Subtitles section Play video Print subtitles Welcome to Homebuyer's School brought to you by Brookfield Residential. So before we begin, if this is your first time on this channel and you want to get the latest strategies tactics and tips on home buying, click the subscribe button below, hit the little bell so you don't miss anything. Hi everyone, welcome to another edition of Homebuyer's School, today I'm joined by Mutjaba Syed, manager mobile mortgage specialist with TD Canada Trust, and today the question we're gonna answer is, What are the differences in mortgage rates between banks? Yeah absolutely, so every bank has what they like to call their "discounted off their posted rate", and most of the time it's done to attract new business and new clients. Most banks we find are technically in line, there might be a slight difference in rates - a little bit better a little bit higher, really depends on what the bank is trying to do at that time, just to raise capital and to attract clients. So how would I go about finding the best mortgage rates between the banks? Yeah absolutely, I think the best thing to do is to definitely shop around, with technology these days you can then go on the internet, do a quick search and see what the best rates in Canada are. Every bank technically has their posted rates posted on their website, a good idea to maybe look before you're booking your appointment is to go online and see what rates are offered by that certain bank, or if you feel like another bank has a better rate sometimes banks are actually matched through competitive competition so it's a good idea to know what the competition is before talking to your bank as well. So Mo, when is the best time to look for the best mortgage rates? Is it a specific time of year or is it all year round just depending on which banks provide the lowest rates? Yeah absolutely, so in my opinion mortgage rates are very seasonal, so we do feel mortgage rates are technically a little bit higher around November til about January-February which is the winter months. The real estate market slows down, purchases slow down, like house buying activity slows down and then we actually see a little bit--the market pickup around springtime which is called "spring market", and rates technically do tend to come down a little bit lower at that time just to encourage people to get into the market and purchase a little bit more. So with the new mortgage rules in Canada--and you can watch our video with the link above--how does that impact the difference in rates between the banks? Yeah absolutely, so the stress test technically has nothing to do with interest rates currently where they're posted. Interest rates are going to be determined all different factors, it can be determined where the economy is if the economy is doing better, or it's gonna be a little bit higher if the economy's doing not so well, the rate could be a little bit lower, the stress test is just for qualifying purposes to see exactly how much you qualify for a mortgage. Once you qualify for the mortgage you can get technically any rate that you want and at that time it's best to shop around to see what rates are offered by different banks. Different banks have different rates based on whatever discount they're willing to provide or wanting to provide to get your business. So Mo, do you have anything else to add? Yeah I would say definitely the best thing to do is speak with your lender, speak with your bank or your specialist and see what's best for you, what kind of rates are best for you and and just definitely shop around, try to get yourself the best rates. Go online and shop your bank or your specialist with the competition to see if there is a better rate out there for you. Perfect, well thank you very much Mo, thank you very much everyone for joining us. Remember to watch our video on the new mortgage rules in Canada, have a good day! That's another edition of Homebuyer's School, tune in next time for more expert tips and tricks and visit homebuyersschool.ca to bring you one step closer to finding your dream home. As with everything it would be great if you like and share our videos, also please let us know if you have any home buying questions you want us to answer.