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The Best Mortgage Rates in Manitoba

Compare customized mortgage rates from Manitoba’s top lenders to find the best mortgage rate for your needs.

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Editor’s Note: The Bank of Canada will make its next overnight rate decision on Wednesday, July 24. Economic indicators like employment and inflation signal that the Bank might be gearing up for another overnight rate reduction. In June, the BoC’s first rate cut in four years brought the overnight rate down to 4.75%, providing minor relief to homeowners with variable rate mortgages. A second consecutive cut could make variable mortgage rates even more attractive. NerdWallet will make updates as more information becomes available. 

Nerdy Insight: The best Manitoba mortgage rates have been stable in July. Three- and five-year fixed mortgage rates remain comfortably below 5%, but current activity in the government bond market could open the door to lower rates. Variable mortgage rates will remain around 6% until the Bank of Canada lowers its overnight rate. That could happen on July 24.

The best fixed and variable mortgage rates in Manitoba

Rates updated:

Showing 7 of 40 results

Term

Lender

Rate

Monthly Payment

 

6 Months Fixed Rate


Marathon Mortgage

4.54%

$2,500.64

5 Year Fixed Rate


Marathon Mortgage

4.69%

$2,538.38

5 Year Fixed Rate


B2B Bank

4.69%

$2,538.38

5 Year Fixed Rate


Neo Financial™

4.74%

$2,551.02

5 Year Fixed Rate


RFA

4.79%

$2,563.69

5 Year Fixed Rate


MCAN Home – Precision Prime for Insured

4.79%

$2,563.69

5 Year Fixed Rate


Radius Financial

4.79%

$2,563.69

Disclaimer: The rates displayed do not include any taxes, fees, insurance, or other additional charges. These rates are estimates and are not guaranteed. The actual rate and loan terms you receive will depend on our partner’s assessment of your creditworthiness, loan amounts, and other relevant factors. Please note that any potential savings figures provided are estimates based on the information you and our advertising partners have provided. Terms and conditions apply.
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Manitoba mortgage rate update: July 2024

Fixed mortgage rates are holding steady in Manitoba. As of July 12, 2024, five-year fixed mortgage rates remain below 4.7% at some lenders, while three-year fixed mortgage rates can still be found for around 4.9%.

Recent activity in the government bond market, where bond yields have been sinking, could open the door for lenders to improve their fixed rate offers later this month,

Variable mortgage rates remain well below 6% at many lenders after the Bank of Canada cut its overnight rate in June. If the Bank reduces the rate again on July 24, variable mortgage rates should follow suit the next day.

Historical trend: New mortgage loans in Manitoba

The average mortgage rate in Manitoba

There’s no single average for mortgage rates in Manitoba. Even if you had access to all the current mortgage rates being offered by lenders in Manitoba, it wouldn’t be much help when you’re mortgage shopping. That’s because the mortgage offer you receive is always specific to you and takes into account multiple factors like your credit score, the type of mortgage you want and the amount you need to borrow.

Think about the “average mortgage rate” the way you would Manitoba’s average home price. It’s interesting data to have, but it’s not necessarily relevant to your own home buying journey.

2024 Manitoba mortgage rate forecast

Variable mortgage rates

After the Bank of Canada’s decision to lower its overnight rate on June 5, variable mortgage rates are finally set to drop a bit. A reduction in the overnight rate typically leads to an identical decline in lenders’ variable rates. 

How many times variables dip in the last half of 2024 remains to be seen. The Bank of Canada will be cautious about cutting the overnight rate too quickly, which could trigger another rise in inflation. Another two modest cuts by year end is a reasonable expectation.

Fixed mortgage rates

Because they’re driven by lenders’ reactions to activity in the government bond market, fixed mortgage rates can be difficult to predict over the long-term.

Based on bond activity in the latter half of February 2024, for example, lenders could drop their three- and five-year fixed mortgage rates moderately in March, but there weren’t many bargains on offer at the time of this writing.

Fixed mortgage rates could be somewhat lower by the end of 2024, but it’s unlikely that they’ll fall significantly below 5%. 

Mortgage calculators to inform your home buying decisions

Manitoba housing market update – July 2024

Manitoba’s housing market seems to have already entered its summer lull. Both property sales and new listings in June 2024 were down almost 12% compared to May.

The average sale price in Manitoba was $383,396 in June, a monthly increase of 3.2%. The average price for a detached home in Winnipeg was $437,367, up 5% year-over-year.

Manitoba 2024 home sales and price forecast

After two years of falling sales, Manitoba’s housing market is projected to experience a modest rebound in 2024. The Canadian Real Estate Association (CREA) expects sales in the province to rise by 6.1% — about 850 sales — compared to 2023.

The average sale price in Manitoba could remain flat for most of 2024. CREA estimates that the average price will increase by 1.2% to $354,206.

Manitoba first-time home buyer programs

First-time home buyers in Manitoba may qualify for programs, including the Rural Homeownership Program. Under this program you may be eligible to receive up to 15% of the purchase price of a first home depending on where you live and your income. If you live in the home long enough, you do not need to repay it.

