Buying a home is one of the most important decisions in life. It’s not an easy decision and it does take some time to work out what mortgage rate will be best for you. Ontario is Canada’s most populous province, accounting for almost 40% of the population. Ontario is home to several of Canada’s major mortgage brokerages.
In Ontario, many factors go into determining your interest rates such as your credit score, down payment amount, and the type of mortgage you’re looking at. When it comes to mortgages, Ontario has some of the most competitive rates in Canada. Whether you’re a first-time homebuyer, refinancing, or just looking to relocate — obtaining the best possible rate may save you thousands over the life of your mortgage.
Take a look below to learn more about how we can help you with finding the perfect rate for your needs!
What to Expect in Ontario's Housing Market
Toronto has some of the most expensive housing prices in the world, which makes it one of Ontario’s most difficult cities to live in. The housing prices in Toronto have a benchmark price of $1.3 million within city limits and $1.1 million within the Greater Toronto Area.
As the cost of living rises, more Canadians are leaving Toronto and moving to smaller cities such as Hamilton, Kingston, Kitchener-Waterloo, Niagara Falls, and Guelph. This has resulted in an increase of about 20% in these areas’ housing markets.
The rising housing market in those cities will require homeowners who wish to relocate to qualify for a higher mortgage.
What Are the Closing Costs Involved in Ontario Home Purchases?
When buying a property in Ontario, you must budget for several closing expenses. Land transfer taxes, title insurance, property valuation fees, home inspection costs, CMHC home insurance, and legal fees are just a few of the expenses that may be incurred.
Closing costs can range from 1.5% to 4% of the property’s purchase price, which does not include the CMHC insurance premium or land transfer taxes. If you do not make a downpayment of at least 20% (but usually 25%), you will be required to obtain CMHC insurance. In Ontario, there is a provincial sales tax (PST) on CMHC insurance that must be paid in cash up front at the time of closing.
Land transfer taxes are also required in Ontario (LTT). Ontario’s land transfer tax is assessed as a percentage of the property’s value, based on the purchase price. The LTT is a marginal tax with rates ranging from 0.5 to 2 percent of a home’s value depending on the purchase price. These are closing cost to take into consideration when you are buying a home in Ontario.
Where Can I Find The Best Mortgage Rates?
You can find competitive rates in Ontario through credit unions, banks, mortgage brokers and online lender. Brokers and online lenders usually have the best mortgage rates, although big banks and credit unions may be able to provide better rates than some brokers. Banks are in business to make a profit, and they can only offer the few services they have. Instead, a broker acts on your behalf to locate the finest and most cost-effective mortgage available.
The Bottom Line
Ontario is home to some of the most competitive mortgage rates in Canada. Whether you want to buy a new home, refinance your mortgage or are looking for some advice on how to find the best rates in Ontario, there are plenty of reputable mortgage brokers and online lenders that can help. To get the most savings on your mortgage, shop around and compare rates.
With Our Competitive Mortgage Rates, You Can Save Even More!
In Ontario’s competitive mortgage market, finding the best rates might be a difficult task. If you’re looking to buy a new home or if you’re a current homeowner seeking to renovate or refinance your property, we can assist. We are here to ease the burden of the mortgage process by working with you to find better rates.
We provide competitive interest rates and can help you maximize your savings by customizing our flexible loan options to your specific financial needs. Apply Now!