Find the best Mortgage Rates in London, Ontario
5-year Fixed Rate
4.29%
High Ratio Mortgage
5-year Variable Rate
4.60%
Most Banks Current Prime Rate 5.45%
Not Just the Best Mortgage Rate
20 years in the business of helping Canadians save on mortgage borrowing costs. We've seen a thing or two!
Everyone's financial situation is different- It's your shelter, Your Home. And we negotiate with dozens of lenders to find you the best mortgage rate based on your situation.
Our Experienced Mortgage Brokers are specially trained to look for opportunities in your income, credit and assets to build a stronger case before we submit to our trusted lenders.
A Mortgage Solution, for Every Situation
Banks, Credit unions and branchless mortgage lenders compete with your bank's business.
Canadian Mortgage Lenders look for consistent volume business from RateShop brokers . As a Volume Brokerage, we get priority access to Rate Promotions, faster underwriting & approvals, lender exceptions and dedicated personnel are assigned to us to get you a better deal!
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Mortgage Calculators for London
Easy to use Mortgage Payment & Affordability Calculators
Access to Canada's Mortgage Lenders
Working with Rateshop Mortgage can get you lower rates than your bank, with the same features like a home equity line of credit or options like pre-payment privileges.
Having a well connected network of lenders definitely helps track rates regularly. Above and beyond, we scower the internet and periodically work with our lenders to secure better than average industry rates that result in deeper rate discounts.
With RateShop, Canadians get unfiltered access to better rate & product offers from more than 65 mortgage lenders across all provinces.
Our Mortgage Brokers in London
RateShop Mortgage Brokers specialize in providing tailored mortgage solutions that help clients find the best mortgage rates in London. With a deep understanding of London's unique real estate market trends, we leverage Canada mortgage rates expertise to offer the lowest mortgage rates for various property types and financial situations. Whether you are purchasing, refinancing, renewing, or looking for a home equity line of credit, we work with you to compare mortgage rates and secure the most advantageous mortgage deals. Our in-depth knowledge of local lending programs and incentives ensures that we maximize financial benefits for our clients.
By accessing a wide network of lenders, RateShop mortgage brokers are able to save on mortgage costs by finding deals that are often better than those offered by major banks like TD, RBC, BMO, CIBC, and others. We secure mortgage rates that match your unique financial needs by comparing mortgage rates from over 65 lenders, including banks, credit unions, and monoline lenders. This allows us to provide our clients with low mortgage rates and best mortgage deals, helping them save thousands over the life of their mortgage.
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Finding the Right Mortgage
Don't lock in just because your neighbor did! Mortgage terms vary from 6 months all the way up to 10 years and you can choose based on your family financial needs. Are you selling soon? Or maybe you want to invest in 2 years. Maybe you want some flexibility, the choice is yours but make it an educated one when you talk to our commission-free mortgage advisors to help you decide on what offers the best mortgage rate and highest savings.
| Fixed Rates | Mortgage Expert Insights |
|---|---|
| 1 Year Fixed Rate |
Great solution for a short-term mortgage needs, renewals can be competitive but rates can go up at maturity without notice. Perfect for new builds to sell after a year or refinance for equity. |
| 2 Years Fixed Rate |
More flexible, a longer duration to support a family need for a couple of years or planning an exit from an existing mortgage without penalties. |
| 3 Years Variable Rate |
3 Year terms can sometimes deliver the best savings, but are typically suggested in a low rate environment, consider a variable too since upon maturity you may get stuck with a higher renewal. |
| 4 Years Fixed Rate |
Banks use this to gain your business, but if you are saving atleast 20-30bps, definitely consider a 4 year term mortgage, compare your savings on a 5 year mortgage term. |
| 5 Years Fixed Rate |
On average, households will upgrade or alter their mortgage about every 5 years, avoiding penalties upon maturity and best rate savings. |
| 5 Years Variable Rate |
Usually recommended in lower rate environments, beat the bank on mortgage penalties and optimize your savings compared to a fixed mortgage offer for the same term. |
Where is the Mortgage Market heading?
History can teach us a lot, check out Canada's mortgage rates history over the past 48 years. Bank of Canada tracks conventional mortgage rates for 3 year and 5 year terms. We can help with understanding the pros & cons to a fixed mortgage rate vs. a variable mortgage rate.
