Laurentian Bank (TSE: LB) is a Canadian Schedule 1 bank primarily operating in Quebec. Founded in 1846 in Montreal, Quebec, as the Montreal City and District Savings Bank, Laurentian Bank has evolved into a full-service financial institution that provides services in three key business lines: personal banking, commercial banking, wealth management and capital markets.
As one of the prominent mortgage banks in Canada, Laurentian Bank offers a variety of products to meet the needs of homebuyers and homeowners. It focuses on serving the Quebec market. Their offerings include fixed and variable-rate mortgages with flexible terms and special incentives like cashback programs for new home purchases. This in-depth review of Laurentian Bank mortgage rates and services will provide you with the information needed to make an informed choice.
Current Laurentian Bank Mortgage Rates: Fixed vs. Variable
Let’s delve into Laurentian Bank’s fixed and variable mortgage rates alongside the most competitive rates available in Canada.
Laurentian Bank Fixed-Rate Mortgages
Laurentian Bank Fixed mortgages offer stability and predictability by locking your interest rate for the entire mortgage term. This protects borrowers from the risk of rising interest rates. The most popular terms for fixed-rate mortgages are 3-year and 5-year. The 5-year fixed term allows borrowers to set and forget their mortgage for five years without worrying about renewals or rate fluctuations.
Current Laurentian Bank fixed mortgage rates across terms from 1 to 10 years are as follows:
| Term | Laurentian Mortgage Rate |
|---|---|
| 6-Month Fixed | 7.84% |
| 1-Year Fixed | 6.99% |
| 2-Year Fixed | 6.69% |
| 3-Year Fixed | 6.40% |
| 4-Year Fixed | 6.34% |
| 5-Year Fixed | 4.19% |
| 6-Year Fixed | 6.69% |
| 7-Year Fixed | 6.69% |
| 8-Year Fixed | 7.14% |
| 9-Year Fixed | 7.14% |
| 10-Year Fixed | 7.14% |
For key terms like 5-year and 10-year, Laurentian Bank offers competitive rates compared to the lowest rates available in Canada. However, for shorter 1-3-year terms, other lenders currently have lower rates than what Laurentian Bank offers.
Laurentian Bank Variable-Rate Mortgages
With a variable-rate mortgage, your interest rate fluctuates based on changes to the prime rate during your term. This means your exact monthly mortgage costs are unpredictable. However, Laurentian Bank variable rates often start with lower interest rates than fixed-rate options. Even if your rate varies over your term, your actual mortgage payment typically remains the same, with more or less going toward interest vs principal depending on rate changes.
Current variable mortgage rates at Laurentian Bank are:
| Term | Laurentian Mortgage Rate |
|---|---|
| 3-Year Variable | 5.20% |
| 5-Year Variable | 4.65% |
Laurentian Bank Prime Rate
The current Laurentian Bank prime rate is 5.20%, last changed on January 29, 2025. The prime rate is the benchmark interest rate set by individual lenders, including Laurentian Bank. It serves as the basis for pricing many credit products, such as variable-rate mortgages, lines of credit, and credit cards. Lenders start with the prime rate and then add or subtract a spread based on factors like loan term, risk, and collateral. This determines the final interest rate offered to borrowers.
By monitoring changes to Laurentian Bank’s prime rate over time, borrowers can understand the impact on prime-linked credit products like variable rate mortgages or lines of credit.
What are Laurentian Bank Mortgage Products and Features?
Along with its fixed- and variable-rate mortgages, Laurentian Bank offers a range of mortgage products and features designed to meet diverse needs.
Laurentian Cashback Mortgage
Laurentian Bank offers a cashback incentive of up to 5% of the mortgage amount (a maximum of $25,000 cashback) when you fund a new 5-year fixed-rate mortgage. This lump sum cash can cover closing costs, buying furniture, or financing renovations to a new home.
Laurentian Bank Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) enables homeowners to leverage their home equity to access a revolving line of credit. Since the line of credit is secured by your home equity, Laurentian Bank HELOC rates are lower than other loan types. Laurentian Bank makes accessing HELOC funds through ATMs, online banking, or branches easy. It’s a helpful option for financing renovations, education, or emergencies while retaining home ownership.
Laurentian Bank Mortgage Protection Insurance
Laurentian Bank offers optional mortgage protection insurance to provide peace of mind if you are unable to make payments due to death or disability:
- Life insurance covers up to $750,000 of your mortgage balance if you pass away.
- Disability insurance provides up to $2,500 per month for 24 months if you become disabled and unable to work.
Premiums vary based on mortgage amount, coverage, age, health, and other factors. This protection may be relevant if you don’t qualify for individual life insurance coverage.
