The Best Banks For Mortgages In Canada


May 4, 2023

The Best Banks For Mortgages In Canada - Featured Image

When it comes to buying a home, Canadians are faced with many important decisions – from finding the perfect neighbourhood and choosing what kind of house they want, to financing their purchase. One of the most important – and longest-lasting – decisions is finding the right bank or mortgage broker to secure a mortgage that fits your budget. So we wanted to give you a list of some of the best banks for mortgages in Canada!

In this article we’ll take a look at several Canadian banks that offer mortgages in Edmonton, and how they vary when it comes to size, interest rates, and services offered, so you can make an informed decision on which financial institution best meets your needs.

An Overview of the Mortgage Market in Canada

The Canadian mortgage market is highly competitive, with many banks and credit unions offering mortgages for both residential and commercial properties. Mortgage rates in Canada are influenced by the central bank’s overnight lending rate (discount rate), which at the time of writing is sitting at 4.5%, putting it on the lower side compared to other countries. This means that those looking to purchase a home or refinance an existing mortgage can expect some very competitive mortgage rates.

Sterling Edmonton’s Preferred Lenders

We have a selection of preferred lenders hand-picked by our team to help you find the home of your dreams. Consider the following options:

CIBC

CIBC is another major player in the Canadian banking industry and offers a variety of mortgage products, including a fixed-rate mortgage as well as adjustable-rate mortgages with competitive interest rates. They also have several other loan options such as their Home Power Plan, which allows borrowers to access funds to pay down high-interest debt.

Contact:

Reema Kaushik, Mobile Mortgage Advisor

Email: reema.kaushik@cibc.com Phone:  780-264-2606

BMO Bank of Montreal

Bank of Montreal offers a range of mortgages for both residential and commercial properties. They have special products for first-time buyers, as well as options for those looking to refinance their existing mortgage. There’s also the Homeowner ReadiLine Mortgage, which allows you to borrow up to 80% of the value of a home, split between a mortgage and a line of credit.

Contact

Vivek Ahuja, Mortgage Specialist

Email: Vivek.Ahuja@bmo.com Phone: 780-232-2573

TD bank

TD Bank

TD Bank is one of the most recognizable banks in Canada, and like others, they have a wide range of mortgage products. These include a fixed-rate mortgage with terms of up to 10 years, variable interest rate loans, and special programs for first-time buyers and self-employed borrowers. They also have an online application process that makes it easy to get started.

 

Additional well-known mortgage lenders in Canada: 

Scotiabank

Scotiabank is one of the largest banks in Canada, and they offer a wide range of mortgages to fit different needs. They have options for both fixed-rate and variable-rate mortgages, as well as interest-only loans. They also offer the Scotiabank Total Equity Plan, which allows you to use the equity in your home to make a purchase.

RBC Royal Bank

RBC Royal Bank is another one of the larger banks in Canada. The products they offer include fixed-rate mortgages, as well as variable interest rate loans and lines of credit. They have special programs for first-time buyers, self-employed borrowers, and those looking to refinance their existing mortgage. They also offer their RBC Homeline Plan, which allows you to borrow money against the equity in your home.

Contact:

Leena Saqqa

Email: Leena.saqqa@rbc.com Phone: 587-785-0242

 

HSBC Canada

HSBC offers competitive rates on both fixed-rate mortgage and adjustable-rate mortgage plans, as well as other loan products such as their Equity Power Mortgage.

National Bank of Canada

National Bank is a major Canadian bank and offers several mortgage options, including fixed-rate mortgage and adjustable-rate mortgage options. They also have loan options such as their Home Buyers Plan which allows you to borrow up to $35,000 from your RRSP towards buying your first home. 

mortgage meeting

 

Factors to Consider When Choosing a Bank for Your Mortgage 

When you’re searching for the right bank to secure a mortgage, there are a few key factors to consider. These include: 

  • Interest Rates & Fees: Compare different banks and credit unions to find the best interest rates and fees offered by each.
  • Reputation & Customer Service: Talk to current customers of each bank or read online reviews to get a better understanding of their customer service and reputation. 
  • Product Variety: Make sure to research the different types of mortgages offered by each bank so you can find one that best meets your needs. 
  • Special Programs: Many banks offer special programs for first-time home buyers, self-employed borrowers and those looking to refinance their mortgage. Make sure to research these programs to see if you qualify for any of them. 

Ultimately, it’s important to take the time to compare your options and find the mortgage lender that best meets your needs. With so many different banks offering different mortgage rates in Canada, there is sure to be a solution that works for you. 

