Current Winnipeg mortgage rates
Why compare current mortgage rates in Winnipeg, Manitoba?
Even though home prices in Winnipeg are relatively low compared to some of Canada’s other large cities, you’ll want to save as much money as possible on your next mortgage. Comparing rates is one way to do that.
Comparing mortgage interest rates can help you understand the impact of even a few percentage points on the size of your monthly mortgage payment and overall cost of your next home loan. Comparing rates can also help you understand the financial impact of choosing either a variable- or fixed-rate mortgage product, and decide which one is a better fit for your home buying goals.
Once you’ve found attractive rates from a few mortgage lenders, the next step is to compare loan details, like fees, prepayment options and potential penalties. These features all play into the long-term cost of your mortgage and, depending on how your home ownership journey shakes out, can be just as important as the interest rate you choose.
How to get the best mortgage rate in Winnipeg
Whether you’re buying in Winnipeg, Brandon, Steinbach or some other community in Manitoba, following these tips will put you in a position to get the best possible mortgage rate.
1. Increase your down payment
The more equity you secure in your home right off the bat, the easier it is to qualify for a mortgage. Smaller mortgages pose less risk for lenders, so a more substantial down payment can translate to a lower interest rate. Proving you have the ability to save a substantial amount of cash may also signal to lenders that you know how to prioritize your spending.
And from a financial standpoint, making a bigger down payment means you’ll borrow less and pay less in interest.
2. Strengthen your credit and pay down debt
A low credit score typically tells lenders that you have difficulty keeping on top of your debt obligations or a short credit history. Either scenario could make them think twice about offering you a mortgage, let alone one with a low interest rate.
Even if you have a strong credit score, but are carrying several thousands of dollars in credit card or credit line debt, lenders may be hesitant to offer you a competitive mortgage rate because your credit utilization ratio is too high. (It’s recommended that this ratio be no higher than 35%.
You may even be required to zero out one or more of your outstanding balances before a lender can make you a reasonable offer. That can be difficult to do with short notice, so it’s best to whittle down your debt as much as you can before reaching out to a lender or mortgage broker.
3. Consider using a mortgage broker
Hiring a mortgage broker can relieve some of the pressure of hunting for the best mortgage rate. Good mortgage brokers have relationships with multiple lenders and can compare their offers with your homeownership goals in mind.
A mortgage broker also advocates on your behalf while dealing with lenders. Brokers can negotiate lower rates and better terms for their clients, and when they know a person’s personal and financial history — the good, the bad and the improving — they can use that information to convince a lender of their client’s creditworthiness.
Working with a broker isn’t legally required. You can always fund your next real estate purchase in Winnipeg by working directly with one of Canada’s Big Six banks or an alternative lender. But a lender will only offer you its own products.
Where can you get a mortgage in Winnipeg?
Because Winnipeg is such a large city, you should have no problem finding financial institutions that offer mortgages, including:
- Manitoba’s major banks: RBC, TD Bank, BMO, Scotiabank, CIBC and National Bank.
- Alternative lenders like Equitable Bank, First National, Haventree Bank and Home Trust.
- Private lenders including Canadian Mortgages Inc., Centurion Mortgage Capital Corp., and VWR Capital Corp.
You can also consider applying for a mortgage with one of Manitoba’s many credit unions, including Assiniboine Credit Union, Access Credit Union and Steinbach Credit Union.
Credit unions often offer their members competitive interest rates, and if borrowers can provide a down payment of at least 20%, they may not have to pass a mortgage stress test when applying for a home loan.
The Winnipeg, Manitoba housing market
In December 2022, the average sale price of a detached home In Winnipeg was $378,978. That’s 20% higher than it was in December 2019, but almost 40% lower than December 2022’s national average price of $626,318.
The minimum down payment required for a detached home worth $378,978 is 5%, or $18,949.
The average price of condo units sold in Winnipeg in December 2022 was $243,749, essentially unchanged from a year before. Purchasing a property at this price would require a down payment of at least $12,187.
Frequently asked questions about Winnipeg mortgage rates
Home buyers in Winnipeg should expect to pay elevated variable mortgage rates until at least mid- to late-2023. If the Bank of Canada is correct, and inflation decreases to 2-3% later this year, it will then start reducing its overnight rate, which will bring variable mortgage rates lower. In February 2023, fixed mortgage rates declined in response to falling yields on government bonds. Whether that’s the beginning of a trend will depend on future bond activity.
As of February 7, 2023, multiple lenders were offering fixed-rate mortgages with interest rates below 4.5%, so paying a 5% fixed-rate could mean you’re spending more than you have to. But with variable-rate mortgages being as expensive as they are, finding a 5% variable would be a fairly good deal.
Canada Mortgage Payment Calculator
Use this free Canadian calculator to estimate your monthly mortgage payments, and see how rates and amortization affect total cost over time.
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