Homes for sale in Montreal. Big banks hold the majority of mortgages in Canada, but most buyers don't know they can negotiate for a lower rate.Christinne Muschi/The Canadian Press
When it comes to mortgage rates, we all know that lower is better. But too many borrowers are paying rates close to those advertised by Canada’s big banks.
Now, our real-world data show just how wide the gap is between the mortgage rates big banks advertise and the rates that financially healthy borrowers can actually secure – if they negotiate well.
Let’s say you have a $500,000 mortgage. A difference of just one-tenth of a percentage point can cost you almost $2,500 in interest over a five-year term.
If you have a strong credit score, stable and sufficient income and negotiate with lenders, you could secure a mortgage rate 0.30 to 0.40 percentage points lower than the advertised rates – even those labelled “special rates.”
This translates to $6,000 to $10,000 in interest savings on a $500,000 mortgage over a five-year term.
Young Canadians struggling to meet mortgage payments about seven times more than rest of population
In Canada, the Big Six banks, along with Desjardins, collectively hold between 75 and 80 per cent of the residential mortgage market share. This market dominance, combined with the strong brand loyalty of Canadian consumers, allows them to advertise relatively high mortgage rates, since banks vary their rates based on an applicant’s financial profile, including factors such as credit score and income.
Many borrowers mistakenly assume they have little room to negotiate and miss out on substantial savings they could have secured if they had shopped around or negotiated more effectively.
At WOWA Data Labs, we collect anonymized mortgage data through multiple channels: user inputs from our calculators (e.g., closing cost and mortgage penalty calculators), surveys on our mortgage-rate pages and direct reports from mortgage brokers about the rates their clients actually receive.
One of the most valuable insights we collect is the real mortgage-rate offers borrowers receive when purchasing, renewing or refinancing their mortgages.
Between May 14 and June 22, 2025, we collected 232 entries of mortgage-rate offers for five-year fixed-rate conventional mortgages. The data show that the average rates offered by the Big Five banks (regardless of mortgage size) were significantly lower than their advertised rates:
*Scotiabank does not advertise its discounted mortgage rates and instead only publishes its higher posted rate, typically used for calculating mortgage penalties. Note: National Bank is excluded from this analysis owing to insufficient data.
In addition to the quantitative data, our continuing communication with broker channels has revealed that since September, 2024, the big banks have become more aggressive in retaining high-quality clients and, by extension, protecting their mortgage market share. Many are now willing to match or come close to the lowest available market rates to keep these borrowers.
In today’s high-interest environment, even a small difference in your mortgage rate can have a significant financial impact. Compare rates on online mortgage-rate platforms, negotiate confidently with your lender – and save thousands.
Hanif Bayat, PhD, is the CEO and founder of WOWA.ca, a Canadian personal finance platform.
