No layperson tracks mortgage rates daily, unless they have a peculiar hobby. Hence, the birth of mortgage rate comparison sites.

Rate sites are the most important mortgage shopping innovation since the invention of the Internet. They unequivocally help people save more, and their rates serve as benchmarks when negotiating with lenders.

But rate sites aren’t all created equal. With 17 years of mortgage rate tracking and a decade running a rate comparison site under my belt, I can tell you that each site has its quirks. Knowing these quirks is key to scoring not just a great rate, but a phenomenal one.

How rate sites work

Rate sites are in it to make a buck. Their cash flow comes mainly from three streams: charging advertisers (lenders and mortgage brokers) around $40 to $100 per lead; selling advertising; or earning commissions by funneling borrowers to their own brokerage.

The key takeaway is that rate sites are just the start of mortgage research. Moreover, most of them focus on prime mortgage customers only, so if your credit has seen better days, or your debt-to-income ratio is high, or you have a less marketable property, you’re probably out of luck.

Most rate sites also fall short in giving you the full scoop needed to make a savvy mortgage choice. For instance, they often skip over such mortgage minefields as:

• Nightmarish prepayment penalties

• Lack of portability

• Refinance restrictions

• Crummy early-refinance rates, and

• Lousy rates when converting from variable to fixed

Rate sites also don’t tell you a lender’s qualification criteria. For example, some don’t quote rates specific to your equity. (Rates differ by the size of your loan relative to your home value — a.k.a. your “loan-to-value” ratio, or LTV.)

In short, confirming rate site info with a competent mortgage broker is crucial. For prime borrowers who can get approved anywhere, rate sites give you a running start. They show you which providers are offering deals you should shortlist before contacting them for the whole story.

The best rate sites

Wowa

Wowa is run by a PhD in chemical physics who wanted to make rates more transparent. What separates Wowa is that it strives to be a personal finance encyclopedia. Its mortgage calculators are robust, and its mortgage tips are accurate.

In the rate department, Wowa swiftly showcases top offers by province for the three key loan types — insured, insurable, and uninsured — making lender and broker names clearly visible.

Wowa.ca also spans a broader range of lenders and products than most of its peers and includes rate history. It even shows non-prime rates and rental rates from brokers, which most others don’t — although, the best rental rates are often available directly from big banks.

Rates.ca

Rates.ca, or RDC for short, features a wizard interface that quizzes you before spitting out a rate recommendation without much explanation, leaving some users scratching their heads as to why it’s the best choice.

The wizard at RDC also fences fixed-rate shoppers into only three- or five-year terms, which is a real bummer if you’re in the market for a one-, two-, or four-year mortgage. Plus, it doesn’t cater to all provinces.

RDC does offer a rate table, yet both the wizard’s and the table’s rates sometimes lag in timeliness or competitiveness compared to other sites we monitor. On the upside, RDC’s rate table shows 65 percent and 80 percent LTV “insurable” rates, which are often lower than uninsured rates — for those with 20 percent equity or more and homes purchased for under $1 million.

EveryRate

Everyrate is the latest to the rate comparison party, having launched just a few months back. The reason it’s relevant is that it claims to have the most lenders of any competitor. That matters because a regional provider will often have lower rates than a national lender.

The platform also prides itself on a clean interface that dives deeper into rate features than most, a domain where other rate sites typically drop the ball.

Everyrate turns a profit by funneling users to its own brokerage, so you won’t spot other brokers here (a downside). They also have “Hot Rate” deals with obscured lender identities, mirroring tactics from hotel sites like Hotwire.

Ratehub

This is the most prominent rate site in Canada, and you’ll see them everywhere on Google if you search anything mortgage-related. The issue with Ratehub is that it doesn’t show as many lenders, which means you may miss some deals.

Ratehub also excludes competing mortgage brokers from its site. Instead, it tries to route mortgage customers to its in-house brokerage. Sometimes that’s a good thing, because it frequently has the lowest rates for select terms, but not always.

