Compare the best current mortgage rates in Quebec for free.

Mortgage term: While a mortgage term and an amortization period are often confused, they actually refer to two different things. Your mortgage term describes the amount of time you commit to your mortgage lender and the contract’s terms and conditions. At the end of the term, you’ll be able to renew your mortgage contract for the remaining principal at a new rate. A mortgage term can range anywhere from six months to 10 years, but the most popular term among Canadians is five years.

Amortization period: The amortization period is the amount of time it will take you to pay off your entire mortgage. In Canada, the maximum amortization period is 35 years. But, if your down payment was less than 20% and you were required to purchase mortgage insurance from the Canadian Mortgage Housing Corporation, then your maximum amortization period is 25 years.

When searching for the best mortgage rates in Quebec, prospective homebuyers will have two options. They can either select a fixed rate or a variable rate. But, what’s the difference?

A fixed rate stays the same for the duration of your mortgage term. A variable rate, on the other hand, will change according to market conditions.

Variable rates have historically been lower than fixed rates on LowestRates.ca, and while this is still true, they’re closer than ever. With just a fraction of a percentage point separating the average fixed and variable rates in Quebec — both which are still two whole percentage points lower than the bank rate — you can rest assured you’re getting a great deal no matter which one you decide to go with.

Your down payment: The size of your down payment is the primary contributor to the size of your mortgage loan. This will directly contribute to your mortgage rate because, usually, the larger the loan, the higher the rate. The size of your down payment is a signal to lenders about how capable you are of paying off your mortgage. When it comes to down payments, the more you can put down, the better.

Your debt service ratios: Quebec 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:

Gross Debt Service Ratio (GDS): To calculate your GDS, lenders determine how much of your paycheck will go towards housing. This includes your mortgage, property taxes, heating costs and 50% of your condo fees (if applicable). The lender then divides this by your gross annual income. If the result is greater than 35%, your lender may doubt your ability to handle your monthly housing costs.

Total Debt Service Ratio: Your TDS ratio is everything that comprises your GDS ratio plus any other monthly payments you have to make. These could include things like credit card debt, loan payments and car payments. The total is divided by your gross annual income. If the resulting percentage is less than 42%, your lender will be confident that you earn enough to make all your monthly payments.

Reduce your other debts: Quebec lenders will often take other, non-housing related debts into account when determining whether you’ll be able to pay off your mortgage. One way to demonstrate that you’re a safe bet (and possibly secure a lower rate) is to lower your credit card and loan debt. These debts contribute to your total debt service ratio.

Use a broker: A mortgage broker knows the ins and outs of the Quebec mortgage market better than the average bank employee. Plus, they’re not tied to one institution; brokers can show you rates from a bunch of different lenders. This also gives them a leg up when negotiating your mortgage contract with a lender. We’ll connect you with a mortgage broker when you compare rates on LowestRates.ca.

Shop around: While it can be tempting to take the first offer you receive, it’s important to shop around to really get a sense of the mortgage market. You’d think the bank you’ve been with for 10 years would give you a great rate for being a loyal customer, but the opposite is sometimes true: they’re not worried about you leaving any time soon, so they don’t feel pressure to keep your business. By using our free, no-obligation service, you can skip this step entirely and head straight to the best mortgage rates in Quebec.

Getting the best mortgage rates is one great way to save money on your mortgage, but 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.

The answer to this question depends on the terms of your mortgage. In addition to securing a cheap mortgage rate, there are other factors it might be worth it to discuss to maximize your savings in the long run.

Prepayment privileges: Before signing on the dotted line, prepayment privileges are something you should discuss with your lender. Not all banks and brokers offer the same prepayment terms, however, so it’s important to raise the issue.

Penalties: If you need to break your mortgage, you may be required to pay thousands of dollars in penalties. While you may wind up with a better rate if you go with a different lender, it’s important to look at the fine print to ensure that it won’t cost you in the long run.

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.