Mortgage Rates

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What You Need To Know About Mortgage Rates In Montreal

Mortgage Rates in Montreal

Montreal ranks among the top 20 places to live in the world. The city is Canada’s second largest city and is home to over 4 million people. Montreal is a vibrant melting pot of culture, arts, commercial activities, and it has some of the world’s architectural masterpieces.

Are you planning on becoming a homeowner in Montreal? Now is the prime time to buy any property in Montreal going by the prevailing low mortgage rates and the cheaper cost of housing. While it is common knowledge that most people who buy houses in Canada finance the purchases with mortgages, many intending homeowners are not aware of some essential aspects of mortgages. The mortgage rate is arguably one of the most important factors to consider before taking a mortgage, and we will discuss the mortgage rates in Montreal in this piece so that prospective homeowners in Montreal can make informed choices about their mortgage financing in Montreal.

Types of Mortgages

If you intend to take a mortgage to finance a Montreal property, you have two broad options which include a fixed mortgage rate or a variable mortgage rate.

Fixed Mortgage Rates

If you took a fixed rate mortgage, you would pay the same amount of money for the duration of your mortgage term. This creates some level of security, as you are protected from rate fluctuation, although you pay a premium for this security. According to available statistics from RateHub, the aggregated fixed rate mortgage in Montreal are 2.54%, 2.79%, 2.84%, 2.89%, and 2.89% for 1, 2, 3, 4, and 5-year term mortgages. The Bank of Montreal fixed rate mortgage for 3 and 5-year terms are 3.19% and 3.39%, while True North Mortgage offers the least rate at 2.84% for a 5-year fixed rate mortgage in Montreal. Even though a fixed rate mortgage guarantees there will be no hikes in your payments, you might still need to pay for some additional charges such as legal fees and processing fees.


Variable Mortgage Rates

A variable rate mortgage, as the name implies, is a mortgage in which your monthly payment varies with the fluctuations of your mortgage provider’s prime lending rate. A variable rate is stated in the form of prime rate plus or minus prime rate. What you pay will be set at the prime rate of the lender plus or minus the stipulated variance. Historically, variable rate mortgages are more affordable than fixed rates, but they don’t provide the stability of the fixed rates because what you pay is determined by the behavior of the lender’s prime rate. At present, the aggregated variable rate for a 5-year term is 2.15%. BMO has a 3.10% variable rate for a 5-year term while True North Mortgage offers the lowest variable rates at 2.05% for a 5-year term variable rate mortgage.

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Compare Montreal Mortgage Rate Types

Before you decide on which option is best for you, make an appointment with a qualified Montreal mortgage broker who can give you the right advice on the best course of action. Considering the pros and cons of each type of mortgage can help you save a lot of many in the years to come.

Fixed Mortgage Rates

Pros of Fixed Rate Mortgages


It protects from rate hikes.


Makes planning and budgeting easier.


Suitable for people with a limited source of income.

Cons of Fixed Rate Mortgages


It is more expensive than variable rates.

Variable Mortgage Rates

Pros of Variable Mortgage Rates


They are often cheaper than fixed rates.

Cons of Variable Mortgage Rates


They are unstable and can disrupt finances.


They can turn out to be more costly if the rates increase tremendously.

The preceding should help you when deciding on the type of mortgage to finance your home. An experienced mortgage broker will assist you with all the details of taking a mortgage. Remember that Montreal is part of Quebec, and so if you want to become a homeowner, you might need to brush up your French to make things easier for you.


Olga Romanova
Olga Romanova
11:09 29 Mar 18
Thank you guys! CMB consulted me on the rates and helped me to make the right choice
Mary Grey
Mary Grey
09:08 05 Apr 18

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