Mortgage Rate Comparison Websites: Are They Really Helping You Get the Best Deal?

When you’re shopping for a mortgage, one of the first steps many people take is to visit a mortgage rate comparison website. These sites promise to show you the lowest rates available from multiple lenders — all in one place. But while they can be a helpful starting point, it’s important to understand how they work, what they include (and what they don’t), and why speaking with a mortgage professional can still be your best move.

How Rate Comparison Websites Work

Rate comparison websites gather advertised mortgage rates from banks, credit unions, and other lenders. They display these rates side-by-side so you can compare interest rates, term lengths, and sometimes special offers. Some also allow you to input basic details about your loan needs to get a more tailored list.

Most of these platforms make money by connecting you to a lender or mortgage broker when you click “Apply” or “Get More Info.” This means they might prioritize certain lenders who pay for placement, rather than listing every possible option.

The Benefits of Using Rate Comparison Websites

• Quick Overview – You can see a snapshot of current rates from different lenders within minutes.

• Educational Value – Comparing rates can help you understand market trends and what’s considered a “competitive” rate.

• Convenience – Instead of visiting multiple bank websites or calling around, you can start your search in one place.

The Limitations You Should Know

• Rates Aren’t Always the Full Picture – The lowest advertised rate might have strict qualifying criteria or additional fees that aren’t shown upfront.

• Not All Lenders Are Listed – Some lenders don’t appear on comparison websites at all, even if they offer competitive rates.

• Personal Factors Matter – Your credit score, income, down payment, and property type can all affect your actual approved rate, which may differ from what you see online.

Why a Mortgage Agent Still Matters

While rate comparison websites are great for initial research, a licensed mortgage agent can often access exclusive rates and products not available to the public. They also help you navigate conditions, lender requirements, and negotiate on your behalf — something a website can’t do.

The Bottom Line

Mortgage rate comparison websites can be a useful tool in your home financing journey, but they’re just one piece of the puzzle. Use them to get a general sense of the market, then connect with a mortgage professional to explore your full range of options and secure a mortgage that fits your unique situation.

Understanding the Home Buying Process in Ontario: A Step-by-Step Guide

Buying a home is one of the most important financial decisions you’ll ever make. Whether you’re a first-time homebuyer or a seasoned investor, understanding how the home buying process works in Ontario can save you time, money, and stress.

Here’s a step-by-step guide to help you navigate the journey with confidence.

1. Get Pre-Approved for a Mortgage

Before you start browsing listings, it’s important to understand how much you can afford. A mortgage pre-approval:

**Gives you a realistic price range

**Locks in an interest rate for up to 120 days

**Shows sellers you’re a serious buyer

👉 Tip: Work with a mortgage agent to explore your options and find the best rates available.

2. Determine Your Budget

Besides the purchase price, consider the closing costs, land transfer tax, home insurance, utilities, and potential renovations. In Ontario, expect to set aside 1.5% to 4% of the purchase price for these additional costs.

3. Find a Real Estate Agent

A licensed real estate agent will help you:

**Find homes that meet your criteria

**Book showings and handle paperwork

**Negotiate the best deal

Make sure your agent knows your must-haves vs. nice-to-haves.

4. Start House Hunting

Browse listings online, attend open houses, and schedule private showings. When you find “the one,” be ready to act quickly, especially in a competitive market.

5. Make an Offer

Your real estate agent will help you make a competitive offer based on:

**Recent sales in the area

**Property condition

**Current market trends

**The offer may include conditions, such as:

**Financing approval

**Home inspection

**Sale of your current home

6. Get a Home Inspection

A home inspection isn’t mandatory, but it’s highly recommended. It can reveal hidden issues like foundation problems, plumbing leaks, or mold. Based on the report, you can renegotiate or back out of the deal (if your offer included an inspection condition).

7. Secure Final Mortgage Approval

Once your offer is accepted, your lender will need the purchase agreement and property details to finalize your mortgage. If all checks out, you’ll receive a mortgage commitment letter.

8. Hire a Real Estate Lawyer

Your lawyer will:

**Review all legal documents

**Handle the title search

**Register your mortgage and transfer ownership

**Transfer the funds on closing day

9. Prepare for Closing Day

Before you get the keys, make sure:

**Your down payment is ready

**You’ve arranged home insurance

**All final paperwork is signed

On closing day, your lawyer will transfer the funds and you’ll officially take possession of your new home!

