Mortgage rates

Introduction to mortgage rates in Canada

A mortgage is a home loan; it is the sum of money you borrow in order to make up the difference between the down payment that you've saved and the property's purchase price. There are many lenders to choose from when getting a mortgage loan; for example among others, banks and credit unions. You may also choose to deal with mortgage brokers, accredited mortgage professionals who are able to offer rates from a variety of different lenders. Mortgage brokers, like those featured through Kanetix, are often a great choice for mortgage customers as there is no charge for their services and they'll help you find the best available mortgage rates.

When you get a mortgage, you are borrowing money and there will be interest charged. Basically, interest is a fee you pay for borrowing the money. The interest you are charged is called a mortgage rate. The mortgage rate is the percentage interest you will pay back on top of the money you borrowed.

Mortgage rates can vary between lenders, providers, brokers and across mortgage products. For example, a 5-year mortgage is likely to have a different rate compared to a 10-year mortgage. Only by comparison shopping will you find the best mortgage rate and mortgage product that best meets your needs. Also, reading the educational content and articles in the mortgage information section of our website will help you understand mortgage trends, mortgage rules and stay up-to-date in our mortgage forum.

Canadian mortgage rates and mortgage loan information

In the Canadian mortgage market, there are many different kinds of mortgage loans to choose from, with a wide range of mortgage rates available. It doesn't matter if you are looking for a home mortgage, residential mortgage, commercial mortgage, first mortgage, second mortgage, investment property mortgage, mortgage renewal, or mortgage refinance, among others- there are mortgage lenders and brokers with an offering that will suit your mortgage needs.

Canadian mortgages can have a fixed mortgage rate or a variable mortgage rate. What's the difference? The interest rate of a fixed rate mortgage does not change during the term of the mortgage. It is the rate you agree to when you first obtain your mortgage. The interest rate on a variable rate mortgage, on the other hand, rises and falls with the changes in the prime lending rate (prime interest rate).

It should be noted that what appears on the surface to be the cheapest mortgage deal may not always be the best for your needs. Before committing to a specific mortgage loan or mortgage refinance, speak to a mortgage agent and read the terms and conditions to ensure that you can live with it. Ask questions like, can I make extra mortgage payments if I have the money available, if so, how often, and are there any fees, or penalties that I need to know about? What affects will increasing or reducing the mortgage amortization have on my mortgage payment and total interest payable over the life of my mortgage? The key to finding the best mortgage for your unique circumstances is to stay informed!

Open and Closed Mortgages

Additionally, mortgages can be closed mortgages or open mortgages.

A closed mortgage is a mortgage which cannot be renegotiated or refinanced before the mortgage term reaches full maturity without penalty. The terms of a closed mortgage may not be as stringent as it sounds. Many lenders offer borrowers the option of making lump sum payments once a year up to a certain percentage of the mortgage or increasing their monthly payments by a determined percentage without incurring any additional fees.

An open mortgage in contrast, can be prepaid, in part or in full, at any time during the mortgage term, without the penalties commonly associated with a closed mortgage.

With so many options, it can seem to be a daunting task to find the right mortgage or the best mortgage company to suit your individual circumstances. More and more however, Kanetix's quick and easy-to-use free mortgage comparison service is helping Canadian consumers like you find the best mortgage rates.

Compare mortgage rates and mortgage products today, online at Kanetix.ca by submitting an online mortgage application.

Kanetix can help you find low mortgage rates in Ontario no matter where you live

Looking for Toronto mortgage rates or Ottawa mortgage rates? Or perhaps mortgage rates in Mississauga, Scarborough, Oakville, Burlington, Hamilton, St. Catharines, Brantford, Niagara Falls, Thunder Bay, Sudbury, Brampton, Markham, Vaughan, Ajax, Pickering, Whitby, London, Windsor, Kitchener, Waterloo, Richmond Hill, Oshawa, Barrie, Cambridge, Kingston, Guelph, Peterborough, Belleville, Sarnia, or Newmarket? Compare today's broker and bank Ontario mortgage rates at Kanetix.ca.

Or maybe you're looking for a mortgage rate in a smaller city or town in Ontario, like Sault Ste. Marie, Milton, North Bay, Fort Erie, Stratford, Kenora, Niagara on the Lake, Huntsville, Orillia, Cornwall, Bolton, Aurora, Gravenhurst, Port Colborne, Woodstock, Welland, Tillsonburg, Pembroke, Orangeville, Ingersoll, Wasaga Beach, Georgetown, Clarington, Lindsay, Timmins, Trenton, Picton, Bracebridge or Petawawa? Compare mortgage rates in Ontario today at Kanetix.ca.

This summary is for informational purposes only and should not be relied upon without verification by contacting a mortgage professional.

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