage: For permanent residents with limited Canadian credit history.
  • Newcomers to Canada Mortgage Plus: For new citizens/permanent residents moving to Canada.
  • Foreign Workers Program: For foreign nationals with a valid Canadian work permit.

These programs only require 1-3 years of foreign credit history. Newcomers can use mortgage loan insurance to apply for a down payment as low as 5%.

CIBC Refinancing and Renewal

CIBC offers mortgage refinancing solutions, including:

  • Refinancing an existing home to access equity or obtain a lower interest rate
  • Refinancing a rental property investment mortgage
  • Consolidating other high-interest debts into your mortgage

When your mortgage term expires, CIBC will provide renewal offers for terms of 6 months up to 10 years. Renewing with CIBC may provide payment stability by avoiding having to requalify at a potentially higher rate.

CIBC Mortgages for Rental Properties

CIBC offers tailored mortgages for real estate investors, including:

  • Rental income properties
  • Mixed-use residential and commercial buildings
  • Student rental housing

Investors can access up to 4 units with 20% down. With 25% down, CIBC offers financing for 5+ units.

CIBC Vacation Property Mortgage

CIBC provides financing for second properties used as vacation homes or cottage rentals, including:

  • Primary residence second home mortgages with 5% down
  • Non-primary residence second home mortgages requiring 20% down

Eligibility for mortgage loan insurance depends on whether the home is your primary residence. CIBC also offers financing for U.S. second homes.

CIBC Cashback Mortgage

CIBC offers cash incentives for new mortgages and refinances under its Cashback Mortgage program. The amount of cashback depends on your mortgage size and terms., with the highest payouts for longer 5+ year fixed rate terms.

The maximum cashback is $50,000, and it applies to mortgages over $1,000,000. The cashback can be used for any purpose, such as paying closing costs, funding renovations, or consolidating high-interest debts.

Cashback mortgages are unavailable if you are porting in a mortgage from another institution. The cashback incentive comes with a tradeoff of a slightly higher interest rate compared to regular CIBC mortgage pricing.

What are CIBC Mortgage Features?

CIBC Mortgage Features
CIBC Mortgage Features

CIBC provides borrowers with a selection of beneficial features and options:

CIBC Mortgage Prepayment Allowance

With CIBC, you can prepay up to 20% of your original mortgage balance annually without penalty. This allows you to make extra lump sum payments to pay off your mortgage faster and save on interest. CIBC has the highest prepayment limit of any major Canadian bank.

BankMaximum Annual Prepayment
CIBC20%
RBC10%
Scotiabank15%
TD15%
National Bank10%
BMO20%
CIBC Maximum Annual Prepayment compared to other Big Banks

On fixed-rate terms, you can increase your mortgage payment by up to 10% of the original balance once per year.

Utilize these prepayment features to pay down your mortgage years faster and save thousands in interest.

CIBC Increase Your Mortgage Payment

CIBC lets you double your regular mortgage payment up to once per month. The extra amount goes directly toward your mortgage principal, helping you pay it down faster.

You can choose to make weekly, bi-weekly, or accelerated bi-weekly mortgage payments instead of monthly payments. More frequent installments help you pay off your mortgage sooner by reducing compound interest charges.

Read more: Mortgage Payment Options in Canada

CIBC Property Tax Payments

With a CIBC mortgage, you can pay your property taxes as part of your monthly mortgage payment. CIBC will estimate your annual property tax amount and divide it into 12 monthly installments.

When your actual property tax bill comes due, CIBC will make the full payment on your behalf using the funds from your property tax account. Any surplus funds get credited back to your account to lower next year’s installments.

If there is a shortfall, you must pay the difference separately. By opting into this system, your property taxes are paid by CIBC on your exact due dates based on your municipality, avoiding the need to budget and save a large lump sum annually or bi-annually.

CIBC Mortgage Protection Insurance

CIBC allows you to add optional mortgage life and disability insurance to provide payment coverage if you can’t work due to illness/injury or in the event of death. Premiums are bundled into your mortgage payments.

The life insurance policy pays off some or all of your outstanding mortgage balance if you die before the mortgage is fully paid off.

Disability insurance covers all or part of your monthly mortgage payments if you can’t work due to illness, injury, or disability. Disability coverage has a maximum benefit of $3000 per month.

Premiums are calculated based on your mortgage amount, chosen coverage types, age, and other factors. They are bundled into your monthly mortgage payment for convenient administration.

CIBC Mortgage Renewal

When your mortgage term expires, you must go through CIBC’s renewal process to remain in your current home. Here’s what to expect:

Options at Renewal

CIBC will provide renewal rate offers for 6 months to 10 years for mortgage terms. You also have the option to:

  • Switch to a different mortgage product
  • Port your mortgage to a new property
  • Pay off your mortgage in full
  • Refinance your mortgage

Review all choices to see what best suits your needs when your term expires.

Renewal Timeline

180-120 days before maturity, you’ll get a renewal offer from CIBC. You can then accept or decline the offer until 30 days before renewal. If you take no action, your mortgage will automatically renew at the offered rate.

Getting the Best CIBC Renewal Rate

To get the optimal renewal rate, check CIBC’s current rates and benchmark against competitors during your 120-day opt-in period. If you find a significantly lower rate elsewhere, consider switching lenders. Also, pay down additional lump sums before renewal to improve your chances.

