Buying a home will likely be the biggest purchase of your life and something you will be paying down for years. This is why it is so important to shop around and ensure you can get the best mortgage rates in Canada but also to take the time and look into the actual mortgage provider and make sure that they are the best choice for you based on your needs and personal circumstances.
Many mortgage providers are available in Canada right now, but here are our top picks to help you get the best mortgage rates.
What to Look For and What to Avoid When Choosing a Mortgage Provider
Finding a good rate is only part of the equation when buying a home. You want to ensure you get a reasonable rate from a trusted and reliable mortgage provider who you can count on. There are a few things to look for when shopping to help you determine the best options.
Green Flags in a Mortgage Provider
- Low-interest rates & monthly payments you can comfortably afford
- Viable options if you can’t make a mortgage payment
- Realistic costs to get out of your mortgage if needed
Red Flags in a Mortgage Provider
- If the lender is pushing and pressuring you to sign quickly
- If the lender avoids questions or doesn’t answer them in full
- You have trouble meeting and communicating with the lender
When conversing with potential lenders, feel free to ask lots of questions, and always read the fine print in your contract so you understand precisely what you are getting into.
The Best Mortgage Providers in Canada
Regarding mortgage providers in Canada, there are plenty to choose from. There are so many options that figuring out where to start can be overwhelming. With that in mind, here are four standout lenders worth checking out if you want the best mortgage rates in Canada.
Tangerine
Tangerine is name you may be familiar with if you do online banking. Regularly lauded as one of the best online banks in Canada thanks to its low rates, it’s no surprise to find Tangerine listed as the best mortgage lender in Canada as well. On top of low rates, one of the standout features of Tangerine mortgages is that they are portable.
This means that you can take your mortgage with you when you move. You can keep your current rate, term, and loan amount, and there is no penalty, making it unique among Canadian mortgages. However, remember that Tangerine is also an online mortgage lender, so you must be comfortable discussing it with your account manager over the phone rather than in person.
Motusbank
Sticking with the theme of online lenders, next on the list is Motusbank. Motusbank regularly offers low and competitive interest rates like the others on this list. But, the friends and family mortgage option makes this online mortgage lender stand out.
This type of mortgage allows up to four people to combine their funds to purchase a home. Everyone has a stake in the home and shares the financial benefits and risks. It’s a different approach to home buying than most people think of when taking out a mortgage. However, this alternative method also makes homeownership more affordable for individuals who cannot purchase a house otherwise.
National Bank
Getting approved for a mortgage is stressful for anyone. Still, self-employed individuals often have a more difficult time due to the nature of their work and the inability to provide the standard proof of income that most lenders require. National Bank removes some of that stress by offering mortgage options tailored to self-employed individuals.
National Bank is the 6th largest bank in Canada, so it offers various mortgage products. While the self-employed options stand out, National Bank is known for its fast approvals, flexible payment options, and cash-back mortgages.
Scotiabank
Online lenders tend to have lower interest rates than big banks, but that doesn’t mean big banks are bad lenders. They still have much to offer and might be the best option for some Canadians.
Scotiabank has various mortgage options, including mortgage products for first-time home buyers, second-home buyers, and renewals. They also offer a blended mortgage option, which allows you to combine your current mortgage rate with a new one to get a lower overall rate. Scotiabank is one of the most flexible mortgage providers in Canada. With so many brick-and-mortar locations, it’s easy to have face-to-face conversations, which many people still prefer.
Final Word
These tips and suggestions should help you find the best mortgage rates in Canada, but please shop around and do your own research. Not all lenders have mortgage products available in every Canadian province and territory, which is also worth considering when shopping around.