Final Thoughts

Buying a home in Ontario doesn’t have to be overwhelming. With the right team—mortgage agent, real estate agent, lawyer—and a clear understanding of the process, you can make informed decisions every step of the way.

If you’re ready to begin your home buying journey or need help with pre-approval, contact us today for expert mortgage advice tailored to your needs.

Understanding Closing Costs: What Every Homebuyer in Ontario Should Know

Category: First-Time Buyer Tips | Mortgage Basics
Tags: Closing Costs, Ontario Real Estate, First-Time Buyers, Mortgage Tips

What Are Closing Costs?

When buying a home, many buyers—especially first-time buyers—focus solely on the down payment. But there’s another crucial expense that you must plan for: closing costs.

Closing costs are one-time fees you pay on the day your home purchase is finalized (also known as the closing date). These costs cover legal, administrative, and other services needed to complete your home transaction.

How Much Are Closing Costs in Ontario?

In general, closing costs range from 1.5% to 4% of your home’s purchase price. On a $600,000 home, that’s roughly $9,000 to $24,000.

Breakdown of Typical Closing Costs in Ontario

🏛️ Land Transfer Tax (LTT)

Provincial LTT is payable on all home purchases in Ontario.

If you’re buying in Toronto, you’ll pay an additional Municipal LTT.

First-time buyers may qualify for a rebate of up to:

$4,000 (Ontario)

$4,475 (Toronto)

💡 Tip: Use our Land Transfer Tax Calculator to estimate your amount.

🧑‍⚖️ Legal Fees and Disbursements

Expect to pay between $1,000 and $2,000.

Covers:

**Title search

**Registration of the mortgage

**Legal advice

**Disbursements (courier, photocopies, etc.)

🛡️ Title Insurance

      One-time fee of $250–$500.

      Protects against title fraud, survey issues, and other hidden ownership defects.

🧾 Home Inspection Fee (Optional but Recommended)

        Around $400–$600.

        Helps identify potential structural or safety issues before you finalize the deal.

🏠 Appraisal Fee

      May be required by your lender to confirm the value of the home.

      Usually costs $300–$800.

      Sometimes covered by the lender.

🔥 Property Tax & Utility Adjustments

     You’ll reimburse the seller for prepaid property taxes or utility bills

     This amount varies depending on your closing date.

📦 Moving Costs

Depending on the size and distance, professional movers can cost between $500 and $2,000.

🏦 CMHC Insurance Premium (If Applicable)

If your down payment is less than 20%, you’ll pay mortgage default insurance.

While the premium is added to your mortgage, the 8% PST on that premium must be paid upfront at closing (in Ontario).

Closing Cost Example on a $600,000 Home

✅ Tips to Prepare for Closing Costs

Budget early: Include 1.5%–4% of your purchase price as part of your savings goal.

Ask your mortgage agent or lawyer for a detailed estimate early in the buying process.

Know your rebate eligibility if you’re a first-time homebuyer.

💡 Need Help Calculating Your Closing Costs?

Reach out for a personalized estimate based on your purchase price, location, and financing details. Or try our Free Closing Cost Calculator to get a quick breakdown.

📞 Ready to Buy? Let’s Make Sure You’re Financially Prepared

Whether you’re a first-time buyer or a seasoned homeowner, understanding all the costs involved will help you avoid surprises on closing day.

Contact us today at 416.564.6437 or email at anilg@dominionlending.ca to get pre-approved, estimate your closing costs, and make confident decisions with expert advice.

Interest Rate Update: No Rate Cuts Yet, But the Markets Are Moving

6th August  , 2025
Category: Mortgage Rate Updates

Highlights from Last Week

The Bank of Canada (BoC) held its policy rate unchanged last week, as expected. However, it took a slightly different approach by not providing its usual economic forecast, citing the unpredictability of U.S. trade actions. Instead, it outlined several possible tariff scenarios.

The key message? The BoC appears open to more rate cuts if conditions warrant it—especially if inflation remains manageable. This was seen as a dovish hold.

Meanwhile, the U.S. Federal Reserve also kept its policy rate steady. But in contrast to the BoC, the Fed’s comments were more hawkish than markets anticipated.

Fed Chair Jerome Powell emphasized:

A “solid” U.S. labour market

Persistent inflation above target

And uncertainty around the full effects of trade tariffs

Despite Powell’s tone, markets think otherwise:
Investors now put a 95% chance on a Fed rate cut at the next meeting on September 17, especially after Friday’s weak U.S. employment data.

