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Nestled between the Pottawatomi and Sydenham rivers and Georgian Bay, Owen Sound is one of Ontario’s hidden gems. The city is known to draw tourists who come to visit the region’s famous waterfalls, four of which are located within 10 kilometers of Owen Sound’s downtown.
The city has a lot going for it, culturally, as well. It hosts the Summerfolk Music and Crafts Festival every August and the Festival of Northern Lights each winter. It’s also home to many galleries and museums and even has a large theatre for the performing arts, which puts on professional shows and concerts.
If you’re someone who enjoys the outdoors, but also likes small city amenities, Owen Sound may be the perfect place to live. If you’re shopping around for a mortgage, LowestRates.ca allows you to compare mortgage rates from 50+ banks and brokers across Canada. Just tell us whether you’re buying a home, renewing or refinancing and click the “Get Started” button above.
Read on for everything you need to know about mortgage rates in Owen Sound, whether you’re in search of broker mortgage rates in Owen Sound or prefer to deal with your existing financial institution, and are interested in bank mortgage rates in Owen Sound.
Mortgage companies in Owen Sound offer many mortgage options, including both conventional and high-ratio mortgages. Let’s take a look at both to help determine which might be right for you. The good news is the average mortgage rate in Owen Sound is historically low for both types of mortgages.
Conventional mortgage: Buyers with a down payment of at least 20% can qualify for a conventional mortgage. The benefit of a conventional mortgage is that they allow homebuyers to borrow a smaller amount toward their home, thus lowering their monthly mortgage costs.
High-ratio mortgage: A high-ratio mortgage, meanwhile, is the perfect option for a borrower who doesn’t have the 20% down payment required to obtain a conventional mortgage. In Canada, high-ratio mortgages can be had with as little as 5% down. Many lenders offer lower rates for their high-ratio mortgages, but that’s because high-ratio borrowers are required to get mortgage default insurance, which is rolled into their mortgage payments and paid off over their amortization period.
The type of mortgage you’d like is one of the first things to consider when researching a mortgage loan in Owen Sound.
|Date||Average Conventional Rate||Average High Ratio Rate|
Last Updated: May 1, 2023
The best mortgage lenders in Owen Sound offer options for fixed and variable rate mortgages. The one you choose will depend on a few factors.
Fixed rate: A fixed rate mortgage is one where the contracted rate remains the same over the entire mortgage term. Fixed rates are good for those who want to know exactly what their payments will be over the term, as well as how much of each payment goes toward principal and how much goes toward interest.
Variable rate: Variable rates fluctuate over the course of the term. Variable rates are based on a lender’s prime rate, which might rise or fall based on various economic factors. Because of this, a borrower’s rate may change over the course of their term; payment amounts may change, or the percentage of each payment that goes toward interest may change.
A mortgage broker can help you decide whether fixed mortgage rates in Owen Sound might be the best choice for you, or if you should look into variable mortgage rates in Owen Sound.
Last Updated: May 1, 2023
Below are some factors to take into consideration during your search for house mortgage rates in Owen Sound. These factors will determine whether or not you qualify for the lowest mortgage interest rate in Owen Sound.
Down payment: The size of your down payment may impact the mortgage rate you can expect to get. It will also determine the size of a mortgage you can qualify to purchase and, therefore, the price of the home you can afford. The minimum down payment in Canada is 5%, but the minimum increases with the cost of the home being purchased.
If a borrower has less than 20% down, you will be required to get mortgage default insurance.
Debt service ratios: In addition to your down payment, Ottawa lenders look at a number of other factors when calculating your mortgage rates. These are known as debt ratios and can be grouped into two categories:
Debt service ratios: Lenders use two kinds of debt service ratios to determine whether or not a borrower can qualify for a mortgage. The debt service ratio is determined by two different ratios: a borrower’s gross debt service ratio and total debt service ratio.
Gross debt service ratio (GDS): GDS measures how much of your income goes toward housing. GDS is determined by adding a borrower’s monthly mortgage payments, property taxes, and 50% of condo fees (if applicable) and divided by a household’s monthly gross (before tax) income. Lenders typically require a borrower’s GDS to not exceed 39%.
Total debt service ratio (TDS): TDS is determined by adding a borrower’s total monthly debt payments, monthly mortgage payments, property taxes, and 50% of condo fees (if applicable) and dividing that by a household’s gross income. Lenders typically require a borrower’s TDS to not exceed 44%.
Credit score: Your credit score is another factor to consider when searching for home mortgage rates in Owen Sound. Lenders offer their best rates to borrowers who have high credit scores. Credit scores in Canada range from 300-900. A credit score between 660 and 724 is considered good by Equifax Canada, a score between 725 and 759 is considered very good, and a score between 760 and 900 is considered excellent.
Employment and income: Finally, lenders will want to verify a borrower’s employment and income. The higher a borrower’s earnings, the more mortgage they will be offered. Lenders will ask for various documents, including tax documents and bank statements, as a way to verify a borrower’s employment and income. A mortgage broker can guide you along the process and will collect the documents from you.
