Are you planning to buy your dream home but fear making a huge financial commitment? Undoubtedly, purchasing a home is a daunting task that demands you to properly prepare to fulfill homeownership responsibilities wisely and consistently. The journey towards buying a home involves understanding the mortgage process looking for a good mortgage lender, and acquiring the best mortgage rate.
In Canada, getting a competitive mortgage rate doesn’t have to be a hassle anymore. LowestRates.ca offers an online platform where you can compare mortgage rates easily without frequent visits to different banks or lenders. Sound interesting? Let's go through the LowestRates.ca review to discover how it can ease the homeownership process.
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LowestRates.ca is a comparison website that connects you with top financial institutions and brokers on a single platform and enables you to compare rates on various financial products without paying any fee. Using their site, you can find detail on all sorts of loans offered in your area with their respective rates and discounts.
LowestRates.ca also lets you know the amount of interest you will be paying over the mortgage term, including any upfront payment that reduces your interest rate. The site’s primary goal is to make Canadians financially literate and save time and money in securing cheap mortgage rates.
Lowestrates.ca Pros & Cons
Wealthsimple's advantages greatly eclipse its drawbacks. Still, it's important to assess whether or not the investment platform is a suitable fit. Like buying a pair of shoes, you want to make sure both feet fit perfectly and not just the left one.
Pros: The Good Stuff
LowestRates.ca allows users to compare mortgage rates by type, province, city, and lender. It also offers its users a mortgage payment calculator to determine what will be the mortgage payment based on their interest rate, down payment, mortgage size, and various other factors. This empowers them to do smart budgeting for the purchase and make better financial decisions.
There is a resource section available on the website for first-time Canadian home-buyers looking for guidance on obtaining a mortgage, details about home insurance policy, tax rules, etc. Additionally, the site provides different tax calculators to the viewers and useful links to find realtors, home renovation services, etc.
Security is one of the priorities of lowestrates.ca. All the information users share is secured and kept private from the third party
Cons: The Not So Good Stuff
The mortgage rates available on the website are not for everyone, whereas pre-approval rates are generally higher than what is illustrated on the website.
Many customers have complained about the company’s poor customer service.
Lowestrates.ca claims to offer a mortgage rate that is always less than the bank rate. LowestRates.ca combines live mortgage rates throughout the day. Its mortgage rate average is over 2% less than the bank rate, which could potentially save users up to $12,000 over 5 years on fees and mortgage rates.
Conventional mortgage and a high ratio mortgage
When a home's down payment is below 20% of its buying price, it is known as a high ratio mortgage, whereas when it is above 20%, it is called a conventional mortgage. Experts at lowestrates.ca provide average rates of conventional and high ratio mortgages from their user database.
An insight into changes in these average rates over the last few months is also present on the website. This helps you analyze the rate structure suitable for you and how much you will pay on each mortgage type.
Fixed and Variable Rate:
If you opt for a fixed-rate mortgage, the interest rate remains the same during your mortgage term. It is a suitable option if your budget is tight and you cannot afford to bear additional expenses if the Canadian interest rate rises.
In 2022, the fixed-mortgage rate (for 5 years) has experienced a drastic increase every month, as shown on the LowestRates.ca website. As of June 2022, the lowest fixed rate is 3.91%.
Variable-rate fluctuates and depends on the market conditions. With a variable-rate mortgage, you pay less interest during the mortgage term if the interest rate stays constant or falls.
However, this option involves risk. A rise in the interest rate increases your mortgage rate as well, and you ought to pay higher monthly payments.
In 2022, the variable-mortgage rate (for 5 years) has also increased tremendously with every passing month, and it stands at 2.26% in May 2022, as per the LowestRates.ca data.
Quick Service: Lowestrates.ca provides its users with the best and most updated mortgage rates within seconds. The process is super quick and hassle-free.
Simple Process: Irrespective of your province or territory, you need to give your postal code to get the competitive mortgage rates. No complicated procedures are to be followed to get the best mortgage rate.
Comprehensive: Users at LowestRates.ca get the chance to connect with and get quotes from over 50 leading banks and brokers. Since the rate comparison service operates Canada-wide, you tend to get the lowest mortgage rate as per your needs.
Zero Cost: The service is free for its users. You can easily compare mortgage rates from the comfort of your home without spending a single penny.
Unbiased: Lowestrates.ca is an unbiased platform where all banks and lenders offer their best mortgage rates. No financial institution or broker is promoted unnecessarily, and every lender is dealt with impartially.
Lowestrates.ca vs Nesto vs QuestMortgage
It wouldn't be a true LowestRates.ca review without comparing it to their top competitors. Lowestrates.ca can be compared to Nesto and QuestMortgage - two of the more prevelant online brokers in Canada.
LowestRates.ca was established in 2012. Thus, it is a relatively old company with a huge customer base compared to Questmortgage and Nesto. Questmortage was founded in 2019, and Nesto was established in 2018.
LowestRates.ca aims to provide rate comparison services and offer comparing options from over 75 banks and brokers, whether for home insurance, life insurance, auto insurance, credit cards, or mortgage. On the contrary, Nesto and Questmortgage offer easier and quicker ways to get a mortgage.
The mortgage rate service of LowestRates.ca and Nesto is Canada-wide, including Quebec, Ontario, British Columbia, Alberta, or anywhere in between. However, QuestMortgage is unavailable for houses in Quebec, Yukon, Nunavut, and Northwest Territories.
The Nesto and Questmortgage are completely online, and there are no chances for physical interaction. In contrast, LowestRates.ca has displayed its office addresses on the website.
Do you know the significance of obtaining the right mortgage rate for a better financial future? Never take this decision lightly. It isn't easy to search for the best mortgage rate; however, LowestRates.ca provides quick, easy, and secure services to help you compare rates from the best mortgage lenders in the market.
Our Lowestrates.ca review highlights that opting for this company for your home financing needs makes a lot of sense as they not only claim to offer the lowest mortgage rates but also have a streamlined and easy application process. Considering the benefits this company offers its users, LowestRates.ca sets itself apart from its competitors.
Frequently Asked Questions
LowestRates.ca mainly earns from its partners (banks and brokers). It perfectly connects users with the right lenders that meet their unique financial needs. It boosts their partner's success and growth by referring customers to them, and in return, the partners pay a certain fee to LowestRates.ca. It is a win-win situation for both parties. The partners acquire customers using the company's services, and users get the lowest mortgage rates.
Yes. LowestRates.ca is a trusted and legit website. A well-known review website, Trustpilot, shows a 4.4 rating for this company, which is an excellent rating from genuine customers. From 2017 onwards, Lowestrates.ca secured 20th position on Maclean’s/Canadian Business’ Growth 500 list of Canada’s Fastest Growing Companies, whereas it was ranked 15th in 2019.
The company has served Canadians for a decade. People trust on its credibility and find it a reliable source for comparing mortgage rates.