PC Financial Mortgage Rates Review For 2022

Are you looking for PC Financial mortgage rates? This post got you covered!

The ongoing inflation caused by the COVID-19 pandemic and the Russia-Ukraine war has impacted both fixed and variable mortgage rates in Canada. 

This is not unconnected with historic events where changes in prime rates and government bond increases result in higher mortgage rates. 

However, that doesn’t imply that there are no competitive mortgage rates today. In fact, you can get a 5-year fixed and variable mortgage below 5% through the best mortgage rates in Canada.

The fundamental question is, does President’s Choice Financial offer competitive mortgage rates? If not, what are the best alternatives to PC Financial mortgage rates? 

Let’s find out!

Overview of PC Financial

PC Financial is an online bank that’s operating as a division of Loblaw Companies Limited. The bank was founded in 1996 as a joint institution with the Canadian Imperial Bank of Commerce (CIBC).

At its inception, PC Financial offered joint banking and financial services with CIBC which includes savings accounts, chequing accounts, loans and mortgages.

But when Loblaw Companies ended its joint venture with CIBC in 2017, the partnership of PC with CIBC also ended that same year.

Consequently, PC Financial was restricted to offer limited banking products such as prepaid cards and credit cards.

Despite such limited products, PC was able to attract over 3 million Canadians within a few years of reconstruction. 

Does PC Financial Offer Mortgages?

Not anymore. From the above overview of PC Financial, you will understand that the bank used to offer mortgages when it operated jointly with CIBC from 1996 to 2017.

Following their separation, PC Financial was reconstructed to offer only prepaid cards and credit cards under the Mastercard network.

The previous mortgage products offered by PC Financial are now available at Simplii Financial, the online banking division of CIBC. 

Those who had mortgages with PC from 1996-2017 were automatically moved to Simplii Financial following the termination of PC’s joint venture with CIBC. 

As of today, you can access mortgages, savings accounts, chequing accounts, credit cards, lines of credit, personal loans, mutual funds, and GICs through Simplii Financial.  

PC Financial Mortgage Rates

Since PC financial mortgages are now offered by Simplii, there are no PC Financial mortgage rates. Instead, we have Simplii Financial mortgage rates which are highlighted below:

Compared to the other mortgage posted rates in Canada, the Simplii Financial posted rates are not among the best. However, Simplii outshines other mortgage lenders with special rates which are highlighted below:

Source: Simplii.com

About Simplii Financial Mortgage

The Simplii Financial mortgage is one of the products that was moved from PC Financial in 2017 following the expiration of its venture with CIBC. 

Whether you’re looking to buy a home, transfer your mortgage, or refinance your existing mortgage, you can count on Simplii Financial.

Even though Simplii has average mortgage posted rates, the bank distinguished itself from the competition with special mortgage rates, flexible payment options, special mortgage programs, add-on mortgage life insurance coverage and more. 

But is the Simplii mortgage right for you? Keep reading to find out.  f

Simplii Mortgage Types

Simplii offers a wide range of mortgages suitable for different kinds of situations. In this section, we’re going to take an overview of Simplii mortgage types and their posted rates. 

Fixed-Rate Mortgages

The Simplii fixed mortgage rates function like other fixed mortgage rates. That’s, they remain the same throughout the entire mortgage term.

Getting a fixed mortgage rate will protect you in the event of sudden market fluctuations. That way, you can be certain of your mortgage payment throughout the mortgage term. 

The amount of fixed rate you pay depends on the mortgage term you sign with. But Simplii has 2-year to 10-year fixed mortgage terms whose rates are determined by government bond yield. The Simplii fixed mortgage rates are highlighted below:

*Even though a 5-year fixed mortgage is the most popular mortgage term, the Simplii 5-year posted rate doesn’t compete significantly with similar rates in Canada.

Variable-Rate Mortgages

Simplii’s variable mortgages are the opposite of fixed mortgages because their rates can fluctuate throughout a mortgage term.

Changes in variable rates are usually determined by prime rates. The current Simplii’s prime rate is 5.45%, which is the same current prime rate in Canada.

But with that same prime rate, other mortgage lenders offer competitive variable rates than Simplii. This is because Simplii’s 5.45% variable is one of the highest in Canada.

High-Ratio Mortgages

A high-ratio mortgage is a mortgage with less than a 20% down payment. With high-ratio mortgages, most mortgage lenders require mortgage insurance to protect themselves against default payments. 

While a high-ratio mortgage will give you access to your dream home according to your budget, it will increase your overall mortgage payment.

That being said, the following are the fixed and variable rates of Simplii’s high-ratio mortgages: 

• 5-year fixed: 5.89%
• 5-year variable: 5.45%

Convertible Mortgages

Do you want to limit your mortgage renewal? You should consider switching your mortgage term from short-term to long-term. That’s exactly what a convertible mortgage helps you achieve.

Besides reducing your renewal frequency, converting your mortgage to long-term will also save you from sudden interest fluctuations. 

