Scotiabank Mortgage Review 2024

Scotiabank mortgage at a glance

Scotiabank is one of Canada’s largest mortgage lenders. As a federally-regulated financial institution, it abides by Canada’s strict mortgage qualification guidelines, but it also serves recent arrivals to Canada and the self-employed, groups who may struggle to find mortgages at A lenders.

Scotiabank mortgage review

Founded in 1832, the Bank of Nova Scotia (Scotiabank) is one of Canada’s oldest and most recognizable financial institutions. What started as Halifax’s first public bank has grown into an international banking heavyweight with locations across the Americas, the U.K. and Asia.  

Scotiabank is among the largest of Canada’s Big Six banks and a major player in the country’s mortgage market. In the third quarter of 2023, Scotiabank’s Canadian mortgage portfolio was $294 billion. 

Overall, Scotiabank offers a mix of mortgage products that’s similar to its Big Six competitors. Fixed, variable and convertible mortgages are all on the menu, as are open and closed options. Scotiabank also provides mortgages to some recent arrivals to Canada and self-employed borrowers.

For homeowners who may need access to further capital while paying off their mortgages, Scotiabank offers the Scotia Total Equity Plan, a HELOC product that allows borrowers access to up to 80% of their home’s value.

Scotiabank mortgage feature overview

Variety of mortgages

Scotiabank’s selection of mortgage products is comparable to those of other major Canadian banks. If you have a low credit score, however, you may need to seek an alternative lender; Scotiabank doesn’t typically provide mortgages for this type of borrower.

Scotiabank offers::

• Fixed-rate mortgages.
• Variable mortgages.
• Convertible mortgages.
• Mortgage renewals and refinances.
• Home equity lines of credit.
• Construction mortgages.

Ease of application

Overall, Scotiabank makes it easy to start the mortgage process. Here’s what the bank does and doesn’t offer:

• Online pre-qualification: No. When a lender doesn’t provide a prequalification option, using a mortgage affordability calculator or mortgage payment calculator can give some insight into your potential home buying budget.
• Online pre-approval: Yes. Scotiabank’s online pre-approval process should take around 20 minutes to complete.
• Online mortgage application: Yes. If you have all the required documents, you can complete a Scotiabank mortgage application fully online.
• In-person application: Yes. Scotibank has branches all over the country. Call your nearest branch to be put in contact with a local mortgage advisor. 

Mortgage rate transparency

Compared to some other Big Six banks, Scotiabank leaves a little to be desired when it comes to the thoroughness of the information it shares around its current mortgage rates. 

• Posted rates: Scotiabank publishes posted rates for every mortgage product it offers.
• Special rates: Scotiabank does not publish a list of discounted rates. To be offered a “preferred rate”, the bank requires you to sign up for the Scotia Mortgage+ Program.
• APR: Scotiabank only provides APR values for its variable mortgage rates, and you have to scroll down to the footnotes on the bank’s rate page in order to find them.

Other Scotiabank mortgage details

• Range of terms: Scotiabank offers mortgage terms ranging from six months to 10 years.
• Lump-sum payments: Depending on your loan type, you can make a lump-sum payment worth up to 20% of your original mortgage amount once a year.
• Increased payment capability: Increase your regular mortgage payment by up to 20% once per calendar year.
• Match-a-Payment: Depending on your mortgage, you may be able to double your mortgage payment on a scheduled payment date.
• Prepayment penalties: Three months’ interest for variable-rate, closed mortgages; either three months’ interest or the amount calculated using Scotiabank’s interest rate differential, whichever is greater.
• Portability: If you are eligible, you may be able to transfer your existing Scotiabank mortgage to a newly purchased home..
• Programs for newcomers. Scotiabank says it provides mortgage options for newcomers and permanent residents who have lived in Canada for five years or less, but there aren’t many details available online.
• Options for non-payment. Scotiabank allows you to miss a mortgage payment so long as you’ve already matched one earlier in your term.

Scotiabank mortgage eligibility requirements

Because it’s a federally regulated financial institution, Scotiabank’s lending criteria will generally be quite strict. The interest rate and loan amount you’re offered will be based on your finances, but before you get that far in the process, Scotiabank will need to evaluate your:

• Credit score: Chartered banks like Scotiabank typically don’t lend to borrowers with lower credit scores. A credit score of 680 or higher is worth aiming for.
• Credit history: Having several established credit accounts in good standing, and no recent negative marks on your credit report, will help you get approved.
• Income: The amount you earn and how predictable your income is are both important factors.
• Down payment amount: You need to provide at least 5% of a home’s value as a down payment if it’s worth $500,000 or less. For homes worth between $500,000 and $999,999, you need 5% of the first $500,000 and 10% of the amount above $500,000.
• Debt service ratios: Your gross debt service ratio must not exceed 39%. Your total debt service ratio must not exceed 44%.
• Employment history: You generally have to show lenders that you’ve been consistently employed for at least two years.

