Compare The Best Mortgage Rates In Oshawa

Your Guide To Getting The Best Mortgage Rates In Oshawa

If you’re looking for the best mortgage interest rates in Oshawa, look no further than comparemortgages.ca. Our site is updated daily with the latest rates from a wide variety of lenders, both big and small. 

In addition to finding the best rates, comparemortgages.ca can help you understand how to navigate the mortgage market, no matter the market conditions you face. Whether you’re a first-time homebuyer or looking to refinance your existing mortgage, we can assist you every step of the way.

About Oshawa

Oshawa is located on the shores of Lake Ontario and is the largest city in the Regional Municipality of Durham. In 1876, Robert McLaughlin moved to the area with his company, the McLaughlin Carriage Company, becoming one of the largest carriage works in the British Empire, later forming the McLaughlin Motor Car Company. 

Today the city is still a major industrial and manufacturing centre, with General Motors of Canada playing a significant role in the city’s economy. With affordable housing options and an abundance of parks and trails, the area blends urban living and amenities with rural natural habitats. 

Compare Big Bank Rates In Oshawa

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 range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About the Oshawa Housing Market

Oshawa has seen significant year-over-year home price increases. The Bank of Canada (BoC) increasing its Key Policy Overnight rates has temporarily constrained the mortgage market in the city. However, Oshawa’s real estate market remains strong. 

The BoC’s rate increases may have dampened Oshawa’s mortgage market, but we anticipate this to pass quickly. Canada is set to receive nearly 1.5 million immigrants between 2023-2025, with many that will choose to call Oshawa home. 

In the short term, as the federal government works to control inflation, a combination of labour shortages and a rise in demand due to population expansion will make housing more scarce and less affordable.

These problems will undoubtedly worsen in the long run as more professionals relocate to Canada. This will raise costs even more as inflation is contained and stays lower than in the countries where these future Canadians emigrate.

Oshawa Mortgage Strategy

Fixed rates are typically 1% to 1.5% higher than bond yields. Bond yields on both the long and short terms are not showing signs of decline anytime soon. Due to the rise in popularity of short-term rates, big banks have priced in these risks through higher rates. We anticipate that shorter-term rates will continue to be priced higher as borrowers switch to short-term fixed-rate mortgages to mitigate their risk when purchasing or renewing.

By the end of 2024, we may anticipate mortgage rates to start decreasing. The Bank of Canada’s (BoC) forecast suggests that inflationary pressures will have been curbed once again. It would be wise to choose a fixed mortgage rate in the present market rather than a variable mortgage rate or commit to a short-term fixed-rate and renew into a variable mortgage rate after inflationary pressures have subsided.

First-Time Home Buyer Programs in Oshawa

There are a number of incentives and programs designed to help first-time buyers lessen their financial burden when purchasing their first home. These programs offer down payment assistance, one of the largest obstacles in buying your first home, offsetting some of the costs associated with your purchase.  

Land Transfer Tax & Rebates in Oshawa

The property’s purchase price in Oshawa determines the land transfer tax rate.

What Affects My Mortgage Rate in Oshawa?

Your mortgage rate is based on several variables, including your credit score, the property being used as collateral, the borrower’s income capacity to service debt, savings/investments and down payment, and conditions such as the loan-to-value (LTV) ratio and the purpose of the loan. Your mortgage rate is priced based on the risk assessment of the subject property and borrower. 

The lowest rate should be something other than your main focus when obtaining a mortgage. Instead, you should compare different lenders’ options that may have better features, such as prepayment privileges, portability, or assumability. Often the lowest rates are more restrictive, meaning they won’t have any of these features available to you as a trade-off for the lowest rate. 

Down Payment

How much you put down as a down payment determines your LTV ratio and whether you must purchase mortgage default insurance. If you make a down payment of less than 20% of the property’s value, you must purchase mortgage default insurance. 

Insured and insurable mortgages have access to better rates and apply to properties valued less than $1 million and amortized for up to 25 years. Lenders provide better rates as there is a lower risk of loss on government-backed default-insured mortgages. 

