At KANETIX, we're dedicated to providing the best service in Scarborough for all your mortgage needs. We are the sole mortgage website in Scarborough where you can find and compare rates from a variety of mortgage lenders and brokers, secure those rates and obtain your mortgage online!

Browse through mortgage rates using our free comparison service before selecting your choice from the privacy of your own home.

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Our mortgage information centre offers comprehensive information so you can make an informed choice for your mortgage in Scarborough. While visiting our site, read articles about real estate trends, advice for paying your mortgage in full before it is due, among other useful real estate- and mortgage-related subjects. Our mortgage calculator tool gives you the chance to calculate you monthly payments to budget accordingly. You can also visit our mortgage glossary to brush up on terms you may not know.

What makes KANETIX different?

A large number of mortgage lenders and brokers, as well as products at your fingertips

  • The most competitive rates in Scarborough
  • Enjoy the peace of mind of a mortgage guarantee certificate without leaving your home.
  • Our service is quick, safe and free of charge
  • Access to experienced and friendly Scarborough mortgage agents.

What is a Scarborough Mortgage?

With home values continuing to rise in Scarborough, purchasing property there is a sound investment. In fact, Scarborough's home prices are higher than any other region within Ontario, which makes owning a home there an even more attractive prospect.

When preparing to purchase a home in Scarborough, you will likely need a mortgage to cover the gap between your down payment and the total home price. Or, if you already own a home in the community, you might want to take out a second mortgage in order to finance renovations or for other purposes, such as paying for a child's college tuition and related expenses. Either way, you will need a mortgage lender.

An important component in any mortgage is its interest rate. Each time you make a mortgage payment, a portion of it is applied to the principle and another portion to the interest. that is why our site is so useful. You can use it to compare rates while you relax in your home or even on a break at work.

Scarborough offers a variety of mortgage lenders, including credit unions, chartered banks, mortgage brokers or trust companies, among others.

When comparing mortgage products, do not allow the lowest interest rate to be the only factor that influences your final choice. Other factors you should consider include:

Pre-payment limitations- Found in closed mortgages, these allow you to make annual payments at a fixed percentage of the total loan amount.
Rate hold period- This is the timeframe during which a lender guarantees a particular rate. Look for a product with a longer rate hold period.
Amortization Period- This is the period of time you have to repay the loan. Your best choice will depend on your individual circumstances.

Finding the best mortgage rate in Scarborough

By working with a wide range of mortgage brokers and other Scarborough lenders, we are able to offer the most competitive rates to our customers. Start by completing our brief online application after finding the rate you prefer, and you are one step closer to being a homeowner!
If you prefer not to fill out an online application, give us a call and we will connect you to a partner mortgage agent who will be happy to help you through the process.

High Ratio versus conventional mortgages in Scarborough

Whether or not your mortgage is classified as a conventional or high ratio mortgage in Scarborough and the rest of Canada is based on the amount of your down payment, or, in the case of a second mortgage, on the equity in your home.
If your down payment or home equity is less than 20 percent of the value of the property, you will take out a high ratio loan, which requires you to purchase mortgage default insurance to protect your lenders in the event your default.

Scarborough General Information

  • Population (2011): 2.5 million
  • Population Makeup (2006): 57 per cent foreign born
  • Average annual population growth (2001 - 2011): 2.5 per cent
  • Median family income (2010): $85,380
  • Unemployment rate (August 2012): 4.5 per cent
  • CPI Inflation (August 2012): 2.4 per cent
  • Sources: Stats Canada.
  • The Scarborough Real Estate Market
  • Housing starts (2011): 10,114
  • Year-over-year change: -4.2 per cent
  • Average Residential resale price (Q4 2012 YTD): $397,334
  • Year-over-year change: 2.4 per cent

KANETIX's innovative mortgage rate comparison service is available Canada-wide! You can compare the best mortgage rates from top lenders and brokers in the province of Ontario, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island.

