Big-Bank Mortgages Are Comfortable, Popular And The Worst Deal Around

James DeVuyst • February 13, 2019

Why do we stay with them? Complacency is a big reason. A lack of knowledge is another.

RBC. TD. BMO. Scotiabank. CIBC. National Bank of Canada.

The Big Six.

Whenever one of these major Canadian banks tweak their mortgage rates, it makes headlines. Like last month, when RBC dropped its five-year fixed-term mortgage rate by 0.15 percentage points (or 15 basis points) to 3.74 per cent. Every major news outlet in Canada picked it up.

But here’s the thing about the bank’s posted mortgage rates — they shouldn’t matter. The big banks never offer the lowest mortgage rates in the market and those are the ones you want to pay attention to.

Canadians pay attention to the big guys, however, because they’re either too comfortable to make a change or simply not aware they’re being taken for a ride. The banks have a 90-per-cent stranglehold on the Canadian mortgage market and we’ve been slow to start paying attention to the alternative — often cheaper — options out there.

See, there’s a whole industry of smaller, more competitive mortgage lenders and brokers who never make headlines. They’re often just as established, they’re absolutely just as reliable, and they’re significantly more affordable. So why do we stay with the big banks? Complacency is a big reason. A lack of knowledge is another.

In every unhealthy relationship, there comes a time to say “enough.” And unless you enjoy funding the mega-profitable Big Six, there’s no better time to say it than now.

Here are the two reasons you should ditch your big bank and try out the plethora of smaller lenders out there.

Brokers and smaller lenders often drop their rates first

In a nutshell, here’s how mortgage rates work: lenders (whether big banks or small lenders) lend money to homebuyers in the form of mortgages. Even big banks have to borrow money at times to ensure they can lend money out to meet demand, and they always borrow at a lower rate than they lend it out at. That’s how they make a profit.

Beginning this past fall, the rates that lenders were borrowing at began to fall. For example, in November 2018, a five-year government of Canada bond was costing lenders 2.5 per cent in interest — it’s now costing them around 1.75 per cent. That reflects the cost of lending in the bond market, which helps influence fixed-rate mortgages. But the big banks are only recently starting to pass these savings onto Canadian consumers.

Smaller lenders and brokers began lowering their mortgage rates ahead of the big banks in January — when they should have. But you didn’t hear about those rate change, because small lenders don’t make headlines.

Brokers and smaller lenders had lower rates to begin with

Even if we put aside the fact that the big banks were inexcusably late with the recent rate drop, it still doesn’t make sense to stay with them. That’s because smaller lenders and brokers consistently offer mortgage rates that are way better than those posted by the banks.

Case in point: RBC’s news-making five-year fixed rate of 3.74 per cent would mean a monthly payment of $2,560 on a $500,000 mortgage (assuming a down payment of at least 20 per cent to avoid CMHC insurance, and a 25-year amortization period).

If you took that same buying scenario ($500,000 mortgage, no CMHC insurance, 25-year amortization period) and mapped it onto the best currently available five-year fixed-rate available in the market — which happens to be 3.23 per cent, at time of publication — you’d be looking at monthly payments of $2,426.

That’s monthly savings of $134. Might not seem like much, but over the course of the 25-year mortgage? You’re looking at saving $40,200 by ditching your bank.

So here’s the headline that you should see, but you never will: Canadians are overpaying by staying with their big bank.

But we can all change that. Start by making sure that when you get a mortgage, you’re not just walking into the bank and taking the first rate they offer. Shop around and compare — hop online and see what competitors will offer you.

We all compare flights and hotels when we’re taking a trip overseas. We should start doing the same for financial products. After all, the money you can save on a vacation pales in comparison to what you can save on a mortgage.

Original Article Here

Please contact me anytime, I’d love to work with you, and answer any questions you might have.

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Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect

By James De Vuyst • August 6, 2026

Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect Thinking about co-signing a mortgage? On the surface, it might seem like a simple way to help someone you care about achieve homeownership. But before you sign on the dotted line, it’s important to understand exactly what co-signing means—for them and for you. You’re Fully Responsible When you co-sign, your name is on the mortgage—and that makes you just as responsible as the primary borrower. If payments are missed, the lender won’t only go after them; they’ll come after you too. Missed payments or default can damage your credit score and put your financial health at risk. That’s why trust is key. If you’re going to co-sign, make sure you have a clear picture of the borrower’s ability to manage payments—and consider monitoring the account to protect yourself. You’re Committed Until They Can Stand Alone Co-signing isn’t temporary by default. Even once the initial mortgage term ends, you won’t automatically be removed. The borrower has to re-qualify on their own, and only then can your name be taken off. If they don’t qualify, you stay on the mortgage for another term. Before agreeing, talk openly about expectations: How long might you be on the mortgage? What’s the plan for eventually removing you? Having these conversations upfront prevents surprises later. It Affects Your Own Borrowing Power When lenders calculate your debt service ratios, the co-signed mortgage counts as your debt—even if you never make a payment on it. This could reduce how much you’re able to borrow in the future, whether it’s for your own home, an investment property, or even refinancing. If you see another mortgage in your future, you’ll want to consider how co-signing could limit your options. The Upside: Helping Someone Get Ahead On the positive side, co-signing can be life-changing for the borrower. You could be helping a family member or friend buy their first home, start building equity, or take an important step forward financially. If handled with clear expectations and trust, it can be a meaningful way to support someone you care about. The Bottom Line Co-signing a mortgage comes with both risks and rewards. It’s not a decision to take lightly, but with careful planning, transparency, and professional advice, it can be done responsibly. If you’re considering co-signing—or want to explore safer alternatives—let’s connect. I’d be happy to walk you through what to expect and help you decide if it’s the right move for you.

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By James De Vuyst • July 23, 2026

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By James De Vuyst • July 15, 2026

The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.