Who Are the Top Bank Mortgage Lenders?

The top bank mortgage lenders in Canada for 2025, based on market share, competitive rates, and specialized offerings, are primarily dominated by the “Big Six” banks, alongside notable credit unions and alternative lenders. Below is a detailed overview derived from recent sources, including Forbes Advisor, Money.ca, WOWA.ca, and other industry analyses, focusing on banks and financial institutions offering mortgages in Canada.

Top Bank Mortgage Lenders in Canada for 2025

The following banks and financial institutions stand out based on their mortgage offerings, rates, flexibility, and market presence, as evaluated by sources like Forbes Advisor and WOWA.ca. The list emphasizes banks but includes significant credit unions due to their competitive positioning.

1. Royal Bank of Canada (RBC)

• Market Share: Holds 21.7% of residential mortgage balances in Canada ($433.3 billion in Q2 2024), making it the largest mortgage lender.
• Key Features:
  • Offers a wide range of mortgage terms, including Canada’s only 25-year fixed-rate mortgage, ideal for long-term stability.
  • Competitive fixed-rate mortgages with rates as low as 4.95%–9.95% for various terms.
  • Special incentives: Up to $3,500 cash and 55,000 Avion points for eligible 3-, 4-, or 5-year fixed mortgages (offer expires August 31, 2025).
  • RBC Homeline Plan combines mortgages with a line of credit for flexibility.
• Why It Stands Out: Extensive branch network, personalized support, and competitive rates for conventional and high-ratio mortgages. Best for buyers seeking the stability of Canada’s largest bank.
• Drawbacks: Rates are not the most competitive compared to smaller lenders, and prepayment privileges are limited to 10%.

1. Toronto-Dominion Bank (TD)

• Market Share: 13.4% of mortgage balances ($268.7 billion in Q2 2024).
• Key Features:
  • Specializes in collateral mortgages, allowing borrowers to use home equity as collateral for additional credit, offering flexibility.
  • Rates range from 4.79% (2-year fixed) to 5.49% (1-year fixed), with a 5-year fixed at 4.19% (lowest among Big Six).
  • Flexible payment options, including customizable payment schedules and lengths.
  • 120-day rate hold for fixed-rate mortgages.
• Why It Stands Out: Known for excellent customer service, with the highest J.D. Power customer satisfaction ranking among big banks. Ideal for those seeking collateral mortgage flexibility.
• Drawbacks: Requires Canadian residency and two years of employment history, and service can be slow at times.

1. Canadian Imperial Bank of Commerce (CIBC)

• Market Share: 13.2% of mortgage balances ($264.5 billion in Q2 2024).
• Key Features:
  • Offers a variety of mortgage terms (5%–10% rates), with a 5-year fixed rate at 4.19% (lowest among Big Six).
  • Special programs for newcomers, including a foreign worker program, and up to $4,500 cash back for switching mortgages or $3,500 for new purchases (offers expire September 2, 2025).
  • Flexible prepayment options: Up to 20% annual prepayment, 100% payment increases, and accelerated payment schedules.
• Why It Stands Out: Best for newcomers to Canada and those needing refinancing, with competitive rates and extensive branch support.
• Drawbacks: Requires a good credit score unless qualifying under newcomer criteria.

1. Bank of Nova Scotia (Scotiabank)

• Market Share: 14.5% of mortgage balances ($289.4 billion in Q2 2024).
• Key Features:
  • Scotia Total Equity Plan (STEP) combines mortgages with a HELOC, allowing access to up to 80% of home value with customizable terms.
  • Rates range from 5.40%–9.75%, with a 3-year fixed at ~4.29% (uninsured).
  • Offers switching rebates up to $1,200 and appraisal fee waivers up to $300.
  • Flexible features like match-a-payment and miss-a-payment options.
• Why It Stands Out: Ideal for buyers wanting a flexible HELOC and those already banking with Scotiabank for seamless integration.
• Drawbacks: No special or discounted rates published online, requiring negotiation, and high-ratio mortgage rates are not readily available.

1. Bank of Montreal (BMO)

• Market Share: 7.6% of mortgage balances ($151.8 billion in Q2 2024).
• Key Features:
  • Offers the longest rate hold among major banks (130 days) for fixed-rate pre-approvals.
  • Rates around 7.04% for 5-year fixed, with a 3-year fixed at ~4.09%.
  • Generous prepayment privileges: Up to 20% extra payments or lump sums annually (10% on Smart Fixed) without penalties.
  • Supports fixed, variable, and HELOC options.
• Why It Stands Out: Best for variable-rate mortgages, as payments remain stable despite rate changes, adjusting only the principal-to-interest ratio. Strong for buyers seeking flexibility and transparency.
• Drawbacks: Rates are around national averages, not the lowest, and service can be slow.

