Recommended Mortgage Loan Products from Major Canadian Banks

Shopping for a mortgage in Canada? Here’s a quick guide to top mortgage products from Canada’s Big 5 banks (RBC, TD, Scotiabank, BMO, CIBC) tailored for first-time home buyers seeking low down payment and fixed-rate options, based on the latest 2025 data.

Royal Bank of Canada (RBC)

• Product: RBC Fixed-Rate Mortgage
  • Why Choose It: Offers 5-year fixed rates as low as 3.94% for insured mortgages, ideal for stable payments. Supports 5% down payments for homes up to $500,000 (or 5% on first $500,000 plus 10% on the remainder up to $1.5M for insured mortgages). Enhanced 30-year amortizations for first-time buyers reduce monthly payments.
  • Key Features: Rate lock up to 120 days, cash-back options up to $4,000, and online tools for pre-approval. Best for budget-conscious buyers seeking predictability.
• Alternative: RBC Home Equity Line of Credit (HELOC)
  • Why: Flexible access to equity with rates around 4.95%, ideal for buyers with 20%+ equity needing additional funds.

TD Canada Trust

• Product: TD 5-Year Fixed-Rate Mortgage
  • Why Choose It: Competitive rates starting at 3.99% for insured high-ratio mortgages, with a unique TD prime rate (5.1%) for variable options. Offers 30-year amortizations for first-time buyers and new builds, lowering payments. Digital application and rate lock for 120 days.
  • Key Features: Low 5% down payment, pre-approval tools, and flexible prepayment options (up to 15% annually). Great for first-time buyers with strong credit.
• Alternative: TD Green Mortgage
  • Why: Offers rate discounts for energy-efficient homes, appealing to eco-conscious buyers.

Scotiabank

• Product: Scotiabank StartRight® Mortgage
  • Why Choose It: Designed for first-time buyers, offering 5-year fixed rates around 3.79% for insured mortgages and 5% down payments. Supports 30-year amortizations and includes the STEP program for combined mortgage and HELOC flexibility.
  • Key Features: No default insurance fees for switchers, online calculators, and newcomer-friendly options accepting international credit. Ideal for new Canadians or first-time buyers.
• Alternative: Scotiabank Fixed-Rate HELOC
  • Why: Locks in a fixed rate for part of your HELOC, blending flexibility and stability.

Bank of Montreal (BMO)

• Product: BMO Smart Fixed Mortgage
  • Why Choose It: 5-year fixed rates as low as 3.74% for insured mortgages, with 5% down payment options. Extended 30-year amortizations for first-time buyers reduce monthly costs. Cash rebates up to $4,000 for qualifying mortgages.
  • Key Features: Low-frills option for cost savings, 120-day rate hold, and digital pre-approval. Perfect for buyers prioritizing low rates.
• Alternative: BMO Eco Mortgage
  • Why: Incentives for energy-efficient upgrades, appealing to sustainable home buyers.

CIBC

• Product: CIBC Fixed-Rate Closed Mortgage
  • Why Choose It: 5-year fixed rates starting at 3.89% for insured mortgages, with 5% down payment and 30-year amortization options for first-time buyers. Offers up to $3,000 cash back and a 120-day rate lock.
  • Key Features: Online application, flexible prepayment (10% annually), and support for new builds. Great for buyers seeking simplicity and affordability.
• Alternative: CIBC Home Power Plan
  • Why: Combines a mortgage with a HELOC, ideal for buyers planning renovations.

Key Considerations

• Low Down Payment: All banks support 5% down for homes up to $500,000 (or tiered for higher values), but mortgage default insurance is required for less than 20% down, with premiums from 0.6%–4.5%.
• Fixed-Rate Benefits: Fixed rates (3.74%–3.99% for insured mortgages) offer stability amid economic uncertainty, with bond yields at 2.488% driving lower rates.
• First-Time Buyer Perks: New 2024 rules allow 30-year amortizations for all first-time buyers and new builds, with insured mortgage caps raised to $1.5M.
• Compare Lenders: Rates vary by credit score (680+ for best rates), income, and loan-to-value ratio. Use mortgage brokers or tools like Ratehub.ca to compare.

Final Notes

Canada’s Big 5 banks offer competitive fixed-rate mortgages with low down payment options, boosted by 2024 reforms for first-time buyers. Check bank websites (e.g., RBC, TD) or consult a broker for personalized rates. With rates expected to dip further in 2025 (potentially to 2.25% policy rate), lock in early to save.

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Disclaimer: Rates and terms are based on bank websites and industry sources as of May 2025. Verify with lenders for current offers, as conditions may change.