Mortgage interest rates

For what period can I get a mortgage loan?

In Canada, the period for which you can get a mortgage loan involves two main components: the mortgage term and the amortization period.

Mortgage term - is the length of time you are committed to a particular mortgage rate, lender, and conditions. At the end of the term, you must either pay off the remaining principal or renew the mortgage for another term. Common mortgage terms include:

1. Short-term: typically 6 months to 3 years
2. Medium-term: 4 to 5 years (5 years is the most common term in Canada)
3. Long-term: 6 to 10 years

Amortization period - is the total length of time it will take to pay off your entire mortgage. This period affects the size of your monthly payments and the total interest paid over the life of the loan.

Standard amortization period is 25 years and up to 30 years for qualified borrowers.

What is a mortgage backed security ETF?

A Mortgage-Backed Security (MBS) ETF in Canada is an exchange-traded fund that invests primarily in mortgage-backed securities. These are types of asset-backed securities that are secured by a collection of mortgages.

What is an adjustable mortgage?

An adjustable-rate mortgage (ARM), often referred to as a variable-rate mortgage in Canada, is a type of home loan where the interest rate can change periodically based on the prime rate or other benchmark rates.

Who offers the lowest mortgage rates?

Mortgage rates in Canada can vary significantly based on the type of mortgage (fixed or variable), the term length, and the financial institution offering the mortgage. Generally, rates are competitive among major banks, credit unions, and online lenders. Here are some of the institutions known for offering the best mortgage rates:

1. Major Banks: RBC Royal Bank, TD Canada Trust, Scotiabank, BMO Bank of Montreal, CIBC
2. Online and Alternative Lenders: Tangerine, HSBC, Ratehub, IntelliMortgage
3. Credit Unions: Meridian Credit Union, Coast Capital Savings, DUCA Credit Union, Vancity Credit Union

Can I get a loan for 40 years in Canada?

The maximum allowable amortization period for most mortgage loans is typically 25 to 30 years. The option for a 40-year amortization period was available in the past, but regulations have changed, and it is no longer offered by most lenders.

Can I apply for a mortgage online?

Yes, many lenders, including banks, credit unions, and online mortgage brokers, offer online mortgage application processes. You can fill out the online application form with your personal, financial, and employment information. Upload the required documents as part of the application process.

Review your application for accuracy and completeness. Submit the application online to the lender or mortgage broker. The lender will review your application, check your credit, and assess your financial situation. They may contact you for additional information or clarification.

If approved, the lender will provide a mortgage commitment letter outlining the terms and conditions of the mortgage. You may need to sign documents electronically or in person.

Do Canadian banks set variable or fixed rates for mortgages?

Canadian banks offer both variable and fixed-rate mortgages.

Variable-rate mortgages have interest rates that can fluctuate during the mortgage term, typically based on the lender’s prime rate, which is influenced by the Bank of Canada’s policy rate.

Fixed-rate mortgages have interest rates that remain constant for the entire term of the mortgage. In such a case the interest rate is locked in for the duration of the term, which can range from 1 to 10 years, with 5-year terms being the most common.

Can I get a pre-approval for a mortgage?

Yes, you can get a pre-approval for a mortgage in Canada. Mortgage pre-approval is a process where a lender evaluates your financial situation and creditworthiness to determine the maximum amount they are willing to lend you for a home purchase.

To get the pre-approval, you must gather some documents, like:

• Proof of Income. Recent pay stubs, T4 slips, tax returns.
• Employment Verification. Letter from your employer confirming your position, salary, and length of employment.
• Credit Report. The lender will usually pull your credit report.
• Bank Statements. Recent statements showing your savings and other assets.
• Identification. Government-issued ID (e.g., driver's license, passport).

Complete the pre-approval application form with your personal, financial, and employment information.