Explore Our Mortgage Options
Lately with the mortgage rate increases, Canadians are focused on finding mortgage options that offer greater flexibility.
We work with our clients to help identify mortgage savings through various offers from multiple lenders, because the rate just can't be the only consideration to financial stability.
Our Mortgage Brokers will assess your needs, qualification and consider your long term financial goals before suggesting the best mortgage option!
Learn how to create a monthly income by investing in mortgages
Learn how to create a monthly income by investing in mortgages
About London, Ontario
London, lands at #11 as a top ranking city in Canada in the province of Ontario and is regarded as a Large Urban population city. In 2021, London had a count of 422,324 residents, which was an increase from the previous census of 2016, where the population size was 383,822. London spans over 420.57 km² and has the #11 rank in population density of 1,004.2/km².
London's Real Estate Landscape
London is an increasingly popular city to live in, and its real estate market has experienced notable fluctuations in recent years. Despite these ups and downs, London remains one of the most desirable places to live in Canada, thanks to its vibrant arts scene, thriving economy, and proximity to both Toronto and the U.S. border. The average price for a detached home in London is currently around $675,000, while condo prices start at approximately $325,000. The market has seen steady growth recently, with prices still above the national average.
Despite the higher prices, London's real estate market continues to attract both local and international investors. The city's population is steadily growing, and there is ongoing demand for housing, particularly from those seeking a blend of urban amenities and green spaces. This combination of factors makes London an attractive location for real estate investment.
Property Use in London
If you are buying a property to live in London as a primary residence, also known as a principal residence, then your lowest mortgage rates are guaranteed. Depending on the use of your London property, certain lenders may price the rate higher if the property is intended as a rental investment. London has a high concentration of primary residences, though there has been an increase in demand for rental properties. Mortgage lenders can evaluate each London property to determine if it is being used for short-term or long-term rental purposes.
Our Mortgage Brokers work with various lenders offering specialized investment rental mortgage financing options, including owner-occupied, mixed-use, or semi-commercial properties. Some properties with an in-law suite can be considered for both owner-occupied and rental mortgage approval, still qualifying for the best mortgage rates. Whether you are purchasing, refinancing, or renewing a mortgage on a London student rental or a multi-plex property that generates income, we can still guarantee the lowest mortgage rates.
Canada Mortgage and Housing Corporation (CMHC) permits the purchase of owner-occupied London properties with up to 2 units at a 95% loan-to-value ratio, and up to 4 units at a 90% loan-to-value ratio.
Best Mortgage Banks, Lenders in London, Ontario
Rateshop.ca works with all banks, credit unions, and monoline lenders in Canada. With access to a wide range of options, our mortgage brokers focus on helping you choose the best mortgage lender in London, Ontario, offering the lowest mortgage rate. We achieve this by carefully reviewing lenders with promotions available in London. Mortgage lenders may follow their own internal process for financing in your area.
Lenders like TD Bank, Scotiabank, Meridian Credit Union, and DUCA Credit Union may have local branches near you in London. However, sometimes using a branch location can come with a slightly higher rate. In many cases, lenders like First National, MCAP, RMG, ICICI, CMLS, Equitable Bank, and others offer a similar suite of services online, even if they do not have a service location in London. Some mortgage lenders may also offer additional incentives when you are a local customer in London.
Mortgage Programs Offered in London
When buying a property in London, Ontario, your down payment plays a key role in determining your eligibility under insured, insurable, or uninsured programs.
Insured mortgages in London start with a minimum 5% down payment for a purchase price up to $500,000. For properties priced above $500,000 and up to $1,000,000, a 10% down payment is required on the amount exceeding $500,000, in addition to the initial 5%. The maximum allowable Gross Debt Service (GDS) ratio is 39%, and the maximum Total Debt Service (TDS) ratio is 44%. The insurance premium against default is added to the mortgage amount, and the amortization period is capped at 25 years. These are typically the lowest rates available due to the reduced risk to the lender.
Insurable mortgages in London are available through several banks, credit unions, and monoline lenders, which are often referred to as back-end insured mortgages. In this case, the lender will qualify the purchase under a 25-year amortization with a GDS ratio of 39% and a maximum TDS ratio of 44%. However, the down payment for this program must be a minimum of 20%, and the larger your down payment, the better your rate.
