Clay Jarvis
Mary Flory Current Scotiabank posted mortgage rates
| Term | Rate |
|---|---|
| 1-year (closed), fixed | 7.84% |
| 1-year (open), fixed | 9.75% |
| 2-year (closed), fixed | 7.44% |
| 3-year (closed), fixed | 7.04% |
| 3-year (closed), variable | 8.600% |
| 4-year (closed), fixed | 6.84% |
| 5-year (closed), fixed | 6.84% |
| 5-year (closed), variable | 7.650% |
| 5-year (open), variable | 10.400% |
| 7-year (closed), fixed | 7.00% |
| 10-year (closed), fixed | 7.49% |
This table is updated daily on weekdays using data available on the Bank of Nova Scotia website.
Does Scotiabank have the best mortgage rates?
Our handy mortgage rate tables allow you to compare current mortgage rates from some of Canada’s biggest banks and alternative lenders. How do Scotiabank’s rates stack up to the competition?
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Scotiabank at a glance
With a history that stretches back to 1832, the Bank of Nova Scotia (Scotiabank) is one of Canada’s oldest and most recognizable financial institutions. From its humble beginnings in Halifax, Scotiabank has grown into an international banking entity with locations across the Americas, the U.K. and Asia.
Scotiabank is the fourth largest of Canada’s Big Six banks and a major player in the country’s mortgage market. In the second quarter of 2023, Scotiabank’s Canadian mortgage portfolio was $300 billion.
Scotiabank mortgage products
In addition to providing traditional mortgage products such as fixed- and variable-rate loans that can be structured as open or closed, Scotiabank also offers:
- Home equity lines of credit.
- Mortgages for second homes and investment properties.
- Mortgage refinances.
- Mortgage renewals.
- Mortgage programs for newly arrived permanent and temporary residents.
Scotiabank mortgages: things to consider
Posted rates vs. special rates
Large lenders often provide two sets of current mortgage rates: posted rates and special, or discounted, rates. Scotiabank, however, is a little different.
Scotiabank posted mortgage rates
Scotiabank’s posted rates are the pre-discounted mortgage rates the bank makes publicly available. Posted rates can be much higher than discounted rates, with the expectation that borrowers will negotiate them down.
There are various theories around why this is the case at major lenders like Scotiabank. Some lending experts believe it’s to make borrowers feel a sense of satisfaction at getting a better deal. Others wonder if a higher posted rate allows banks to charge stiffer penalties if a person breaks their mortgage contract.
If you’re offered a posted rate at Scotiabank, consider it the beginning of a negotiation. It’s also a great reason to compare offers from other lenders.
Scotiabank special rates
Special rates are a lender’s posted rates that have already been discounted, including limited time offers. A special rate will be more in line with the rate you’re actually offered in most circumstances.
Scotiabank is unique among the Big Six in that it doesn’t share its special rates publicly. That doesn’t mean their posted rates are your only option. Scotiabank has an extensive network of mortgage broker partners that get access to discounted mortgage rates.
If you’re offered a posted rate when applying for a mortgage directly with Scotiabank, ask the advisor what rate you’d be offered if you worked with a mortgage broker. If you’re not able to negotiate a discounted rate that’s in line with the bank’s broker offerings, it might be best to use a broker.
Fixed vs. variable mortgage rates
When you get a mortgage from a lender like Scotiabank, you’ll have to make an important choice between a fixed or variable mortgage rate.
Fixed mortgage rates
With a fixed-rate mortgage, your interest rate will remain the same for the duration of your mortgage term. If Scotiabank offers you a 5.25% five-year fixed-rate mortgage in 2023, for example, your rate won’t change until it’s time to renew your mortgage in 2028.
A fixed mortgage interest rate allows you to budget around a predictable monthly mortgage payment for years at a time. But if fixed rates fall during your mortgage term, the only way to take advantage is by breaking your mortgage contract and refinancing at a lower rate. Doing so can trigger steep mortgage prepayment penalties.
Variable mortgage rates
If you opt for a variable rate on your Scotiabank mortgage, it could rise or fall many times during your term. When it rises, more of your monthly mortgage payment will go toward interest; when it falls, more will go toward the principal.
Variable mortgage rates have generally been lower than fixed rates. But when variable rates are driven upward by increases to lenders’ prime rates, it can put unexpected pressure on your finances.
From March 2022 to July 2023, for example, homeowners with variable-rate mortgages saw their rates increase 475 basis points. Since one basis point is equal to 0.01%, that means a borrower who secured a variable rate of 2.25% in January of 2022 would be paying 7% in July 2023. That’s not a common occurrence, but it highlights the risk of taking out a variable-rate mortgage during times of economic uncertainty.
Prime rate
Scotiabank’s prime rate is the basis for its variable-rate lending products, like credit cards, mortgages and lines of credit. When the Bank of Canada adjusts its overnight rate, Scotiabank’s prime rate will increase or decrease by the same amount, affecting the cost of borrowing for these products.
Scotiabank’s current prime rate is 7.2%.
Open vs. closed mortgages
Another consideration when getting a mortgage at Scotiabank is whether to choose an open or closed mortgage.
With an open mortgage, you can increase your mortgage payments or even pay your mortgage in full at any time without penalty. A closed mortgage will impose annual limits on how much you can prepay your mortgage.
Choosing between open and closed mortgages is often a matter of cost. Open mortgages tend to come with much higher interest rates.
Convertible mortgages
If you’re unsure how long you’d like a mortgage contract to last, you can also consider a convertible mortgage. Scotiabank offers a six-month, closed convertible mortgage that can be extended to a longer term at any time without incurring a prepayment penalty.
