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: January 2025

With the Bank of Canada having carried out a fifth policy rate cut in December 2024, 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 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 January 15, 2025, the Canadian Real Estate Association (CREA) released data for December 2024, showing a slowdown in monthly sales. A total of 27,643 homes were sold in December, down 5.8% from November but up 19.2% year-over-year, reflecting an overall recovering market. The national average home price rose 2.5% year-over-year to $676,640, though it declined 2.2% from November. The MLS Home Price Index (HPI), which offers a stable view by removing price extremes, recorded a slight 0.2% annual drop, signaling stabilization in prices. Inventory levels improved compared to last year but remain tight, with a total of 128,000 homes listed at the end of December, up 7.8% annually but below the long-term average of 150,000. New listings fell 1.7% month-over-month to 29,128. The months of inventory ticked up to 3.9, keeping market conditions close to seller territory, while the sales-to-new-listings ratio (SNLR) stayed balanced at 56.9%. Looking ahead, CREA expects a surge in demand in spring 2025 and encourages buyers and sellers to start preparing for what is expected to be a competitive season.

  Read more: Canadian real estate ends 2024 with chilly sales

• CPI update: On January 21, 2025, Statistics Canada reported that annual inflation slowed to 1.8% in December, down slightly from 1.9% in November. This decrease is largely attributed to a mid-December GST/HST holiday, which impacted around 10% of the CPI basket. As a result, prices fell for several categories, including food purchased in restaurants (down 1.6%), alcoholic beverages (down 1.3%), and toys and games (down 7.2%). However, a 3.5% year-over-year climb in gas prices offset some of these savings. Mortgage interest costs rose by 11.7%, the 16th consecutive month of slower growth, thanks to five interest rate cuts by the Bank of Canada in 2024. Shelter inflation dipped slightly to 4.5% from 4.6%, while rent price growth also cooled from 7.7% to 7.1%, though rents remain high overall compared to two years ago. Two core measures the Bank of Canada monitors, known as the CPI trim and CPI median, both declined in December. This further strengthens the possibility of another quarter-point rate cut at the Bank’s next policy announcement on January 29. However, the potential imposition of new U.S. tariffs on Canadian exports could introduce fresh price pressures, making it harder for the central bank to keep inflation near its 2% target.

  Read more: December CPI drops to 1.8% due to tax holiday

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.