Mortgage Trends in Scarborough Ontario

Sitting on the shores of Lake Ontario and the Rouge River, Scarborough is a large city that is home to over 625,000 residents. From its founding in 1850 until 1998, the city grew and thrived as a suburb of Toronto. In 1998, Scarborough was amalgamated, or legally dissolved into, Toronto. Now, Scarborough is simply a very large suburb located to the east of downtown Toronto. It provides its residents with very convenient access to all that the Toronto area offers, and many individuals buy and sell real estate in this large market each year because of its proximity to the downtown Toronto area. Due to its union with Toronto, the real estate market in Scarborough is very closely tied to that of the larger metropolitan area. Therefore, those who are interested in reviewing the mortgage trends and real estate market in Scarborough should spend time studying the Toronto real estate market as well.

A Recent History of the Market

In the United States, just south of the local area, a housing crisis took hold in 2008 that forced real estate values that were previously sky high down to historic levels. Markets in the United States, such as Las Vegas, Miami and others were hit particularly hard, and this resulted in a large number of foreclosures that contributed to a deepening economic slump. Housing prices in Scarborough and other markets across Toronto and Ontario, however, have remained high during this time period despite that the fact that local residents benefited a plunge in mortgage interest rates that resulted from the crash in the United States.

The Forecast for Mortgages Interest Rates

Interest rates in Canada plunged when the United States real estate market crashed in 2008. While housing prices in the United States dropped in most markets during this time, housing prices remained high in Canada. Interest rates for a five-year note in Canada in 2007 were close to 7 per cent, and by June 2013, the interest rate for that same five-year note was about half that level. Some experts have stated that the lower interest rates in Canada have helped to prevent the Canadian real estate market from crashing, as occurred in the United States. This is because the lower interest rates enabled the higher sales prices of real estate to be affordable. Most experts agree that Canadian mortgage interest rates are expected to rise at a very slow pace throughout 2013 and 2014. While an increase in mortgage rates is projected, the rate increase will be minimal. In fact, the rates are still projected to be well below the level they were at in 2008. This slight increase in interest rates builds consumer confidence as it is a sign that the economy is continuing to improve. Because the rates will remain low, this will encourage real estate sales to continue close to current levels for the next year or two.

Housing Starts

Because housing starts across the Toronto metropolitan area and Scarborough will be a major factor in the real estate market outlook going forward, it is important to review historical data in this area. There were approximately 33,800 housing starts in the metropolitan area in August 2013, and this reflects a sharp decline from housing starts in the area from just a year prior. In August 2012, housing starts in Toronto exceeded 54,000 units. There may be many reasons for the decline in new housing starts for this period of time. For example, many individuals may have opted to take advantage of low interest rates to purchase existing homes rather than to build a new home from the ground up. With the availability of existing homes on the market, this is a likely explanation for the decline in housing starts.

Real Estate Prices

With so many units available on the market, it may be reasonable to expect that real estate prices would be inching their way downward across the Toronto area. After all, when supply exceeds demand, laws of economics state that prices will fall. However, the Toronto Real Estate Board has released data for August 2013 sales in the market, and the data is surprisingly positive for sellers. The average home price for August 2013 was about 5.5 per cent to more than $503,000 from the previous year. The number of transactions in the area was also up about 21 per cent from the previous year. Condo sales in particular for the Toronto area increased by over 20 per cent from the previous year. Some experts attribute this unexpected increase to real estate buyers and sellers who have previously been sitting on the sidelines and who have been spurred to take action with the unexpected rise in interest rates and news that rates are expected to continue to rise. This is a positive sign that consumer confidence is strong in Toronto.

Analyzing the Market

Few experts who monitor the real estate and mortgage markets will argue with the likelihood that mortgage interest rates will continue to rise over the next year or so. The rise is expected to be slow and steady, and because of this, the rate increase should have a minimal effect on the markets within the next year. New construction of residential real estate is expected to stabilize within the next year, and re-sales of existing homes is expected to remain popular due to the relatively low interest rates. Housing prices may continue to rise slowly, as this has been the trend in recent years. However, because of the downward pressure that slightly rising interest rates may have on the market, the increase in real estate prices may be relatively minimal.

There are strong, positive signs that the economy in Scarborough and throughout the Toronto metropolitan area is stabilizing. With interest rates expected to remain low, now may be an ideal time for individuals to buy or sell real estate in the local area.

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