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Today’s lowest mortgage rates in:

6.20%

5-Year Variable

4.79%

5-Year Fixed

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What our users say:

March 27
I had a really fantastic company…
I had a really fantastic company representative by the name of Tristan Palser......
Janice Penney
March 27
Very satisfied
Very satisfied, easy and worth switching 😀
Joanna Hogan
March 27
Jennifer was very helpful and…
Jennifer was very helpful and knowledgeable. Very good experience so far.
Jeremy Allin
March 25
Very professional friendly and…
Very professional friendly and genuine....they made me feel like I mattered
Charles D Bedard
March 25
Immediate response
Immediate response
Donald Henderson
March 19
It was quick and easy and saved me over…
It was quick and easy and saved me over $400.00...
Dennis Coulson
March 19
It is easy to make the quotes with the…
It is easy to make the quotes with the cheap price.
Thuy Nguyen
March 15
Absolutely amazing!
Absolutely amazing! Got a great deal and the best agent possible! Thank you very...
Adam Michael Peters
March 15
I found the representative a good…communicator
I found the representative a good communicator and he help me to feel comfortabl...
James Mirowski
March 15
Very friendly voice o the other end
Very friendly voice o the other end, and very happy with my quote
Joe Moreira
March 15
It was a professional and fast answer…
It was a professional and fast answer to my request, it couldn’t be more perfe...
Mahrez Djellouli
March 15
very satisfied
agent was very very helpful explain a lot of things we dint know very happy wit...
Joao Medeiros
March 13
Great service
Very helpful
Jessica
March 8
Easy to use and logical site
Easy to use and logical site
keith houghton
March 8
Fast and knowledgeable response to…
Fast and knowledgeable response to enqueries
Andrew Leung

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Compare mortgage rates in Kitchener-Waterloo.

If you're thinking about purchasing a home in Kitchener-Waterloo, now is a great time to apply for a mortgage or renew the one you already have. As a borrower, you’ll have access to some of the lowest mortgage rates in the country thanks to competition among lenders in the region. The best part? You can do a comparison of mortgage rates for Kitchener-Waterloo from more than 50+ banks and brokers all in one place on LowestRates.ca.

The best current mortgage rates in Canada

Check out today's best mortgage rates in Canada by type and term.

Rates are based on an average mortgage of $300,000
 Insured ?

The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.

80% LTV ?

The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

65% LTV ?

The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

Uninsured ?

The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.

Bank Rate ?

Bank Rate is the mortgage interest rate posted by the big banks in Canada.

 
1-year fixed rate
Insured
4.99%
80% LTV
5.6%
65% LTV
5.6%
Uninsured
6.59%
7.09%
 
2-year fixed rate
Insured
5.54%
80% LTV
5.3%
65% LTV
5.3%
Uninsured
5.94%
6.39%
 
3-year fixed rate
Insured
4.94%
80% LTV
4.94%
65% LTV
4.94%
Uninsured
5.09%
5.64%
 
4-year fixed rate
Insured
4.89%
80% LTV
4.99%
65% LTV
4.99%
Uninsured
5.09%
5.49%
 
5-year fixed rate
Insured
4.74%
80% LTV
4.79%
65% LTV
4.79%
Uninsured
4.94%
5.04%
 
7-year fixed rate
Insured
4.94%
80% LTV
5.09%
65% LTV
5.09%
Uninsured
5.19%
5.9%
 
10-year fixed rate
Insured
5.69%
80% LTV
5.89%
65% LTV
5.89%
Uninsured
5.84%
7.25%
 
3-year variable rate
Insured
6.1%
80% LTV
6.7%
65% LTV
6.7%
Uninsured
N/A
8.6%
 
5-year variable rate
Insured
5.9%
80% LTV
6.1%
65% LTV
6.1%
Uninsured
6.25%
6.59%
 
HELOC rate
Insured
7.2%
80% LTV
7.2%
65% LTV
7.2%
Uninsured
7.2%
N/A
 
Stress test
Insured
6.74%
80% LTV
6.79%
65% LTV
6.79%
Uninsured
5.25%
N/A

Variable Rates

As low as

6.20%

Fixed Rates

As low as

4.79%

Cha-ching! Our rates are always lower than the posted bank rates.

