Mortgage Rates and Home Financing Tips

Current Mortgage Rates:

Updated as of April 10, 2017

Mortgage Rates Toronto

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5 year mortgage at 2.39%

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Posted Bank Rates

1 Year 2.64 % 3.14 %
2 Year 2.24 % 3.04 %
3 Year 2.44 % 3.65 %
4 Year 2.64 % 4.39 %
5 Year 2.39 % 4.64 %
5 Year Variable 1.95 % 3.25 %
7 Year 3.44 % 5.30 %
10 Year 4.84 % 6.10 %

Remember, we'll find you the best rates PLUS the best mortgage features! That's what counts!

Rates are subject to change at any time without notice. Contact our office for other mortgage products. Rates based on Prime Residential. No fees for qualified applicants.

Historical Interest Rates

Some of us were around when mortgage rates hit 21%. Those were volatile and different times. In the last 10 years we have seen mortgage rates in the 3%-7% range. The market has changed dramatically.

Mortgage rates in Canada today are low compared to the past. This is another reason to consider the security of a fixed rate term. Twenty years ago, most people would lock in their mortgage rate 25 years and never think about it again – now the typical choice is a 5 year fixed term mortgage and many people consider variable rates. Making the right choice about mortgage lending rates is important – that's where expert advice from Mortgage for Less mortgage broker will make it easier for you.

Should I Take a Variable Rate Mortgage or Lock in My Rate Now?

This is not an easy decision to make on your own. There are many things to think about when deciding on the best mortgage rate for you, including:

  • your risk tolerance
  • past rate trends
  • the current market
  • future predictions
Our mortgage brokers take all of these things into consideration to help you make a decision that you will be comfortable with.

Variable rate mortgages make up about 35% of the marketplace now. With a variable mortgage, you have the option to change or convert any time to a fixed term. The most important thing is to get the right variable rate product because they can be tricky and are not all alike. We are experts on preferred variable products and work with our clients to make sure that they get the best mortgage lending rates.

How About Short Term or Fully Open Mortgages?

Sometimes you have to consider your future plans before locking in your mortgage term and rate. Are you going to move in 1 or 2 years? If so you might need a short term mortgage, since breaking long term mortgages often costs thousands in penalties.

We always ask you about your future plans so you are guided properly. There are fully open mortgages that allow you the opportunity to break them anytime without penalties – our mortgage brokers will help you get the right one.

A Lower Mortgage Rate Can Save You Big Bucks!

Because a mortgage to buy a home is so large – and usually extends over 20 or 25 years – small differences in home mortgage rates can really add up.

Take the total cost of buying a home with a mortgage, for example - a $160,000 mortgage loan at an interest rate of 7% will cost an unbelievable $176,200 in interest over 25 years. That means your total payment is $336,200, not including your down payment. Even if you manage to only lower your interest rate by a fraction, you can significantly reduce that total price tag. For instance, if you reduce the interest rate in the above example by only half a percentage point, you would save $14,685 over 25 years.

Another effective way to reduce your total bill is by paying the loan off faster. For instance, shortening the amortization (or life) of the mortgage to 20 years will save you $40,785 in interest.

Note that these calculations assume that the current mortgage rate will remain constant for the next two decades or more. Chances are it won't. When your mortgage comes up for renewal in six months or a year or five years, or whatever term you have chosen, rates may be substantially higher - or lower. Finding the lowest mortgage rate will have a significant impact on your payments.

The Interest Rate Gamble

Each time your loan comes up for renewal, you are faced with the difficult choice between less expensive, short-term financing and more expensive, longer-term financing. Fortunately at Mortgage for Less we can assist you in finding the best mortgage lending rates and best products available in an environment that is always changing. We take into consideration all the lenders in the business and rate specials that are available only to our company — this way you have access to many opportunities instead of dealing with just one lender!

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