KANETIX specializes in Kitchener mortgages, and we're dedicated to providing you with the best mortgage services available anywhere. In fact, we're the only Canadian website that helps you to find and compare rates and then actually secure a rate and the mortgage online! Our comparison service is completely free to use, and it features the most competitive listing of mortgage rates found anywhere. No other tool gives you the same level of access to lenders, brokers and mortgage products.

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If you're seeking a mortgage in Kitchener, then you'll be thrilled to see low rates from various brokers and lenders, personalized for you.

However, our website also provides you with a wide range of tools beyond the comparison service. Our mortgage glossary will help get you up to speed. We also have a mortgage information centre, which includes in-depth articles like Housing Trends in Ontario, New Mortgage Rules and the Canadian Housing Market, Tips for Paying a Mortgage Sooner and Mortgage vs. Term Life Insurance.

What Sets KANETIX Apart?

  • A wide network of mortgage brokers and lenders
  • The best mortgage rates available in Kitchener
  • Fast, reliable access from the comfort of your couch
  • Safe and secure
  • Completely free
  • Friendly, expert Kitchener mortgage agents standing by to help

What is a Kitchener Mortgage?

Kitchener is experiencing tremendous economic growth, which has caused a significant rise in the standard of living. This is a big reason why so many Canadians choose Kitchener and other cities in Ontario for their first home (see: tips for first-time home buying). Another Kitchener advantage is that the area has a proven track record of homes and property appreciating in value.

In Kitchener, a mortgage is necessary to cover the difference between the purchase price and the available down payment. A mortgage can also be used to extend additional equity on a home, such as for home improvement, paying off credit card debt or paying a child's college tuition. Kitchener mortgages are available through mortgage brokers, chartered banks, credit unions and so forth.

A mortgage rare is the interest that the lender charges on the loan. When a homeowner makes a mortgage payment, some applies to the principal and the rest toward the interest. Only the amount applied toward the principal reduces the mortgage balance.

Important aspects of Kitchener mortgage loans

A low rate is important but not the only factor. Here are three other crucial loan aspects:

  • Rate hold period - A promised rate is only guaranteed for a set period of time. A longer rate is beneficial and helps to protect the homebuyer.
  • Prepayment limitations - Closed mortgages allow you to increase the monthly payment, and this limitation dictates by how much the homebuyer is able to augment it.
  • Amortization period - This is the period in which the homebuyer must pay off the mortgage in full. Longer amortization periods can make a home more affordable in the short term.

Find the best mortgage rates in Kitchener

The KANETIX website is designed to make it easy to compare Kitchener mortgage rates. Our service provides special discounts to residents of Kitchener, and it's configured to make the mortgage comparison process as simple and stress-free as possible.

Our network and partnerships make this possible while also extending you the lowest rates available. Give our service a try. See how easy it is, and if you prefer not to use an online application, then feel free to call us and be connected directly to one of our mortgage agents.

KANETIX provides access to a wide range of mortgage types: fixed-rate mortgages, open mortgages, closed mortgages and variable-rate mortgages.

The process is safe, free and fast, and you can:

  • View both lender and broker mortgage loans
  • Classify by rate type, payment type, term, amortization and so forth

KANETIX can help whether you're securing a first mortgage, second mortgage, mortgage renewal or mortgage refinancing. Our mortgage calculator will also help you discover the amount, rate, frequency and period.

The primary types of Kitchener mortgages: Variable, Fixed, Open, Closed

Mortgage type is just as important as interest rate. With a variable mortgage, the rate adjusts based on the prime lending rate. A fixed mortgage, on the other hand, has a fixed rate. Chosing a fixed or variable rate comes down to budget and risk tolerance.

Mortgages can be either open or closed. Open mortgages are ideal if the homebuyer plans to make large pre-payments frequently. A closed mortgage is more restrictive when it comes to prepayment, but there are rate and other advantages to that restriction.

High Ratio vs. Conventional mortgages in Kitchener

The size of a down payment, or home equity when refinancing, determines if the mortgage is a high ratio or conventional mortgage. If the down payment or equity is less than 20 per cent of the value, a high ratio is necessary and mortgage default insurance is often employed to mitigate lender risk.

Mortgage Brokers in Kitchener

The best brokers in Kitchener partner with KANETIX to bring you the lowest rates. If you have any questions at all, our partners will be happy to assist you. All rates listed on KANETIX.ca include full descriptions. Visit our mortgage rate comparison page for more information.

Kitchener, Ontario

Kitchener is located in Southern Onntario, approximately 100 km west of Toronto. The city is a popular area for homebuyers and is in close proximity to other popular areas, such as Waterloo and Cambridge. In June 2012, Kitchener celebrated 100 years of being a city.

