Who has the best mortgage rates in Canada?

Monoline lenders (like MCAP, First National, CMLS) and mortgage brokers typically offer lower rates than big banks. The best rate depends on your situation and qualification.

Should I use a mortgage broker or go to my bank?

Mortgage brokers shop multiple lenders and often find lower rates. Banks may offer rate-matching and bundled discounts. Use a broker for best rates; bank for simplicity and relationship benefits.

What is the lowest mortgage rate in Canada?

The lowest rates are typically found through mortgage brokers accessing monoline lenders. Insured mortgages (under 20% down) often have lower rates than uninsured.

Best Mortgage Lenders Canada 2026 | Banks vs Brokers

Types of Mortgage Lenders

Lender Type	Examples	Pros	Cons
Big 5 Banks	TD, RBC, BMO, Scotia, CIBC	Familiar, full service	Higher rates
Credit Unions	Meridian, Vancity, Desjardins	Competitive rates, local	Limited reach
Monoline Lenders	MCAP, First National	Often lowest rates	No branches
Mortgage Finance Companies	Equitable Bank, Home Trust	Good for self-employed	Less known
Online Lenders	Tangerine, Simplii	Convenient, decent rates	Limited support
Private Lenders	Various	Bad credit options	Highest rates

Best Big Bank Lenders

TD Bank

Feature	Details
Rate competitiveness	Average
Special features	TD Aeroplan mortgage
Prepayment	15% lump sum, 15% payment increase
Service	Branch and online
Best for	TD customers, Aeroplan collectors

RBC Royal Bank

Feature	Details
Rate competitiveness	Average
Special features	RBC Homeline Plan (readvanceable)
Prepayment	10% lump sum, double payments
Service	Extensive branch network
Best for	Existing RBC customers

Scotiabank

Feature	Details
Rate competitiveness	Slightly better
Special features	Scene+ rewards
Prepayment	15% lump sum, 15% payment increase
Service	Branch and online
Best for	Rate shoppers at big banks

CIBC

Feature	Details
Rate competitiveness	Average
Special features	Aventura mortgage
Prepayment	10% lump sum, 10% payment increase
Service	Branch and online
Best for	CIBC customers

BMO

Feature	Details
Rate competitiveness	Average
Special features	BMO Smart Fixed mortgage
Prepayment	20% lump sum, 20% payment increase
Service	Branch and online
Best for	Best big bank prepayment terms

Best Monoline Lenders

MCAP

Feature	Details
Rate competitiveness	Excellent
Access	Through brokers only
Prepayment	20% lump sum, 20% payment increase
IRD calculation	Fair (posted rate less favorable)
Best for	Rate shoppers

First National

Feature	Details
Rate competitiveness	Excellent
Access	Direct or brokers
Prepayment	15-20% options
Service	Phone/online
Best for	Competitive rates, direct service

CMLS Financial

Feature	Details
Rate competitiveness	Excellent
Access	Through brokers
Prepayment	15% lump sum
Service	Broker-supported
Best for	Very competitive rates

RMG Mortgages

Feature	Details
Rate competitiveness	Excellent
Access	Through brokers
Prepayment	20% lump sum
Service	Broker-supported
Best for	Good all-around terms

Best Credit Unions

Meridian Credit Union (Ontario)

Feature	Details
Rate competitiveness	Very good
Prepayment	20% lump sum, 20% payment increase
Service	Branches in Ontario
Special	Often matches low rates

Vancity (BC)

Feature	Details
Rate competitiveness	Good
Prepayment	Generous
Service	BC branches
Special	Community-focused

Desjardins (Quebec)

Feature	Details
Rate competitiveness	Good
Prepayment	15%+ options
Service	Quebec network
Special	Largest credit union in Canada

Rate Comparison (Illustrative 2026)

5-Year Fixed Rates

Lender Type	Typical Rate	Spread vs Lowest
Big 5 Banks (posted)	5.50-6.00%	+1.00-1.50%
Big 5 Banks (negotiated)	4.80-5.20%	+0.30-0.70%
Credit Unions	4.60-5.00%	+0.10-0.50%
Monoline (via broker)	4.50-4.80%	Baseline

Monolines are typically 0.30-0.50% lower than negotiated bank rates.

Cost Difference Over 5 Years

Mortgage Size	0.25% Lower Rate	0.50% Lower Rate
$300,000	$3,750 saved	$7,500 saved
$500,000	$6,250 saved	$12,500 saved
$750,000	$9,375 saved	$18,750 saved

Mortgage Brokers Explained

What Brokers Do

Service	Benefit
Shop multiple lenders	Find lowest rate
Handle paperwork	Save you time
Provide advice	Guide decisions
Access exclusive rates	Broker-only pricing
No direct cost	Paid by lender

Top Mortgage Brokerages (Canada)

Brokerage	Coverage	Specialty
Butler Mortgage	Ontario	Low rates
Intelligence Mortgage	National	Online service
True North Mortgage	National	Rate focused
Mortgage Architects	National	Full service
Dominion Lending	National	Large network

When to Use a Broker

Use Broker When	Why
Rate shopping	They compare many lenders
Complex situation	More lender options
Self-employed	Access alternative lenders
First-time buyer	Need guidance
Renewal time	Compare to current lender

When to Go to Your Bank

Go to Bank When	Why
Strong relationship	Negotiation leverage
Need quick turnaround	Existing info on file
Bundle discounts	Multi-product rates
Rate matching	Some banks match broker rates
Prefer in-person	Branch service

Factors Beyond Rate

Prepayment Options

Lender	Lump Sum	Payment Increase
BMO	20%	20%
MCAP	20%	20%
Meridian	20%	20%
TD	15%	15%
RBC	10%	Double payments
CIBC	10%	10%

Penalty Calculations (IRD)

Lender Type	IRD Method	Impact
Banks	Posted rate based	Higher penalties
Monolines	Contract rate based	Fair penalties
Credit unions	Varies	Often moderate

Big bank IRD penalties can be 2-3x higher than monolines for same mortgage.

Portability & Assumability

Feature	Description	Availability
Portability	Move mortgage to new home	Most lenders
Assumability	Buyer takes over mortgage	Some lenders
Blend & extend	Add to mortgage mid-term	Most big banks

For Special Situations

Self-Employed

Lender	Program
Equitable Bank	Stated income
B2B Bank	Alt-A mortgages
Home Trust	Business-for-self
CMLS	Broker solutions

New to Canada

Lender	Requirements
RBC	Newcomer program
TD	New to Canada
HSBC	International banking
Various monolines	Via broker

Bad Credit

Credit Score	Options
650-680	Some A lenders, most B lenders
600-650	B lenders via broker
Below 600	Private lenders (high rates)