CIBC Mortgage Penalties

If you break your mortgage term with CIBC early for any reason, penalties will apply. CIBC uses the greater of two calculations for their prepayment charge:

  1. Three months of interest
  2. Interest rate differential (IRD) calculation

With the IRD method, you pay the difference between your current mortgage rate and CIBC’s posted rate for the time remaining on your term divided by your outstanding mortgage balance. This typically results in higher fees compared to just three months’ interest.

Always review the penalty calculations before breaking a CIBC mortgage. Ask about regional promotions – sometimes CIBC offers to cover switch costs in certain provinces.

CIBC Mortgage Eligibility and Requirements

To qualify for the best mortgage rates, CIBC typically requires a minimum credit score of 600 for an insured mortgage (under 20% down payment), but they prefer a higher score of more than 650.

Applicants with scores below these thresholds may still qualify but will likely pay higher interest rates. Those with scores in the 600s may need to opt for lower ratio mortgages.

Check your credit reports and score several months before applying. To improve your rating, pay down debts and correct errors.

To be eligible for a standard mortgage with CIBC, you must:

  • Submit documents to confirm your income and employment.
  • Be prepared to buy in a “built-up area with municipal services like water, sewer and hydro.”
  • Be prepared to make the minimum down payment.
Purchase priceDown payment minimum
$500,000 or less5%
Between $500,000 and $999,9995% of the first $500,000 plus 10% of the remaining amount
$1 million and over20%
The purchase price determines your down payment minimum

Aim to have your GDS and TDS ratios fall below CIBC’s limits. If above, paying down debts before applying could help you qualify without lowering your purchase price.

How to apply for a CIBC Mortgage?

Applying for a CIBC Mortgage
Applying for a CIBC Mortgage

Ready to move forward with CIBC? Here are some tips for navigating the application process.

Online, Phone, In-Person

There are several ways to apply:

  • Online – Complete CIBC’s mortgage pre-approval form to get started.
  • Phone – Speak with a CIBC mortgage specialist.
  • In-person – Book an appointment at one of CIBC’s Canadian branches. Over 1000 locations are available.

Those wanting extra assistance may benefit from applying in person. Online applications offer convenience but are less personalized.

Mortgage Pre-Approval

Getting pre-approved provides a stress-free way to confirm your eligibility and lock-in rates before shopping:

  • Complete the CIBC online pre-approval form or book a meeting
  • You’ll need to provide financial information for income, down payment funds, debts, etc.
  • CIBC will review and issue a pre-approval certificate if you qualify
  • Locks in a mortgage rate for 60-120 days while house shopping

With pre-approval, you can shop confidently, knowing you are qualified and the rate is held.

Documents Needed

Be prepared to provide the following documentation when applying:

  • Income verification (pay stubs, NOA, T1 General)
  • Down payment evidence (bank statements, investment records, gift letter)
  • Debts and assets list
  • Purchase agreement and listing
  • Banking information
  • ID and SIN documentation

Having these ready streamlines the approval process. CIBC may request additional documents from some applicants.

More Guide on Top Banks for Mortgage in Canada

Looking for the Best Mortgage Options? Discover our Best 15 Banks for Mortgages in Canada

Ready to Get your CIBC Mortgage?

This comprehensive guide provided the mortgage rate data and customer insights needed to make an informed decision about choosing CIBC for your home financing needs. Their broad product range, prepayment flexibility, and competitive fixed-rate pricing make them a top pick for many Canadian home buyers and refinancers.

To get started on your application or learn more, contact CIBC mortgage specialists today by phone or book an appointment at a CIBC branch near you. With personalized advice and support, CIBC can guide you seamlessly through the mortgage process from pre-approval to close.

For more help assessing your mortgage options, contact the independent experts at Best Mortgage Online today!

FAQs

What mortgage terms does CIBC offer?

CIBC offers variable rate terms of 3 and 5 years, and fixed-rate terms range from 6 months up to 10 years. Popular terms are 2, 3, 4, 5, and 10 years.

How often does CIBC change their mortgage rates?

CIBC can change their posted rates at any time. Special discounted rates change less frequently, such as if the Bank of Canada adjusts its overnight rate.

How do I choose between CIBC fixed and variable rate mortgages?

Fixed rates provide payment stability, while variable rates offer potential savings if the prime rate falls. Consider your budget, plans, and rate forecasts.

Does CIBC offer mortgages for investment properties?

Yes, CIBC offers tailored mortgages for investors financing rental income properties, mixed-use buildings, and student housing.

What credit score is needed for a CIBC mortgage?

You generally need a minimum score of 680 for conventional mortgages or 700 for high-ratio mortgages to get CIBC’s best rates.

How do I pay my property taxes with a CIBC mortgage?

You can opt to pay property tax installments along with your mortgage payments monthly. CIBC pays your bill when due.

Can I port my mortgage to a new home with CIBC?

Yes, CIBC allows mortgage portability when you sell and buy another home without breaking your terms if certain conditions are met.

Does CIBC offer payment breaks on their mortgages?

No, CIBC does not offer annual payment skips like some lenders. But you can double payments to pay your mortgage down faster.

Can I get my CIBC mortgage insurance premiums refunded?

Yes, you can cancel insurance and get a prorated refund once you reach 20% home equity.

Can I get a mortgage for a vacation property with CIBC?

Yes, CIBC offers mortgages for vacation homes and cottages. The minimum down payment will depend on whether it's a primary or secondary residence.

