Compare the best Big 5 Bank mortgage rates

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.

Below are some essential details about getting a mortgage from one of the Big 5 Banks, or from any other kind of lender.

Canadian mortgage market update: February 2025

With the Bank of Canada having carried out a sixth policy rate cut in January 2025, activity has started to pick up in the Canadian housing market. Variable mortgage rates dropped by roughly the same amount as the policy rate, and with markets anticipating more cuts in 2025, further downward pressure on rates is expected. 

Fixed mortgage rates are tied to the bond market rather than directly to the Bank of Canada and its rate decisions, and in response to the Bank of Canada’s January 29 rate cut, bond yields have dropped. This, in turn, has allowed some lenders to reduce their fixed mortgage rates. 

Still, though, from a historical perspective, both variable and fixed mortgage rates remain elevated. Anyone shopping for a mortgage rate in Canada right now should be aware of the economic factors below.

• Real estate update: On February 18, 2025, the Canadian Real Estate Association (CREA) revealed that Canada’s housing market began the year on a more subdued note, as mounting U.S. tariff concerns dampened hopes of an active January. A total of 26,650 homes were sold in January, a 3.3% decline from December but still 2.9% higher than the same period in 2024. Sellers brought 83,450 new listings to the market, an 11% monthly and 22.7% annual surge that lifted months of inventory to 4.2, providing buyers with a broader selection and lower price pressures. National home prices edged up by a slight 1.1% year-over-year to $670,064, while the MLS Home Price Index remained largely unchanged from December. The sales-to-new-listings ratio (SNLR) decreased to 49.3%, signifying that conditions have shifted into the lower end of a balanced market, giving buyers a bit more negotiating leverage. However, CREA analysts warn that trade-related uncertainties and the potential for further Bank of Canada rate cuts may continue to steer the market’s trajectory in the months ahead.

Read more- Canadian real estate sales drop in January due to tariff fears

• CPI update: Statistics Canada’s latest Consumer Price Index (CPI) report, released on February 18, 2025, shows that Canada’s annual inflation rate climbed by 0.1% month-over-month to 1.9% in January. The underlying inflation was softened by a temporary GST tax break that ran from December 14, 2024, to February 15, 2025. This break reduced costs in key categories like alcoholic beverages, restaurant meals, and children’s products. Without its impact, inflation would have reached 2.6%, a significant increase from September’s 1.5% reading. Mortgage interest costs, a significant contributor to the CPI, moderated to a 10.2% year-over-year increase, reflecting the effect of recent rate cuts by the Bank of Canada. Rent prices experienced a slight decline of 0.1% from December — the first monthly drop since 2023. Core inflation measures, specifically the CPI trim and CPI median, both rose to 2.7%, highlighting persistent underlying price pressures. With these mixed signals and potential U.S. tariffs on Canadian exports, economists now expect the Bank of Canada to keep its benchmark rate unchanged at its upcoming policy meeting on March 12.

Read more- Canadian CPI ticks back up to 1.9% in January

Housing market outlook for 2025

The Canadian Real Estate Association (CREA) has released its updated housing market forecast for 2025, providing an outlook for buyers and sellers across the country. The forecast anticipates a rebound in market activity driven by two and a half years of pent-up demand, easing borrowing costs, and a typical surge in spring listings. CREA projects that approximately 532,704 houses will be sold in 2025, an 8.6% increase from 2024 and a notable revision from the previously forecasted 6.6% rise. This upward adjustment reflects stronger-than-expected market performance in late 2024. The trend is set to continue into 2026, with transactions increasing by 4.5% to 556,662. Average home prices are forecast to rise 4.7% year-over-year to $722,221 in 2025, slightly above the 4.4% growth predicted previously, with an additional 3.3% increase to $746,379 in 2026. 

Canadian mortgage reform update

On September 16, 2024, the federal government announced sweeping changes to mortgage qualification rules for first-time home buyers, as well as those purchasing newly-constructed homes.

As of December 15, 2024:

• 30-year amortizations will be available for all first-time home buyers, regardless of whether they have an insured mortgage. These extended amortizations are also available for any purchase of new construction.
  
  
• The maximum purchase price for an insured mortgage (where less than 20% down is paid) will be increased to $1.5 million, from the current $1 million.
  

These are some of the most impactful mortgage reforms announced since 2012, and are anticipated to increase first-time home buyers’ affordability and access to the housing market. 

Learn more about these new mortgage rule changes on the Ratehub.ca blog

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.