How To Apply For a Mortgage at Different Banks 

Once you’ve chosen a bank, the process for applying for a mortgage is fairly similar across all institutions. Generally, you’ll need to provide some basic information about yourself and your financial situation, as well as proof of income. You may also be required to provide documents related to your credit history or other assets. 

Once your application is complete, the bank will review it and let you know if you’ve been approved for a mortgage. If not, they may suggest other options that could help you get approved. 

It’s important to remember that each bank has its own criteria when it comes to approving mortgages, so it’s best to talk to a mortgage specialist at your chosen bank for more information. 

Ultimately, applying for a mortgage is an important decision and should be done with care. Make sure to compare different banks and research the features of each one in order to make the best choice for your situation. 

couple applying for a mortgage

 

Tips To Get The Most Out of a Mortgage From a Canadian Bank 

Once you’ve secured a mortgage from a Canadian bank, there are a few tips to help you get the most out of your loan: 

  • Make sure to budget for any additional costs associated with the loan. This includes closing costs, appraisal fees and other expenses. 
  • Read through all of the terms and conditions in your mortgage agreement so you understand what’s expected of you. 
  • Consider setting up automatic payments to make sure all of your payments are made on time. 
  • If possible, opt for a shorter-term loan to pay off your mortgage quickly and save money on interest. 
  • Pay more than the minimum amount due each month if you can. This will help reduce the total amount of interest you’ll have to pay over the life of the loan. 
  • Talk to a financial advisor or bank representative about any options for refinancing or consolidating your mortgage in the future. 
  • If you need additional funds, look into home equity lines of credit (HELOCs) offered by some banks. These can be used to access funds to pay down high-interest debt. 
  • Try to keep up with payments and stay current on your mortgage. Late payments could negatively affect your credit score and make it harder to get approved for other loans in the future. 

By following these tips, you’ll be able to make the most of your mortgage from a Canadian bank. With diligence and careful planning, you should be able to pay off your loan within the allotted time frame.

What to Expect After Applying for a Mortgage With a Canadian Bank

Once your mortgage application has been approved, the bank will require you to sign a mortgage agreement that outlines both parties’ responsibilities regarding the loan. 

The bank may also conduct an appraisal on the property you are purchasing and require you to purchase homeowners insurance. Once all of this is completed, the bank will issue a mortgage loan. 

It’s important to remember that the terms of your loan can vary depending on various factors such as your credit history, income level, the mortgage rates in Canada and the value of the property being purchased. Make sure to read through all of the terms and conditions before signing any paperwork. 

Once all of the necessary documents have been signed, your loan will be officially approved and you can move forward with financing your new home. Congratulations! You’ve now got a mortgage from a Canadian bank. 

Finding the right mortgage can be a daunting task, especially if you’re new to the process. Thankfully, now that you have a better understanding of the different types and features of mortgages available in Canada, you can more confidently seek out the perfect option for your home-buying journey. 

From fixed rates to adjustable rate mortgages, keep in mind what features are important when finding a bank or mortgage broker that best suits your needs. When it comes time to apply for your mortgage, be sure to consult our list of recommended banks for Canadians so you can make an informed decision. 

And don’t forget, we at Sterling Edmonton are here every step of the way if you have any questions or need additional assistance navigating this exciting process. So don’t hesitate to call us today and let us help make your dreams of owning a home come true!

And check out some of our other resources about mortgages to get you on the right track:

Click here to download your free guide to the home buying process today!

 

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About the Author:


At Sterling Homes, our mission is to provide the opportunity for affordable homeownership without compromise. Over the last 70 years, Sterling Edmonton has quickly become one of Edmonton’s most popular builders. We bring more than seven decades worth of exceptional customer service, superior design and unparalleled craftsmanship to the greater Edmonton area. As a member of the Qualico Group, Sterling Homes focuses on greater Edmonton’s finest family communities, while being able to offer some of the region’s most family friendly prices thanks to volume purchasing power for materials, trades and land. This has not only made Sterling one of Edmonton’s bestselling, move-up builders, but also one of the industry’s most respected home providers. It is through our uncompromising commitment to our customers that we proudly deliver the Sterling Advantage – that’s why each and every home we build includes a 10-year home warranty, a completion guarantee and new home warranty excellence rating. Our Advantage is our pledge that, when you build your dream home with Sterling, we will deliver a timely, well-built home you’re sure to enjoy for years to come.

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