Article Sources
  1. CIBC Mortgage Review 2024 – nerdwallet.com
  2. CIBC Mortgage Rates & Review
Categories
Lender Review

Scotiabank Mortgage Rates and Reviews 2024

Scotiabank Mortgage Rates and Reviews
Scotiabank Mortgage Rates and Reviews 2024

About The Bank of Nova Scotia – Scotiabank

The Bank of Nova Scotia (Scotiabank) is one of Canada’s Big Six banks and a leading residential mortgage lender. In 1832, Scotiabank grew into Canada’s most international bank, focusing strongly on domestic retail banking and mortgages.

Scotiabank now serves over 25 million customers globally and ranks third among Canadian banks with over $1.4 trillion in assets under management. [Source]

Scotiabank has over 900 branches across Canada and 1,100 worldwide, including in Canada, Latin America, the Caribbean, the U.S., and Asia-Pacific. The bank operates three main divisions:

  • Canadian Banking: Scotiabank’s personal and commercial banking services within Canada include mortgages, loans, credit cards, and deposit accounts.
  • Global Banking and Markets: Scotiabank’s capital markets, investment banking, and corporate lending arms.
  • Global Wealth Management: Scotiabank’s full-service brokerage, asset management, and private banking services.

Scotiabank’s longevity, international scope, and diverse business lines make it one of Canada’s most reputable and stable financial institutions.

In this comprehensive guide, we’ll explore everything you need to know about getting a mortgage with Scotiabank in 2024. By the end of this guide, you can decide if a Scotia mortgage is the right choice for your home financing needs.

What are current Scotiabank Mortgage Rates?

Scotiabank Mortgage Rates
Scotiabank Mortgage Rates

Understanding how Scotiabank determines mortgage pricing can help you get the best possible rate for your situation.

  • Scotiabank Prime Rate

Like other Big banks in Canada, Scotiabank determines its prime lending rate based on the Bank of Canada’s overnight rate target. Scotiabank’s prime rate is currently 6.70%, last changed in July 2024.

Scotiabank’s prime rate is the underlying index for many of its variable-rate mortgage and home equity line of credit products.

  • Scotiabank Posted rates

These non-discounted rates primarily serve as a reference for calculating prepayment penalties on closed mortgages. Borrowers rarely pay Scotiabank’s posted rates.

  • Scotiabank Special rates

Scotiabank doesn’t promote discounted rates publicly like its competitors. Instead, it authorizes mortgage specialists to issue discounted rates to preferred clients who negotiate or bundle with other Scotiabank accounts and services.

Scotiabank Fixed Mortgage Rates

Fixed-rate mortgages allow you to lock in your interest rate for the entire mortgage term, typically 6 months to 10 years.

A fixed-rate Scotia mortgage provides stability in both your payments and interest rates. This can give peace of mind to first-time homebuyers or those with a large mortgage. However, you sacrifice the ability to take advantage of decreases in interest rates.

Scotiabank Variable Mortgage Rates

Scotiabank offers 3-year and 5-year variable mortgage terms. With a variable rate, your payments remain fixed, but your interest rate fluctuates along with the prime rate. This allows you to save if rates fall but also introduces some uncertainty.

Scotia’s variable-rate mortgages offer the option of fixed payments. This means your payment amount stays the same even when rates rise; however, more of your payment goes toward interest and less toward the principal.

Read more: Fixed vs Variable-rate Mortgages in Canada

Here is an overview of Scotiabank’s current posted mortgage rates for fixed and variable terms compared to the lowest rates offered by Canada’s other Big Six Banks:

TermScotiabank Posted RateLowest Rates of Big 6 Banks
1-year Fixed7.64%6.39%
2-year Fixed7.19%5.88%
3-year Fixed6.74%5.09%
4-year Fixed6.54%4.99%
5-year Fixed6.59%4.64%
7-year Fixed6.80%5.56%
10-year Fixed7.29%5.78%
3-year Variable8.10%6.20%
5-year Variable7.15%5.90%
Scotiabank Mortgage Rates as of August 2024

However, always keep in mind that posted rates are Scotiabank’s highest prices, and you can likely negotiate a lower mortgage rate. Well-qualified borrowers who shop around can often obtain Scotia’s discretionary discounted pricing near or below the lowest competing big bank rates.

How to Get Scotiabank’s Best Possible Mortgage Rates

Here are five tips to access the lowest Scotiabank mortgage rates:

1. Connect with a broker

Unlike some competitors, Scotiabank does not advertise its special rates publicly. However, Scotia offers special discounted pricing to numerous brokers it partners with.

If you are offered a posted rate directly from Scotiabank, ask what pricing you would qualify for if applying through a Scotia-approved broker. If the broker rate is significantly lower, having an experienced broker negotiate on your behalf may be best.

2. Be willing to negotiate

Never accept Scotia’s first rate offer. Be polite but firm, and highlight that you are speaking to multiple lenders to get the best rate.

3. Get pre-approved

Scotia’s online pre-approval form allows you to get approved for a mortgage before shopping for homes. This shows sellers you’re a serious buyer.

4. Come prepared with documentation

Have all required income, down payment, and credit documentation ready. The more qualified you look on paper, the better your rate.

5. Open other Scotiabank accounts

Bundling your mortgage with other accounts like chequing or credit cards may give you access to Scotia’s top discretionary pricing.

Doing your homework before meeting with a Scotiabank mortgage specialist or broker will prepare you to negotiate the lowest possible interest rate.

What are Scotiabank Mortgage Products?

