HomebuyingEverything you need to know about portable mortgages
This article has been updated from a previous version. You know how when you move, you take almost everyth...
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Drummondville bills itself as Quebec’s “Capital of Expressions and Traditions,” focusing on culture and tradition. One of its main attractions is the Village Québécois d'Antan, a historical village and museum that showcases what life was like in Quebec during the 19th century. Just over an hour east of Montreal, Drummondville is a bustling centre of Quebecois culture. Drummondville is also home to Promenades Drummondville, a large shopping mall; a Quebec Major Junior Hockey League (QMJHL) hockey team; and Festival de la Poutine, an annual poutine festival.
Those who want to live in a smaller metropolis, with quick access to a major city like Montreal, might be interested in a move to Drummondville. Luckily, LowestRates.ca makes it easy for you to compare mortgage rates for Drummondville from 50+ banks and brokers across Canada. At the top of this page, just tell us whether you’re buying a home, renewing or refinancing. In just three minutes, we’ll show you mortgage rates for Drummondville.
Variable Rates
As low as
5.50%
Fixed Rates
As low as
4.39%
Cha-ching! Our rates are always lower than the posted bank rates.
Current lowest posted bank rate
6.84%
Conventional vs. high-ratio mortgages: which is cheaper?
One of the first things you’ll need to consider when purchasing a home is how much money you have for a down payment. Based on the size of your down payment relative to the price of the property you want to buy, your mortgage will be classified as either conventional or high-ratio. Mortgage companies in Drummondville (and across Canada) will lend to buyers seeking either conventional or high-ratio mortgages.
A conventional mortgage is one where the buyer has at least 20% of the home’s purchase price as a down payment. Because of the substantial down payment, conventional mortgages allow buyers to lower their monthly mortgage costs. The downside is that it typically takes a buyer longer to purchase a home, since they must first save 20% of the home’s purchase price.
A high-ratio mortgage requires a smaller down payment. High-ratio mortgages are ones with a down payment of less than 20% of the purchase price. High-ratio mortgages require the buyer mortgage default insurance, which is an additional cost that is rolled into a borrower’s monthly mortgage payments. Since these mortgages are insured, lenders typically offer the cheapest mortgage rates in Drummondville for high-ratio mortgages.
Conventional 5-year fixed mortgage rates vs. high ratio 5-year fixed mortgage rates in Quebec
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 01/24 | 5.07% | 4.72% |
| 02/24 | 4.84% | 4.72% |
| 04/24 | 5.17% | 4.39% |
| 05/24 | 4.79% | 4.39% |
| 06/24 | 4.99% | 4.39% |
| 07/24 | 4.83% | 4.39% |
| 08/24 | 4.90% | 4.51% |
| 09/24 | 4.84% | 4.69% |
| 10/24 | 4.94% | 4.79% |
Last Updated: November 1, 2024
Fixed rate vs. variable rate mortgages: which is cheaper?
The best mortgage lenders in Drummondville offer both fixed and variable mortgage rates. Again, rates are historically low for both types of mortgages, so the one you choose will likely depend on your risk tolerance. Let’s take a look at fixed mortgage rates and variable mortgage rates in Drummondville to see which might be a better fit.
A fixed-rate mortgage means the interest rate stays the same over the entire mortgage term. Say you sign up for a five-year fixed rate of 1.8%. Your mortgage payments will remain the exact same over the entire five years, and your interest rate won’t change from 1.8%. Fixed rates are a great option for people who enjoy consistency or who might believe interest rates will go up during their mortgage term.
A variable-rate mortgage means the rate may fluctuate. Variable rates are based on lenders’ prime rates, which vary based on a number of factors, including the Bank of Canada’s overnight lending rate. This means a variable rate might go up or down during the mortgage term. Depending on the type of variable-rate mortgage, either your mortgage payment amount will change, or the amount of interest vs. principal paid changes. Variable rates are a great option for borrowers who believe interest rates will decrease over their mortgage term.
You can speak to a mortgage professional to determine which mortgage rate type is best for you, whether you’re on the hunt for bank or broker mortgage rates in Drummondville.
5-year fixed vs. 5-year variable mortgage rates in Quebec
| Month | Fixed | Variable |
|---|---|---|
| 11/23 | 4.64% | 5.90% |
| 12/23 | 4.78% | 5.90% |
| 01/24 | 4.88% | 5.90% |
| 02/24 | 4.84% | 5.90% |
| 03/24 | 4.54% | 5.90% |
| 04/24 | 4.99% | 5.90% |
| 05/24 | 4.58% | 5.90% |
| 06/24 | 4.73% | 5.90% |
| 07/24 | 4.83% | 6.05% |
| 08/24 | 4.78% | 6.05% |
| 09/24 | 4.75% | 6.05% |
| 10/24 | 4.88% | 6.35% |
Last Updated: November 1, 2024
Factors that affect your Drummondville mortgage rate
There are several factors lenders use to calculate your Drummondville mortgage rate. Lenders will take a look at each of these factors when determining the size of the mortgage and the rate that a borrower qualifies for. These include down payment, debt service ratio, credit score, and income.
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Typical mortgage amounts in Drummondville
Let’s play around with some numbers to calculate the cost of purchasing a home in Drummondville using Lowestrates.ca’s mortgage payment calculator.
We’ll assume a home cost of $365,000, which was the median cost of a home in Quebec in August 2021, according to the Quebec Professional Association of Real Estate Brokers. We’ll also assume a mortgage interest rate of 2% and an amortization period of 25 years.
First, we’ll assume a 5% down payment, which — for a home costing $365,000 — is $14,600. In this scenario, the monthly mortgage cost would be $1,530. That monthly cost also includes mortgage default insurance, which is required for all homes purchased with less than 5% down (in this case, mortgage default insurance is $14,600, amortized over 25 years).