Your mortgage amount depends on a number of factors, including your down payment amount, your interest rate, and the price of the home. Did you know Lowestrates.ca has a mortgage payment calculator to help you estimate your mortgage costs? Play around with the mortgage payment calculator to help you calculate a mortgage in Owen Sound.
We’ll use the calculator to crunch some numbers and get a sense of the typical mortgage amount in Owen Sound.
For this example, we’ll assume a home price of $523,900 (the benchmark sale price in the Owen Sound region in September 2021), a mortgage rate of 2% and an amortization period of 25 years.
We’ll also assume a down payment of 5.23% ($27,400).
Based on those assumptions, a buyer can expect to pay $2,171 per month. Keep in mind that mortgage default insurance is also included in that cost, since it’s required for all mortgages that have less than 20% down.
Now, if you were to raise your down payment to 20.32% ($106,456), the monthly payment would drop to $1,768 per month.
Owen Sound’s housing market has been heating up over the past year.
The benchmark price was $523,900 in September, an increase of 35.1% year-over-year, according to the Canadian Real Estate Association (CREA). Single-family homes, condos, and townhomes all saw significant price increases over the past 12 months.
The average price of homes sold in September 2021 set a record of $703,934, which was an increase of 40.2% year-over-year.
With home prices on the rise, it’s more important than ever to find the cheapest mortgage rates in Owen Sound.
Each home purchase requires closing costs, which must be paid prior to closing or just after, depending on the particular closing cost. Closing costs vary, but typically range from 1.5% to 5% of the home’s purchase price. Make sure to earmark enough funds so that your closing goes smoothly. Below are some examples of common closing costs.
Land transfer tax is a particularly important closing cost to keep in mind. You can use LowestRates.ca’s land transfer tax calculator to estimate your property taxes, based on the price of the home you plan on buying.
Ontario’s land transfer tax is charged at a marginal rate, which means an increasing percentage of tax is applied to different portions of the home’s price. Here’s a breakdown of how it works:
When researching today’s mortgage rates in Owen Sound, it’s important to consider the mortgage term and amortization period. They’re both important factors.
Mortgage term: The mortgage term is the amount of time a borrower agrees to pay a certain rate and abide by certain mortgage conditions, which are laid out in a contract. Mortgage terms typically run from one to 10 years in Canada, with five years being the most common term.
Amortization period: The amortization period is the entire length of the mortgage. Amortization periods typically run from 25 to 30 years and it may be determined by the type of mortgage a borrower chooses. For example, high-ratio mortgages can have a maximum amortization period of 25 years; conventional mortgages can have longer amortization periods. Within the amortization period, buyers will have several terms.
The best mortgage rates Owen Sound Canada can be either open or closed. It’s important to understand the difference, since they both have their benefits and drawbacks.
Open mortgage: An open mortgage allows the borrower to make additional payments, without penalty. Every borrower has a set payment schedule, but they may want to make additional payments to pay the mortgage off quicker. Open mortgages are more flexible than closed mortgages.
Closed mortgage: Closed mortgages limit the amount of extra payments a borrower can make. In some cases, closed mortgages may prohibit any additional payments. While open mortgages may be more flexible, lenders typically offer lower rates for closed mortgages.
Consider what you’d prefer when you compare mortgage rates in Owen Sound.
Whether you choose to purchase a home or rent a home in Owen Sound, your mortgage or rent will be just one thing to factor into the cost of living. With owning a home, you’ll also have to pay for utilities such as hydro and heat, municipal water (unless your home is on a well), property taxes, home insurance, and maintenance costs, among others. Living in Owen Sound will also likely necessitate owning a car, so factor in any car payments. With a vehicle, you’ll also pay for gas, maintenance, and auto insurance.
Unfortunately, Ontario has some of the highest auto insurance rates in Canada, second only to British Columbia. The average cost of auto insurance in Ontario is $1,528, according to the Insurance Bureau of Canada.
While searching for the lowest mortgage rates in Owen Sound, you might also want to consider the other costs of living that you’ll have to cover as well. It’s a good idea to make a budget to determine whether or not the move is affordable.
Finding the best mortgage rates Owen in Sound isn’t just about getting the lowest rate. While a low rate will make your home more affordable, there are some other factors you should keep in mind when doing a mortgage rates comparison in Owen Sound. You should also consider prepayment privileges, penalties and portability.
Prepayment privileges: Prepayments are additional payments a borrower might want to make toward their mortgage, in addition to their regular monthly payments. Some mortgages allow these payments, which allow borrowers to pay their mortgages off sooner.
Penalties: Take a look at the mortgage contract to determine what, if any, penalties you might incur during the mortgage term. Some mortgages charge penalties for prepayment or for breaking the mortgage early (in the event you want to sell your home before the mortgage term is up).
Portability: Finally, portability is another thing to look for in a mortgage. A portable mortgage is one that allows you to transfer it from one property to another. So, if you think you might want to move homes before the end of the mortgage term, you might want to consider a portable mortgage.
LowestRates.ca works with 50+ banks and brokers to bring you competitive mortgage rates from lenders in Canada. 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. 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.
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 in the country.
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.
The road to homebuying has been rocky for many Ontario residents, to say the least — and it’s not looking an...
This article has been updated from a previous version.* When it comes to shopping for mortgages, most homebuyers...