Scotiabank Mortgage Products
Scotiabank Mortgage Products

Scotiabank offers borrowers plenty of choice when it comes to mortgage selection. In addition to standard fixed and variable-rate mortgages, Scotia provides specialty products tailored to the needs of specific borrower groups.

Hybrid/Convertible Mortgages

Hybrid mortgages allow you to split your mortgage into variable and fixed portions. Scotiabank’s version is called the Long and Short mortgage.

Convertible mortgages, like Scotia’s 3-year Convertible Variable Rate mortgage, start at a variable rate but give the option to convert to a fixed rate later in the term. This provides both savings potential and future stability.

Open and Closed Mortgages

Open mortgages allow prepayment flexibility, letting you pay off your mortgage early without penalties. This comes at the cost of higher interest rates.

Closed mortgages offer lower rates but charge penalties, like the Interest Rate Differential (IRD), if you want to refinance or break your term early. Most Scotiabank mortgages are closed mortgages.

Scotiabank Self-Employed Mortgage

Scotia’s self-employed mortgage program is designed for borrowers who earn self-employment or commission-based income that may not meet the criteria for a typical mortgage.

To qualify, you’ll need:

  • At least 10% down payment
  • Documentation verifying 2+ years of consistent income
  • Good personal and business credit

Self-employed mortgages can provide flexible borrowing power based on the profitability and longevity of your business.

Scotiabank Newcomer Mortgage

Scotiabank offers two mortgage programs tailored to newcomers to Canada:

  • StartRight for Permanent Residents – For landed immigrants and permanent residents who have been in Canada for 5 years or less.
  • StartRight for Temporary Residents – For foreign workers and international students legally residing in Canada on visas.

These newcomer mortgages provide access to home financing for eligible new Canadians with limited time to establish a local credit history.

Scotiabank Investment Property Mortgage

Scotiabank offers mortgage financing for real estate investors looking to purchase rental properties.

Key eligibility requirements include:

  • Minimum 20% down payment
  • Documentation of consistent rental income
  • Strong personal credit and income

Investment property mortgages allow investors to expand their rental portfolios. Scotia will evaluate the mortgage based on the property’s projected rental income.

In addition to these programs, Scotiabank offers solutions like co-lending arrangements to help Canadians with unique borrowing situations get approved.

Getting Approved for a Scotiabank Mortgage

Once you have an idea of current rates, you need to go through Scotiabank’s application and approval process. You can work directly with Scotiabank or through a Scotia-approved mortgage broker.

Getting Pre-Approved Online

One of the easiest ways to get pre-approved for a Scotiabank mortgage is through the bank’s online pre-approval application.

Scotia’s online pre-approvals take as little as 15 minutes. You’ll need to provide basic personal information, income documentation, a down payment source, and details on assets and debts.

Once submitted, Scotiabank conducts a thorough underwriting assessment. If approved, you will receive a letter stating the maximum mortgage amount and terms you qualify for.

Online pre-approvals allow you to get fully approved for a Scotiabank mortgage virtually. However, you won’t necessarily receive Scotiabank’s lowest rates, which require negotiation.

Working with a Scotiabank Mortgage Specialist

You can meet with a Scotiabank Home Financing Advisor at one of Scotia’s 900+ Canadian branches. Scotia advisors can pre-approve you and help you choose the mortgage product that best fits your needs.

One thing to note is that Scotia Home Financing Advisors only assist brand-new clients.

Using a Scotia-Approved Mortgage Broker

Going through a Scotiabank-approved mortgage broker provides a streamlined way to compare Scotiabank’s rates and products to other lenders all in one place. Brokers also offer expertise to ensure you choose the right mortgage and can negotiate discounted rates on your behalf.

Scotiabank Mortgage Features

Scotiabank Mortgage Features
Scotiabank Mortgage Features

Scotia mortgages have helpful features and options that set them apart from competitors.

Scotiabank Prepayment Options

Most Scotiabank mortgages include:

  • 15% Annual Lump Sum Prepayments – You can increase your principal by up to 15% of the original amount annually without penalty
  • 15% Annual Payment Increases – You can boost your scheduled mortgage payment by up to 15% once per year

This provides flexibility to pay off your mortgage faster and save on interest. Keep in mind that payments above the allowed amounts trigger prepayment charges on closed mortgages.

Scotiabank Payment Flexibility

Scotia offers two unique programs providing payment flexibility:

  • Scotiabank Match-a-Payment – Make up to one extra principal payment annually equal to your regular payment amount, doubling up your monthly payment.
  • Scotiabank Miss-a-Payment – You can skip one mortgage payment per year if you have already used Match-a-Payment. This helps your mortgage stay caught up.

These options help you manage cash flow interruptions without defaulting on your home loan.

Scotia Total Equity Plan (STEP)

STEP is Scotiabank’s home equity line of credit, allowing you to unlock and borrow against home equity. A revolving credit line allows you to access up to 65% of your home’s value, and combining it with an amortizing STEP mortgage segment allows you to borrow up to 80%.

As you repay the amounts owing, the funds become available to draw again. This gives Scotia homeowners access to flexible, low-cost financing.

Scotiabank Mortgage Protection Insurance

Scotiabank offers optional mortgage insurance covering

  • Mortgage life insurance
  • Critical illness and disabilities

Premiums vary based on your age and mortgage amount. Adding this insurance to your mortgage provides added peace of mind.

Monthly Property Tax Payments

Depending on your specific mortgage agreement, Scotia may require you to pay your property taxes monthly as part of your bank payments. This avoids falling behind on tax obligations.

