PC Financial Mortgage Rates vs Simplii Mortgage Rates 2024
With mortgage rates going off the roof, there’s no better time to shop for the best deals regardless of whether you’re looking to buy a new home or refinance your existing mortgage.
We can easily understand the reason behind the historic mortgage rate increases when we factor in the inflationary impact of the pandemic and the ongoing Russia-Ukraine war. As a result of this, both variable and fixed mortgage rates have continued to increase significantly.
Back in those days, PC Financial used to be among the providers of the best mortgage rates in Canada as those other online banks.
But what changed today? Does PC Financial still offer the best mortgage deals? Does it even offer a mortgage in the first place? What should be the best alternatives to PC Financial mortgage?
In this PC Financial mortgage rates review, I cover everything you need to know to make a cost-effective mortgage journey.
Does PC Financial Offer Mortgages?
PC Financial mortgages no longer exist. There used to be PC mortgages when PC Financial operated jointly with the Canadian Imperial Bank of Commerce (CIBC) between 1996 to 2017.
But when the joint operation ended in 2017, CIBC shifted its products to a new online bank known as Simplii Financial. Part of the products shifted include PC mortgages, loans, savings accounts and chequing accounts.
Today, PC Financial only offers prepaid and credit cards. To access its previous mortgages, you have to visit Simplii Financial.
But is it worth taking a mortgage at Simplii Financial? What are the Simplii Financial mortgage rates?
Continue reading to learn more about Simplii mortgages, their pros and cons including how they compare.
What are the PC Financial Mortgage Rates?
The PC Financial mortgage rates were replaced by Simplii Financial mortgage rates in 2017. This means that PC Mortgage rates no longer exist.
That being said, the following are the current posted rates of Simplii Financial mortgages as of May 6, 2024:
| Term | Posted Rate |
| 2-year fixed term | 7.09% |
| 3-year fixed term | 6.94% |
| 4-year fixed term | 6.74% |
| 5-year fixed term | 6.79% |
| 5-year variable term | 7.20% |
| 7-year fixed term | 7.19% |
| 10-year fixed term | 7.39% |
Obviously, the Simplii mortgage posted rates are among the highest out there. Let’s now take a look at the Simplii mortgage special rates.
| Term | Special Rate |
| 2-year fixed term | 6.64% |
| 3-year fixed term | 5.59% |
| 4-year fixed term | 5.74% |
| 5-year fixed term | 5.49% |
| 5-year variable term | 6.95% |
Even though the Simplii mortgage special rates are equivalent to the mortgage APRs, they’re still not among the best. Although the Simplii 5-year variable special rate competes with other variable rates out there.
So is it worth taking a Simplii mortgage? We can’t conclude yet. Let’s learn more about what the mortgage entails.
Simplii Mortgage Rates
To make things clearer, below I highlight the posted and special mortgage rates of Simplii Financial fixed and variable mortgage as of May 6, 2024:
| Term | Posted Rate | Special Rate |
| 2-year fixed term | 7.09% | 6.64% |
| 3-year fixed term | 6.94% | 5.59% |
| 4-year fixed term | 6.74% | 5.74% |
| 5-year fixed term | 6.79% | 5.49% |
| 5-year variable term | 7.20% | 6.95% |
From the above table, it’s obvious that Simplii has some of the highest fixed and variable mortgage rates in Canada. We shall learn more about how the Simplii mortgage rates compare below.
It’s worth noting that Simplii offers more than fixed and variable mortgage rates. Let’s look at the other mortgage types that the bank offers.
Types of Simplii Mortgage
There are five different types of mortgage available at Simplii Financial each with its different rates, APRs and terms. Let’s take a closed look at each of the Simplii mortgages:
1. Fixed-Rate Mortgages
This is one of the common types of mortgages in Canada. The major benefit of a fixed-rate mortgage is that it locks your rate throughout the mortgage term.
Should there be a sudden market fluctuation within the mortgage term, you will have nothing to worry about as your interest will remain the same. That way, you can be certain of your mortgage payment.
With Simplii Financial, you have up to six fixed mortgage terms to choose from with each having varying rates. Below are the Simplii fixed mortgage rates:
| Term | Posted Rate |
| 2-year fixed term | 7.09% |
| 3-year fixed term | 6.94% |
| 4-year fixed term | 6.74% |
| 5-year fixed term | 6.79% |
| 7-year fixed term | 7.19% |
| 10-year fixed term | 7.39% |
Compared to other mortgages, Simplii has some of the high-interest fixed mortgage rates in Canada.