Current lowest posted bank rate

7.49%

What our users say:

March 27
I had a really fantastic company…
I had a really fantastic company representative by the name of Tristan Palser......
Janice Penney
March 27
Very satisfied
Very satisfied, easy and worth switching 😀
Joanna Hogan
March 27
Jennifer was very helpful and…
Jennifer was very helpful and knowledgeable. Very good experience so far.
Jeremy Allin
March 25
Very professional friendly and…
Very professional friendly and genuine....they made me feel like I mattered
Charles D Bedard
March 25
Immediate response
Immediate response
Donald Henderson
March 19
It was quick and easy and saved me over…
It was quick and easy and saved me over $400.00...
Dennis Coulson
March 19
It is easy to make the quotes with the…
It is easy to make the quotes with the cheap price.
Thuy Nguyen
March 15
Absolutely amazing!
Absolutely amazing! Got a great deal and the best agent possible! Thank you very...
Adam Michael Peters
March 15
I found the representative a good…communicator
I found the representative a good communicator and he help me to feel comfortabl...
James Mirowski
March 15
Very friendly voice o the other end
Very friendly voice o the other end, and very happy with my quote
Joe Moreira
March 15
It was a professional and fast answer…
It was a professional and fast answer to my request, it couldn’t be more perfe...
Mahrez Djellouli
March 15
very satisfied
agent was very very helpful explain a lot of things we dint know very happy wit...
Joao Medeiros
March 13
Great service
Very helpful
Jessica
March 8
Easy to use and logical site
Easy to use and logical site
keith houghton
March 8
Fast and knowledgeable response to…
Fast and knowledgeable response to enqueries
Andrew Leung

Conventional vs. high-ratio mortgages: which is cheaper?

Before you start searching for the cheapest mortgage rates in Kitchener-Waterloo, you’ll need to figure out how much money you can put toward a down payment. There are two types of mortgages based on your down payment amount: conventional and high-ratio.

A high-ratio mortgage is where the buyer’s down payment is less than 20% of the home’s purchase price. In this scenario, the buyer is required to buy mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC), or private insurance companies Sagen and Canada Guaranty. Mortgage insurance protects the lender if you stop making your mortgage loan payments, and will add to the total cost of your mortgage.

A conventional mortgage means the buyer has a down payment that is at least 20% of the home’s purchase price. For example, if a home costs $500,000, a conventional mortgage requires a down payment of at least $100,000.

Here’s a look at conventional 5-year fixed vs. high-ratio 5-year fixed mortgage rates in Ontario.

Conventional 5-year fixed mortgage rates vs. high ratio 5-year fixed mortgage rates in Ontario

DateAverage Conventional RateAverage High Ratio Rate
03/23 5.04%4.78%
04/23 4.79%4.44%
05/23 4.86%4.52%
06/23 5.24%4.92%
07/23 5.54%5.14%
08/23 6.22%5.42%
09/23 6.00%5.61%
10/23 6.14%5.87%
11/23 6.15%5.77%
12/23 5.92%5.56%
01/24 5.66%5.29%
02/24 5.30%5.05%

Last Updated: March 1, 2024

Fixed rate vs. variable rate mortgages: which is cheaper?

Subtract your down payment from the home’s price, and the remaining amount is the balance of your mortgage. You can choose between two types of mortgage rates for your Kitchener-Waterloo home: fixed rate or variable rate.

A fixed rate means your interest rate stays the same for the entire mortgage term, whether it’s six months or 10 years.

If you decide to choose a variable rate mortgage for your Kitchener-Waterloo house, it’s subject to change based on market conditions like the Bank of Canada’s overnight lending rate, which is used as a benchmark by banks to set the interest rates they offer to their customers.

Here’s a look at 5-year fixed vs. five-year variable rates in Ontario over the last year.

