Compare Scotiabank Mortgage Rates in Canada
Whether you’re considering a fixed or variable mortgage, CompareMortgages.ca provides up-to-date Scotiabank rates alongside offerings from other major Canadian lenders.
Our platform ensures you have access to the most competitive mortgage options that suit your financial goals and budget. Why limit yourself to a single lender when we can help you compare multiple options quickly and easily?
Key Highlights
- Scotiabank offers specialized mortgage options, including the Scotia Ultimate Variable Rate Mortgage and the Scotia Total Equity Plan (STEP).
- Flexible payment options include match-a-payment and increasing your set payment for the current term by up to 15% annually.
- Scotiabank allows you to prepay your mortgage by up to 15% of the original principal balance annually without penalty.
Compare Scotiabank Mortgage Rates
Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD, RBC, CIBC and Scotiabank. We do the research to guarantee you the lowest possible rates upfront every time.
Compare Big Bank Rates
Securing Canada’s most favourable mortgage or loan terms starts with comparing rates from big banks. Interest rates and promotional offers can vary significantly, potentially leading to substantial savings over the life of your loan.
Take Action Today:
- Explore Multiple Options: Don’t settle for the first offer. Research rates from various top lenders and banks across Canada to identify the most competitive options.
- Consider Your Financial Needs: Assess your budget, financial goals, and risk tolerance to determine the loan term and type that best suits you.
- Make an Informed Decision: With comprehensive rate comparisons, make a confident choice that matches your financial needs.
Comparing rates can translate to significant savings and a more favourable financial future.
Scotiabank Overview & Stock Information
Established in 1832, the Bank of Nova Scotia became the first chartered bank in Nova Scotia. In 1889, it opened a branch in Kingston, Jamaica, making it the first Canadian bank to open a branch outside the United States or the United Kingdom.
Today, Scotiabank is the third-largest bank among Canada’s “Big 6″ and a leading bank in the Americas, with operations in North America, Latin America, Europe, and Asia Pacific.
Stock information
What to Know About Scotiabank Mortgage Posted Rates
Scotiabank’s posted rates are used to calculate prepayment penalties. Borrowers are typically offered a discount from the posted rate when obtaining a mortgage.
Scotiabank’s advertised rates may differ from those offered through home financing advisors, brokers, in-branch, or online through the mortgage hub eHOME. Special offers, promotional rates, or alternative channel discounts often offer lower pricing than advertised. The actual rate you will be offered depends on personal factors like your mortgage amount, loan-to-value (LTV) ratio, property type, risk profile, and credit profile.
Scotiabank Mortgage Products
Fixed-rate mortgages at Scotiabank protect you from rate increases, so you know exactly how much your mortgage payments will be throughout the mortgage term. Scotiabank offers fixed mortgages with 6-month, 1, 2, 3, 4, 5, 7, and 10-year terms. Each mortgage payment you make will remain the same over the mortgage term and will pay off the interest and a portion of the principal. You must renegotiate a new interest rate at the end of each term.
Adjustable-rate mortgages (ARM) at Scotiabank, offered through the Scotia Flex Value Mortgage, have interest rates based on Scotiabank’s prime lending rate, which may increase or decrease over the mortgage term based on changes to the BoC policy rate. This variable mortgage is only available as a 5-year open or closed term.
Variable mortgages at Scotiabank have payments that can fluctuate over your mortgage term, based on changes to interest rates. If interest rates increase, your mortgage payment will adjust to cover the new interest rate, while the principal portion of your mortgage payment will remain the same. If interest rates decrease, your mortgage payment will adjust and reduce as the new interest paid will be lower, while the principal portion of your mortgage payment will remain the same.
Besides the typical core mortgage products offered by most banks, Scotiabank also provides a variety of other mortgage products, including:
Scotia Ultimate Variable Rate Mortgage (UVRM)
This variable mortgage is only available for a 3-year term and acts as a variable-rate mortgage (VRM), protecting you from higher payments if interest rates increase. This solution offers fixed payments that remain the same throughout the term and are calculated based on a higher fixed Cap Rate at the onset of the mortgage term.
If interest rates are lower than the cap rate, more of your mortgage payment will go to principal, helping you pay off your mortgage faster. However, what sets this VRM apart is that your interest rate can never exceed the cap rate, protecting you from significant rate increases and negative amortization over the term.
The Long and Short Mortgage
This hybrid mortgage allows you to benefit from a fixed-rate closed-term mortgage for one portion and a Scotia Flex Value mortgage for the other. Available under the Scotia Total Equity Plan (STEP), this can help reduce your borrowing costs and hedge interest rate risk. One part of the mortgage payment remains fixed for the full term, while the other resets when the Scotiabank Prime Rate changes.
Scotia Total Equity Plan (STEP)
This collateral charge mortgage allows you the flexibility to use equity in your home as you need it. As you pay down your mortgage and your equity grows, you can borrow more through the revolving portion of the STEP. This mortgage allows you to borrow up to 80% of your home’s value, up to 65% of which can be set up as revolving credit products.
With a STEP, you can divide your mortgage into up to 3 different term loan mortgage solutions and up to 3 Scotialine HELOC solutions. The STEP’s revolving portions can also secure a credit card and overdraft protection for more favourable features than unsecured options.
Second Home Mortgage
There are two mortgage options for those considering a second home. The Scotia Secondary Home Financing Program is suitable for borrowers wishing to purchase a second home or investment property. This program can be applied to Type A or B vacation properties.
The Making the Cottage Dream a Reality program offers financing options for those wishing to purchase a cottage or vacation home. This program provides financing of up to 95% of the value of the second home or cottage, or up to 80% with a STEP.
