Scotiabank Mortgage Rates | Are They Good for Investing In Residential or Business Real Estates

August 3, 2021 | Editorial Team

Scotiabank is one of Canada’s Big Five banks, and for a good reason. Scotiabank has been around since 1832 and now has over 25 million customers worldwide. Scotiabank offers a wide range of accounts, card types, and mortgage types for all you Canadian home owners.

A home is likely one of the most expensive items you will ever purchase. So expensive, in fact, that you will likely need to take out a mortgage to help pay for your home. Scotiabank offers great mortgage products, which we’ll go over in greater detail throughout this guide. So, if you are in the market for a mortgage for your new home, Scotiabank is a great option. On that note, we also give the mortgage reviews from other Canadian top banks such as TD Bank, CIBC, or True North. Moreover, we provide insight into mortgage deals in the cities of Ottawa and Calgary, just to name a couple. Now, keep reading to find out more about what Scotiabank has to offer!

Scotiabank Mortgage Rates

Mortgage rates at Scotiabank are available at a variable rate, a closed or open term fixed-rate, and a short term fixed-rate. A variable rate is available for three years to five years. A closed term fixed-rate is available from 1-year up to a 10-year option. A short-term fixed rate is only available from 6 months to 1 year.

These three mortgage rates can then be further divided into four different mortgage rates for Scotiabank. Posted, broker, special offer, and discretionary rates.

A posted mortgage rate is the base, non-discounted mortgage rate. A broker rate is a rate that a broker can get for you. A special offer rate is a discounted rate, typically advertised on Scotiabank’s website. Finally, a discretionary rate is often one of the best mortgage rates available. It is typically a rate reserved for customers who do a lot of business with Scotiabank.

To help you decide which Scotiabank mortgage rates are the best for you, use the Scotia bank mortgage calculator. It will provide you with personalized information to help you pick the best mortgage rates for your situation.

5-Year Fixed Rates: What You Need to Know

What are 5-Year Fixed Mortgage Rates?

A 5-year fixed mortgage rate is when your mortgage’s interest rate is the same for the first five years that you have the mortgage. The Scotiabank mortgage rate for five years is 4.790%. If your mortgage is not paid off after the five years, you will have to renew your mortgage with Scotiabank. If the interest rates have gone up at this point, you will have to pay the new rates.

Having a fixed interest rate can be beneficial in helping you plan your finances for the next five years. Having a fixed rate for five years will also give you peace of mind against rate changes. Your rates can’t unexpectedly go up or down without you knowing.

This can, however, also be a negative. Interest rates could lower during your five year period, but you will have to continue paying the interest rate you agreed on originally.

Five year fixed mortgage rates also tend to be more expensive than a ten year rate. Banks like Scotiabank prefer to give out long-term mortgages for your home, so they make more money in the long term.

How Much Can I Save Comparing 5-Year Fixed Rates?

How much you can save with a 5-year fixed-rate mortgage with Scotiabank varies. From Scotiabank, a 5-year fixed-rate mortgage is 4.90%. A 5-year closed variable rate mortgage with Scotiabank right now is 2.650%. That means the fixed rate is almost double the variable rate, so you wouldn’t be saving anything. But, a 5-year open variable rate mortgage with Scotiabank is 5.750% right now. So, your savings would be 0.85%.

Why are Fixed Rates Different to Variable Rates?

Fixed rates can be applied to any type of interest, not just to mortgages. With regards to a Scotiabank mortgage, however, fixed rates provide customers with the guarantee that their rate will not change during the term they agree upon. For example, if a customer chooses a 10-year mortgage rate of 4.50%, they will pay 4.50% for the entire ten years.

On the other hand, a variable rate can fluctuate throughout your mortgage period. Variable rates change based on market interest rates. This means you may see a lower rate at the beginning of your mortgage term, but it could go higher as the years go by.

This is why many people prefer fixed rates; they provide security. You know what you’ll be paying for your mortgage, so you can budget accordingly. In agreeing to fixed rates, however, you agree to pay that rate for the whole term even if the market interest rates end up lower.

Scotiabank offers both types of rates, so choosing which one is best for you is up to you! A Scotiabank advisor can help you decide if you’re stuck or even help you get pre-approved for a mortgage. The interest rate they offer you will be guaranteed for 120 days, so no pressure.

Are 5-Year Mortgages Better Than Other Mortgage Terms?

Unfortunately, there’s not one single answer to what the best mortgage term is. Every home and person has different needs when it comes to mortgages. That being said, a 5-year mortgage is often a good place to start as it is sort of a middle ground. Five years is a good amount of time. It’s not too long that you feel stuck to one rate, but it is long enough that you feel stable and can budget for the future.

Scotiabank also offers three different types of mortgages for a five-year period, so you get a lot of options with this term length. You likely won’t pay off your home in five years, though, so don’t forget you will need to renew your mortgage when your five years are up.

The Bottom Line

Buying a new home can be stressful, but it should also be exciting. It will likely be one of the biggest accomplishments in your life, and Scotiabank wants to help make that happen. They offer a wide range of mortgage products to help new and old home owners get their dream home.

Choose from variable rates, fixed rates, and even short-term options. Scotiabank advisors can help you decide which option (see also mortgage for the self-employed) is the best for you but ultimately, the decision is yours. Scotiabank does not want to pressure potential customers into making any decisions, so any rates they offer you are guaranteed for 120 days.

If you’re still not sure about what type of mortgage you’re looking for, try the Scotiabank mortgage calculator. You can input the amount your mortgage needs to be, the type of mortgage and length. Then, the calculator will show you what your potential monthly payments will be. This is a great way to see what kind of mortgage type and term you can afford.

With over 25 million customers worldwide, Scotiabank is one of the biggest banks in Canada. As such, Scotiabank has built a great reputation, so you can rest assured that you and your home are in good hands. Head over to the Scotiabank website now to apply online for a mortgage or book an appointment with a financial advisor.