Best Mortgage Rates in Burlington 2021

best mortgage rates burlington

When you think of hot markets around the Greater Toronto Area, one of the most popular spots in real estate is in Burlington. Burlington sits in the perfect area. You are sort of close to downtown, you are on Go Transit, and you can escape the city with ease to Niagara or even across the border. It is close to everything, but far enough to enjoy a family-focused lifestyle. Thus, the area has become a hotspot for city dwellers and young families looking to find their dream home.

We know that you have a lot of questions around the Burlington mortgage rates, and mortgage brokers, so let us jump in. First, let us chat about the mortgage rate trends in this great city.

Burlington Mortgage Rate Trends

Over the last 12 months, mortgage rates have been at record lows. As the COVID-19 pandemic affected many Canadians’ spending levels, the Bank of Canada dropped rates to increase spending in significant sectors. Since March of 2020, advertised interest rates have maintained around the 2% mark for fixed mortgages and down to 1.6% for variable rate loans. These rates have only moved up and down a tenth of a percentage point and have remained decently stable over the past 12 months. Looking past a year, mortgage rates were hovering below 5%, which indicated a strong and viable economy. Next, let us get out the crystal ball and look at the forecast for Burlington mortgage rates.

Burlington Mortgage Rate Forecast

Although no one can predict the future, the current Bank of Canada prime rate is not set for a change anytime soon. With the current pandemic situation, the prime rate’s goal is to increase spending, precisely what it is doing. The bank is trying to keep small businesses afloat and keep the housing market moving.  

Thus, over the next three to six months, we will not see much movement in terms of interest rates in Burlington or anywhere else in Canada. These record-low rates are here to stay but do not expect them to drop much more. The prime rate is pretty much close to zero, and lender fees will continue to be roughly the same. This is why many with variable rate mortgages are looking to switch into a fixed rate mortgage as rates will eventually start to go up.

One thing to note is that as vaccine numbers start to increase and the economy starts to recover, expect prime rates to move with it. By the end of 2021, expect interest rates to be back to roughly 5%. We should note this is just a prediction, and we do not have any inside knowledge at the Bank of Canada or any of the top lenders.

Popular Burlington Mortgage Brokers

If you are looking for a great Burlington mortgage broker, you are in luck. There are plenty of options that are worth looking into. When you meet with a mortgage broker, you should look to discuss your options and what their strategy is to secure your pre-approval and your eventual mortgage. A great broker will be upfront about the situation and will detail their process. As well, if you have questions, ask away. The first meeting is not only to get to know you; you need to get to know your broker!  

As well, remember that your first meeting does not mean that you are signing on. This is an intro, and if you are not comfortable with the broker, you can certainly go somewhere else. As Burlington is a larger community, you will have plenty of options, so find someone you like and work well beside! One last note is if you are working with a real estate agent, ask if they suggest a broker. A broker works quite a bit with the agent and the lawyer, and if all three professionals work well together, it benefits the overall home buying experience.

Here are a few of the top mortgage brokers in the community:

  • Lowen Group Mortgages
  • Lilah Taylor- Dominion Lending Centre
  • Sharon Patton- Mortgage Architects
  • Mortgages by Natasha
  • Lisa Denyer- Claystone Mortgage Team

Popular Burlington Mortgage Lenders

If you are looking for popular mortgage lenders, you can divide the list into smaller specialized lenders and big central banks. As you can expect, many Canadians still only trust the big banks for all of their banking and mortgage needs. However, as more and more Canadians realize that other lenders might be a better option for their mortgages, the industry has taken off.

During the COVID-19 pandemic, banks were inundated with mortgage meeting requests. It got to the point where you could not get a meeting at your local branch for up to two months. However, those lenders who were already online quickly moved in and have started to take in clients at a record pace. Their rates are the same, the process is the same, the only different thing is you cannot walk into a branch, but how many times did you walk into a branch to discuss your mortgage anyway? So, with that in mind, here are some of the popular Burlington mortgage lenders.

  • Toronto Dominion
  • Bank of Montreal
  • Canadian Imperial Bank of Commerce
  • Royal Bank of Canada
  • First National
  • Home Trust
  • RFA

Get Your Best Mortgage Rate Today

Speak with one of our brokers to get the lowest rate on your next mortgage!

Burlington Mortgage Rates: Frequently Asked Questions

Here are some of the more popular questions that we have gotten on mortgage rates in Burlington. From figuring out if a 5 year fixed rate is better than a 5 year variable rate, to what bank should you trust, we have you covered!

How much can I save by comparing Burlington mortgage rates?

When it comes to Burlington mortgage rates, the best thing you can do is compare and contrast different lenders. Burlington is a competitive market, and due to this, mortgage rates are pretty competitive. Remember, all lenders will base their advertised rate on the prime rate and then add their fees on top.

Thus, looking around and shopping for your mortgage is not a bad thing to do. It is encouraged, as different lenders will provide you with different rates. Things such as your house type, house location, purchase price, credit rating and an assortment of other factors will go into your actual rate. This is why the advertised rate is usually slightly different from the actual rate you will secure. However, no matter the property you are buying, comparing the offered mortgage rate is always a good thing to do.

Are Burlington mortgage rates higher than other cities?

As Burlington is located in the Greater Toronto Area and is a competitive market with almost every single lender in Ontario with a footprint there, Burlington does not have a higher mortgage rate than other cities. When comparing mortgage rates by city, there is no difference between Hamilton, Toronto, and other similar-sized cities like Oakville or Mississauga.

An interest rate in a specific city are typically based on a few factors. These factors may include the region’s competition, the area in which the house is being bought, the purchase price and the overall market. Most smaller lenders will match the big five banks or undercut them depending on a few things. This trend does not consider specific discounts linked to work or a union; for instance, the Bank of Montreal offers Canadian Forces members an unreal discount for mortgages. However, in Burlington, your mortgage rate will be as competitive as it would be if you were buying in Toronto or Hamilton.

Which bank has the best mortgage rates in Burlington?

No one bank has the best rates in the city. Finding the best rate is all about comparing and shopping for your mortgage with many different lenders. From the big banks to small specialized lenders, your rate will often be different at each one. Further to this, your rate will be different from your neighbours as you have various factors influencing a final rate.

These factors can include your credit score, purchase price, debt ratio, neighbourhood and the current market. Thus, the best rate is often found via a broker or shopping around. There is no one-stop-shop for mortgages, and with the competitive nature of the industry, each person’s best rate will typically be at a different lender.

Should I use a mortgage broker in Burlington?

Yes! Although you do not have to use a mortgage broker, a broker can open up a world of possibilities for potential lenders. The reason for this is simple, brokers live and breathe mortgages and know who is offering the best rates and who is quick to approve in your specific situation. Their job is to secure the best mortgage rate for you.  

Although traditional lenders like banks can work with you, a broker has hundreds of lenders looking to secure your mortgage. This means that you get a better rate and could save thousands of dollars of interest over the long-term. A percentage point difference over the amortization period of a loan can mean tens of thousands of dollars, so it is worth investing in professionals. Plus, the best part, brokers are free to use. The lender pays their fees, so it is no cost to employ someone to get you a better rate. A win-win, which is rare in real estate!

Get Your Best Mortgage Rate Today

Speak with one of our brokers to get the lowest rate on your next mortgage!