Ratehub also hides the names of some lenders, which many users find irritating. Its mortgage calculators are top-notch, however, and it also shows rental property rates.

Financial Post

The Financial Post’s rate page has one main goal: to quickly show the lowest insured and uninsured rates from all established reputable providers. It displays both national and regional lenders and only filters out lenders and brokers if they’re deemed unreliable for our readers — albeit, one can never guarantee reliability, even with major lenders.

FP’s rate table isn’t designed to show 30-year amortization rates or insurable rates (i.e., rates for mortgages with 20 percent equity that meet insurer criteria), but lenders advertising the best insured rates also typically have outstanding insurable rates.

FP’s rate page is meant as an objective launchpad for deeper research, one that doesn’t arbitrarily leave lenders out just because they don’t pay to advertise.

Cutting to the chase

There are other rate comparison sites that didn’t make the cut here, in most cases because, in my experience, they don’t show substantial value.

Keep in mind, when hunting for a mortgage, relying solely on one rate site, broker, or lender won’t be sufficient. To land the best deal, you need to do some legwork and contact multiple providers.

And a crucial reminder: the lowest rate doesn’t always translate to the lowest total borrowing cost. The fine print in mortgage contracts can outweigh small rate discrepancies by a long shot.

Courtesy Financial Post

The Bank of Canada has lowered its key interest rate by 25 basis points to 4.25 per cent.

It’s the third cut since June, and the first time the central bank has posted three consecutive reductions since the global financial crisis in 2009. Governor Tiff Macklem says if the economy continues to improve, Canadians can expect more rate cuts later this year. The next rate update is scheduled for Oct. 23. 

In remarks to reporters, Macklem said the Canadian economy grew by 2.1 per cent in the second quarter of this year. The gain, led by government spending and business investment, was slightly higher than the central bank’s July forecast.

“That a healthy rebound from the near-zero growth we had in the second half of 2023,” said Macklem.

The bank’s July forecast is predicting even growth in the second half of this year and inflation is expected to ease, according to Macklem.

“We are determined to get inflation down to the two per cent target, and we want it to stay there,” said Macklem. “The economy functions well when inflation is around two per cent.”

Canada’s employment rate remains a concern for the central bank with the unemployment rate rising to 6.4 per cent in June and staying there in July. According to Macklem, the uptick was mainly seen amongst youth and newcomers to Canada.

“Business layoffs remain moderate, but hiring has been weak,” said Macklem. He also noted that slack in the labour market is expected to slow wage growth.

According to the Bank of Canada, the global economy expanded by about 2.25 per cent in the second quarter of 2024. Economic growth was stronger than expected in the United States led by consumption, however the American labour market has slowed.

It’s widely expected the bank will lower the overnight target rate again at its scheduled meeting in late October.

Courtesy CTV News

Housing activity continues to move away from the extreme sellers’ market conditions experienced throughout the spring. Easing sales, combined with gains in supply, pushed the months of supply above two months in August, a level not seen since the end of 2022.

“As expected, rising new home construction and gains in new listings are starting to support a better-supplied housing market,” said Ann-Marie Lurie, Chief Economist at CREB®. “This trend is expected to continue throughout the remainder of the year, but it’s important to note that supply levels remain low, especially for lower-priced properties. It will take time for supply levels to return to those that support more balanced conditions.”

Inventory levels in August reached 4,487 units, 37 per cent higher than last August but nearly 25 per cent lower than long-term trends for the month. Higher-priced properties mostly drove the supply gains, as the most affordable homes in each property type continued to report supply declines.

The supply gains were made possible by both an increase in new listings in August and a pullback in sales activity. There were 2,186 sales in August, representing a 20 per cent decline from last year's record high but still 17 per cent higher than long-term averages for the month. The sales declines were driven by homes priced below $600,000.

Following stronger-than-expected gains earlier in the year, the pace of price growth is starting to slow. In August, the total unadjusted residential benchmark price was $601,800, six per cent higher than last year and just slightly lower than last month. Year-to-date, the average benchmark price rose by nine per cent.

