Find the Best Mortgage Rates in Manitoba

Your Guide To Getting The Best Mortgage Rates In Manitoba

Find the best mortgage rates in Manitoba, here on comparemortgages.ca, your one-stop shop for getting quality financing for your homebuying endeavour. You can count on us to always provide you with the best interest rate up front and to help you understand how to deal with mortgages in any kind of market.

About Manitoba

The Canadian province of Manitoba is bordered to the east by Saskatchewan and to the west by Ontario. Lakes and rivers, mountains, woods, and plains make up its scenery, which ranges from the northern Arctic tundra to Hudson Bay in the east and agriculture in the south. The province has more than 80 parks, where people enjoy hiking, bicycling, canoeing, camping, and fishing. You will also find a large conservation of wildlife.

Key facts about Manitoba:

  • The largest and capital city of Manitoba is Winnipeg. The adjacent Lake Winnipeg serves as the city’s inspiration. The term meaning muddy water in Western Cree is where the name originates.
  • The majority of Manitoba’s landscape is flat; however, there are a few hills and minor mountains southwest of the province.
  • The highest point in the province is Baldy Mountain, which is 832 meters above sea level.
  • The province features more than 110,000 lakes, which make up around 15.6% of its total surface area, and a 645-kilometre saltwater coastline that borders Hudson Bay.
  • The province has more than a quarter of its territory covered by forests.
  • The most well-known park in Manitoba is Riding Mountain National Park. The Manitoba Escarpment is where the park is located. The 2,969 square kilometres woodland parkland, which lies within a protected area, contrasts sharply with the nearby grassland farming.

Compare Big Bank Rates in Manitoba

It can be time-consuming and frustrating to compare rates by yourself. With us, you can find everything you need in one convenient location. Also, ensure that you consider the mortgage product term length and type when comparing rates. For instance, if you are in the market for a fixed-rate mortgage, it is essential to examine the a range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About the Manitoba Housing Market

In Winnipeg, the average sales price in January 2022 was $362,236. This is a modest 11% increase over the prior year. When compared to other key Canadian property markets, Winnipeg has had very modest home price growth and a larger-than-average fall in sales. Prices for connected homes increased by 17% to $324,000, prices for condominiums increased by 3% to $252,000, and prices for detached homes increased by 14% year over year to $401,000 (2021 versus 2022).

First-Time Home Buyer Programs in Manitoba

In Manitoba, there are incentives and programs designed specifically to lessen the financial burden of first-time homebuyers. These programs can help you with your down payment, which is sometimes one of the biggest barriers to buying your first home, as well as with some of the costs related to the transaction. See: First-Time Home Buyer Programs in Canada

What are the Different Types of Mortgages?

Open vs Closed Mortgage

With an open mortgage, you are not penalized for prepaying any amount of your loan at any time. In exchange for the flexibility of being able to pay off an open mortgage anytime you choose, a higher interest rate is charged.

A closed mortgage, however, provides one of the most alluring Manitoba mortgage rates than an open mortgage since you are limited in how much more you may add to your mortgage each year. As a result, you will have a prepayment limit on your contract. This indicates that you are only permitted to pay a predetermined percentage of your initial or ongoing loan each year. This percentage is normally 15% on average but varies depending on the lender. If at all possible, always use the original balance prepayment option because you may pay off more in a year. In addition, if you choose to pay more than your yearly limit, you will be assessed a prepayment penalty. It’s essential to understand and respect your personal boundaries as a result.

Fixed Mortgages

With a fixed rate mortgage like the 5-year fixed mortgage rate Calgary, your interest rate stays unchanged through the entire term of your mortgage (1 to 10 years).  Fixed-rate mortgages can be a good idea for conservative homebuyers working with a tight monthly budget or having their eyes set on a stable payment schedule. 

Variable interest rate mortgages

A variable interest rate sees fluctuations through the term, increases or decreases. If you opt for variable mortgage rates, you could end up with a lower rate than if you had opted for a fixed rate. 

