Who has the best mortgage rates in Canada?

Online and monoline lenders (like MCAP, First National, CMLS) typically offer lower rates than big banks. Mortgage brokers can access these lenders and compare multiple options. Credit unions also often have competitive rates.

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

For most buyers, a mortgage broker is advantageous. They compare rates from 30+ lenders, their services are free (lenders pay them), and they can find options you wouldn''t access directly. However, direct bank relationships can help in complex situations.

What is a monoline lender?

Monoline lenders specialize in mortgages only (no chequing accounts, credit cards, etc.). Companies like First National, MCAP, and CMLS often offer lower rates because they have lower overhead. You access them through mortgage brokers.

Best Mortgage Lenders in Canada 2026: Compare Rates and Options

The single most impactful decision in your mortgage is not the amortization or even the term — it’s the lender. On a $500,000 mortgage, the difference between a big bank’s negotiated rate and a monoline lender’s best rate can easily be 0.30–0.50%, which translates to $6,000–12,500 saved over a 5-year term. Most Canadians default to their existing bank out of convenience, but monoline lenders accessed through a mortgage broker consistently offer the lowest rates because they specialize in mortgages and have lower overhead. The tables below compare every major lender type so you can make an informed choice.

Types of Mortgage Lenders in Canada

Lender Type	Pros	Cons	Best For
Big 5 Banks	Branch access, relationship	Higher rates	Existing clients, complex situations
Credit Unions	Competitive rates, local service	Membership required	Community-focused borrowers
Monoline Lenders	Lowest rates often	No branch, broker-only	Rate shoppers
Online Lenders	Competitive rates, convenience	Less hand-holding	Tech-savvy borrowers
B Lenders	Flexible qualifications	Higher rates	Credit challenges

Big 5 Banks

TD Bank Mortgages

Feature	Details
Rate competitiveness	Middle of pack
Special rates	Negotiable, especially at renewal
Prepayment	15% annual + 15% payment increase
Portability	Yes
Best for	TD customers wanting rate matching

RBC Royal Bank Mortgages

Feature	Details
Rate competitiveness	Higher posted, negotiable
Homeline (HELOC)	Combined mortgage + HELOC product
Prepayment	10%/10% or 20%/20%
Best for	RBC clients, relationship banking

Scotiabank Mortgages

Feature	Details
Rate competitiveness	Competitive promotions
Scotia Total Equity Plan (STEP)	Readvanceable mortgage
Scene+ rewards	Extra points on mortgage
Best for	Scene+ members, loyalty rewards

BMO Mortgages

Feature	Details
Rate competitiveness	Middle of pack
Prepayment	10-20%/10-20% depending on product
Smart Fixed	Lower rate, some restrictions
Best for	BMO clients

CIBC Mortgages

Feature	Details
Rate competitiveness	Competitive short-term rates
Square One	First-time buyer program
Prepayment	10%/10% or 20%/20%
Best for	First-time buyers (Square One)

Monoline Lenders (Broker Access)

Monoline lenders like First National, MCAP, and CMLS are the best-kept secret in Canadian mortgages. Because they only do mortgages (no branches, no chequing accounts, no credit cards), their overhead is dramatically lower than big banks — and they pass those savings to borrowers as lower rates. You access them through a mortgage broker, which costs you nothing since the lender pays the broker’s fee. The trade-off is minimal: you won’t have a branch to walk into, and your mortgage servicer will be a name you’re less familiar with. For most borrowers, that’s a small price for thousands in savings.