Detached

Detached home sales fell by 14 per cent compared to last year, as gains in homes priced above $600,000 were not enough to offset declines in the lower price ranges, which continue to struggle with low supply levels. In August, there were 2,011 detached homes available in inventory, with over 85 per cent priced above $600,000.

The improving higher-end supply compared to sales helped push the months of supply up to nearly two months. While market conditions are still tight, this is a significant improvement from the under-one-month supply experienced in the spring. Shifting conditions are relieving some pressure on home prices. In August, the unadjusted detached benchmark price was $762,600, slightly lower than last month but still over nine per cent higher than last year.

 Semi-Detached

With 297 new listings and 172 sales, the sales-to-new-listings ratio in August dropped to 58 per cent, which is more consistent with pre-pandemic levels. This shift supported a rise in inventory levels, and the months of supply rose to nearly two months.

While conditions remain relatively tight, the boost in new listings has helped ease some of the pressure on prices. In August, the unadjusted benchmark price was $681,200, a decline from last month but nearly 10 per cent higher than last year.

Row

New listings row for homes priced above $400,000, contributing to year-to-date growth of nearly 16 per cent. At the same time, slower sales over the past three months have contributed to inventory gains. In August, there were 660 units available, a 75 per cent increase over the exceptionally low levels reported last year. While inventories are still low by historical standards, as with other property types, this shift is helping ease pressure on home prices.

The unadjusted benchmark price in August was $461,700, slightly lower than last month but over 12 per cent higher than last August. Monthly adjustments were not consistent across districts, with adjustments in the City Centre, North West, North, and West districts mostly driving monthly declines. Despite the monthly adjustments, year-over-year prices remain higher than last year across all districts and range from a low of 10 per cent in the City Centre to a high of 26 per cent in the East district.

 Apartment Condominium

New listings in August reached 1,001 units, a record high for the month. The gains in new listings were met with a pullback in sales, causing the sales-to-new-listings ratio to drop to 60 per cent and inventories to rise to 1,476 units. Unlike other property types, overall condominium inventory levels were relatively consistent with longer-term trends for the month.

Rising inventory and easing sales caused the months of supply to increase to nearly two and a half months, not as high as levels seen before the pandemic but an improvement over the extremely tight conditions seen over the past 18 months. In August, the unadjusted benchmark price was $346,500, similar to last month and nearly 16 per cent higher than last year’s prices.

REGIONAL MARKET FACTS

Airdrie

New listings in Airdrie continued to rise this month compared to last year. However, with 242 new listings and 172 sales, the sales-to-new-listings ratio remained relatively high at 71 per cent. This prevented a stronger gain in inventory levels and kept the months of supply below two months. The tightest conditions in the market continue to be in the lower price ranges of each property type.

While conditions continue to favour the seller, they are not as tight as during the spring months, taking some pressure off home prices. In August, the unadjusted benchmark price was $553,300, similar to last month and nearly eight per cent higher than last year.

 Cochrane

August reported 81 sales and 109 new listings, keeping the sales-to-new-listings ratio elevated at 74 per cent, enough to prevent any gain in inventory levels. With 144 units available, inventory levels are nearly 42 per cent below long-term trends for the month.

Persistently tight conditions continue to drive further price growth in the town. In August, the unadjusted benchmark price was $578,600, slightly higher than last month and over eight per cent higher than last year’s levels. Prices have risen across all property types, with the largest gains occurring for apartment-style properties.

 Okotoks

A boost in detached sales supported the rise in August sales compared to last year. The 67 sales in August were met with 84 new listings, pushing the sales-to-new-listings ratio near 80 per cent. This prevented any significant shift in inventory levels, which remain nearly 47 per cent lower than long-term trends.

With just over one month of supply, conditions remain relatively tight. The unadjusted benchmark price in August was $622,700, similar to last month and over seven per cent higher than last August.

 Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.