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: December 2024

The normally busy summer housing market in Canada was noticeably quiet, as buyers stayed on the sidelines and awaited lower mortgage rates. With the Bank of Canada having carried out a fifth  policy rate cut in December, market activity has started to pick up. 

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 December 11 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 December 16, 2024, the Canadian Real Estate Association (CREA) reported a significant surge in activity in the housing market for November. A total of 37,855 homes were sold, marking a 26% increase compared to November 2023 and a 2.8% rise from October. This marks the third consecutive month of growing sales, fueled by the Bank of Canada’s interest rate cuts. The national average home price climbed 7.4% year-over-year to $649,411, while the National Composite MLS Home Price Index (HPI) rose 0.6% month-over-month. New listings edged up by 2.4% year-over-year to 56,242 homes but declined by 0.5% from October, tightening inventory. The months of inventory — the time it would take to sell all available homes — dropped to 3.7 months, the lowest level in 14 months and well below the long-term average of 5.1 months. Market conditions remain balanced but are showing signs of tightening and tipping into the sellers’ territory. The sales-to-new-listings ratio (SNLR) increased to 59.2% in November from 58% in October. CREA defines a balanced market as having an SNLR between 45% and 65%; anything below 45% is considered a buyers’ market and anything above 65% is a sellers’ market. With additional rate cuts expected in 2025 and new mortgage rules that make homeownership more accessible, experts anticipate a busy winter market and an exceptionally competitive spring selling season.

  Read more: National home sales rise 26% in November

• CPI update: On December 17, 2024, Statistics Canada reported that annual inflation slowed to 1.9% in November, down slightly from 2% in October. The decline highlights the ongoing impact of the Bank of Canada’s rate cuts, which reduced the benchmark overnight rate to 3.25% in December from 5% earlier this year. Mortgage interest costs, a major contributor of inflation, rose by 13.2%, moderating from 14.7% in October, as lower borrowing rates continue to ease financial pressures. This slowdown contributed to overall shelter inflation falling to 4.6%, although rent prices remain elevated at 7.7% year-over-year. Grocery inflation continued to strain households, increasing 2.6%, a slight improvement from October’s 2.7%, but still reflecting a significant 19.6% increase since 2021. Meanwhile, other factors, such as seasonal Black Friday discounts, helped temper price growth in categories like clothing, household furnishings, and travel services. While headline inflation is nearing the Bank of Canada’s 2% target, core inflation measures — the CPI Trim and CPI Median — remained unchanged at 2.7% and 2.6%. These measures signal persistent underlying price pressures that could slow the pace of future rate cuts. Analysts anticipate the Bank of Canada will proceed with smaller, more gradual rate cuts in early 2025 as it carefully navigates inflation control and external economic risks like the U.S. Federal Reserve’s cautious stance on rate cuts.

  Read more: Canadian CPI falls to 1.9% in November

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.