Laurentian Bank Prepayment Options
Laurentian Bank allows prepayment of up to 15% of your original mortgage principal annually without penalty. You can make a lump sum prepayment or increase your monthly payments by up to 15% per year to pay your mortgage down faster. Prepayments go directly to reducing your principal balance.
Laurentian Bank Mortgage Break Penalties
If you break your term and pay off your mortgage early, here is how Laurentian Bank calculates prepayment penalties:
- Variable Rate – Greater of 3 months’ interest at the current rate or 3 months at the prime rate.
- Fixed Rate – Greater than 3 months’ interest at the current rate or Interest Rate Differential (IRD).
IRD factors include:
- Remaining term
- The interest rate difference between the existing mortgage rate and the new reference rate for the remaining term
- 1 month’s interest up to $500
The IRD calculation can be complex, involving the difference between your current interest rate and the bank’s posted rate for a similar term at the time of the break. Consult your mortgage advisor or a Laurentian Bank representative for specific details.
Pros and Cons of Laurentian Bank Mortgage
| Pros | Cons |
|---|---|
| Extensive branch network in Quebec for in-person service. | Limited geographic reach outside Quebec. |
| Competitive rates on key mortgage terms like 5-year fixed. | Online/mobile capabilities are not as robust as newer digital banks. |
| Unique products like cashback incentives and retirement lines of credit. | Rates for short-term mortgages are not as competitive as those of some rivals. |
| Mortgage portability provides flexibility and avoids penalties. | Narrower product range than other larger banks. |
How Can You Apply for a Mortgage from Laurentian Bank?
You can apply for a Laurentian Bank mortgage through these channels:
- Visit one of over 60 Laurentian Bank branches located primarily across Quebec and other branches in Ontario, Vancouver, Ottawa, and Calgary.
- Apply online at laurentianbank.ca
- Call 1-866-522-4655 to speak with a mortgage specialist
- Work with an independent mortgage broker who has access to Laurentian Bank’s offerings and competitive rates
Here are some of the Laurentian Bank’s key branch locations:
| City | Locations |
|---|---|
| Quebec | 2828 Laurier Blvd., Suite 100 |
| Calgary | 1122 – 4th St. South W., Suite 450 |
| Ottawa | 1021 Cyrville Road, Unit 9 |
| Vancouver | 700 W. Georgia St., Suite 603 |
| Ontario | 10 Duke St. W., Suite 100, Kitchener 8500 Leslie Street, Suite 100, Thornhill 3rd Floor, 130 Adelaide St. W., Toronto |
Alternatives to Laurentian Mortgage
While Laurentian Bank is a primary mortgage lender in Quebec, it’s also wise to compare options from other providers. Some alternatives to consider include the following:
- National mortgage lenders like RBC, TD, and Scotiabank offer Canada-wide service.
- Credit unions like Desjardins offer community-based lending.
- Online mortgage companies like Nesto and Ratehub provide easy digital applications.
- Mortgage brokers who can source rates from multiple lenders.
Comparing quotes from multiple sources ensures you get the best possible rate and mortgage product to suit your needs. Discover BestMO’s Top banks for your mortgages in Canada:
- National Bank Mortgage
- RBC Mortgage
- CIBC Mortgage
- Scotiabank Mortgage
- Equitable Mortgage
- Desjardins Mortgage
- Canadian Western Bank Mortgage
FAQs on Laurentian Mortgage
Are Laurentian Bank mortgage rates competitive?
Laurentian Bank offers competitive rates for specific terms like 5-year fixed mortgages. However, other lenders currently provide lower rates for shorter 1-3 year terms. Individual rates are influenced by your financial profile, so qualify directly to see if you can get their best advertised rates.
What are the benefits of choosing a smaller lender like Laurentian Bank?
Smaller lenders provide specialized mortgage products and services tailored to their target customers. Without other business lines to subsidize mortgage operations, they aim to provide the best rates and experience to retain long-term mortgage customers.
Does Laurentian Bank have a first-time home buyer program?
Laurentian Bank doesn't have a specific first-time buyer program, but they offer mortgages tailored to new buyers with options like cashback incentives.
What credit score is needed for a Laurentian Bank mortgage?
The minimum credit score is typically 650, but a higher score of 720+ may be required for the best rates. Check directly with Laurentian Bank for their credit requirements.
Can I port my Laurentian Bank mortgage to a new house?
Yes, you can port your existing Laurentian mortgage to a new property without penalty in certain cases. Ask your mortgage specialist for details.
Is Laurentian Bank Right for You?
Laurentian Bank offers a variety of mortgage options with competitive rates, particularly in Quebec. Their specialized products, like the cashback mortgage and retirement line of credit, cater to specific financial goals. However, comparing their offerings with other lenders is essential to determine the best fit for your individual needs. Use online comparison tools and consult with mortgage professionals to ensure you make an informed decision.
