Canada’s Top Mortgage Lenders for March 2024

Finding the best lender for your particular scenario is more crucial than ever because mortgage rates are still high. The greatest mortgage lenders in the nation, as determined by Forbes Advisor Canada using a predetermined approach that you can learn more about below, are included below, regardless of whether you’re purchasing your first house or searching for a better offer when renewing your current mortgage. Over a hundred mortgage lenders were taken into account.


We examined one hundred mortgage lenders across Canada, both online and in person. The lenders that we looked at comprise some of the biggest mortgage lenders in terms of volume; these lenders include credit unions, banks, and online lenders. Review eligibility was restricted to lenders who operate in at least four provinces or territories and do not publicly disclose their interest rates online. The criteria that Forbes Advisor Canada uses to rank lenders include borrower eligibility requirements, the range of available loan options, and whether the lender offers loan features that could have a positive or negative impact on the home-buying process, like prepayment privileges, a bona fide sales clause, or the ability for a mortgage broker to act on your behalf with the lender once your mortgage is active (broker privileges).

  • Interest rate: 20%
  • Lender discounts offered: 5 bonus points
  • Customer service experience: 15%
  • Penalties calculation type: 15%
  • Prepayment privileges: 10%
  • Broker privileges: 5%
  • Bonafide sales clause: 5%
  • Timeliness: 15%
  • Loan options: 15%

We believe that our emphasis on accessibility, affordability, and important elements that influence the home-buying process—such as closing dates and preapproval times—reflects the top concerns that consumers have when comparing mortgage providers.

Weekly Average Conventional Mortgage Rates from the Bank of Canada

  • 5-year rate: 6.84%
  • 3-year rate: 6.99%
  • 3-year rate: 6.99%

How Do You Explain Mortgage?

A mortgage is a contract you enter into with a lender that permits you, the borrower, to purchase a property even when your ability to pay for it entirely up front in cash is limited to a down payment of a certain percentage. According to the terms of the mortgage agreement, you must repay the lender the full purchase price of the property plus interest over an extended period of time (referred to as the amortization period) until the outstanding balance is paid in full and the property is yours to own outright. A mortgage agreement gives the lender the right to seize your property if you are unable to keep up your end of the bargain and repay the debt.

How Do Mortgages Operate?

A mortgage functions similarly to many other personal loans, even though it is a loan intended exclusively for the purchase of a home. Your mortgage lender provides you with enough money to cover the majority of the purchase price, less the down payment. Over a predetermined length of time, you repay the entire amount of the mortgage loan plus interest. In Canada, mortgages are insured for a maximum of 25 years, at which time your lender will receive payment in full in the event of your death. Uninsured terms of up to 30 years are also available. This lengthy amount of time, known as the amortization period, is typically divided into periods in a mortgage that range from three to five years, but they can also be as little as one year or as long as ten years. You will pay an agreed-upon interest rate during these terms, which will set your loan’s monthly payment. Either the interest rate will be variable, meaning it will fluctuate based on the prime rate set by your lender and the overnight interest rate set by the Bank of Canada, or it will be fixed, meaning it will remain constant for the duration of the term.

After your current mortgage term expires, you will have the option to renew it for a different period with the same or a different lender at a variable or fixed interest rate, all without incurring penalties. There will be a penalty if you wish to modify your mortgage conditions before your term expires. You can also choose to make extra contributions or pay off your mortgage earlier than the agreed-upon monthly amount. With closed mortgages, the majority of lenders grant prepayment rights, allowing you to contribute an annual percentage above your monthly payment (usually 20%). You might be subject to a penalty, though, if you make larger contributions or even pay off your mortgage in full before the agreed upon time. In addition, if you sell the property, this will come with you.

Types of Mortgages

In Canada,there are numerous mortgage choices available. Below is a summary of the most typical.

Open Mortgages

With an open mortgage,you can pay off your mortgage early and avoid penalties by making additional mortgage payments. Open mortgage interest rates are often higher than those of closed mortgages in return for this flexibility.The term durations are comparable, though.

