What Affects Home Mortgage Rates?

Current Rates

Prime rate is currently 3.000%
Updated: Feb. 07, 2012
*All rates subject to certain terms and conditions, OAC

Home mortgage rates are an important consideration for home owners and buyers in the real estate market. There are a number of factors that affect your mortgage rate, including your credit score, job tenure, down payment and type of property to purchase or refinance, among others.

At MBN Mortgage, we are always asked by our friends and clients, “What is your best mortgage rate?” And our answer is always the same— “It depends”. How do we determine your best rate? At MBN Mortgage, we offer our clients the best possible home mortgage rates for their specific situation—every time. We value your trust in our service and business and never keep you guessing whether you could get a better loan rate.

How do Rates Compare for a Home Equity Loan / Mortgage Refinance?

Typically the same rates apply for a mortgage refinance loan as a purchase loan. The difference often lies in how much of the value of your home that a particular lender is willing to refinance.

For example, 100% financing is available on purchases, but is not typically available on a mortgage refinance. The second difference is the variety of options you have when you refinance your mortgage. Home equity lines of credit, second mortgages, and blended mortgages are all available. We understand it can seem complicated, but we are here to help.

What Interest Rates Mean for the Home Loan Mortgage Borrower

Home mortgage rates, in the Canadian financial market, are relatively stable and are expected to remain so in the near future. This relative stability is due in large part to the Bank of Canada’s monetary policy. In 1934, when Canada’s central bank was founded, its role was “generally to promote the economic and financial well-being of Canada.” The key monetary policy mechanism of the Bank is its ability to impact short-term interest rates through the Bank’s target for the overnight rate. The overnight rate thereby impacts the rate at which other member financial institutions borrow from the Bank of Canada.

What does this mean for you as a home loan mortgage borrower? Mortgage lenders follow the Bank of Canada’s lead when it comes to setting rates. This knowledge, combined with mortgage planning expertise of your MBN Mortgage consultant, can ensure your long term financial health, and optimize your mortgage within the home mortgage loan market.