Ratebuzz
Posted February 14, 2025
In the Durham Region, which includes cities like Ajax, Oshawa, Pickering, and Whitby, securing the lowest mortgage rates typically requires default insurance. This insurance acts as a safety net for lenders, reducing their risk and allowing them to offer the lowest mortgage rates possible. For mortgages with less than a 20% down payment, this insurance is mandatory by law.
While it may seem counterintuitive to put down less and still receive the lowest mortgage rates, insured mortgages reduce costs and risks for lenders compared to uninsured loans. In cities across Durham, such as Oshawa with its growing housing market or Pickering’s popular family-friendly communities, having mortgage insurance can open up opportunities to secure the lowest mortgage rates for homebuyers. To qualify for the lowest mortgage rates, you’ll generally need:
- A credit score of 720 or higher (some lenders may have different requirements).
- A clean credit report with no derogatory marks in recent years.
- Monthly housing costs (including mortgage payments, heating, property taxes, and half of any condo fees) under 39% of your gross monthly income.
- A total debt load under 44% of your gross monthly income, including housing costs, loans, alimony, child support, and credit card balances.
- Verifiable income (e.g., job letter, pay stubs, or tax documents for self-employed individuals).
- A closing date within the lender’s rate hold period, often requiring closing within 30 days.
- A marketable home—properties in rural or niche areas, such as some parts of rural Whitby, may not qualify for the lowest mortgage rates.
Additionally, the size of your down payment plays a key role in the insurance required for your mortgage and, ultimately, the lowest mortgage rates you can secure. A larger down payment means less insurance and potentially a lower rate. In cities like Ajax or Whitby, where home prices can be more affordable compared to the GTA’s central core, a larger down payment could help you avoid mortgage insurance altogether and secure the lowest mortgage rates available.
Other factors influencing the lowest mortgage rates in Durham and the GTA include:
- Amortization period: Mortgages with terms over 25 years are often not insurable and may carry higher rates. However, longer amortization periods can reduce monthly payments, which may be especially appealing for buyers in areas like Oshawa, where affordable housing options often come with larger properties, though not necessarily the lowest mortgage rates.
- Property use: Mortgage rates for owner-occupied homes tend to be lower than for rental properties. Cities like Pickering, with its growing rental market, may see higher rates for investment properties and therefore miss out on the lowest mortgage rates.
- Mortgage type: Rates for refinances are typically higher than for renewals or purchases, meaning you may not secure the lowest mortgage rates when refinancing.
- Employment status: Steady income, verified through pay stubs or tax documentation, is essential. Self-employed individuals or those with irregular income may face higher rates and will likely miss out on the lowest mortgage rates.
- Credit score: A low credit score may limit your access to lenders offering the lowest mortgage rates and result in higher rates overall.
- Debt levels: Lenders consider your debt service ratio, and high levels of debt can lower your approval chances and result in missing out on the lowest mortgage rates.
At RateBuzz.ca, we make it easier for you to secure the lowest mortgage rates available. By visiting our website, you can get a live quote tailored to your specific situation in Durham or the GTA. Whether you’re in Ajax, Whitby, or Oshawa, we offer instant, real-time quotes that reflect current market conditions, so you can make informed decisions quickly. Comparing lenders and finding the best rate for your mortgage is easier than ever with RateBuzz.ca. Let us help you navigate the mortgage process and ensure you get the lowest rates available for your home purchase.