As of the time of writing, the following are Simplii Financial’s convertible mortgage rates:  

• 6 months: 6.19%
• 12 months: 5.14%

Key Features of Simplii Financial Mortgage 

Even though Simplii has high mortgage posted rates, it covers up with competitive perks that are lacking even among the big banks. This section discusses the key features of Simplii Financial mortgage for your consideration: 

1. Flexible Payment Options 

With Simplii Financial, you will enjoy flexible payment options on your mortgage. You can choose to pay your mortgage weekly, bi-weekly or monthly. These flexible payment options will help you pay off your mortgage without any pressure.  

The interesting part is that you can increase your Simplii variable mortgage payment as much as you can. But if you sign-up for Simplii fixed mortgage, you can increase your annual mortgage payment by up to 25% of the original balance without a penalty.

With such flexible payment options, you can pay off your Simplii mortgage faster than you would with other lenders. This will directly reduce your interest payment and save you cost. 

2. Mortgage Pre-approval

Do you want a personalized mortgage solution? You can apply for mortgage pre-approval at Simplii Financial online or on phone at 1-888-236-6362.

With a mortgage pre-approval, you will get a breakdown of how much it will cost you to get a mortgage from Simplii. The mortgage pre-approval will also help you understand the amount you can borrow and your regular payment amount.

When applying for a Simplii mortgage pre-approval, you will be required to provide your personal and employment details alongside information about your debts and assets.

When Simplii approved your mortgage pre-approval application, you can lock down a fixed mortgage rate for up to 45 days. This gives you enough time to compare and contrast different mortgages.

3. Special Mortgage Programs

Simplii offers tailored mortgage solutions to different individuals in Canada. The special mortgage programs are available for medical professionals, new Canadians, foreign workers and so on.

Accordingly, the benefits of the Simplii special mortgage programs vary depending on a client’s goals and work type.

For more information about the benefits and eligibility of the programs, visit this page. 

4. Helpful Calculators

A single error could cost you thousands of dollars on your home-buying journey. But with mortgage calculators, you can take guesswork out of the way and focus on reality.

Simplii helps clients make informed home-buying decisions by offering access to the following helpful calculators: 

• Mortgage affordability calculator
• Mortgage payment calculator
• Mortgage prepayment charge calculator

The calculators are easy to use for anyone that can operate a smartphone. You can check them out using this link.  

5. Mortgage Life Insurance

Unlike the high-ratio mortgage that protects the lender, a mortgage life insurance covers the borrower. Simplii offers access to mortgage life insurance through Canada Life which helps protect your family in case you passed away while paying your mortgage.

With a mortgage life insurance from Simplii, you will get up to $750,000 mortgage coverage. Depending on your mortgage balance, the mortgage life insurance can pay off your entire balance when you’re no more. 

While this will add up to your overall mortgage cost, it provides long-term security to your family even when you’re no more. 

6. Referral Bonus

Another interesting aspect of Simplii mortgage lies in the competitive referral bonus it comes with. 

As a Simplii mortgage client, you will get a $500 bonus per each person you refer to apply for a Simplii mortgage using your referral code. On the other hand, your referral will earn a $100 bonus for signing up with your link. 

The interesting part is that you can refer as many people as you can to earn the same $500 bonus. All you need to do is to have a Simplii savings account, chequing account or personal line of credit to qualify for the referral program.

How to Apply For a Simplii Financial Mortgage

The application process for a Simplii mortgage is the easiest of all as everything is done online. However, you must meet the following requirements to qualify for a Simplii mortgage: 

• Be a resident of any province/territory of Canada excluding Quebec
• Reach the age of majority in your province/territory 
• Be willing and able to pay the minimum principal amount of $35,000
• Have a qualified credit score
• Have required documents

Once you meet the above requirements, you can initiate a mortgage application with Simplii. To get a customized result, you can start with mortgage pre-approval to get the picture of what you’re getting into.

But if you’ve already found your dream home, you can start your mortgage application immediately by visiting this page. 

When you’re done with the online application, Simplii’s representative will contact you within 1 business day to discuss the next step.

Alternatives to PC Financial Mortgage Rates

There has not been a PC Financial mortgage since the product was moved to Simplii in 2017. But from the above review, you will notice that the Simplii mortgages are not competitive in terms of posted rates. 

Since the Simplii mortgage rates don’t measure up with the best mortgage rates in Canada, it’s essential to compare other options. 

That being said, below is a highlight of the best 5-year fixed and variable mortgage rates in Canada for your consideration.

Compared to Simplii’s 5-year fixed and variable mortgage rates, there are wide gaps in between. As a result, you will save more with Butler Mortgage because it has the lowest rate on 5-year fixed and variable terms. 

Verdict on PC Financial Mortgage Rates Review

The absence of PC Financial mortgage rates is not the end of the world as there are several alternatives to contend with. 

But while the Simplii Financial mortgage that succeeded the PC mortgage has low special rates, it has high posted rates. 

So if you’re looking to save more on your mortgage journey, you should consider the above alternatives with the lowest rate and APR. But to make an informed decision, you should work with your financial advisor throughout the process. 

Hopefully, now you’re more informed about the best alternatives to PC Financial mortgage rates and how to get the perfect deal. 

If you need more clarification, kindly drop your concerns in the comment section or contact our team at [email protected].