The lender will perform a credit check to assess your credit score and history. If approved, you will receive a pre-approval letter stating the maximum mortgage amount you are qualified for, the interest rate, and the duration of the pre-approval (usually 60 to 120 days).

Home loan calculations for 20 years (example)

Porting a mortgage in Canada

Porting a mortgage refers to the process of transferring your existing mortgage from your current property to a new property. This can be an attractive option if you want to move but keep the terms and conditions of your current mortgage, including the interest rate.

What is the prime rate for mortgages?

The prime rate for mortgages in Canada is a benchmark interest rate set by the major banks, which they use to determine the interest rates for various types of loans, including variable-rate mortgages, lines of credit, and some credit cards.

The prime rate in Canada fluctuates based on changes to the Bank of Canada’s overnight rate, economic conditions, and the policies of the individual banks.

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Details of companies offering the financial services:

True North Mortgage

Web-site: https://www.truenorthmortgage.ca/

BHM Financial Group

Head office’s address: 1090 Avenue Pratt 1090 Avenue Pratt, Outremont, Montreal, QC

Contact center: 877-787-1682

Web-site: https://www.bhmfinancial.com

Mortgage Commitment Powered By Centum Financial Services FSRA

Web-site: https://mortgagecommitment.ca/

Lendtoday

Head office’s address: 179 King St E, Oshawa, ON L1H 1C2

Phone: 1-855-242-7732

Web-site: https://www.lendtoday.ca/

Jeff Di Lorenzo

Head office’s address: 122 Lower Bench Rd, Penticton, BC V2A 1A8

Contact center: 1-877-744-3436

Phone: 778-839-3963

Web-site: https://yourequity.ca/

Alpine Credits

Head office’s address: #310-10524 King George Boulevard, Surrey, BC V3T 2X2

Contact center: 1-800-587-2161

Web-site: https://alpinecredits.ca/

Bank Of Montreal

Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6

Contact center: 877-225-5266

Phone: 416-867-5000

Web-site: http://www.bmo.com/main/personal

Swift code: BOFMCAM2

Stock code: BMO

BSB: 001

Calvert Home Mortgage

Head office’s address: 808 42 Ave SE #127, Calgary, AB T2G 1Y9

Contact center: 1-403-278-0249

Web-site: https://chmic.ca/

CIBC

Head office’s address: 199 Bay St, 44th Floor Toronto

Contact center: 800-465-2422

Web-site: https://www.cibc.com/en/personal-banking.html

Swift code: CIBCCATT

Stock code: CM

BSB: 010

Clover Mortgage

Head office’s address: 7 City Centre Dr Suite 150, Mississauga, ON L5B 1M5

Contact center: 1-416-674-6222

Web-site: https://clovermortgage.ca/

Icici Bank Canada

Head office’s address: Don Valley Business Park 150 Ferrand Drive, Suite 1200 Toronto

Phone: 888-424-2422

Web-site: http://www.icicibank.ca/

Swift code: ICICCATT

Stock code: ICBK

Prudent financial services

Head office’s address: 1150 Sheppard Ave W, Toronto, ON M3K 2B5

Contact center: 1-888-852-7647

Web-site: https://www.prudentfinancial.net/

RBC Royal Bank

Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto

Contact center: 800-769-2511

Web-site: http://www.rbc.com/canada.html

Swift code: ROYCCAT2

Stock code: RY

BSB: 003

SBI Canada Bank

Head office’s address: 220 Bay Street, Ground Floor, Toronto

Phone: 416-214-1811

Web-site: http://www.sbicanada.com/

Swift code: SBINCAT

Threshold Mortgage Corporation

Head office’s address: 1200 Pembina Hwy, Winnipeg, MB R3T 2A7

Contact center: 1-204-284-4953

Phone: (204) 284-4953

Web-site: https://thresholdmortgage.net/

TD Bank

Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto

Contact center: 866-222-3456

Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp

Swift code: TDOMCATTTOR

Stock code: TD

BSB: 004