U.S. Jobs Data: A Closer Look

July’s job growth came in below expectations, with only 77,000 new jobs added. More significantly, job numbers for May and June were revised downward by a combined 258,000 jobs—the biggest non-COVID-related revision since 1979.

While payroll revisions are common due to estimation methods, they tend to dampen economic signals during turning points in the cycle. Once revised, the data now suggest the U.S. economy may be losing momentum faster than previously believed.

Mortgage Rate Update: What This Means for You

U.S. bond yields dropped sharply on Friday, and Canadian Government of Canada (GoC) bond yields followed suit. If yields remain at these lower levels, it could reverse the recent upward trend in fixed mortgage rates.

We’ll have a clearer picture by the end of this week once the bond market finishes digesting the latest data.

On the variable-rate side, the BoC’s dovish stance should give borrowers some optimism. However, the market is still only pricing in a 15% chance of a cut at the Bank’s next meeting on September 17.

That said, variable-rate discounts for uninsured borrowers have recently narrowed, making these rates slightly more expensive than before.

Borrower Tip of the Week

Don’t overlook your closing costs.
Many first-time buyers are caught off guard by these expenses. Use a Mortgage Calculator to estimate them.

Mortgage Strategy Insight

Right now, 3-year and 5-year fixed rates are about the same. In this scenario, the 5-year term typically offers better value, especially as the term premium (the cost of locking in for longer) gradually returns with a normalizing yield curve.

Although rate cuts are coming slower than expected, I still believe variable rates may yield the lowest overall borrowing cost over the term of your mortgage—but only if you can stomach the volatility and have room in your budget to absorb higher payments if needed.

💰 Down Payment Tips for First-Time Home Buyers in Ontario, Canada

Buying your first home is one of the biggest financial milestones of your life. If you’re starting the journey in Ontario, one of the most important steps is understanding and preparing for your down payment.

Here are some practical and helpful tips to make your path to homeownership smoother.

1. Understand the Minimum Down Payment Rules in Canada

In Canada, the minimum down payment depends on the purchase price of your home:

🏡 5% for homes priced up to $500,000

🏡 5% of the first $500,000 + 10% of the amount above for homes priced between $500,000 and $1,499,999

🏡 20% for homes priced $1.5 million and above

Example:

For a $600,000 home:

5% of $500,000 = $25,000

10% of $100,000 = $10,000

Total down payment = $35,000

2. Use the First-Time Home Buyer Incentives

As a first-time buyer in Ontario, you may qualify for several incentives to help with your down payment:

✅ Home Buyers’ Plan (HBP)

You can withdraw up to $60,000 from your RRSPs tax-free for your down payment. You have 15 years to repay it.

✅ First Home Savings Account (FHSA)

A new program allowing you to save up to $8,000 per year tax-free (up to $40,000 total) towards your first home.

✅ Ontario Land Transfer Tax Rebate

First-time home buyers can receive a rebate of up to $4,000 on Ontario’s Land Transfer Tax.

3. Start Saving Early — Automate It

The earlier you start saving for your down payment, the better. Set up automatic transfers into a high-interest savings account or your FHSA. Treat it like a monthly bill you have to pay.

4. Consider a Gifted Down Payment

Many first-time buyers in Ontario receive help from family. A gift letter (from parents or a close relative) can be used to show the lender that the money is a gift and not a loan.

Make sure:

The funds are in your account at least 15–30 days before closing.

You provide a signed gift letter to your lender.

5. Avoid Common Mistakes

❌ Using your entire savings for the down payment. Keep a buffer for closing costs, moving expenses, and emergencies.

❌ Not getting pre-approved. Know how much you can afford before shopping for a home.

❌ Taking on new debt. Avoid large credit purchases during the mortgage approval process.

6. Work with a Mortgage Professional

Every buyer’s financial situation is different. A mortgage agent or broker can:

Help you maximize your down payment options

Connect you with lenders offering flexible solutions

Help you get pre-approved and lock in competitive rates

Final Thoughts

Saving for your first down payment may feel overwhelming, but with the right strategy and support, it’s absolutely achievable. Take advantage of government programs, stay disciplined with your savings, and surround yourself with the right experts.

You’re not just buying a property — you’re investing in your future.

Need help figuring out your budget or how much you can afford?
✅ Let’s connect and discuss your options. First consultations are always free!

Refinancing Your Mortgage in 2025.

Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

• Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.
• Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!
• Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!
• Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

• Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal cases where you wish to switch lenders without adding additional funds to your mortgage!
• Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.

No matter your plans or situation, please don’t hesitate to reach out to a DLC Mortgage Expert!