How to apply for a mortgage with Scotiabank

With its eHOME mortgage portal, Scotiabank offers fully online mortgage pre-approval and mortgage application processes — something the other Big Six banks have yet to roll out.

Here’s how eHOME works, and what to expect when applying for a mortgage with Scotiabank.

Where to begin on Scotiabank's website

Getting started with eHOME

Getting pre-approved for a mortgage

Applying for a mortgage

1. Go to Scotiabank’s homepage and hover your mouse over the “Mortgages” tab.
2. Click on “Scotiabank eHOME” to be taken to the bank’s online mortgage portal.

eHOME is an entirely online process, so if you would feel more comfortable dealing with a Scotiabank mortgage advisor instead, you can simply scroll down the bank’s homepage until you see this graphic. You should be able to find a mortgage broker near you who can help you with your mortgage.

You can scroll around the eHOME page to find more information about how it works, but most of the links will take you to the same place: a set of questions that determine whether you’re eligible to apply for a mortgage online with Scotiabank.

After agreeing to Scotiabank’s privacy agreement, you’ll be asked six yes-or-no questions related to you and your co-borrower, if you have one.

Once you’ve been deemed eligible for eHOME, you can sign in using your Scotiabank credentials.

If you’re not a Scotiabank customer, you’ll have to provide some personal information and a cellphone number so you can initiate your eHOME account. You’ll then create a username and password.

Once you’ve chosen the pre-approval option from the eHOME menu, you’ll begin an application process the bank estimates should take around 20 minutes.

1. Provide details about the home you intend to buy, including:

• Its location.
• Whether it will be your primary residence or a secondary property.
• If it’s a house or condo.
• The estimated price.
• How much you’ve saved for a down payment.
• Your down payment sources.

It’s alright if you don’t know all every detail at this stage.

2. Choose a rate type and term length so Scotiabank can provide a few customized rate offers.

Choose the offer that looks good to you and you’ll have the option to lock it in for 120 days.

3. Review the details of your mortgage offer, including: prepayment privileges, porting possibilities and other features that can help you better manage your home loan.

4. Provide your employment and income details, including:

• Your employment type and industry.
• Your employer’s name, phone number and address.
• Your annual income.
• How long you have worked there.

5. List your assets and debts, including:

• Your monthly rent or mortgage payments.
• How much each asset you own is worth and whether it’s held jointly.
• Whether you’re paying alimony, child support or private debt.

6. Read Scotiabank’s terms and conditions and consent to a credit check. The pre-approval process is complete!

Once you reach the eHOME hub, chose the “Mortgage Application” option.

You’ll be asked to confirm your personal information and whether you’ll be applying with a co-applicant. Then you’ll begin the application process.

1. Provide details about the home you made an offer on, including:

• Its location.
• Whether it will be your primary residence or a secondary property.
• If it’s a house or condo, and whether it’s detached, semi-detached or a freehold townhouse.
• The square footage.
• The purchase price.
• Your down payment sources.
• The closing date.

2. Choose a rate type and term length so Scotiabank can provide a few customized rate offers.

Find an offer that looks good and you’ll have the option to lock it in for 90 days.

3. View the details of your mortgage offer, including prepayment privileges, porting possibilities and other features that can help you better manage your home loan.

At this stage, you’ll be shown details regarding the Scotia Total Equity Plan, an optional home equity line of credit. You don’t have to sign up for STEP to continue with your application.

4. Provide your employment and income details, including:

• Your employment type and industry.
• Your employer’s name, phone number and address.
• Your annual income.
• How long you have worked there.
• If you have any other sources of income.

If you’ve previously completed a pre-approval application, these details should already be filled in.

5. Declare your assets and debts, including:

• Your monthly rent or mortgage payments.
• How much each asset you own is worth and whether it’s held jointly.
• If you’re paying alimony, child support or private debt.

6. Upload the documents Scotiabank requires to verify your application details. At this point, you only need your purchase of sale agreement, but you’ll eventually need to provide:

• The house listing.
• Financial statements that confirm the ownership and value of the assets and investments you’ve declared.
• Employment and tax documents.

Providing all the documents requested will help speed along the approval process.

7. Read the terms and conditions related to your mortgage and consent to a credit check. Your mortgage application is complete!

Alternatives to a Scotiabank mortgage 

Scotiabank is just one of many Canadian mortgage lenders. If the product you need isn’t available at Scotiabank, there are other Big Six banks, credit unions and B lenders you can turn to.

You can also consider reaching out to a mortgage broker and asking for help in finding a better deal on your home loan.

About the Author

Clay Jarvis

Clay Jarvis is NerdWallet’s mortgage and real estate expert in Canada. Thus far, his entire professional writing career has revolved around real estate. Prior to joining NerdWallet, he was the…

Read more about Clay Jarvis and explore their articles

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