There are two versions of variable interest rate mortgages:

  1. Variable rates with adjustable payments 
  2. Variable rates with fixed payments

Fixed payments with a variable interest rate

Under this option, the payment remains fixed over time despite variations in the interest rate. If the interest rate increases, more of your payment goes toward the interest and less toward the principal. If the interest rate decreases, more of your payment goes toward the principal. This means you pay off your mortgage faster.

Adjustable payments with a variable interest rate

Adjustable payments, true to their name, have payment amounts changing as interest rates in northwest territories change. A fixed portion of the payment goes to the principal. As interest rates change, the monthly payment goes up. 

Land transfer tax in Manitoba

In Manitoba, the fair market value of your property serves as the basis for determining the land transfer tax rates.

What Affects My Mortgage Rate in Manitoba?

Getting a significantly low-interest rate in Manitoba depends on factors like credit score, down payment, amortization, and income. 

Down Payment

Your down payment determines whether you will have to pay mortgage default insurance alongside your recurring mortgage payments. If you make a down payment of less than 20% of the property’s value, you must pay mortgage default insurance.

Amortization Period

Suppose you opt for an amortization period (mortgages with less than 20% down payment have a maximum period of 25 years, while mortgages with down payments of 20% or higher have a maximum period of 30 years). 

In that case, you pay a lower amount as a mortgage since it is spread out for a longer period. A more extended amortization period features higher interest rates as well. Generally, the longer you take while paying off your mortgage, the more interest you will have to pay.

Property Usage

A primary residence, or an owner-occupied home, is one that you plan on living in and qualifies for the most desirable mortgage rates due to the lender’s assumption that you will prioritize payments on this property over any other investments. On the other hand, if you are looking to buy as an investment and turn it into a rental property, interest rates may be higher on account of a greater perceived risk by lenders.

Mortgage Type

Your mortgage rate would also be impacted by your choice of mortgage – such as open vs. closed or variable vs. fixed. The choice of either option is personal and usually dependent on several factors. For instance, open mortgages would feature a higher rate than closed mortgages due to the flexibility that borrowers enjoy since they can choose to pay off their mortgage anytime without a penalty. Similarly, fixed-rate mortgages have steady payments but higher penalties for breaking your mortgage than variable-rate mortgages.

Your Credit Score

Borrowers with a credit score of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. The higher above 700 the score is – with a maximum score of 900, the better the chances of getting the best rates.

Learn About Rates & Mortgages in Manitoba 

Whenever you need a new mortgage or want to renew or refinance an existing one, our Frequently Asked Questions (FAQ) section is designed to assist you in making informed mortgage decisions on mortgage rates and banks in Manitoba.  

Why compare Manitoba mortgage rates on Compare Mortgages?

Comparing mortgage rates in Manitoba on Compare Mortgages guarantees that you get the most recent rate information, which can effectively help you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Manitoba, ensure that you evaluate similar mortgage types (variable rate vs fixed rate) and terms (three or five years) so that you are not simply looking at rates; you are comparing similar products.

Mortgage rates and features see variations based on the specific lender, therefore, you would only get a clear comparison by evaluating similar offerings. 

Are Manitoba mortgage rates higher than other places?

Manitoba mortgages today would see variations based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we get an accurate overview of the entire market at any point in time to guarantee that you always have access to the most current mortgage rates in Manitoba. This way, you are able to make guided decisions about whether to leave your rate or lock it in. 

Should I get a fixed-rate or variable-rate mortgage in Manitoba?

The choice of a variable rate, like the 5-year variable rate in Manitoba or the fixed-rate mortgage hinges on how much risk you can tolerate and your level of comfort. 

If you have a preference for being able to know ahead how much mortgage payments you would be making monthly, then a fixed rate would be a good call given that payments remain the same. A fixed-rate remains the same through the term that you select (1-10 years).