Scotiabank estimates your monthly tax amounts based on the documentation you provide. Any overpayments get credited back annually.

Scotiabank Mortgage Penalties and Fees

While shopping for a mortgage, it’s essential to understand how much it might cost to break a mortgage early with Scotiabank.

Mortgage Discharge/Assignment Fees

When your Scotia mortgage term ends and you decide to pay off your balance in full, the bank charges a discharge fee.

You pay an assignment fee if you want to transfer your mortgage to another property or lender instead.

Scotiabank’s Prepayment Penalty Calculation

If you break your closed fixed rate mortgage term before maturity, Scotiabank calculates your penalty using the higher of:

  • Three months interest
  • The interest rate differential (IRD)

The IRD method, which Scotia uses, involves:

  1. Determining the posted interest rate for a term similar to your remaining mortgage term
  2. Subtracting your contract mortgage rate from the posted rate
  3. Multiplying the rate difference by your mortgage balance
  4. Then, multiply the above amount by the number of months left on your term.

Scotiabank Mortgage Renewal

If your Scotiabank mortgage term is maturing, here are some tips to get the best renewal rate.

Start 60-120 days before renewal – Begin the process with enough time to compare rates from multiple lenders. Scotiabank may offer renewal incentives to existing customers within this period.

Be ready to negotiate – Your first renewal offer from Scotia will likely be at a better rate than their best one. Politely negotiate using competing rate quotes as leverage.

Consider a mortgage broker – An experienced broker can negotiate with Scotiabank on your behalf and easily compare alternative options.

Provide updated documentation – proof of income and other documents verifying your financial profile can help you obtain Scotia’s top-tier pricing.

Ask about bundling incentives – Scotiabank may offer preferred pricing if you bundle your renewed mortgage with other products.

With the right preparation and negotiation strategy, you can renew your Scotiabank mortgage for a new term at very competitive rates.

Scotiabank First-time Home Buyers Programs

In addition to its standard mortgage offerings, Scotiabank offers a First-Time Homebuyer program designed specifically for Canadians buying their first home. The key benefits of Scotia’s First Time Homebuyer program include:

  • Home Buyers’ Plan (HBP) – First-time homebuyers can withdraw up to $60,000 within a tax year through their RRSP.
  • First Home Savings Account (FHSA) – Borrowers can use the government’s FHSA initiative to save tax-free for their down payment.
  • No Purchase Transaction Fees – Scotiabank will cover legal and appraisal costs associated with buying your first home up to $1,500
  • Ongoing Education – Scotiabank provides first-time homebuyers with guidance on getting a pre-approved mortgage, submitting an offer, and understanding closing costs.

Read more: First-Time Home Buyers Programs in Canada

What are the Pros and Cons of Scotiabank Mortgages?

Before deciding whether to use Scotiabank for your mortgage, consider some key advantages and potential drawbacks.

Pros of Scotiabank Mortgages

  • Established reputation – Scotiabank has been in business for over 190 years and manages over $1 trillion in assets, providing peace of mind.
  • Wide range of mortgage options – Scotia provides plenty of choices, including specialty products for self-employed and newcomers.
  • Opportunity to negotiate discounted pricing – Scotiabank is willing to negotiate rates lower than advertised prices with the right strategy.
  • Access to bundled banking – You can qualify for Scotiabank’s top mortgage rates by opening a chequing account or investing with Scotia.

Cons of Scotiabank Mortgages

  • Possibility of higher rates – Despite negotiating, Scotia’s rates may still be beaten by smaller lenders.
  • Possibility of large penalties – Breaking a Scotia mortgage before maturity can lead to expensive prepayment charges.
  • Lack of rate transparency – Scotiabank doesn’t openly publish its lowest rates, making it harder to know if you’re getting the best deal.
  • Scotia’s most competitive rates are reserved for premier customers – To get Scotia’s rock-bottom rates, you’ll likely need to bundle multiple products and services.

Canadians can access thousands of mortgage lenders, so compare Scotiabank to big bank competitors and smaller providers to find your best option.

More Guide on Top Banks for Mortgage in Canada

Looking for the Best Mortgage Options? Discover our Best 15 Banks for Mortgages in Canada

Finding Your Best Scotiabank Mortgage

Scotiabank offers a comprehensive range of mortgage solutions suitable for all types of Canadian homebuyers and real estate investors. While Scotia may not always have rock-bottom rates, those who come prepared and negotiate firmly can access competitive pricing.

The key is weighing Scotiabank’s mortgage features, flexibility, rates, and benefits, like bundled account packages, against alternative options. Applying for pre-approval and being ready to discuss rates with Scotia advisors and brokers will help ensure you get your optimal deal.

For more help assessing your mortgage options, turn to the independent experts at Best Mortgage Online. Our experienced mortgage advisors can check if you qualify for a lower rate and better terms to maximize savings on your Scotiabank mortgage or any mortgage product in Canada.

FAQs

How do I get pre-approved for a Scotiabank mortgage?

You can get pre-approved by applying online, meeting with a Scotia mortgage specialist, or working with a Scotia-approved mortgage broker.

What is Scotia Total Equity Plan (STEP)?

STEP is Scotiabank's home equity line of credit product, which allows borrowers to access up to 80% of their home's value.

Does Scotiabank offer mortgages for the self-employed?

Yes, Scotiabank has a self-employed mortgage program requiring 10% down and income documentation.

What are Scotiabank's mortgage penalties?

Scotia charges a discharge fee and uses the IRD method to calculate prepayment penalties on closed fixed-rate mortgages.