1. National Bank of Canada (NBC)

• Market Share: Smaller, with $62.8 billion in mortgage balances (Q2 2024), focused primarily in Quebec.
• Key Features:
  • Rates from 4.95%–9.75%, with discounted rates for popular terms like 5-year fixed.
  • Offers a healthy range of mortgage terms, including short-term and open mortgages.
  • Tailored for self-employed borrowers in Quebec and Ontario, with flexible qualifying criteria.
• Why It Stands Out: Best for self-employed buyers in Quebec and Ontario, with competitive rates and a strong regional presence.
• Drawbacks: Smaller national footprint compared to other Big Six banks, limiting accessibility.

Notable Non-Bank Lenders

While the query focuses on banks, credit unions and alternative lenders are significant in Canada’s mortgage market, often offering competitive rates or flexibility for non-traditional borrowers:

• Meridian Credit Union
• Ontario’s largest credit union, managing $27.2 billion in assets.
• Offers competitive rates (e.g., 5-year fixed at ~4.00%) and unique products like the Flex Line Mortgage (combines mortgage with HELOC).
• Features include skip-a-payment, 20% annual lump-sum prepayments, and a “friends and family” mortgage for joint ownership.
• Best for: Competitive rates and flexible options, but limited to Ontario.
• Alterna Bank
• Rates from 4.34%–8.75%, with 11 loan options and a HELOC.
• Offers up to $1,000 in mortgage incentives for switching or legal fees.
• Best for: Buyers under $1 million seeking low rates, but capped at $1 million property value and not available for Quebec preapprovals.
• Tangerine Bank
• A digital bank offering competitive rates starting at 4.49% and a 120-day rate hold.
• Features portable mortgages, 25% prepayment privileges, and a dedicated account manager.
• Best for: Online applications and flexible prepayments, but limited to one variable-rate option (5-year) and not available for those with poor credit or bankruptcies.

Market Trends and Context

• Big Six Dominance: The Big Six banks (RBC, TD, CIBC, Scotiabank, BMO, NBC) hold 70% of Canada’s $2 trillion residential mortgage market (Q2 2024), with RBC leading due to its scale and offerings.
• Non-Bank Growth: Credit unions (21.88% of new mortgages) and alternative lenders like mortgage finance companies are gaining traction for offering competitive rates and flexibility, especially for non-traditional borrowers.
• Rate Environment: As of August 11, 2025, the best rates are 3.84% (5-year fixed), 3.89% (3-year fixed), and 3.90% (5-year variable), often from non-bank lenders like Coast Capital Savings or Alterna Bank. Big Six rates are slightly higher (e.g., CIBC’s 4.19% 5-year fixed).
• Economic Pressures: High household debt (185% debt-to-income ratio) and rising interest rates (Bank of Canada prime rate at 6.7%) make competitive rates critical, especially for younger buyers facing affordability challenges.

Recommendations for Choosing a Lender

• Compare Rates and Terms: Use platforms like Ratehub.ca or WOWA.ca to compare rates from Big Six banks and alternative lenders. For example, CIBC and TD offer the lowest Big Six rates at 4.19% for 5-year fixed.
• Consider Your Needs:
• Newcomers: CIBC’s newcomer programs are ideal.
• Self-Employed: NBC or B2B Bank offer flexible criteria.
• Flexibility: Scotiabank’s STEP or Meridian’s Flex Line Mortgage suit those wanting HELOC integration.
• Low Rates: Smaller lenders like Alterna or Tangerine may offer better rates than big banks.
• Work with a Broker: Mortgage brokers can access rates from multiple lenders, including banks and credit unions, to secure the best deal, especially for complex financial situations.
• Evaluate Incentives: Look for cash-back offers (e.g., CIBC’s $4,500 for switching) or rate holds (e.g., BMO’s 130-day lock) to maximize savings.

Critical Analysis

• Big Banks vs. Alternatives: Big Six banks offer stability and extensive services but often have higher rates and stricter criteria. Credit unions like Meridian or digital banks like Tangerine provide competitive rates and flexibility, especially for non-traditional borrowers, but may lack nationwide accessibility.
• Economic Context: With 60% of mortgages renewing by 2026 facing payment increases due to higher rates, choosing a lender with flexible prepayment options or long-term rate holds (e.g., BMO, Tangerine) is crucial.
• Younger Buyers: The pressure on Millennials and Gen Z to own homes, as noted in prior queries, makes lenders with first-time buyer programs (e.g., CIBC, RBC) or co-ownership options (e.g., Meridian’s friends and family mortgage) particularly relevant.

If you’d like a chart comparing mortgage rates across these lenders, a deeper dive into a specific bank’s offerings, or an analysis of X sentiment on mortgage experiences, let me know!