Best Mortgage Lenders in Canada

Why we picked it

On top of competitive rates, Motusbank makes our list of top picks thanks to some of its features. These features include:

Flexible payment schedule: Borrowers can choose between weekly, biweekly, monthly, semi-monthly. You can also choose accelerated options (weekly, or bi-weekly) which will give you an extra payment per year, allowing you to pay off your mortgage faster.

Lump sum prepayments: This allows homeowners to pay down up to 20% of the purchase price every year without facing any penalties.

Regular payment increase: This allows homeowners to increase their monthly payment amount by up to a maximum of 20% without facing any penalties.

Skip-a-payment: If you are having a difficult month you can skip one mortgage payment every year without facing a penalty.

While all of these features are great on their own, the real standout feature offered by Motusbank is the friends and family mortgage option. This mortgage allows up to four people to pool their funds together to purchase a home. That means everyone has their name on the mortgage title and shares both the financial benefits and risks of being the homeowner.

It’s not a conventional way to purchase a home, but it offers an alternative option to homeownership for individuals who may not be able to afford a home otherwise. The friends and family mortgage option can be applied to any mortgage offered by Motusbank and includes all the features listed above.

You do not need to be related to the individuals you decide to share with but Motusbank suggests speaking with a lawyer in advance (you will need one to finalize the mortgage anyway) and getting a joint-ownership agreement. It’s not required, but it is a smart idea to better protect everyone involved. If you’d like to learn more or get started with the friends and family mortgage option, give Motusbank a call.

Why we picked it

Tangerine is consistently considered to be one of the best online banks in Canada for good reason. They have good products with competitive rates and stand-out features that set them apart from other Canadian mortgage lenders. Here are some of the reasons why we picked Tangerine as one of the best mortgage lenders in Canada:

Guaranteed rates: Not only are Tangerine’s rates competitive but they are guaranteed for up to 120 days — which is definitely on the longer end as some banks will only hold the rate for 30 days. If the rate drops within that time period, you can apply to qualify for the lower rate.

Online application: Applying for a mortgage with Tangerine is done digitally, which means you can do it on your own time without having to worry about fitting it into your otherwise busy schedule.

Lump sum payment: Every year you can add a lump sum prepayment of up to 25% of the original mortgage amount. You can do this on any payment date without facing penalties.

Regular payment increase: You can increase your original mortgage payments by up to 25% on any payment date without facing penalties.

Tangerine will also provide you with a dedicated account manager once you sign up.

The standout feature, however, it’s its portability. This means that if you choose to move, you can take your mortgage with you. There is no penalty to do this and you can keep your current rate, term, and loan amount. This feature has the potential to be incredibly helpful if you find yourself needing to move and could end up helping you save thousands of dollars in fees, interest, and other charges - especially after the recent interest rate hikes.

Why we picked it

Nesto may not be one of the best-known names in the country when it comes to mortgage loans. However, they have fantastic reviews on websites like Trustpilot (4.2/5) and offer competitive rates across the country. Part of what makes them different from other brokers and financial institutions offering mortgages is that they offer more transparency about their rates.

Most potential lenders offer you the highest rate to start, which is what you will see posted on websites when you first go mortgage shopping. There is then the middle rate, which is what you will be offered by mortgage brokers and specialists. It’s better than the posted rate, but still not as low as they could go.

The lowest rate on offer is called the floor rate. This is the bare minimum that a broker, specialist, bank, or other financial institution can offer. You can usually only get the floor rate if you work for it, but Nesto offers this low rate right out of the gate. Since they are an online bank and don’t work on commission, there is no need to offer borrowers anything but the lowest rates they can.

Why we picked it

Finding a mortgage is tricky enough for the average Canadian. Especially in the current market. However, for some Canadians, it’s even harder. Especially for Canadians who have low credit or a history of poor credit.

Mortgage lenders in Canada are typically divided into two categories. Prime or “A” lenders deal with borrowers with strong credit scores and a stable income. Then alternative or “B” lenders have less-strict requirements and are more accessible to Canadians who may not have high credit scores.

NPX by Merix Financial qualifies as an alternative lender and will have options available for individuals in these circumstances at better rates than those provided by private lenders. They have made a name for themselves as a strong choice in lender, especially for individuals who have poor credit. For individuals in these situations, there is a six-month mortgage term option.

The interest rates are, unsurprisingly, significantly higher than longer terms. However, that six-month term also allows the borrower to work on their credit score in the meantime and hopefully increase it a little so that when it comes time to renew, they can qualify for a better rate.

Why we picked it

True North Mortgage made our list of the best mortgage lenders in Canada thanks to the diversity in the different mortgage products that they offer. Many smaller lenders don’t deal with vacation homes, second homes, and investment properties. However, as a larger brokerage, True North Mortgage does.

Of course, there are still some rules in place as to what qualifies. For example, vacation homes can include a cottage. But the property needs year-round access and has to have water, a septic system, heating, and electrical services. Second homes have the same requirements and must be single-family dwellings only. As for investment properties, you will need a down payment of at least 20%.

All of that aside, True North Mortgage makes the process relatively easy. Their experts are knowledgeable about the requirements and they will work to get you the lowest rates possible for your mortgage needs. In fact, True North Mortgage promises that they can get you the best rate. If you shop around and find better they will beat it or give you $500.

Why we picked it

The big brick-and-mortar banks tend to have higher rates than online banks. So, why does TD Bank make the list of the best mortgage lenders in Canada? Well, to start with, there is a lot of trust that comes with the big-name banks that, quite frankly, many other, smaller lenders haven’t built yet.

As a Big Five bank, TD also offers a lot of products, often different and more specific than what can be offered by smaller lenders. In this situation, the TD mortgage standout is their collateral mortgage option. A collateral mortgage allows you to borrow from the equity of your home and the amount you can borrow increases as you off your mortgage and/or the value of your home increases. It’s revolving credit, which means once you pay it off, it’s available again. A collateral mortgage can often be an easier, and more cost-effective option compared to taking out a personal loan or refinancing your mortgage.

The TD collateral mortgage is actually a combination of two TD products. The first being their standard mortgage and the second being a HELOC. As you continue to pay off more of your mortgage, it unlocks more equity in your HELOC which you can then draw as needed. This type of product can be incredibly helpful if you plan on doing home renovations, updates, repairs, or additions to the property.

Why we picked it

Being self-employed can make it incredibly difficult to get a mortgage. Especially for individuals who are unable to provide standard proof of income. In many cases, prime lenders will turn these individuals away. In other situations, self-employed individuals will have a higher minimum down payment requirement in order to be considered. As such, shopping around for a mortgage can be tricky to navigate for these individuals. However, the National Bank offers mortgage products especially for self-employed Canadians to make the housing market more accessible.

While most lenders require self-employed individuals to have a down payment of at least 20%, National Bank only requires 10%. That’s a pretty big difference. That being said they still do have certain eligibility criteria.

The first condition is that you have to be self-employed or a small business owner for a minimum of two years and be able to show two years’ worth of finances and good credit management.

The second condition is in regard to the property itself. Eligible properties must have no more than two dwellings and one must be owner-occupied. Additionally, the property value can be no more than $1,000,000. Note that the maximum loan amount for this program is $600,000.