How do I renew my Scotiabank mortgage?

You can renew by contacting Scotia 60-120 days before maturity and providing updated documents to negotiate your new rate.

Does Scotiabank offer investment property mortgages?

Yes, you need 20% down and proof of rental income to qualify for a Scotiabank investment mortgage.

What is Scotiabank's prime mortgage rate?

Scotiabank's prime rate is 6.70%, which influences its variable-rate mortgages.

Can I port my Scotiabank mortgage to a new property?

Yes, in some cases, you may be eligible to port your existing Scotia mortgage to a newly purchased property.

How do Scotiabank mortgage specialists get paid?

Scotia advisors earn commissions based on the mortgages they originate.

Can Scotiabank match other mortgage rates?

Scotiabank may match competitor rates if you can provide documentation of the competing offers.

Article Sources
  1. Scotiabank Mortgage Rates & Reviews – wowa.ca
  2. Scotiabank Mortgage Rates – nerdwallet.com
  3. Pro’s and Con’s of a Scotiabank Mortgage – findmeamortgage.ca
Categories
Lender Review

RBC Mortgage Rates and Reviews 2024

RBC Mortgage Rates and Reviews
RBC Mortgage Rates and Reviews

About Royal Bank of Canada

With Canadian housing prices reaching record highs in recent years, choosing the right mortgage lender and product has never been more important.

The Royal Bank of Canada (RBC) is one of the Big Six Banks and the largest financial institution in the country by market capitalization. It has provided mortgages to Canadian homeowners since 1864 and is headquartered in Toronto. RBC provides a full suite of banking and financial services both in Canada and internationally.

Some key facts about RBC:

  • Founded in 1864 in Halifax, Nova Scotia
  • Employs over 9,700 people
  • Serves over 17 million clients
  • Has over 1,200 bank branches across Canada
  • Offers personal, business, and commercial banking globally

Today, RBC provides a wide range of financial products and services to individuals, businesses, and commercial clients. These include chequing/savings accounts, digital banking, investing, insurance, commercial lending, investment banking, and consumer mortgage lending.

RBC’s stability from over 150 years of operation and status as one of Canada’s most prominent financial institutions make it a frequently considered option for Canadians seeking a new mortgage or refinancing their home.

What are RBC Mortgage Products?

RBC Mortgage Products
RBC Mortgage Products

RBC offers a variety of mortgage options suitable for all types of borrowers and home financing situations:

RBC Fixed-Rate Mortgages

Fixed-rate mortgages come with an interest rate for the entire mortgage term, usually 1-5 years. This allows borrowers to enjoy predictable, set monthly payments over the full term before renewal.

RBC offers fixed-rate mortgages with terms from 6 months to 10 years. Their most popular options are 2-year, 3-year, 5-year, and 7-year fixed-rate mortgages.

Longer-term fixed mortgages beyond five years give borrowers financial stability by locking in low rates for an extended period. However, prepayment flexibility is reduced compared to shorter terms.

RBC Variable-Rate Mortgages

Variable-rate mortgages are based on RBC’s prime lending rate, which can fluctuate multiple times per year. Monthly payments stay the same, but the portion going toward interest versus principal will shift based on rate changes.

Low starting variable rates make this an appealing option when rates are expected to decline. However, payments can rise swiftly if the prime rate is hiked. RBC offers competitive 5-year variable-rate closed mortgages.

Read more: Fixed vs Variable-rate Mortgages in Canada

RBC Homeline Plan

This unique mortgage product combines a traditional mortgage component with the flexibility of a home equity line of credit (HELOC). Homeowners have the stability of fixed or variable rate mortgage payments while having approved access to additional funds up to 65% of their home’s value.

The funds can be used for anything from consolidating high-interest debts under one low-cost loan to financing home renovations or unexpected expenses that may arise. The combined benefits make the RBC Homeline Plan appropriate for borrowers who want an affordable mortgage option and the flexibility to access extra home equity as needed cost-effectively.

RBC Cashback Mortgage

The RBC cashback mortgage is explicitly tailored for first-time home buyers looking to enter the real estate market. It provides an upfront cash payout of up to 7% of the mortgage amount, to be used for expenses related to purchasing the home.

While attractive, borrowing a higher mortgage to receive the cashback incentive means paying interest on these additional funds. However, the cashback mortgage can be an appealing option for first-time buyers focused on overcoming the initial barriers to home ownership.

RBC Self Employed Mortgage

For entrepreneurs, contractors, gig workers, freelancers and other borrowers with non-traditional sources of income, RBC offers its specialized mortgage for the self-employed.

This mortgage aims to provide more flexible qualification criteria tailored to the needs of self-employed borrowers. It can accommodate varied income sources and documentation like financial statements, contracts, notices of assessment, and bank statements.

While interest rates and down payment requirements may be higher relative to salaried borrowers, the mortgage for self-employed opens access to financing that these applicants may struggle to obtain from mainstream mortgage lenders.

Additional RBC Mortgage Options

RBC also provides specialty mortgage offerings like:

  • Vacation home financing – mortgages for secondary properties.
  • Low-ratio mortgages – reduced insurance premiums for 20%+ down payments.
  • Progress draw mortgages – specialized financing for builders.

RBC also offers home equity lines of credit (HELOCs) and advanceable mortgages to access home equity.

WHat are current RBC Mortgage Rates?

Mortgage interest rates fluctuate frequently depending on market conditions. RBC provides special discounted rates for new mortgages and posted rates for reference.