Uninsured mortgages in London allow for an amortization period of up to 30 years and require a minimum of 20% down payment. These mortgages generally carry higher interest rates compared to insured and insurable mortgages, due to the lender's increased risk. Refinancing is typically treated as an uninsured mortgage, and most lenders will offer home equity lines of credit under this program.
For mortgage renewals, if you have a low loan-to-value ratio, an active default insurance policy, and haven’t changed the amortization since your purchase, your London property may qualify for a lower renewal rate.
To ensure you qualify for the right mortgage product and lowest rate, contact our experienced mortgage brokers for guidance and support.
Closing Costs in London, Ontario
For any property purchases in London, Ontario, you will be required to hire a local lawyer to complete the closing. The lawyer's role is to prepare the closing documents in accordance with Ontario laws and complete the mortgage registration on the property, ensuring the title is transferred to your name.
The lawyer will conduct a title search in the Ontario land registry database, arrange for title insurance, and remit any applicable taxes. These may include Ontario Land Transfer taxes, which are typically required on property purchases. The lawyer is also responsible for communicating with the City of London to confirm the status of property taxes. Additionally, the lawyer will fulfill any conditions set by your mortgage lender and handle the disbursement of any brokerage commissions associated with the transaction.
A combination of legal fees, land transfer taxes, and registration & title insurance fees make up the closing costs. These are generally applicable to purchases, with exceptions in the case of refinances, where land transfer taxes may not apply if there are no changes to the title.
Home Buyer Incentives in London
London, Ontario offers various incentives and credits for First-Time Homebuyers when purchasing a property.
If you're buying in London, you may qualify for rebates on the Land Transfer Tax, which can significantly reduce your closing costs.
Link on Rebate: http://www.cra-arc.gc.ca/hbp/
Since 2022, you can claim up to $10,000 for the purchase of a qualifying home. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31270-home-buyers-amount.html
New home purchases in London may also qualify for the GST/HST Rebate. You can claim up to $25,000 of sales tax paid on a new home purchase. This rebate can also apply to a property you built or significantly renovated in London. https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/gst189.html
Lastly, be sure to check if London is offering a Home Ownership or Down-payment Assistance Program. These programs may help with a lump sum contribution towards the purchase of a home in London.
Impact of Mortgage Rates on First-Time Homebuyers in London
Mortgage rates directly affect the ability of first-time buyers in London to enter the real estate market. Higher rates can make monthly payments less affordable, while lower rates open up opportunities for more buyers. RateShop Mortgage Brokers guide first-time buyers through these fluctuations, ensuring they find the best mortgage rates and secure their dream homes within their budget.
Trends in Mortgage Rates and Property Prices in London
The interplay between mortgage rates and property prices is a critical factor in London’s real estate market. Rising rates can cool property prices, while lower rates often drive demand. RateShop Mortgage Brokers analyze these trends, helping clients decide when to buy and how to structure their financing for maximum savings and investment potential.
Choosing Between Fixed and Variable Mortgage Rates in London
Homebuyers in London often face the choice between fixed-rate and variable-rate mortgages. Fixed rates offer payment stability, while variable rates may provide lower initial costs but fluctuate over time. RateShop Mortgage Brokers assess clients’ financial situations and market conditions to recommend the most suitable option for their unique needs.
Pre-Approval as a Competitive Advantage in London’s Housing Market
Mortgage pre-approval is essential for navigating London’s competitive real estate market. It provides buyers with clarity on their budget and strengthens their position when making offers. RateShop Mortgage Brokers streamline the pre-approval process, helping clients lock in favorable rates and move confidently toward their home purchase.
Effect of Rising Mortgage Rates on Affordability in London
As mortgage rates increase, housing affordability in London becomes a challenge for many buyers. Higher rates translate into larger monthly payments, which can limit purchasing power. RateShop Mortgage Brokers help clients manage these challenges by exploring alternative financing options and recommending loan products that align with their financial goals.
Investment Opportunities in London’s Rental Market Amid Mortgage Rate Changes
London’s rental market remains a strong investment avenue, even as mortgage rates fluctuate. Rising rates can increase borrowing costs but may also lead to higher rental demand as affordability for homeownership decreases. RateShop Mortgage Brokers assist investors in securing competitive financing for rental properties, ensuring long-term profitability and stability.