Closed Mortgages

When considering mortgage periods of same duration, closed mortgages frequently offer interest rates that are lower than those of open mortgages. Most closed mortgages offer prepayment privileges, which let you contribute a certain percentage above your cumulative monthly payments each year without incurring penalties, though you will probably have to pay a penalty if you contribute more than your monthly payment and/or pay off your mortgage early.

Transportable Mortgages

With portable mortgages, you can move your whole mortgage—including interest rate and remaining balance—from your former house to the one you purchase after selling your old one. If the price of your new house is lower than that of your previous one, you might have to pay a penalty.

Assumable Mortgage

With an assumption mortgage, you can assume the debt and associated property of another person. In this instance, the conditions of the mortgage are unchangeable and have to stay the same as they did under the previous holder. After that, the payments will be assumed by the next holder. Furthermore, in certain provinces, in the event that the person who assumed the mortgage is unable to make the payments, the seller can still be responsible for them.

How To Get a Mortgage

The following actions should be taken to begin the mortgage process before you even look at applications:

  • Find a lender. When you’re ready, shop around for the best mortgage lender. You can start with lists like the one above. Consider getting one or more preapprovals to help make you a stronger buyer when you’re ready to start house-hunting.
  • Prepare the paperwork. To apply, you’ll likely need your T4s, tax returns, recent pay stubs and statements from accounts showing your assets and liabilities. Most lenders will ask for additional information, as well, such as letters of employment and/or business records if you own your own business.
  • Pay down debt. You may also want to take some time to pay down existing debts, since mortgage lenders take into consideration how much debt you already have relative to your income.
  • Check your credit. Make sure there are no errors in your credit report and that everything is up to date. It might be a good idea to spend some time improving your credit.

Is It Time to Renew Your Mortgage in 2024?

Data gathered by the Bank of Canada (BoC) shows that in late August 2023, the average interest rate on a 5-year fixed-rate mortgage in Canada was 6.79%, the highest since November 2008. Even while rates are still high, it may be difficult to find a good deal in the first part of 2024 because there won’t be as many options available when mortgages need to be renewed. In order to change their amortization or switch lenders, homeowners with high-ratio mortgages must requalify for the stress test under the current rates and demonstrate, through income documentation, that they can continue to make the payments at least 200 basis points—two full percentage points—above the current mortgage rate they are eligible for. As a result, a lot of borrowers will probably continue working with the same lenders.

Then, the best course of action might be to select a shorter term length and wait for interest rates to decrease; however, keep in mind that the BoC might not do so until inflation consistently falls below 2%. Experts predict that won’t occur until at least the second quarter of 2024.

Tips for Selecting Mortgage Lender

Banks, credit unions, and online lenders such as Think Financial and Nesto Inc. are among the financial institutions from which you can obtain a mortgage. However, a mortgage broker may also assist you; they will conduct the comparison shopping on your behalf to get the best terms and rate. Just before you go house looking, it’s a good idea to get preapproved for a loan and have a clearer idea of how much you can afford. Examine several lenders before choosing the first one you come across.

Answers to Common Questions (FAQs)

Which mortgage firms are the best?

The Big Six Banks are Canada’s leading mortgage lenders, according to the Canada Mortgage and Housing Corporation (CMHC). 73% of all mortgages that are outstanding are held by RBC Royal Bank, Scotiabank, TD Bank, CIBC, BMO, and National Bank.

Which Canadian mortgage lender is the best?

RBC Royal Bank is Canada’s top mortgage lender based on volume. Roughly 17.5% of all residential mortgages, or $365 billion, have been lent by the bank, according to Canadian Mortgage Trends.

How can one locate reputable mortgage lender?

Getting assistance from a qualified mortgage broker is the best approach to identify the ideal mortgage lender for you. Even if you have bad credit, Canadian mortgage brokers can help you get the best mortgage for your particular circumstances because they have access to mortgage products from several lenders. The finest thing is that the lender frequently pays for their services.

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