Here is an overview of RBC’s current mortgage rates:

TermDiscounted RatePosted Rate
1-year fixed6.39%7.64%
2-year fixed5.89%7.14%
3-year fixed5.09%6.75%
4-year fixed4.99%6.54%
5-year fixed4.94%6.59%
5-year variable6.10%6.70%
*Rates are for purchase/switch transactions with 25-year amortization or less.

RBC’s mortgage rates are competitive with those of the other Big Six banks, such as TD, Scotiabank, and BMO. Discounted rates may be negotiated lower depending on individual qualifications and down payments.

RBC also offers special bundled mortgage and line of credit products like its Homeline Plan, which features discounted interest rates at 2.49%.

Those with solid credit scores, higher down payments, and an existing relationship with RBC may qualify for the best mortgage rates and flexible options.

How do RBC Mortgage Rates compare to Other Lenders?

It’s always smart to compare mortgage rates from different financial institutions to find the best deal. Here’s an overview of how RBC’s discounted rates stack up against other top lenders in Canada as of August 2024:

Lender5-Year Fixed Rate5-Year Variable Rate
RBC4.94%6.10%
TD Bank4.84%6.15%
Scotiabank4.79%5.85%
BMO4.79%5.75%
CIBC4.99%5.95%
National Bank4.99%5.95%
Big Six Banks’ rates comparison

Tips for Getting the Best RBC Mortgage Rate

While RBC offers plenty of mortgage flexibility, their posted rates may not always be the most competitive. Here are tips to negotiate the lowest possible rate:

Improve Your Credit

  • Review credit reports and resolve any negative issues or discrepancies
  • Pay all bills on time and reduce credit utilization for maximum scores

Make a Large Down Payment

  • A minimum 5% down is required, but 20%+ avoids expensive mortgage loan insurance premiums added to the rate.

Lower Your Debt Ratios

  • Pay down debts like car loans and credit cards to reduce your ratios and risk profile.

Compare Rates and Shop Around

  • Use online tools to compare RBC to other major bank rates and promotions
  • Highlight competitors’ offers when negotiating to motivate RBC to sweeten the deal

Ask RBC to Price Match or Beat Offers

  • Provide evidence of lower rates elsewhere and request an RBC match or beat them.
  • Make it clear you are willing to move your business if they can’t provide competitive value.

Leverage Any Existing Relationship Discounts

  • Long-time RBC clients may access special unadvertised mortgage discounts and preferred rates.
  • Remind your RBC advisor of all your active accounts when negotiating

With savvy rate shopping and negotiation, borrowers can secure significant mortgage savings from RBC.

What are the Key Features of RBC Mortgages?

Key Features of RBC Mortgages
Key Features of RBC Mortgages

RBC aims to provide advantages and flexibility suitable for each borrower’s situation and phase of homeownership. Their wide range of mortgage products and features accommodates diverse needs and goals.

RBC Double-Up Payments

RBC Double-Up payments feature allows borrowers to make additional mortgage payments on top of their regular payment amount. You can double up and pay up to 100% of your regular mortgage payment value in extra payments each month. This can significantly accelerate repayment of the principal and reduce total interest costs over the mortgage’s lifespan.

RBC Payment Frequency

RBC lets you choose from weekly, bi-weekly, semi-monthly, or monthly payment frequencies to match your unique cash flow and budgeting needs. More frequent installments, like weekly or bi-weekly payments, can significantly impact a mortgage’s lifetime, resulting in thousands of dollars in interest savings because the principal is paid down faster.

RBC Mortgage Prepayment

RBC mortgages permit prepaying up to 10% of the original mortgage principal annually without penalty. This enables borrowers to make lump sum payments as soon as they have extra cash available to pay the mortgage down faster.

RBC Early Renewal

RBC enables borrowers to start the mortgage renewal process 180 days before the end of their existing term to secure current interest rates, even if fixed mortgage rates rise substantially in the months leading up to the renewal date. The early renewal option provides peace of mind and flexibility to exercise rate guarantees well in advance if rates trend upwards approaching renewal.

RBC Skip a Payment

If a borrower encounters financial hardship or temporary cash flow issues, RBC offers the option to apply to defer or pause mortgage payments for up to 6 months. Qualifying for the deferral program is based on an assessment of individual circumstances. It provides stressed borrowers time to get back on their feet and avoid being forced to sell their home.

RBC HomeProtector Insurance

Borrowers can purchase optional creditor insurance products from RBC, including mortgage life, critical illness, and disability coverage. This provides added financial protection in case of an illness, injury, or death that leaves one unable to work and make mortgage payments.

The insurance continues making payments or paying the mortgage principal until the policyholder can resume payments. Having access to knowledgeable specialists and optional creditor insurance provides peace of mind.

Pros and Cons of RBC Mortgage

Pros:

– Extensive variety of mortgage products for different needs
– Competitive interest rates relative to other major lenders
– Special discounted rates and promotions are offered frequently.
– Convenience of over 1,200 RBC branches across Canada.
– Online calculators and tools to estimate payments.
– Low minimum down payment requirements.
– Option for flexible bundled lending through Homeline.
– Protections like insurance and deferral programs are available

Cons:

– Strict qualification criteria compared to smaller lenders
– Limited specialized options for bad credit or low-income borrowers
– Higher interest rates for specialty products like cashback mortgage
– Penalty interest rates charged for breaking term early

How to Apply for an RBC Mortgage?