Uninsured mortgages apply to properties valued at $1 million or more or when your amortization is more than 25 years. These mortgages cannot be default insurance. These uninsured mortgages typically aren’t offered the most competitive interest rates as lenders price in a higher risk of loss as they are not loaned against government-backed securities. 

Amortization Period

Amortization periods on the prime lending side can be up to 30 years. The maximum allowable amortization is 25 years for mortgages with less than a 20% down payment or equity in the property at the time of renewal and up to 30 years on mortgages with a down payment of 20% or more or equity in the property at the time of renewal. 

If you select a longer amortization period, your mortgage payment will be lower because it’s spread out over a longer period of time. Longer amortizations will come with higher interest-carrying costs over the life of the mortgage. Shorter amortizations will come with higher mortgage payments but will save you on interest-carrying costs over the life of the mortgage. 

Property Usage

Purchasing a home you intend to make your primary residence and live in is considered owner-occupied. If you are purchasing a primary residence that you plan to live in with a second legally registered suite you intend to rent, this would be considered an owner-occupied rental. You would still have access to the same low rates with an owner-occupied rental as a primary residence. 

If you purchase a property you intend to rent to another, or more appropriately, an investment property; you would be saddled with a higher interest rate than your primary residence. Lenders rationalize that people prioritize paying the mortgage on their primary residence over a rental property. As a result, lenders price this additional risk in their rental mortgage rates.

Mortgage Type

Your choice of mortgage would also impact your mortgage rate. Different types of mortgages, such as adjustable, open, closed, fixed, variable, and home equity lines of credit (HELOC), are available based on your needs.

Your Credit Score

Credit scores range from 300-900. Borrowers with a credit score of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. The higher your score above 700, the better your chances of being offered the best rates.

What are the Different Types of Mortgages?

Open vs Closed Mortgage

An open mortgage allows for prepaying any amount of your mortgage at any time without prepayment penalties. Interest rates on open mortgages are higher as the trade-off for this flexibility.

Closed mortgages have lower and more attractive interest rates because the flexibility of how much extra you can pay down is limited each year. Instead, there is a cap on the additional mortgage payments that you can make per year. 

Fixed Mortgages

With a fixed-rate mortgage, your interest rate stays unchanged throughout your mortgage term. Canadian homeowners’ most common choice is choosing the 5-year fixed mortgage rate. Fixed-rate mortgages are great for homebuyers working with a tight monthly budget or who prefer fixed payments. 

Variable Mortgages

A variable-rate mortgage sees fluctuations through the term through increases or decreases in interest rates. Variable mortgages have been proven to save borrowers more money than fixed rates over time. There are two types of variable interest rate mortgages:

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

Variable rates with adjustable payments mean that as interest rates increase or decrease, the interest portion of your payment will adjust along with it. 

Variable rates with fixed payments mean that if interest rates increase, more of your payment will go toward the interest portion of your mortgage. If interest rates decrease, more of your payment will go toward the principal portion of your mortgage. 

Learn About Rates & Mortgages In Oshawa

Welcome to our Frequently Asked Questions (FAQ) section, designed to assist you in answering the most popular questions asked when looking for a mortgage rate in Oshawa.

Why compare Oshawa mortgage rates on Compare Mortgages?

Comparing mortgage rates in Oshawa on Compare Mortgages guarantees that you get the most up-to-date rate information, helping you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Oshawa, 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 vary based on the specific lender, so you need to evaluate similar types and terms for a clear comparison.

Are Oshawa mortgage rates higher than other places?

Mortgages will see variations in interest rates based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we always have an accurate overview of the entire market at any time. We guarantee you always have access to Oshawa’s best and most current mortgage rates.

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

The choice of a variable or fixed-rate mortgage in Oshawa hinges on how much risk you can tolerate and your level of comfort. A fixed-rate would be a good call if you prefer consistent payments over time, given that payments remain the same.