Land transfer taxes in Manitoba

The purchaser of a home in Manitoba must pay a land transfer tax based on the value of the home. The tiered-rate system means more expensive homes result in a higher rate. You’ll pay:

Guide to Manitoba mortgage rates

Types of lenders in Manitoba

Mortgage lenders in Manitoba tend to fall into four categories, which include:

Types of mortgages in Manitoba

Fixed-rate mortgages

The interest rate stays the same for the duration of the mortgage term in a fixed-rate mortgage, even if the market fluctuates. Fixed rates typically:

Variable-rate mortgages

Variable mortgage rates increase or decrease whenever your lender’s prime rate increases or decreases. Variable-rate mortgages typically have rates that:

» MORE: Fixed-rate vs. variable-rate mortgages

Hybrid-rate mortgages

One portion of your mortgage is subject to a variable rate and the other portion is at a fixed rate of interest. These mortgages:

Insured and uninsured mortgages

If you make a down payment of less than 20% on a home costing under $1 million, you must insure your mortgage. Mortgage insurance adds to the cost of your loan. You pay a percentage of your mortgage amount, and the percentage depends on your down payment — the closer it is to 20%, the smaller your insurance payment is.

Homes worth $1 million or more require a down payment of at least 20%, so insurance is not required. 

Short-term and long-term mortgages

Short-term mortgages last five years or less. Long-term mortgages last over five years. With a shorter term, you’ll need to renew your Manitoba mortgage sooner, which can provide flexibility. Short-term mortgages often have lower interest rates than long-term mortgage rates.

Closed and open mortgages

The main difference between closed and open mortgages is that you can pay off an open mortgage whenever you like and not pay a penalty; if you make additional payments on a closed mortgage, you’ll generally be penalized.

Closed mortgages often offer better rates than open mortgages. But open rate mortgages may be a good option if you think you may be able to pay off your mortgage early.

» MORE: Open vs. closed mortgages

How Manitoba lenders determine mortgage rates

The mortgage rate you’re offered by a lender in Manitoba will be based on two primary factors; one depends on the state of the economy, the other on your financial situation.

Economic factors

Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates

Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields. 

Your financial situation

Factors specific to you also affect the rates you’re offered. These include:

Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.

How to qualify for a lower mortgage rate in Manitoba

Some factors behind rates are beyond your control, but there are steps you can take to encourage lenders to offer you the best mortgage rates. For example, you can:

Factors that affect mortgage affordability in Manitoba

A home’s price and the rate you’re offered aren’t the only factors that affect how much mortgage you can afford. You’ll also have to account for the following components, which play a role in all mortgages.

Debt service ratios

Lenders use debt service ratios to determine how much of your income goes toward paying debt. If those ratios are too high, you may not qualify for the mortgage amount you need.

Car loans, credit cards and lines of credit are all examples of debt that require regular payments. Decreasing some of these balances, or relying less heavily on credit, can help you lower your debt service ratios. 

The mortgage stress test

You will have to pass the mortgage stress test if you want a home purchase funded by a federally regulated financial institution.

The rules of the stress test say you must qualify for a mortgage at a minimum qualifying rate of either 5.25% or the rate you’re offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, you’ll have to demonstrate you can afford the same mortgage at 7%.

You may be able to avoid the stress test if you apply for a mortgage with a lender that is not federally regulated, like a credit union.

Your down payment

Your down payment is a critically important factor in determining mortgage affordability. The more you can put down, the less you’ll need to borrow. Your monthly mortgage payment will likely be smaller, and you’ll pay less in interest. 

Mortgage term

The term is the length of time your mortgage contract is valid. In Canada, mortgage terms can run anywhere from six months to as long as 10 years.

Chances are that your mortgage will have multiple terms during the amortization period until you pay it off in full. Once your mortgage term ends, you can pay your loan off in full, renew it or refinance it.

Amortization period

A mortgage’s amortization period is the time it will take to pay off the loan in full. In Canada, the most common amortization period is 25 years. If your down payment is less than 20%, you can’t have an amortization beyond 25 years. 

If your down payment is greater than 20%, you may find some lenders willing to offer amortization periods of up to 35 years.

Why would you want a longer amortization period? The longer your mortgage lasts, the smaller your monthly payment will be. You’ll pay more in interest, but that might be a worthwhile trade-off if it helps you keep your home.

How to compare mortgages from Manitoba lenders

Use APR for greater accuracy

The annual percentage rate (APR) includes fees and closing costs the lender may charge in addition to the interest rate. A lender offering the lowest rate may actually have a higher APR due to those additional costs. Comparing APRs is the easiest way to see the complete cost of each offer.

Compare similar mortgages

For a comparison to be useful, the mortgages should have the same term, amortization period and payment frequency. 

When looking for the best mortgage rates in Manitoba, also consider:

You can also compare mortgage rates in other provinces to get a sense of how the rate you’ve been offered in Manitoba stacks up:

Working with a mortgage calculator can help you compare different mortgages in a single place.

Mortgage shopping is about more than the interest rate

A low mortgage rate is usually a primary objective for buyers, but getting the lowest rate doesn’t necessarily mean you’re getting the best mortgage for your needs.

For example, you might opt for a fixed rate, which has a higher rate than a variable rate, if you’re uncomfortable with the risk of rates rising. Or, if you expect to come into a sizable sum of money soon (via an inheritance, for example), paying a higher rate for an open mortgage, which allows you to pay it off early without penalties, could be worth it.

Frequently asked questions for Manitoba mortgage rates

What’s a good mortgage rate in Manitoba right now?

As of July 2024, some lenders were offering fixed mortgage rates well below 5% and variable mortgage rates around 6% for certain home purchases.

Will mortgage rates come down in 2024?

Variable mortgage rates started coming down on June 5, 2024, when the Bank of Canada lowered its overnight rate for the first time in four years. Fixed mortgage rates aren’t likely to fall much from their current levels. They might float between 4.75% and 5% for the rest of 2024.

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