Find your best mortgage rate online
In the Canadian mortgage market, there are many different kinds of mortgage loans to choose from, with a wide range of mortgage rates available. How do you know which one suits your needs and saves you money? Whether you're looking for a mortgage loan for your first or second home, commercial property, investment property, or want to refinance or renew, you can easily compare various mortgage lenders and brokers at Kanetix.ca. Within minutes, you can secure the lowest broker and bank mortgage rates in Canada by following a few simple steps.
- Enter some personal information and your mortgage details
- Compare available rates from over 30 banks and brokers
- Connect with the lender offering the best rate for you
Learn how much you can afford
For such a large loan,
you'll want to make sure that you're not overspending on your
mortgage. Use Kanetix.ca's mortgage payment calculator to see how different payment frequencies
and mortgage rates affect how much you'll pay over the lifetime of a mortgage
loan in total. With this knowledge, you can make choices that will help you pay
off your mortgage faster and save in mortgage interest costs.
What is a mortgage?
A mortgage is a loan taken out in order to purchase your home; it is the sum of money you borrow in order to make up the difference between the property's purchase price and your down payment. There are many lenders that offer mortgage loans, from banks and credit unions to mortgage brokers - accredited mortgage professionals who are able to offer rates from a variety of different lenders.
What is a mortgage rate?
Similar to almost any other type of loan, when you take out a mortgage, you will be charged interest on the money borrowed. The amount of interest you'll be charged is based on your mortgage rate. The lower the mortgage rate, the lower your interest.
So what is a mortgage rate? It's a percentage of your mortgage that you will pay on top of your mortgage payment. An interest rate.
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. Still confused? Kanetix.ca also features tons of content in our InfoCentre to help you understand the ever-changing mortgage rules and trends in the Canadian market.
What is the difference between a variable and fixed mortgage?
The difference between these two types of mortgages lies in the interest rates.
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 changes in the prime lending rate (prime interest rate).
This means that you’ll make the same payment every time, but the amount that is applied towards your loan may fluctuate based on how much interest you have to pay.
Example: Your payment is $2000 a month, and your interest is 3.1%, which means $62 of that $2000 payment goes to interest. If your interest rate goes up to 5.6%, that means $112 of that $2000 payment will go to interest instead of your loan.
It should be noted that the cheapest mortgage rate 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 it is right for you in the long-term. The key to finding the best mortgage for your unique circumstances is to stay informed! Some questions you may want to ask include:
- Can I make extra mortgage payments if I have the money available? If so, how often?
- Are there any fees, or penalties that I need to know about?
- How will increasing or reducing the mortgage amortization affect my mortgage payment and total interest payable over the life of my mortgage?
What is an amortization period?
An amortization period or "schedule" is the amount of time it will take to pay off your entire mortgage in full if you continue to make your current rate of payment on time, without any penalties or early payments, from the time you first take out the loan.
Example: If you take out a mortgage with a 30-year amortization period, that means that at your current mortgage rate and frequency of payments, you should be able to pay it off in full in 30 years. If you increase the amount of your payment, that amortization period will decrease. If you are late on a payment, the amortization period will lengthen. And if you stay at the same pace of payments at the same rate, the amortization period will stay on schedule.
Open and closed mortgages
Mortgages are also typically classified as "closed" or "open".
A closed mortgage is a mortgage which cannot be renegotiated or refinanced before the mortgage term reaches full maturity without penalty. However, 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.