Do Mortgage Rates Vary by Province?

Unless you’re moving to another province, it’s unlikely you spend much time looking at the mortgage rates for areas other than Ontario. Whether staying near Toronto or moving farther away, it’s essential to understand that mortgage rates vary by province.

Borrowers Have More Options To Choose From

Simply put, provinces like Alberta and Ontario have far larger populations than provinces such as Prince Edward Island and Newfoundland. There are enough people to support many choices regarding companies offering mortgages.

So, if you live in Alberta or Ontario, you may have dozens of banks and credit unions. In contrast, if you live in a less-populated province, you may only have a few options. And more companies offering mortgages means more competition, which translates to lower client rates.

Higher Volume Of Sales Can Drive Lower Mortgage Rates

The other main factor that drives lower mortgage rates is the sales volume. For example, you’re looking for mortgage rates for a Toronto home. You’re likely to find a lower mortgage rate for that home than you would for homes in less densely populated areas.

Mortgage rates will be lower in high-density areas because the lenders will have lots of clients – which means that their costs per mortgage may be lower overall than lenders in low-density regions. The lenders can then pass those savings on to clients through lower mortgage rates.

How can I ensure I get a good mortgage rate if I’m interested in buying a Toronto home?

The best way to ensure you get a reasonable mortgage rate for a Toronto home is to shop around.

Our agents at Northwood Mortgage can help you do just that. We’ll do all of the following to help you find the best mortgage for your needs:

Explain the different terms we offer for our mortgages and how the term length impacts the mortgage rate. We provide mortgage terms as short as one year and as long as ten.
Discuss with you whether a variable-rate or fixed-term mortgage is better for you. With a variable-rate mortgage, you may have the opportunity for lower mortgage rates. Still, you also run the risk of paying a higher rate.
Contact our lending partners across Ontario (such as banks and credit unions) to find you the lowest possible mortgage rate.