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

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Your Guide to Successfully Navigating the Housing Market

By James De Vuyst • December 4, 2025

Wondering If Now’s the Right Time to Buy a Home? Start With These Questions Instead. Whether you're looking to buy your first home, move into something bigger, downsize, or find that perfect place to retire, it’s normal to feel unsure—especially with all the noise in the news about the economy and the housing market. The truth is, even in the most stable times, predicting the “perfect” time to buy a home is incredibly hard. The market will always have its ups and downs, and the headlines will never give you the full story. So instead of trying to time the market, here’s a different approach: Focus on your personal readiness—because that’s what truly matters. Here are some key questions to reflect on that can help bring clarity: Would owning a home right now put me in a stronger financial position in the long run? Can I comfortably afford a mortgage while maintaining the lifestyle I want? Is my job or income stable enough to support a new home? Do I have enough saved for a down payment, closing costs, and a little buffer? How long do I plan to stay in the property? If I had to sell earlier than planned, would I be financially okay? Will buying a home now support my long-term goals? Am I ready because I want to buy, or because I feel pressure to act quickly? Am I hesitating because of market fears, or do I have legitimate concerns? These are personal questions, not market ones—and that’s the point. The economy might change tomorrow, but your answers today can guide you toward a decision that actually fits your life. Here’s How I Can Help Buying a home doesn’t have to be stressful when you have a plan and someone to guide you through it. If you want to explore your options, talk through your goals, or just get a better sense of what’s possible, I’m here to help. The best place to start? A mortgage pre-approval . It’s free, it doesn’t lock you into anything, and it gives you a clear picture of what you can afford—so you can move forward with confidence, whether that means buying now or waiting. You don’t have to figure this out alone. If you’re curious, let’s talk. Together, we can map out a homebuying plan that works for you.

Everything You Need to Know About Second Mortgages

By James De Vuyst • November 20, 2025

What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.

Divorce and Your Mortgage: What You Need to Know

By James De Vuyst • November 6, 2025

Going Through a Separation? Here’s What You Need to Know About Your Mortgage Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward. Here’s what you need to know: You’re Still Responsible for Mortgage Payments Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure. If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track. Breaking or Changing Your Mortgage Comes With Costs Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage. Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement. Legal Status Affects Financing If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify. No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized. Qualifying on One Income Can Be Tougher Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own. A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs. Buying Out Your Partner? You May Have Extra Flexibility In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home. This option is especially useful for families looking to minimize disruption for children or maintain community ties. You Don’t Have to Figure It Out Alone Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals. Let’s talk through your situation and explore the best path forward. I’m here to help.