Home Loans Canada - Best Mortgage Rates 2025
Compare mortgage rates from 50+ Canadian lenders. Get pre-approved for your dream home with rates starting at 4.99% APR.
Rates from 4.99%
Competitive mortgage rates for qualified buyers
Quick Pre-Approval
Get pre-approved in 24-48 hours
All Credit Types
Programs for good, fair, and poor credit
Multiple Options
Purchase, refinance, or investment properties
Home loans, also known as mortgages, are secured loans that enable Canadians to purchase residential properties without paying the full amount upfront. The property itself serves as collateral, which allows lenders to offer significantly lower interest rates compared to unsecured loans.
In Canada, home loans are available through banks, credit unions, mortgage brokers, and alternative lenders. Each institution offers different rates, terms, and qualification requirements, making it crucial to compare options to find the best mortgage for your situation.
Types of Home Loans in Canada
Fixed-Rate Mortgages
Lock in your interest rate for the entire term (1-10 years). Provides payment stability and protection against rate increases. Popular with first-time buyers and those on fixed incomes.
Variable-Rate Mortgages
Interest rate fluctuates with the prime rate. Often starts lower than fixed rates but can increase. Best for those comfortable with some payment uncertainty in exchange for potential savings.
First-Time Home Buyer Programs
Special programs with lower down payments (5%) and access to government incentives like the First-Time Home Buyer Incentive and Home Buyers' Plan.
Home Loan Requirements in Canada
- Down Payment: Minimum 5% for homes under $500K, 10% for portions over $500K, 20% for homes over $1M
- Credit Score: Minimum 600 for most lenders, 680+ for best rates
- Income Verification: Proof of stable income, typically 2 years of employment or tax returns
- Debt Ratios: Total debt payments should not exceed 42-44% of gross income (TDS ratio)
- Property Appraisal: Home must appraise at or above purchase price
Why Choose Loan Beaver for Your Home Loan?
- • Compare rates from 50+ lenders in one application
- • Access to both A-lender and alternative mortgage options
- • Free mortgage pre-approval with no obligation
- • Expert guidance through the entire mortgage process
- • Programs for self-employed, new immigrants, and bad credit
How much can I borrow for a home loan in Canada?
The amount you can borrow depends on your income, credit score, debt levels, and the property value. Generally, you can borrow up to 95% of the home's value (requiring 5% down payment) for homes under $500,000. For homes over $1 million, you'll need a 20% down payment.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on self-reported information. Pre-approval involves a full credit check and income verification, giving you a confirmed borrowing amount. Pre-approval is essential when making offers on homes.
Can I get a home loan with bad credit in Canada?
Yes! While traditional lenders require good credit, alternative lenders specialize in bad credit mortgages. You may need a larger down payment (20-35%) and will likely pay higher interest rates, but homeownership is still achievable.
What are current home loan interest rates in Canada?
As of 2025, home loan rates in Canada range from 4.99% to 8.99% depending on your credit score, down payment, loan term, and whether you choose fixed or variable rates. Rates are highly competitive right now, making it an excellent time to secure financing.
- Valid government-issued ID
- Proof of income (pay stubs, T4, NOA)
- Down payment funds statement
- List of assets and liabilities
- Property details (if selected)
Minimum Loan:
$50,000
Maximum Loan:
$5,000,000+
Amortization:
Up to 30 years
Terms:
6 months to 10 years
- First-time home purchase
- Mortgage refinancing
- Investment properties
- Home renovations
- Debt consolidation
Apply for Your Home Loan Today
Complete our secure application to get pre-approved in minutes. No impact on your credit score for pre-qualification.