Black Friday Mortgage Deals in Canada: Are They Actually a Thing?

If you've been searching for a Black Friday mortgage in Canada, you're probably wondering if there are special rates or deals you can take advantage of.

The short answer is: sometimes, but not in the way you might think.

Is there a Black Friday mortgage rate?

No. There isn't a standard Canadian "Black Friday mortgage sale" where every lender drops their rates for one day. Mortgage rates don't work like TVs and appliances. They're driven by bond yields, the Bank of Canada, lender pricing and competition, and the rate you qualify for depends on your mortgage type, property, down payment, credit, income and amortization.

So are there Black Friday deals?

Sometimes. Lenders and brokerages have run special rates and cash-back offers around Black Friday in the past, so an ad you see isn't necessarily made up.

The catch is that these offers can be very specific. A special rate might only apply to certain mortgage types, terms or borrowers, and cash back often comes with a higher rate or other conditions. A mortgage with a slightly lower rate isn't the better one if the penalty is higher or the prepayment privileges are worse.

Should I wait for Black Friday?

Usually, no. A lender isn't going to lower its rate just because of the date, and if you're buying, waiting can put your financing at risk. If you find the right house and have a deadline coming up, you don't want to be watching for a banner ad.

A rate hold is the better protection. Many lenders will hold a rate for 90 to 120 days while you shop, so you don't need to time anything to a single day.

If you're renewing, refinancing or switching lenders, it's the same idea: the best deal isn't the one with the biggest advertising banner.

The best mortgage deal isn't always the lowest rate

This is probably the most important part. When you're comparing mortgages, also look at:

• Fixed vs. variable
• Mortgage term
• Amortization
• Prepayment privileges
• Penalties
• Portability
• Whether the mortgage is insured or uninsured
• Cash-back requirements
• Any restrictions on refinancing or breaking the mortgage

A rate that is 0.05% lower isn't necessarily worth choosing if the mortgage is much less flexible. The "best" mortgage depends on what you're trying to do with it.

What I'd do instead

Don't feel like you have to wait for a Friday in November to get a good deal. Lenders don't save all their best rates for one day.

If you're buying, renewing or refinancing, I can compare the options and look at the whole mortgage, not just the advertised rate. Get in touch or try the mortgage payment calculator to see what a rate difference means in dollars.

omparing your actual options is much more useful than waiting for a particular shopping day.