A convertible mortgage can be a helpful option if you expect mortgage rates to fall in the near future. If rates decline to a level you’re satisfied with, you can lock in for several years and pay less in interest.
Rate vs. APR
When investigating Scotiabank’s mortgage rates or comparing them to rates from other lenders, it’s best to use the annual percentage rate (APR) provided rather than the interest rate itself.
APR includes any other fees that might be added to the cost of your mortgage. Factoring in APR gives you a more accurate estimate of your potential mortgage costs.
Other lenders’ rates
Once you’ve taken a look at Scotiabank mortgage rates, the next step will be to compare them to what’s on offer at other major lenders. You can see the rates Canada’s Big Six banks charge on some of Canada’s most popular fixed- and variable-rate mortgage terms below.
| Lender | 3-year fixed rate | 5-year fixed rate | 5-year variable rate (closed) | 5-year variable rate (open) | Prime rate |
|---|---|---|---|---|---|
| TD Bank | 6.94% | 6.84% | 6.97% | 8.37% | 7.35% |
| BMO | 7.08% | 6.91% | 7.22% | N/A | 7.20% |
| RBC | 7.14% | 6.97% | 7.23% | 10.53% | 7.20% |
| Scotiabank | 7.04% | 6.84% | 7.65% | 10.40% | 7.20% |
| CIBC | 6.94% | 6.79% | 7.20% | 10.50% | 7.20% |
| National Bank of Canada | 7.09% | 6.88% | 7.24% | N/A | 7.20% |
To get a fuller picture of the mortgage rates the rest of the Big Six are offering, you can also explore:
- BMO mortgage rates.
- CIBC mortgage rates.
- National Bank mortgage rates.
- RBC mortgage rates.
- TD mortgage rates.
If you’re a long-time Scotiabank customer, you might be most comfortable dealing with the bank for your future mortgage needs. That’s totally valid. Comparing mortgage rates, terms and conditions across lenders, however, can help ensure you get the best deal on the right product for your unique mortgage needs.
If you don’t feel confident making these comparisons on your own, consider working with a mortgage broker, who can take care of this step for you — and possibly negotiate a lower interest rate.
How to get the best mortgage rate at Scotiabank
As one of Canada’s federally regulated A lenders, Scotiabank follows the country’s strict lending guidelines. That means qualifying for a suitable mortgage at Scotiabank might require a little effort on your part, including:
- Raising your credit score. A high credit score tells lenders that you pay your debts on time. A low credit score, on the other hand, might mark you as more of a credit risk and result in you being offered a higher interest rate. You may not be approved for a mortgage at Scotiabank at all If your credit score is too low. Instead, you might have to apply with one of Canada’s many B lenders.
- Making a larger down payment. If you can make a significant down payment, one that goes well beyond Canada’s minimum down payment guidelines, lenders might see that you prioritize home ownership — but they’ll definitely see that they can loan you less money. Both interpretations mean less risk for the lender, which could mean a lower mortgage rate for you.
- Lowering your debt service ratios. If your debt service ratios are high, it signals to lenders that too much of your income is already going toward paying down debt. That’s risky for lenders, and the more risk you present as a borrower, the higher the rate you’ll be offered.
- Shopping around. Scotiabank may not offer you the best mortgage rate. Looking the rates other lenders are charging is one way to find out whose offer is the right fit for your financial situation.
- Negotiating: Don’t be afraid to ask a Scotiabank home financing advisor. if they can improve on the rate they’ve offered you. If they stand firm, let them know that you’re going to see what other lenders are offering before making a final decision.
Getting pre-approved for a mortgage at Scotiabank
Getting pre-approved for a mortgage is a crucial step in the home buying process. A pre-approval tells you how much a lender is willing to loan you at a particular interest rate. This establishes your home buying budget. It also lets homeowners know that your offer — if it falls within the limits of your pre-approval — is legit.
The mortgage pre-approval process at Scotiabank involves providing all the documents the bank requires for evaluating your finances. This might include:
- Banking information that confirms your assets and down payment savings.
- A letter of employment.
- Pay stubs that demonstrate your income.
- Information related to any debts you have.
The mortgage pre-approval process at Scotiabank will also include a hard credit inquiry. This allows the bank to assess your credit score and review your credit history. Hard inquiries may lead to a temporary dip in your credit score.
How to start a mortgage pre-approval at Scotiabank
You can start the pre-approval process online or in person with a Scotiabank home financing advisor. A pre-approval is intended to be thorough and actionable, so set aside some time to talk over the results with the advisor you’re assigned. Ideally, they’ll provide a few options to choose from.
What else should you know about pre-approvals at Scotiabank?
When weighing those options, make sure you understand the fees, terms and conditions involved with each mortgage offer, including any prepayment privileges (and prepayment penalties). Getting clarity around these factors during pre-approval can make the next step — officially applying for a mortgage once you’ve made a successful bid on a home — go more smoothly.
Mortgage pre-approvals are free and non-binding. Just because you get pre-approved at Scotiabank doesn’t mean you can’t get your mortgage elsewhere. But if you’re pre-approved at Scotiabank and then decide to work with a different lender, you’ll have to go through the pre-approval process again.
Frequently asked questions about Scotiabank mortgage rates
Scotiabank’s prime rate is currently 7.2%.
You can — and should — negotiate your mortgage rate at Scotiabank. When you first apply for a mortgage, Scotiabank may not offer you the lowest rate possible. Ask for a lower one. Even if you’re only able to reduce the cost of your mortgage a little, the money saved can be put to a better use.
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