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Reasons Why Mortgage Rates Seem to be Different in Every Province

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Have you ever though why Canadians are looking for different rates when it comes with their 5-years fixed mortgage rate? Well, the truth is, there is no fixed rate that is being followed in Canada. At first, it may seem that the differences vary from every province but when you ask expert mortgage brokers, it is mainly varying from every lender providing the mortgage.


Most of the time individual lending institutions are setting their rates depending on the total profit objectives that they have. Other reasons are the competition that they have and also the marketing strategy that they are using. This is how it works with when it comes with the national level. Whenever there are big banks launching lower rates than its competitors, they get the press and also gain a little from the market share.


When it comes to the provincial level, most people forget that there are many small lenders and also credit unions existing in a single province. It also applies that whenever a small lender sets a new lower rate in the province where they are staying, there are no reasons why other small lenders from other provinces to follow the strategy. The main reason behind this is that the small lender in one province is not a direct competitor of other lenders in other provinces.


For the city level, some lenders stick with the classic case. It always depends on the situation of the supply and the demand. Whenever there is a great demand, lenders usually supply low mortgages rates just to keep in the competition of getting a market share. Aside from these reasons, the factor of whom mortgage brokers are working with may also affect the rate just to raise their commissions. These reasons will give you an idea on what makes rates from different provinces seems to be different from each other.

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