Refinancing Mortgages in London for Better Rates and Terms
Homeowners in London can benefit from refinancing their mortgages to secure better rates, reduce monthly payments, or access home equity. RateShop Mortgage Brokers provide expert advice on refinancing strategies, helping clients assess the costs and benefits and choose options that improve their financial outcomes.
Government Incentives for London Homebuyers
Programs such as the First-Time Home Buyer Incentive and other government initiatives can offset the impact of rising mortgage rates in London. These programs reduce the upfront costs of buying a home, making homeownership more accessible. RateShop Mortgage Brokers educate clients on these opportunities and incorporate them into their mortgage planning.
Building Long-Term Wealth Through Homeownership in London
Despite fluctuating mortgage rates, homeownership in London remains a proven strategy for wealth generation. With property appreciation and equity growth, buyers can secure a strong financial future. RateShop Mortgage Brokers work closely with clients to choose mortgages that align with their wealth-building goals, ensuring their investment in London’s real estate market pays dividends over time.
Frequently Asked Questions about Mortgages in London
How to improve your finances with the help of a mortgage?
Consolidate Debt - helps lower your overall interest rate and reduce your monthly payments.
Tax Benefits
Invest in real estate
Use a mortgage to improve your home to increase the value and potentially earn a higher return on investment if you sell it later.
What kind of mortgages are offered in Canada?
Open Mortgage
Closed Mortgage
HELOC (Home Equity Line of Credit)
Reverse Mortgage
Conventional Mortgage
Convertible Mortgage
ARM (Adjustable-Rate Mortgage) or VRM (Variable Rate Mortgage)?
Variable mortgage your mortgage payment amount always remains the same it does not change even if the prime lending rate changes. While adjustable rate mortgage, the amount of your payment changes depending on the prime lending rate.
What mortgage rates are available?
Variable Rates
Fixed Rates
Adjustable Rates
What are today's Best Mortgage Rates?
4.29% - 5 year fixed
5.45% - 5 year variable
You can work with a Rateshop.ca Mortgage Advisors to help you compare options from multiple lenders and find the best mortgage for your needs. It's important to consider not only the interest rate, but also other factors such as the term of the loan, any fees or penalties, the lender's reputation and customer service.
What is a downpayment or Equity?
Downpayment is a payment made by the purchaser when buying a property which means the purchaser's initial investment in purchasing a property. While Equity is the value of your house minus the mortgage amount.
What's included in closing costs?
Closing cost is typically 1.5% of your purchase price. This includes but are not limited to
Land Transfer Tax
Lawyer and Legal Fees
Title Insurance
Mortgage Broker Fee
Property Insurance
What is Mortgage Insurance?
Mortgage insurance is an insurance that protects the mortgage lender or title holder if the borrower fails to make payments, dies, or is otherwise unable to meet the mortgage's terms and conditions.
Portable or Transferable Mortgages
Portable mortgage allows you to transfer your existing mortgage on your current home to the new property and retain the same terms of the original mortgage
Standard Vs. Collateral Mortgages
The main difference between a standard mortgage and a collateral mortgage is how the loan is secured.
- A type of loan where the property being purchased is used as collateral to secure the loan. The loan is registered with the government, and the lender has a claim on the property if the borrower defaults on the loan.
- A type of loan where the lender uses the property being purchased, plus any additional property owned by the borrower, as collateral to secure the loan. The loan is registered with the government, and the lender has a claim on all of the properties used as collateral if the borrower defaults on the loan.
- The main advantage of a collateral mortgage is that it allows the borrower to access additional funds using their existing properties as collateral, without having to go through the mortgage application process again. However, collateral mortgages can be more difficult to transfer to a new lender, and they may have higher penalties if the borrower wants to break the mortgage early.
A standard mortgage
A collateral mortgage
Steps in a Mortgage Closing
- Pre-Qualification - initial assessment of a borrower's financial situation and creditworthiness to determine how much money they may be eligible to borrow.
- Approval - If the borrower meets the lender's lending criteria and the property is eligible for financing, the lender will provide a mortgage offer that outlines the terms of the loan.
- Conditions & Appraisals- completing conditions and the lender orders an appraisal of the property to determine its value and ensure it is worth the purchase price/property value.
- Solicitor Instructions - solicitor will receive instructions from the lender
- Signing - The buyer reviews and signs the loan documents, which include the mortgage agreement and other legal documents related to the loan.
