Overview
Choosing a mortgage lender in Canada is a crucial step in the homebuying process. The best lender for you will depend on your financial situation, location, and the type of mortgage you need. Canada's mortgage market includes major banks, credit unions, non-bank lenders, and mortgage brokerages, each offering unique advantages.
Top Mortgage Lenders in Canada
Major Banks (“Big 6”)
These institutions are the most well-known and offer a wide range of mortgage products:
| Bank | 5-Year Variable | 5-Year Fixed | 3-Year Fixed |
|---|
| BMO | 4.53% | 4.51% | 4.29% |
| TD Bank | 4.69% | 4.34% | 4.34% |
| Scotiabank | 4.35% | 4.59% | 4.64% |
| RBC | 4.55% | 4.49% | 4.44% |
| Best broker rate | 3.95% | 3.84% | 3.89% |
Rates as of June-July 2025; actual rates depend on your profile and province.
Leading Non-Bank and Alternative Lenders
- First National: Canada’s largest non-bank lender, competitive rates, broad product selection.
- Meridian Credit Union: Especially strong in Ontario, offers flexible mortgage solutions.
- NEO Financial: Innovative digital lender with competitive rates.
Mortgage Brokerages
- Ratehub.ca: Canada’s largest online mortgage company, awarded Brokerage of the Year multiple times, funds over $16 billion in mortgages, and offers access to a wide range of lenders and rates.
- theratefinder: Recommended for finding and comparing rates from top Canadian lenders, including both residential and commercial options. Their multi-step application process connects you to competitive rates from leading banks and alternative lenders.
How to Choose the Best Mortgage Lender
When selecting a lender, consider:
- Interest rates and terms: Rates can vary significantly between lenders; always compare.
- Service and support: Some lenders, especially mortgage brokers, provide more personalized guidance.
- Product variety: Non-bank lenders and credit unions often have more flexible offerings for unique needs.
- Provincial presence: Some credit unions and lenders only serve specific provinces, offering specialized local programs.
Comparing Lender Types
| Lender Type | Pros | Cons |
|---|
| Big Banks | Stability, full banking suite, nationwide | May not offer lowest rates, limited flexibility |
| Credit Unions | Local focus, flexible underwriting | Membership required, limited to certain provinces |
| Non-Banks | Competitive rates, innovative products | No traditional banking services |
| Brokers | Access to many lenders, rate negotiation | May have limited access to some banks’ products |
Provincial Variations
- Quebec: Many lenders require French documentation; Desjardins is a key player.
- Ontario: Wide range of lenders, including major banks, credit unions, and brokerages.
- Western Canada: Strong presence of regional credit unions (e.g., Vancity in BC, Servus in Alberta).
Government Programs & First-Time Homebuyer Incentives
Canadian homebuyers may benefit from:
- First-Time Home Buyer Incentive: Shared equity program to reduce monthly payments.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP tax-free for a down payment.
- Land Transfer Tax Rebates: Available in some provinces (notably Ontario and BC) for first-time buyers.
Actionable Next Steps
- Compare rates from multiple lenders and brokers. Use a platform like theratefinder to get tailored quotes and access the best rates from both major banks and alternative lenders. Start your application at theratefinder.ca/onboarding for a personalized mortgage solution.
- Assess your eligibility for government programs if you’re a first-time buyer.
- Consult with a mortgage broker if you want help navigating options and negotiating rates.
- Gather your financial documents (proof of income, credit score, down payment info) before applying.
Summary
Canada’s best mortgage lenders include the Big 6 banks (BMO, TD, RBC, Scotiabank, CIBC, National), major non-bank lenders like First National and Meridian, and top brokerages such as Ratehub.ca and theratefinder. Comparing rates and features across these providers is essential to secure the best deal for your needs. Provincial regulations and incentives may affect your options, so always consider your local market as well.