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  • Jacqui Edwards

Why there is no straight answer to "best mortgage rate"...

Over the past 5 years or so, there have been so many changes to mortgage products, qualifications, and rate categories, that giving out a price has become very difficult. Best rate for some may not be available to others...for a number of reasons.  Where do you fit as a borrower, what are your options?

  • You are purchasing a home with less than 20% down payment and the home price is under $1MM.

  • You are switching institutions at renewal, and your original mortgage was insured.  

  • This bucket allows you access to lower rates.  (The banks are "insured" so in turn, they then pass along the benefit to the borrower with a preferable rate).

  • The maximum amortization on this one is 25 years.


  • This mortgage is for those with 20% down or more.

  • The purchase of a home over $1MM, or an investment/rental property.  

  • This also applies to a refinance of an existing property to access the equity or restructure of original terms.

  • The mortgage rates are slightly higher than the insured mortgage rates.

  • There is the option to take a 30 year amortization, which can offer a significant reduction in the monthly payment.  

**It's important to note that some of these mortgages in bucket 2 will fit into bucket 3.  A purchase where there is a down payment of  20% or more may still have access to the "insured rates"!!  This is called an "Insurable mortgage"....


  • Like Bucket 1, this mortgage must meet some of the insurers criteria in order to qualify.  IE:  property value under $1MM, strong borrower qualifications, good credit, etc.  

  • Thankfully, we are able to tap into the insured rates, where we didn't have that option previously.  

  • Lenders that offer this type of rate are called Monoline Lenders** (Some of these lenders have been around for 30 years + and have a book of business comparable to the big 5 banks. Your own bank likely won't have this rate offer)

**ask me more about Monoline Lenders


  • This is for the client that doesn't fit into any of the above, and needs exceptions to income, credit, property type, etc.  

  • The rates differ from institution to institution, and are always higher than conventional mortgages.

  • They also come with a "lender fee", which also varies depending on the application.  

On top of choosing the right bucket, there are rate products that you will need to decide upon.  Here are a few:


Fixed rates:  

  • 1-10 year terms locked in with varying penalties and pre payment options


Variable/Adjustable rates:  

  • 3-5 year terms, also locked in with 3 month interest penalty and flexibility to lock into fixed terms



  • an "open" line of credit, interest only payments, and to a maximum of 65% of your home value



So, as you can see, when I am asked what my "best rate" could take a while to explain!  I hope this helps with a basic overview....And now it's time to see which one you best fit into!

Shoot me an email for more information specific to your situation:

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