5-year fixed vs. 5-year variable mortgage rates in Ontario

MonthFixedVariable
03/23 4.87%5.85%
04/23 4.64%5.83%
05/23 4.65%5.88%
06/23 5.02%6.12%
07/23 5.31%6.36%
08/23 5.59%6.50%
09/23 5.71%6.54%
10/23 5.91%6.52%
11/23 5.85%6.51%
12/23 5.65%6.44%
01/24 5.46%6.35%
02/24 5.23%6.45%

Last Updated: March 1, 2024

Factors that affect your Kitchener-Waterloo mortgage rate

The average mortgage rate for a home in Kitchener-Waterloo depends on how much cash you can afford to put down up front, your monthly debt obligations, credit history and how much income you earn. Here are a few factors lenders consider when deciding whether or not to approve your mortgage application, and what interest rate they’ll offer.

Read More

Typical mortgage amount in Kitchener-Waterloo

To calculate the amount of your Kitchener-Waterloo mortgage, you’ll need to consider the home price, the down payment amount and the mortgage interest rate. The benchmark price of a single-family home in Kitchener-Waterloo is $709,600, according to the Canadian Real Estate Association (CREA). With a 20% down payment ($141,920), the mortgage would be $567,680. This amount doesn’t include interest paid over the lifespan of the mortgage, which depends on the mortgage interest rate and amortization period.

Remember, if your down payment is less than 20%, you’re required to buy CMHC mortgage insurance. This will increase the cost of your mortgage and the amount of interest you’ll pay. CMHC insurance premiums depend on the size of your down payment. For example, on a $500,000 home where you have a down payment of 5% ($25,000). With a mortgage insurance premium rate of 4%, your mortgage insurance premium would be $19,000 and your total mortgage amount would be $494,000.

Your mortgage insurance premium can be paid as a lump sum or added to your mortgage payments.

Kitchener-Waterloo’s housing market and home prices

Like many cities in southern Ontario within driving distance of Toronto, Kitchener-Waterloo home prices have climbed sharply in recent years. According to data from CREA, the benchmark price for a single-family home in Kitchener-Waterloo increased by 27.7% between February 2020 and February 2021, going from $612,300 to $788,500. Over the last five years, benchmark prices for single-family homes have more than doubled.

Condos and townhouses continue to see similar price spikes. Year over year, benchmark condo prices in Kitchener-Waterloo rose 38% to $341,200 as of February 2021. The benchmark price for a townhouse is $526,700, up 33% year-over-year.

Kitchener-Waterloo closing costs and land transfer tax

After buying your home, closing costs refer to all the odds and ends you need to close the deal. A general rule of thumb is to budget 1.5% to 4% of the home’s purchase price to cover closing costs (excluding the down payment). Closing costs may include:

Closing costs may also include a provincial and/or municipal land transfer tax. The province of Ontario calculates land transfer in the following way:

Purchase PriceTax Rate
0–$55,0000.05%
$55,000–$250,0001.00%
$250,000–$400,0001.50%
$400,000–$2 million2.00%
$2 million +2.5%

Example: on a home worth $500,000, you would pay $6,475 in land transfer taxes.

 

Information for first-time home buyers in Kitchener-Waterloo

Brokers vs. bank mortgage rates in Kitchener-Waterloo: The main difference is a bank can only offer its own mortgage products, while a broker is an intermediary who shops around to present clients with a range of options from different lenders. It’s important to note that brokers only facilitate finding you the best rate — the actual mortgage will be provided by a financial institution. When you’re looking for a home in a hot housing market like Kitchener-Waterloo, broker mortgage rates tend to be more competitive than bank rates. However, if you have a strong existing relationship with your bank you might be able to negotiate a decent rate.

Home insurance: Home insurance isn’t legally required in Canada, but most mortgage companies in Kitchener-Waterloo will require you to obtain a home insurance policy before they give you a mortgage. A home will likely be your most expensive asset, and insurance protects it from a number of unexpected incidents that could cause damage to your property.

Tax credits: You may be eligible for various federal and provincial tax credits. Here are a few of them:

First Time Homebuyers Tax Credit: This is a $5,000 non-refundable tax credit designed to help buyers manage the closing costs of purchasing a new home. This credit is applicable across Canada.

First-time Home Buyers Incentive: Eligible first-time homebuyers who have the minimum down payment for an insured mortgage can apply to finance a portion of their home purchase through a shared equity mortgage with the Government of Canada. The program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment will lower your mortgage carrying costs, making homeownership more affordable.