First National

Feature	Details
Rate competitiveness	Among the lowest
Lender type	Monoline (mortgages only)
Access	Through mortgage brokers
Prepayment	15-20%/15-20%
Best for	Rate-focused borrowers

MCAP

Feature	Details
Rate competitiveness	Very competitive
Lender type	Monoline
Prepayment	20%/20%
Flex options	Some flexible products
Best for	Competitive rates

CMLS Financial

Feature	Details
Rate competitiveness	Competitive
Lender type	Monoline
Access	Broker-only
Best for	Rate shoppers

RMG (MCAP subsidiary)

Feature	Details
Rate competitiveness	Very competitive
Products	Matrix (standard), RMG (prime)
Best for	Low rates via broker

Credit Unions

Desjardins (Quebec)

Feature	Details
Coverage	Quebec primarily
Rates	Competitive
Membership	Required
Language	French-focused

Meridian Credit Union (Ontario)

Feature	Details
Coverage	Ontario
Rates	Competitive
Service	Strong local presence
Products	Full banking suite

Coast Capital (BC)

Feature	Details
Coverage	BC primarily
Rates	Competitive
Free chequing	Available
Best for	BC residents

Servus Credit Union (Alberta)

Feature	Details
Coverage	Alberta
Rates	Competitive
Profit sharing	Member dividends
Best for	Alberta residents

Online Lenders

Tangerine Mortgages

Feature	Details
Rate competitiveness	Competitive fixed rates
Process	Online application
Prepayment	25%/25%
Parent company	Scotiabank
Best for	Digital-first borrowers

Simplii Financial (CIBC)

Feature	Details
Rate competitiveness	Competitive
Process	Online + phone
Parent	CIBC
Best for	CIBC/Simplii customers

Nesto

Feature	Details
Type	Online mortgage broker
Rates	Among lowest advertised
Lenders	Access to 30+
Process	Fully online
Best for	Rate-focused, comfortable online

True North Mortgage

Feature	Details
Type	Mortgage brokerage
Rates	Very competitive (broker model)
Process	Online + in-person options
Best for	Rate shoppers

B Lenders (Alternative Lenders)

When to Use B Lenders

Situation	B Lender May Help
Credit score 550-650	Yes
Recent credit issues	Yes
Self-employed (stated income)	Yes
Non-traditional income	Yes
Previous bankruptcy	Yes (after discharge period)

B Lender Rates

Lender Type	Typical Rate Premium
A Lender (prime)	Best available
B Lender	+0.5-2% above A
Private lender	+3-8% above A

How to Choose a Lender

Decision Factors

Factor	What to Consider
Rate	Compare apples to apples (same term, type)
Prepayment privileges	10%/10% vs 20%/20% matters
Penalties	IRD calculation varies by lender
Portability	If you may move
Service	Branch access important?
Relationship	Need other banking services?

By Situation

Your Situation	Best Lender Type
Rate is top priority	Monoline via broker
Want branch access	Big bank or credit union
First-time buyer	Broker (compare options)
Self-employed	Broker (knows alternative options)
Credit challenges	B lender via broker
Renewal shopping	Start with broker

Working with a Mortgage Broker

A good mortgage broker is like a travel agent for mortgages: they compare rates from 30+ lenders, handle the paperwork, and advocate on your behalf — all at no direct cost to you. The lender pays the broker’s commission, typically 0.5–1.0% of the mortgage amount. This means using a broker costs you nothing while giving you access to rates and lenders you can’t reach directly. The main exception is complex situations (non-traditional income, credit challenges) where some brokers charge a fee, but this should always be disclosed upfront.

Advantages

Benefit	Details
Access	30+ lenders including monolines
Rate shopping	They do the comparison
No cost to you	Lenders pay broker fees
Advocacy	They negotiate for you
Education	Explain options

Finding a Good Broker

Where to Look	Details
Referrals	Friends, family, real estate agent
Online reviews	Google, Facebook
Mortgage broker associations	Verified members
Interview	Ask about their approach

The Bottom Line

Start your mortgage search with a broker who can access monoline lenders — you’ll almost certainly find a lower rate than your bank offers. If your bank matches the rate, compare the fine print (prepayment privileges, penalty calculations, portability) before signing. A 0.25–0.50% rate difference on a $500,000 mortgage saves $6,000–12,500 over five years, making 30 minutes of rate shopping one of the highest-return activities in personal finance.