Now, let’s take a look at the monthly cost if a buyer were to put 20.12% down instead of the minimum 5%. The monthly payment (which now doesn’t include mortgage default insurance) drops to $1,235 per month.
Drummondville ’s housing market and home prices
Drummondville’s real estate market has been heating up over the past year. But compared to the rest of Quebec, Drummondville is still very affordable. According to Centris.ca, a real estate statistics portal for real estate agents in Quebec, the median Drummondville single-family home price increased 34% year-over-year in Q2 2021 to $272,000.
That’s significantly more affordable than the benchmark Canadian home price, which was $663,503 in August. Condos, meanwhile, are even more affordable in Drummondville; the median condo price in Q2 this year was $187,500.
The Drummondville market has also been busier in 2021 than it’s been in the past. Sales were up 13% in Q2 2021 and new listings were up 74%.
Drummondville closing costs and land transfer tax
In addition to your down payment, buying a home also requires closing costs, which must be paid before you take ownership of a new home. Closing costs typically run between 1.5%-5%. Typical closing costs include:
- Title insurance
- Property valuation fees
- Legal fees
- Home insurance
- Goods and services tax (GST) when you purchase a new home from a builder
- Mortgage default insurance (if your down payment is less than 20%)
- Quebec sales tax (QST) on mortgage default insurance premiums. The QST on premiums is 9.975%
- Moving costs
- Utility installation
- Home inspection fees
Land transfer taxes are another closing cost. Quebec charges a land transfer tax also referred to as the “welcome tax.” The welcome tax is applied at a marginal rate on different tranches of the home’s price:
- 0.5% on the first $52,800
- 1% on the amount between $52,801 and $264,000
- 1.5% on the amount above $264,000
Welcome taxes are to be paid within 30 days of receiving the notice, which is sent within one to four months of the home purchase.
Because closing costs can add up, it’s a good idea to set aside a slush fund, in addition to your down payment, to ensure you can cover them all.
Your questions about Drummondville mortgages, answered.
What’s the difference between a mortgage term and an amortization period?
Mortgage term and amortization period are two important measures of time to consider when looking for current mortgage rates in Drummondville.
A mortgage term is the amount of time a borrower agrees to pay a specific rate. For example, a borrower who signs a contract for a five-year fixed rate at 2% agrees to pay that specific rate for five years.
An amortization period is the entire lifecycle of a mortgage. When choosing one of today’s mortgage rates in Drummondville, you’ll also have to choose an amortization period. They typically run 25 to 30 years. A longer amortization period consists of several mortgage terms.
What’s the difference between an open mortgage vs. a closed mortgage?
When doing a mortgage rates comparison in Drummondville, it’s important to consider other factors in addition to getting the lowest interest rate. Mortgage lenders in Drummondville offer both open and closed mortgages, and the one a borrower chooses is a matter of preference.
Open mortgages allow the borrower to make additional mortgage payments, called prepayments, over and above their regular payments without penalty. Open mortgages are a great option for people who would like to pay off their mortgage faster.
Closed mortgages, on the other hand, have a set amount of prepayments that are allowed — some closed mortgages don’t allow any type of prepayments at all without incurring financial penalties. While they are less flexible than open mortgages, closed mortgages typically come with lower mortgage rates.
How much does it cost to live in Drummondville?
The average mortgage rate in Drummondville is at historical lows, meaning your mortgage payments will be more affordable than they might have been in the past. However, your housing costs — whether you purchase a home or rent a home — are just one aspect of cost of living.
Buying a home also requires the owner to pay property taxes and cover all utilities. Many people who live in Drummondville will also want to own a car, which has its own additional costs. That might include monthly car payments and will definitely include gas payments, maintenance costs, and insurance payments.
Luckily, for car owners in Quebec, the province has the country’s lowest car insurance rates. According to the Insurance Bureau of Canada, the average yearly car insurance premium in Quebec is $717 and the average monthly premium is $59.75. Compare that to the highest insurance premiums in Canada, which is $1,832 per year (paid by drivers in B.C.) and Quebec drivers are actually getting a great deal on their insurance.
How much does getting a lower interest rate matter in Drummondville?
If you’re on the hunt for home mortgage rates in Drummondville, you’re likely looking for the lowest possible interest rate. That’s important to ensure you’re paying the lowest possible monthly mortgage costs. However, a good rate is only one aspect of the perfect mortgage. There are some other factors to consider as well, including prepayment privileges, penalties and portability.
Prepayment privileges: Prepayment privileges allow a borrower to make additional payments on top of your regular monthly mortgage payments. So, say you earn some extra cash and want to put it toward your mortgage, prepayment penalties allow you to do that. This means you can pay off your mortgage before the end of the amortization period.
Penalties: Certain mortgages have penalties for various things. Some may penalize a borrower for making prepayment penalties or for breaking your mortgage early (say, in the case of selling their home before the end of your mortgage term). It’s important to take a look at penalties associated with a mortgage and try to predict whether or not you might want to do something that would incur a penalty over the course of the mortgage term.
Portability: Finally, portability allows a borrower to move their mortgage from one home to another. This is a great option for a homebuyer who might want to move before the end of their mortgage term. Like prepayment privileges, portability is something you need to negotiate before signing your mortgage contract.
Your questions about LowestRates.ca, answered.
How are mortgage rates determined on LowestRates.ca?
LowestRates.ca works with 50+ banks and brokers to bring you competitive mortgage rates from lenders in Canada. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Is it safe to get a mortgage online?
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.
How do I know I’m getting the lowest rate?
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
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