Are you considering buying a home in Canada? When looking for a home, the mortgage rates Canada loan providers offer vary by province. With a sizeable mortgage, the smallest figures are instrumental in your financial requirements.
Searching for the best mortgage rates helps you get the loan you need and ensures you can pay it back in a reasonable amount of time. With no way to predict your province's rates, which change over time, it's necessary to do your research when you're ready to buy a home.
Knowing which rates providers could offer you can help you get the best fixed-rate mortgage. In this article, we'll help you understand why mortgage rates vary between provinces and compare rates from each province.
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There are several reasons why you could receive a higher rate in one province than another. Fixed and variable mortgage rates in Canada vary by province for many reasons, including competition, province size, and local regulations.
The more saturated a real estate market is, the cheaper mortgage rates can get. With a saturated market, competing loan providers are willing to offer more affordable quotes for fixed- and variable-rate mortgages across Canada. Credit unions compete against one another, while mortgage brokers may provide assistance and compete with other brokers by buying down clients' rates.
Rates also vary by province due to province size and population. Credit unions and large banks have an easier time getting funding than smaller, less popular lending institutions in large regions. Saturated markets with high home prices also boost lending volumes and drive down mortgage rates. Each province also has its own regulations regarding competition. Banks and credit unions operate in single provinces, keeping customers in the same regions throughout the amortization period. These entities don't have to compete against other provinces' loan providers.
Canada Mortgage Rates
Regarding mortgage rates, Canada provinces follow different trends. Each province receives licensure through the Mortgage Brokers Act or Lenders Registration Act by the province's dedicated financial commission or similar group. Provincial commissions set the regulations for mortgage rates and lending professionals and protect future homebuyers from illegal economic activity.
To maintain a current status, mortgage brokers and loan providers must renew their licensure yearly. Other regulations help mortgage loan providers maintain a consistent mortgage industry. Across the entire country, the average fixed mortgage interest rate is 2.67%.
Here are the current mortgage rates let say you will purchase a house today with the selling amount of $650,000 and $90,000 down payment for a specific province in Canada.
5-Year Fixed Mortgage Rates in Canada
PROVINCE
FIXED
PROVIDER
Alberta
L: 4.94%; $3,254/m H: 5.29%; $3,369/m
Marathon Mortgage TD Canada Trust
British Columbia
L: 4.94%; $3,254/m H: 5.29%; $3,369/m
Marathon Mortgage TD Canada Trust
Manitoba
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
New Brunswick
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Newfoundland
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Northwest Territories
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Nova Scotia
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Nunavut
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Ontario
L: 4.94%; $3,254/m H: 5.49%; $3,436/m
Marathon Mortgage Scotiabank
Prince Edward Island
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Saskatchewan
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
Yukon
L: 4.99%; $3,270/m H: 5.29%; $3,369/m
Equitable Bank TD Canada Trust
5-Year Variable Mortgage Rates in Canada
PROVINCE
VARIABLE
PROVIDER
Alberta
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
British Columbia
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Manitoba
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
New Brunswick
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Newfoundland
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Northwest Territories
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Nova Scotia
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Nunavut
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Ontario
L: 4.8%; $3,209/m H: 5.5%; $3,439/m
MCAP Scotiabank
Prince Edward Island
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Saskatchewan
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Yukon
L: 4.8%; $3,209/m H: 5.4%; $3,406/m
MCAP TD Canada Trust
Mortage Rates Ontario
Ontario's real estate market prices soar due to the high population and in-demand property. These factors mean the province's interest rates are lower to compete with other local providers.
Of all mortgage rates, Ontario has the lowest in the country. You'll pay a 2.32% fixed interest rate and 2.04% variable interest. Of the most populated Ontario cities, those boasting the lowest interest rates year-to-year include Toronto, Hamilton, Kitchener-Cambridge-Waterloo, London, and Windsor.
Mortgage Rates Québec
Regarding mortgage rates, Canada homebuyers face higher rates in Québec. The province's language barriers and legal discrepancies make the market less competitive, causing interest rates to rise. However, the area's population still leads to high real estate prices warranting sizeable rates.
The province's lowest rates for five-year fixed-rate mortgages begin around 3.45%, while the highest rates are up to 6.49%. Variable rates reach up to 8.03%.
Mortgage Rates British Columbia (BC)
British Columbia's large population and proximity to high-demand areas mean loan values and interest rates are highest in cities like Vancouver, Victoria, Kelowna, and Abbotsford-Mission. The province's average mortgage rate is 2.09%.
Vancouver and Victoria feature the highest rates for residential mortgages. As of 2022, the average British Columbia mortgage value was $506,682. Rates for a five-year variable-rate mortgage of this price start at 3.50% and reach over 8%.
Mortgage Rates Alberta
Alberta is a lesser populated province with low competition among credit unions and higher interest rates. New homebuyers receive interest rates between 4.29% and 6.49%. Less competition in the province may be the cause of these higher prices.
Edmonton's average mortgage value indicates that homes have considerably more affordable interest rates in the capital city. Homebuyers pay as little as 3.50% for variable terms.
Mortgage Rates Saskatchewan
Saskatchewan fixed mortgage rates tend to average below the national average. The same is true for the average variable rate. Far fewer mortgage providers and residents in the province cause higher overall costs.
Depending on market trends, your credit score, and other factors, starting interest rates for these areas are between 3.50% and 3.70%. Higher rates range from around 6% to over 8%.
Mortgage Rates Nova Scotia
Nova Scotia's maritime setting makes it an on-demand location for homebuyers looking for affordable mortgage rates in Canada. Low provincial populations for this coastal area bring higher mortgage rates that still compete with the country's average.
The Halifax metropolitan area's average home loans have indicated considerable new activity. This activity translates to Nova Scotia's average mortgage rates around 2.14% for five-year variable rates.
Mortgage Rates New Brunswick (NB)
Homebuyers in New Brunswick will find that mortgage rates of Canada providers range from 4.25% and higher for variable rates. Among the most popular posted rates are 4.44% for five-year fixed amortization terms, although some providers' interest offerings reach as low as 4.29%. Moncton and Saint John are among the metropolitan areas most popular with homebuyers.
Mortgage Rates Newfoundland
As of November 8, 2022, Newfoundlanders in the homeownership market will discover mortgage rates in Canada hovering around 4.99% on the fixed side and 4.58% on the variable end. Most of Newfoundland's home buying and selling market is in St. John's, accounting for 54.4% of the entire provinces market.
Mortgage Rates Prince Edward Island (PEI)
Maritimers in beautiful Prince Edward Island can expect to see fixed mortgage rates starting at 3.59% and variable mortgage rates starting at 2.04% with most homes being sold in Charlottetown.
Mortgage Rates Manitoba
Manitoba is seeing higher than normal mortgage rates this year with fixed rates starting at 5.19% and skyrocketing to a whopping 6.14%. On the variable side, 4.85% was the lowest we could find climbing all the way to 6.45%.
Get the Best Mortgage Rate Comparison Services in Canada
Whether you need a home equity loan, mortgage insurance, or a mortgage loan, Insurdinary offers comprehensive mortgage rate comparisons for all Canadian provinces. At Insurdinary, we partner with Homewise, a top mortgage broker in Canada to provide competitive mortgage rates. We'll help you compare the top rates for your province and ensure that you get the best rate. Our team can further explain details regarding final mortgage rate costs and determining factors for repayment terms. Give us your preferences for the home loan you need today to begin searching for your province's most affordable interest rates.
Related - Learn more about how fixed rate mortgages work. https://www.insurdinary.ca/fixed-rate-mortgage/