The Federal Home Accessibility Tax (HATC) for Seniors and Persons with Disabilities: This non-refundable tax credit allows you to claim up to $10,000 in renovation expenses. This credit is applicable country wide and is available for homeowners who are aged 65+ before the end of the tax year or who have a disability.

Your questions about Kitchener-Waterloo mortgages, answered.

What’s the difference between a mortgage term and an amortization period?

A mortgage requires you to make regular payments for a certain period of time — but for how long? That’s where the mortgage term and amortization period come in.

Mortgage term: The term is the length of time you’re locked into your mortgage contract at a specified interest rate. At the end of the term, borrowers can renew their contract at a new rate. Mortgage terms can range from six months to 10 years. The most popular mortgage term in Canada is five years.

Amortization period: The total number of years it will take you to pay off your mortgage balance, including interest. In Canada, the maximum amortization period is 35 years. If your down payment is less than 20% of the total price of the home and you have to buy CMHC mortgage insurance, the maximum amortization period is 25 years.

What’s the difference between an open mortgage vs. a closed mortgage?

When it comes to paying off your mortgage, there are two types of payment structures to choose from.

Open mortgage: This type of mortgage can be paid off in full at any time without penalty, and typically has a shorter term (up to five years). Open mortgages are more flexible and are geared toward people who want to make additional or increased mortgage payments, pay off the mortgage early, or move to a different home in the near future. But there’s a tradeoff: open mortgages interest rates are usually a little bit higher.

Closed mortgage: You’ll typically pay lower interest rates with a closed mortgage, but you’re required to make regular payments on a fixed schedule for the entire term. If you want to refinance, renegotiate or pay off your closed mortgage before the term is up, you’ll be charged a penalty. However, some lenders will allow you to make accelerated payments up to a certain amount each year. Every lender will have its own terms and conditions around closed mortgage prepayments.

How much does it cost to live in Kitchener-Waterloo?

Kitchener and Waterloo are two cities in the Regional Municipality of Waterloo and along with Cambridge, they comprise the “tri-cities.” Depending on whether you’re a homeowner, renter, driver or commuter, your cost of living in Kitchener-Waterloo will vary.

In addition to your mortgage interest rate and cost of a home, prospective Kitchener-Waterloo homebuyers should consider a number of other costs to consider when thinking about relocating. If you own a vehicle, one of the biggest costs may be auto insurance. Ontario has the second-highest car insurance rates in Canada, and the Kitchener-Waterloo region is surrounded by a number of high-density highways.

How much does getting a lower interest rate matter in Kitchener-Waterloo?

If you’re house hunting in Ontario, securing a low Kitchener-Waterloo mortgage rate is one great way to save money on your mortgage. However, it’s one of many things you can do to increase the overall affordability of your mortgage. Some of these features might include prepayment privileges and portability.

Prepayment privileges: Some banks and brokers will offer different prepayment terms, so it’s important to raise the issue before you sign your contract. A prepayment privilege allows you to pay off your mortgage early without having to pay an additional fee.

Penalties: If you need to break your mortgage, which you may need to do when you refinance or move, you may be required to pay thousands of dollars in penalties. While you may wind up with a better rate, if you choose to go with a different lender, it’s important to look at the fine print to ensure that it won’t cost you more than you’ll gain.

Portability: One way to avoid these penalties is to negotiate a portable mortgage. This means that if you move, you can transfer your mortgage to a new home and combine it with an additional mortgage loan.

Your questions about LowestRates.ca, answered.

How are mortgage rates determined on LowestRates.ca?

LowestRates.ca works with 50+ banks and brokers to bring you the best mortgage rates from lenders in Canada, including Kitchener-Waterloo. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates for Kitchener-Waterloo. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.

Is it safe to get a mortgage online?

Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders not only in Kitchener-Waterloo, but across the country.

How do I know I’m getting the lowest rate?

We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).

The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.

Jane Switzer

Jane Switzer

About the Author

Jane Switzer is a writer, editor and native Torontonian. She got her start working in daily journalism, and is now a Content Manager for LowestRates.ca.

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