StartRight Mortgage Program
This type of mortgage is available for temporary and permanent residents who wish to buy a home in Canada. The StartRight Mortgage Program for Permanent Residents is for those who have been permanent residents in Canada for 5 years or less to buy their first home in Canada.
The Scotiabank StartRight Mortgage Program for Temporary Residents is for those who want to buy a home while staying in Canada. This program may be impacted by the Prohibition on the Purchase of Residential Property by Non-Canadians Act unless you meet the exception criteria outlined in the act. This prohibition was recently extended and is in effect until January 1st, 2027.
Scotia Mortgage+ Program
This mortgage program is a customizable banking relationship bundle that gives you access to preferred mortgage rates. The bundle includes a Scotia Total Equity Plan (STEP), an eligible everyday banking account, and your choice of another eligible banking product, including investments, insurance, and credit cards.
Key Features of Scotiabank Mortgages
- Match-a-Payment: This allows you to make an extra regular mortgage payment on any of your regular payment dates during the term.
- Miss-a-Payment: This allows you to miss a mortgage payment as long as you previously matched a payment on any of your regular payment dates during the term.
- Scotiabank mortgages have the most extended renewal window in the industry, allowing you up to 180 days before your mortgage matures to lock in your rate.
What Determines Scotiabank’s Mortgage Rates?
Lenders like Scotiabank set their mortgage rates based on the Bank of Canada (BoC) policy rate or bond yields. The state of the economy in Canada and globally, inflation, and employment can all impact the direction of bond yields and the BoC’s monetary policy decisions, impacting mortgage rates.
Variable mortgage rates are directly tied to the Bank of Canada policy rate. When the BoC changes the policy rate up to 8 times a year, lenders adjust their prime rates accordingly. Most lenders set the prime rate at 2.20% higher than the policy rate.
Fixed mortgage rates are directly tied to the movement of bond yields with a corresponding maturity. For example, 5-year fixed rates follow the direction of 5-year bond yields. Bond yields are indirectly influenced by what the market thinks the BoC will adjust the policy rate to in the future. Depending on the lender, fixed rates are typically priced 1% to 2% higher than the corresponding bond yield. Other factors, such as your credit score, loan-to-value (LTV) ratio, down payment, debt service ratios, and banking relationship, can impact the rates or discounts Scotiabank offers you.
Scotiabank Mortgage Payment Increases
In the mortgage industry, a prepayment is when a borrower pays off a portion or the entire mortgage early, either with a lump sum payment or by raising their regular monthly payments. Your annual mortgage prepayment limit will vary from one mortgage lender to another. If you want the freedom to pay off your mortgage early, you will want to shop around for a mortgage with favourable prepayment terms.
Whether you have a Scotiabank variable-rate mortgage or a Scotiabank fixed-rate mortgage, flexible payment options allow you to pay off your mortgage faster. If you currently make monthly payments, you can switch to an accelerated weekly or biweekly schedule to help you become mortgage-free faster and save thousands.
You can increase your regular payment amount once each calendar year by up to 15% of the set payment for the current term of your mortgage. For example, if you currently pay $800 biweekly toward your mortgage, you can increase your payment by up to $120.
Scotiabank Annual Mortgage Prepayment
If you have a Scotiabank mortgage and take advantage of yearly prepayment privileges, you can pay off up to 15% of the original principal balance annually without penalty.
If you have an open mortgage, you can make as many lump-sum payments as you like each year without a prepayment penalty.
Since the entire lump sum will be applied to the mortgage’s principal balance, you will pay significantly less interest throughout the mortgage’s lifetime, allowing you to pay it off much more quickly.
Important: You will incur a penalty if you choose to prepay your Scotiabank mortgage by more than 15% of the mortgage principal per year with a closed mortgage.
| Canadian Bank Closed Mortgage | Prepayment Amounts |
|---|---|
| RBC | 10% |
| National Bank | 10% |
| CIBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
Frequently Asked Questions
Can I negotiate my mortgage rate with Scotiabank?
You should always negotiate your mortgage rate, as the first offer is rarely their best. However, Scotiabank may offer preferred rates if you bundle your mortgage with eligible banking products. Additionally, you may receive discounts from the posted rates, which can vary based on your credit profile, LTV, down payment, and debt service ratios, without the need to bundle products.
What is the difference between fixed and variable mortgage rates?
Fixed rates provide predictable payments that remain constant throughout the mortgage term. Variable rates will fluctuate with Scotiabank’s mortgage prime rate, and you may see your payment increase or decrease with changes to interest rates, depending on the type of variable mortgage you choose.
If you have a Scotia Flex Value mortgage, your payments will increase or decrease with interest rates. This allows you to realize immediate savings when rates fall; if rates rise, the increase in payments keeps your amortization on schedule.
If rates rise and you have the Scotia Ultimate Variable Rate mortgage, more of your payments will go toward interest and less to principal. However, your rate will be capped, protecting you from negative amortization if rates increase more than the Cap Rate. If rates fall, more of your payment will go toward principal and less to interest, helping you become mortgage-free faster.
Does Scotiabank offer mortgage pre-approvals?
Yes, Scotiabank offers mortgage pre-approvals. You can hold your pre-approved rate for up to 120 days, allowing you to shop for a home knowing that any rate increase won’t impact you as your rate is locked in.
Final Thoughts
Scotiabank offers a variety of mortgages to suit many borrowers’ needs. While Scotiabank may be a great option, it is always advisable to shop around for the best rate and terms whenever borrowers are in the market for a new mortgage, renewing, or refinancing.
Ready to find the best mortgage rate for your needs? Use Compare Mortgages to explore Scotiabank offerings alongside those of other top Canadian lenders.