You can find the best rates across Ontario! Check out our mortgage rate comparison service in Toronto, Ottawa, Mississauga and Oakville.

City of Kitchener General Information

  • Population (2011): 219,153
  • Population Makeup (2011): 77.7 per cent Canadian born
  • Average annual population growth (2001 - 2011): 2.0 per cent
  • Median family income (2010): $77,040
  • Unemployment rate (August 2013): 1.4 per cent
  • CPI Inflation (August 2013): 1.1 per cent

Sources: Stats Canada

Kitchener Ontario Housing Trends

Located approximately 100 kilometres west of Toronto in Ontario, Kitchener is a moderately sized city with a population of about 220,000 residents, and the metropolitan area surrounding the city (which includes Waterloo and Cambridge) has over a half million residents.

The entire metropolitan area has a vibrant workforce and an eclectic culture that has been created in part by the large number of immigrants to the area from various European countries. It offers residents a wonderful place to call home, and because of this, many homebuyers are taking a closer look at housing trends in the local area to determine if now is an ideal time to buy or sell real estate. Several key factors should be analyzed when reviewing the housing market in the Kitchener metropolitan area. Despite fluctuating housing markets in other areas of the country, Canada Mortgage and Housing Corporation expects the Kitchener-Cambridge-Waterloo market to remain fairly balanced.

A Look at Interest Rates in Canada

While mortgage rates in Canada hovered near historical lows for most of 2012 and the first half of 2013, they have risen slightly in recent months, due in part to the economic recovery in the United States. While notable mortgage rate growth isn't expected until mid-2014, these should still hover near or under 3.5 per cent (rates between 3.25 per cent and 3.75 per cent are expected for 2014, according to Canada Mortgage and Housing Corporation).

New Housing Starts

New housing starts have declined throughout the Kitchener metropolitan area for the period between January 2012 and July 2013. In January 2012, there were 590 new housing starts, compared to 411 new housing starts in July of 2013. This represents a marked 30 per cent decrease. These new housing starts statistics may be due to a number of economic factors. For instance, not only is there ample availability of affordably priced resale homes listed on the market, but a number of new apartment units have also been introduced. Economic factors related to discretionary income and job growth may also be attributing to the sluggish numbers on new housing starts.

Housing Resales

While new housing starts may have declined over the last 18 months in the Kitchener metropolitan area, housing resales have remained rather stable. In a spring 2013 report, Canada Housing and Mortgage Corporation (CMHC) projected a slight increase in resale prices between 2013 and 2014. In fact, despite a "slip by one per cent" in sales in 2013, the report predicts that "strong job growth will support sales gains in 2014."

Housing Prices

It is common when sales of both new and existing homes in a market decline, housing prices will follow suit. However, because many of the new housing starts and resales in the local area are for higher-end homes, the average sales price of homes sold has actually increased by approximately two per cent over the last year. CMHC reports that competition is strongest among listings priced between $500,000 and $750,000.

As the housing market picks up speed within the next year (and the population of first-time homebuyers grows), the number of housing starts and resales for more affordably priced homes is expected to increase. This will bring the average sales price of homes Kitchener down.

Employment and the Economy

While real estate markets throughout much of Canada have been bolstered in recent years by the low interest rates, the economy in Kitchener has prevented this metropolitan area from experiencing the same benefits to its real estate market. Slow job growth coupled with a growing population has hampered the local economy. However, CMHC reports that a gradually strengthening U.S. economy will support growth in Kitchener for 2014. Further bolstering growth in the housing sector will be the influx if migrants to the area, who will be drawn in by "a strong labor market."

A Market Analysis

While not the fastest growing housing market in Ontario, the Kitchener metropolitan area is still expected to see modest growth in its economy through 2014. As stronger employment opportunities are available in the area, more first-time homebuyers will enter the marketplace. Existing homebuyers who have been staying put in their current home may have the discretionary income or the confidence necessary to upgrade to a new home as well. While rising interest rates may moderate the effects of a stabilizing economy in the Kitchener area, some recovery to the real estate market is expected within the next year.

Understanding Kitchener housing trends requires the understanding of the basic fundamentals that drive the housing market. Factors related to the affordability of housing, the availability of other housing options like apartments, confidence in the job market and economy and other factors all will affect the housing market in Kitchener in the coming months and years. It can be difficult to accurately predict each of these factors or to determine with accuracy which of these factors may have a greater influence on the market. However, there is a general expectation that the currently sluggish housing market in Kitchener will pick up speed at a slow pace within the next year. Those who are attempting to time the market to buy or sell real estate in Kitchener should actively monitor each of these factors for change.

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