Big 5 Bank Mortgage Rates - Canada mortgage rates - Ratehub.ca (2024)

Getting a mortgage is a major financial commitment and can make big changes to your lifestyle. So, taking the time to choose the right mortgage is really important. For most Canadians, the Big 5 Banks are what they will think of first when they consider taking the mortgage plunge, but the big banks are not your only choice.

Canadian mortgage market update: May 2024

The housing market in Canada has been markedly volatile over the past few months, but there are now early signs that indicate sales activity will pick up as expectations for rate cuts later this year by the Bank of Canada gather pace. Bond yields continue to be difficult to predict, as anxious investors react to various economic reports coming out of Canada, the United States and elsewhere. Following a brief tumble in December and January, they have mostly been on the rise since then, spurred in part by the US Federal Reserve’s “higher for longer” rate stance. Bond yields are currently are sitting in the upper 3% range. Both fixed and variable mortgage rates remain historically high. If you’re looking to get a mortgage in Canada, here are some things you should be aware of.

• Real estate update: On May 15, 2024, the Canadian Real Estate Association (CREA) came out with the April numbers for the Canadian housing market. The latest figures reveal that Canada’s usually busy spring market is relatively quiet. Some 37,745 residential properties changed hands across Canada in April, representing an annual increase of 10%, but a -1.7% decline from March. Some 70,346 homes came to market in April, nearly twice the number of sales. As a result, the sales-to-new-listings ratio (SNLR) fell to 53.4%, down from March’s 57.4%. CREA defines a ratio between 45 - 65% to reflect a balanced housing market, with above and below that threshold indicating sellers’ and buyers’ market conditions, respectively. Despite the abundance of new listings, there was some price growth on a monthly basis. The national average home price came in at $703,446 in April, above March’s $698,520, but down by -1.8% year-over-year.

  Read m

  ore: National home sales fall in April as buyers stick to the sidelines
• CPI update: On May 21, 2024, Statistics Canada came out with the latest Consumer Price Index (CPI) reading for the month of April, which revealed that headline inflation stood at 2.7%, down by -0.2% from March. This lower reading can be attributed in no small part to falling food prices, which registered an annual increase of 1.4%, down from 1.9% the month before. Gas prices did rise by 6.1% in April, however. Still, the biggest contributor to inflation continues to be shelter costs, which include both mortgage interest costs (up by 24.5% annually) and rents (up by 8.2% annually). The Bank of Canada should be happy with this latest CPI report, which also indicated that two key metrics – CPI Median and CPI Trim – fell to 2.6% and 3.2%, respectively. In light of this most recent CPI reading, markets are now pricing in a 50% chance that the Bank of Canada will choose to cut the target for the overnight rate at its upcoming announcement on June 5.

Read more: Canadian CPI comes in at 2.7% in April

2024 Housing market forecast

With expectations of rate cuts growing and pent-up home buyer demand apparent, CREA has revised its forecasts for 2024 and 2025 upwards.

CREA now expects that a total of 492,083 homes will change hands across Canada in 2024, up by 10.5% from 2023. Sales growth is projected to be most robust in markets where housing demand has been consistently strong, like Alberta. However, sales growth is also anticipated in markets that have hitherto been languishing due to historically low demand, such as Ontario, British Columbia and Nova Scotia. The average home price in Canada will rise by 4.9% to come in at $710,468 in 2024.

Housing market activity will gather further momentum in 2025, with sales forecast to hit 530,494 residential properties (an increase of 7.8%) and the average national home price expected to reach $760,120 (an increase of 7%).

Posted rates vs. best rates

When comparing bank mortgage rates, it’s important to know that these rates represent the banks' posted mortgage rates. The posted rate is simply the rate that the bank is advertising in public. However, banks are often able to offer even lower rates in order to secure a borrower's business. You may be able to access these discounted rates through negotiation, or by reaching out to a representative mortgage broker. Some banks offer rates several percentage points below what is posted, so it's worth taking the time to see if you can get a better offer.

Bank rates vs. broker rates

As you may have noticed, bank mortgage rates are almost always higher than those of mortgage brokers. That is because mortgage brokers have access to rates from multiple banks and credit unions, as well as insurance and trust companies. That means they can shop around for you. Brokers also receive bulk discounts from lenders based on the high volume of their business that they can pass along to you.

As a result, it’s unlikely that a bank will post a lower rate than a mortgage broker. However, if you present the lowest market rate to your bank as part of the negotiation process, they may offer to match it. That said, we don’t recommend pitting the banks and brokers against each other to compete for your business. What we do recommend is comparing broker mortgage rates and bank mortgage rates alongside each other, and deciding which offer is best for you.

Comparing mortgage rates with Ratehub.ca

Whether you're considering using a bank or broker, a variable or fixed mortgage rate, or a one to a 10-year term, we can help. Our tools find the best mortgage rates for every category and type of lender, personalized to you. Our goal at Ratehub.ca is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly and providing them with the best online application and offline customer service to close their mortgage all in one place.

Posted rates vs. best rates

When comparing bank mortgage rates, it’s important to know that these rates represent the banks' posted mortgage rates. The posted rate is simply the rate that the bank is advertising in public. However, banks are often able to offer even lower rates in order to secure a borrower's business. You may be able to access these discounted rates through negotiation, or by reaching out to a representative mortgage broker. Some banks offer rates several percentage points below what is posted, so it's worth taking the time to see if you can get a better offer.

Bank rates vs. broker rates

As you may have noticed, bank mortgage rates are almost always higher than those of mortgage brokers. That is because mortgage brokers have access to rates from multiple banks and credit unions, as well as insurance and trust companies. That means they can shop around for you. Brokers also receive bulk discounts from lenders based on the high volume of their business that they can pass along to you.

As a result, it’s unlikely that a bank will post a lower rate than a mortgage broker. However, if you present the lowest market rate to your bank as part of the negotiation process, they may offer to match it. That said, we don’t recommend pitting the banks and brokers against each other to compete for your business. What we do recommend is comparing broker mortgage rates and bank mortgage rates alongside each other, and deciding which offer is best for you.

Comparing mortgage rates with Ratehub.ca

Whether you're considering using a bank or broker, a variable or fixed mortgage rate, or a one to a 10-year term, we can help. Our tools find the best mortgage rates for every category and type of lender, personalized to you. Our goal at Ratehub.ca is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly and providing them with the best online application and offline customer service to close their mortgage all in one place.