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MORTGAGE RATES IN CANADA

April26
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A DETAILED STUDY OF THE MAJOR BANKS IN CANADA AND THE MORTGAGE RATES THAT THEY OFFER IN 2012

The Canadian market saw various highs and lows in the mortgage market this year. Recession to inflation, the mortgage market has largely been affected by the six major banks in Canada, which are known as the “big six”. These include:

  • Bank of Montreal
  • Royal Bank of Canada
  • Toronto Dominion Bank
  • Bank of Nova Scotia
  • Canadian Imperial Bank of Commerce
  • National Bank of Canada

These banks have played a major role in influencing the mortgage rates over the years but this year the “mortgage wars” between the six bigwigs caused a lot of confusion amongst the brokers and consumers alike. 

The chaos started when the Bank of Montreal, announced record-breaking low mortgage rates of 2.99 percent for five years mortgage and 3.99 percent for ten years in March. All other major banks followed suit and started offering stark low rates of 2.99 percent for a duration of either four or five years. These new rates increased the risk of household debt. However, the situation has steadily improved by now. The following analysis gives a detailed overview of some of these major banks and can help a buyer immensely in choosing the right mortgage plan for themselves.

BANK OF MONTREAL

The fourth largest bank in Canada, the Bank of Montreal is one of the premier banks in Canada, which has a major influence in the mortgage market. It offers a wide range of mortgage options that can cater to different needs of different buyers in a comprehensive manner. Providing both fixed and variable rate options, the bank has flexible payment options for the average Canadian home buyer. The bank hit an all time low mortgage rate of 2.99 percent for five-year mortgage period in march this year, but it has steadily increased the value in the present month. Currently with a five year fixed rate of 5.44 percent and variable mortgage rate of 3.10 percent, it’s a bank you can rely upon. 

ROYAL BANK OF CANADA

Royal Bank of Canada is the pioneer in quality banking and customer satisfaction not only in Canada but also in a many other major nations of the world. With a record of accomplishment of consumer security and payment plans that appeal to every pocket, Royal bank of Canada is your safest bet for a reliable mortgage product. Currently, with a variable mortgage rate of 3.20 percent and fixed mortgage rate of 5.44 percent for five years, Royal Bank of Canada is certainly on the top.

TORONTO-DOMINION BANK

With head quarters in Toronto and a string of offices throughout Canada, the Toronto Dominion Bank offers a large array of services to the average home buyer. Flexible payment options, attractive promotions and an established clientele is what make Toronto Dominion unique in its field. They currently offer a variable rate of 3.20 and fixed five yearly rate of 5.44 percent.

BANK OF NOVA SCOTIA

The Nova Scotia is one of the largest banks operating worldwide and serves millions of households and businesses across Canada. Apart from banking, they also provide risk management, customer satisfaction and cost control services. The mortgage rates on which they operate currently range from 3.1 percent in the variable rates category and 4.99 percent in the fixed rates fived yearly category. These rates are slightly lower than the other major banks in Canada and the customer satisfaction level is higher so you can narrow down your search to the Bank of Nova Scotia if you are looking for lesser rates and greater quality.

CANADIAN IMPERIAL BANK OF COMMERCE

Canadian Imperial Bank of Commerce is the one stop destination if cheaper pay back rates and greater value of your money is what you desire. As it is one of the top banks in Canada, it also offers you a guaranteed reliable mortgage product suiting your needs. With both variable rates and lock in fixed rates options available, the mortgage plans are safe and trustworthy. Like all other major banks, currently it offers a mortgage rate of 3.20 percent for variable and 5.44 percent for fixed plans.

NATIONAL BANK OF CANADA

The National Bank of Canada is the sixth largest bank in Canada with a large network of branches all over the country. Widely accessible and hugely popular, its service is optimum and the rates are feasible for everybody. Following the same mortgage rates as its predecessors, The National Bank of Canada brings ease and professionalism to every doorstep. Its the number one choice of every potential home buyer. Apart from these major six banks, there are multiple other mortgage institutions across the country that can help you select the plan that you are looking for. The following table compares the figures of both variable and fixed mortgage rates for the leading banks and institutes in Canada. This data can help you decide what plan you can opt for in the future. Most of the banks in Canada provide these loans for a period of twenty five years or less as most experts agree this is the perfect time period to suit every household without the burden of additional debt.

MAJOR MORTGAGE INSTITUTIONS IN CANADA AND COMPARISON OF THEIR VARIABLE AND FIXED MORTGAGE RATES FOR A PERIOD OF FIVE YEARS 

  

Institution       Variable rate Fixed Rate
Bank of Montreal        -3.1 -5.44
Royal bank of Canada     -3.2 -5.44
Bank of Nova Scotia       -3.1 -4.99
ICICI Bank       -3.05 -3.44
HSBC Bank       -3.1 -5.44
National Bank of Canada     -3.2 -5.44
Canadian Imperial Bank     -3.2 -5.44
Toronto Dominion Bank     -3.2 -5.44
Alterna Bank       -4 -3.85
Canadian western Bank     -3.2 -5.44

 As on 18 April, 2012


This discussion can easily help you do a stress test on whether or not you are ready for a mortgage plan at the moment and which bank can be your best choice in making the move to the house of your dreams!

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