There are several ways Canadians can submit a mortgage application with RBC:

  • In person at any RBC branch across Canada
  • Online via RBC’s website
  • By phone through an RBC mortgage specialist

The mortgage application process includes submitting documents to verify income, down payment funds, employment status, assets/liabilities, and debts. RBC also performs a credit check.

Here are some typical documents required:

  • Income verification (pay stub, Notice of Assessment, etc.)
  • Down payment deposit records
  • Debts and liabilities
  • Credit report
  • Property details and purchase agreement

Getting Pre-Approved with RBC

Getting pre-approved for an RBC mortgage solidifies the maximum amount you can borrow. Pre-approvals can be obtained through RBC’s website, over the phone, or by booking an appointment at a branch.

The pre-approval verification process checks income, debts, credit score, and down payment funds and includes a credit check. It results in a firm conditional approval, which lets you know the mortgage amount and rates.

Alternatives to Consider Beyond RBC Mortgage

Alternatives to RBC Mortgages
Alternatives to RBC Mortgages

RBC is just one option that home buyers and homeowners should consider when searching for the best mortgage lender.

Other Banks

  • All Big Six banks (RBC, TD, Scotiabank, BMO, CIBC, National Bank) offer similar mortgage packages and competitive rates.
  • With advanced digital application processes, tools, and resources, online banks can offer lower overhead costs that are passed on to borrowers as savings.

Discover our Best Banks for Mortgages in Canada:

Credit Unions

  • Competitive rates thanks to lower overhead costs
  • Personalized customer service and local expertise
  • Specific products to attract new members

Alternative/Private Lenders

  • Specialize in unique borrowing situations
  • Higher rates and fees but provide access to financing when turned down elsewhere.
  • Options for bad credit, low income, unconventional employment

Comparing options across lender categories provides the best chance of finding the optimal mortgage solution. An experienced broker simplifies the process.

Mortgage Brokers

  • Access to cheaper rates from over 50+ lenders
  • Customized product suggestions tailored to each borrower
  • Can navigate unique situations like bad credit, self-employed
  • Often no cost to borrowers

Keys takeaway: Making the Best Mortgage Decision with RBC

Choosing a mortgage is complex. Here are five tips when evaluating RBC vs. alternatives:

1. Understand the Real Rates: Posted rates are a starting point. Focus on the discounted rates you’re offered. Stress test rates don’t consider discounts either.

2. Compare Multiple Scenarios: Review many amortization periods, terms, and fixed vs. variable options. Models show the big-picture payments and costs.

3. Think Long Term: Consider future plans. Will you sell before renewal or live there for decades? Variable rates seem attractive now, but can they withstand hikes?

4. Evaluate All Lender Fees: Some charge high prepayment penalties or restrictive default insurance. Read the fine print!

5. Get Unbiased Professional Help: Brokers assess your situation and highlight the mortgage products best suited for your needs, regardless of where they come from.

Doing due diligence leads to long-term savings and ideal mortgage financing.

Conclusion

RBC is one of Canada’s largest and most recognized financial institutions. Its comprehensive mortgage selection, convenience of its national branch network, and competitive rates will continue to appeal to many Canadian borrowers.

The best advice remains to compare all options across multiple lenders to identify the most suitable mortgage product, lender, and interest rate for your financial needs. At Best Mortgage Online, our mortgage experts can provide massive value in this process.

By understanding different lenders’ mortgages and alternatives, buyers and homeowners can make informed decisions and maximize savings when financing a home.

FAQs

What types of mortgages does RBC offer?

RBC offers various mortgage products, including fixed and variable rate mortgages, specialty offerings like the Homeline Plan and cashback mortgage, and niche mortgages for self-employed borrowers, vacation homes, and refinancing.

How do I apply for an RBC mortgage?

You can apply at RBC branches, online, or by phone. You'll need to provide income, down payment, credit, and property documents and agree to a credit check.

How can I get pre-approved for an RBC mortgage?

Pre-approvals verify your financial details upfront and require the same documents as applications. You can get pre-approved online, by phone, or in person at any RBC branch.

What are RBC's mortgage qualification requirements?

RBC typically requires a minimum credit score 680, a down payment of at least 5%, and maximum debt service ratios of 39% GDS and 44% TDS.

What mortgage terms does RBC offer?

RBC offers fixed-rate mortgage terms ranging from 6 months to 10 years. Their most popular terms are 2, 3, 5, and 7 years.

Can I customize my RBC mortgage payments?

Yes, RBC allows you to customize your payment schedule to weekly, bi-weekly, semi-monthly, or monthly installments.

How do I refinance my mortgage with RBC?

Connecting with an RBC mortgage specialist is the best way to explore refinancing an existing RBC mortgage. New terms and rates and modifying your outstanding mortgage balance can be discussed.

What are RBC's prepayment options?

RBC permits prepaying up to 10% of your original mortgage principal annually without penalty. You can also make lump sum payments anytime.

How do I renew my RBC mortgage?

You can start the renewal process up to 6 months before your term expires. RBC mortgage advisors can help you navigate rate offers and renew the mortgage.

Does RBC offer mortgages for self-employed borrowers?

Yes, RBC has a specialized mortgage designed for entrepreneurs and self-employed borrowers with flexible qualifying criteria.

Article Sources
  1. RBC Mortgage Review 2024 – nerdwallet.com
  2. RBC Mortgage Review 2024 – forbes.com
  3. RBC Royal Bank Mortgage Rates & Review – wowa.ca