- Funding - Once all the documents are signed and all conditions are complete, the mortgage loan is funded and the purchase of the property is complete.
Qualification Criteria
Qualification criteria for mortgages can vary depending on the lender and the type of mortgage being applied for.
Income
Income is an important qualification criterion when applying for a mortgage, as it is an indicator of your ability to repay the loan. lenders typically require borrowers to have a stable and sufficient income to support their mortgage payments over the long term.
When evaluating your income, lenders will consider various factors, such as the amount and stability of your income, your employment history, and the debt-to-income ratio. In Canada we call this the gross and total debt service ratio. What monthly payment you are permitted to manage compared to your monthly household income, along with your heating costs called GDS and other then along with other debt expenses called TDS capped to 39% and 44% respectively.
Each lender has a different acceptance to the kind of income. Salary and Hourly wages paid regularly are more preferred by the big lenders, and that can mean little flexibility to self employed or commissioned and contract employees. Banks look at income as either documented or self declared. Those with a documented proven income can qualify for better mortgage rates. Working with a mortgage broker can help identify lenders that are flexible towards the self declared, all while getting best mortgage rates for the documented income applicants.
Credit
A borrower's credit score is a reflection of their credit history, including their repayment history on previous loans, the amount of debt they currently have, and how long they've had credit. A higher credit score generally indicates that a borrower has a good credit history and is more likely to be able to repay their mortgage on time and in full. The credit score rating is offered by Equifax and Transunion in Canada as Credit Reporting Bureaus. Though similarities exist in their independent Scoring Algorithm, the actual scores tend to vary between the two. The credit report in Canada compiles your credit accounts like credit cards, line of credits, vehicle loans, mortgages and some phone or utility payments history, reported to your personal credit file that eventually creates a score of financial worthiness when being lent to.
A credit report will also contain any Fraud & Identity Alerts, collection accounts and late or missed payments also known as derogs. So keep on top of your credit report for free, and track your credit score regularly.
When applying for a mortgage, lenders will typically check a borrower's credit score and credit report to assess their creditworthiness. If a borrower has a high credit score and a clean credit history, they will be offered more favorable mortgage terms, such as a lower interest rate or a higher loan amount.
Stress Test
The Canadian mortgage stress test first introduced on January 1, 2018, is a financial assessment that lenders use to evaluate whether a borrower can afford to make mortgage payments should the interest rates rise or if their financial situation changes.
In Canada, the mortgage stress test is a requirement for all borrowers applying for a mortgage, and it applies to both insured and uninsured mortgages. The stress test requires borrowers to qualify for a mortgage at a higher interest rate than the one they will actually be paying, usually two percentage points higher than the contract rate or the Bank of Canada's five-year benchmark rate, whichever is higher.
The idea behind the stress test is to ensure that borrowers can handle a potential rise in interest rates and maintain their mortgage payments over the long term, without becoming financially stressed or defaulting on their loan.
Pitfalls of a bad mortgage
- Hidden Fees
- High Interest Mortgage
- Failure to get the discounted rate and special features
- Pre-Termination Penalties / Prepayment Penalties
It's important to carefully research and compare different mortgage options before making a decision. Be sure to read the fine print and ask questions about any fees or penalties associated with the mortgage. With this, Rateshop.ca Mortgage Advisors are here to help you secure the best mortgage product and rates.
Hefty Penalties
In Canada, mortgage lenders often include penalties to discourage borrowers from breaking their mortgage contract before the end of the term. These penalties can be significant and can add up to thousands of dollars. Here are penalties you might encounter when you have a mortgage:
- Prepayment Penalty
- Discharge Fee
Refinance Restrictions
In Canada, there are some restrictions on refinancing your mortgage, which are designed to protect lenders and borrowers. Rateshop.ca Mortgage Advisors can help you evaluate your options and determine if refinancing is right for you. Here are some of the main restrictions you should be aware of:
- Maximum LTV (Loan-to-Value) is 80%, which means you cannot borrow more than 80% of your home's appraised value.
- Minimum Credit score for refinancing is 620.
- Lender will ask for income verification again if you can afford the new repayment
- If you're refinancing before the end of your current mortgage term, you may be subject to penalties, such as prepayment penalties or mortgage discharge fees. These fees can be significant and may offset any potential savings from refinancing.
- Appraisal is required and clients have to pay for it
- Limited customer service options
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RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.
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