2. Variable-Rate Mortgages
A variable-rate mortgage is one whose interest rate changes from time to time subject to the Bank of Canada’s prime rate adjustment.
With a variable-rate mortgage, you can’t be sure of your mortgage payment because the interest can increase at any time during the mortgage term.
However, you can benefit from paying a low-interest rate if the variable rate changes in your favour. But to avoid disappointment, you should have an above-average risk level before taking a variable mortgage rate.
That being said, Simplii has only a 5-year variable term with a 7.20% posted rate. The variable rate is equal to the current prime rate of Simplii and it’s one of the highest in Canada.
3. High-Ratio Mortgages
High-ratio mortgages refer to mortgages with below 20% down payments. With this type of mortgage, you will be approved for your dream home by paying less than 20% of the property value.
But this only means one thing — high risk to the mortgage provider. To reduce the risk, a high-ratio mortgage lender will require you to take mortgage insurance whose cost will be added to your regular mortgage payment. The implication? High mortgage cost.
Notwithstanding, you can’t go wrong with a high-ratio mortgage if you’re looking to own a home without a 20% down payment.
As of the time of writing, Simplii has the following high-ratio mortgage rates.
| Term | Posted Rate | High-Ratio Rate |
| 5-year fixed term | 6.79% | 5.49% |
| 5-year variable term | 7.20% | 6.95% |
Again, the Simplii high-ratio mortgage rates are relatively high compared to what’s available out there.
4. Convertible Mortgages
As the name implies, a convertible mortgage allows you to switch from a short-term mortgage to a long-term. This helps limit your mortgage renewal frequency which could save you cost depending on the market condition.
During this current inflationary period, converting to a long-term mortgage will save you from frequent mortgage increases.
The challenge is, we don’t know what the future holds. So you have to be calculative when switching to a longer-term mortgage that may place you in a disadvantageous position should the interest drop in future.
That being said, the following are Simplii convertible mortgage rates:
| Term | Posted Rate |
| 6-month | 7.89% |
| 12-month | 7.79% |
Pros and Cons of Simplii Financial Mortgage
From the above PC Mortgage rates review, we can identify the following pros and cons of Simplii mortgages:
Pros
- Flexible Payment Terms
One thing I like about Simplii is that it has flexible mortgage payment terms that ease payments. The terms range from weekly, biweekly and monthly intervals.
Also, Simplii allows its variable mortgage holders to increase their payments as much as they can. Fixed-rate mortgage holders are allowed to increase their balance payment amount by up to 25% annually.
This not only helps reduce mortgage interest payments but also makes it possible to become mortgage-free faster.
- Mortgage Pre-approval
Not all mortgage lenders provide mortgage pre-approval. And this goes to show that not many lenders want to give you a clear picture of what you’ll go through.
But with Simplii Financial, you can apply for pre-approval to understand the overall cost of taking a mortgage with the bank. You will also learn about your maximum mortgage amount and the regular pay rate.
The interesting part is that Simplii allows you to lock in a fixed mortgage rate for up to 45 days upon getting a pre-approval.
Related Post
- Special Mortgage Programs
Unlike other mortgage lenders, Simplii has dedicated special mortgage programs for new Canadians, foreign workers, medical professionals and other categories of individuals.
As expected, the eligibility and benefit of each program vary from one another. Click here to learn more about the Simplii mortgage programs.
- Mortgage Life Insurance
A mortgage life insurance is a type of insurance that protects your family financially in the event you pass away without paying off your mortgage completely.
Through its partnership with Canada Life, Simplii offers access to $750,000 maximum mortgage life insurance coverage to its clients. This means that if your remaining balance is $750,000 or less, the mortgage life insurance can clear it off completely.
Although the premium of the mortgage life insurance will be added to your regular mortgage payment. Of course, this will increase your overall mortgage cost. But the insurance is worth it if you think your family will struggle to pay off your mortgage when you’re no more.
- Mortgage Calculators
This is not a unique advantage as several other mortgage lenders also offer mortgage calculators. Notwithstanding, the benefits of accessing mortgage calculators can’t be overemphasized.
With Simplii, you will have access to a mortgage affordability calculator, payment calculator and prepayment charge calculator in one dashboard.
By using these calculators effectively, you will avoid costly mistakes on your mortgage journey. Check them out under this link.
Cons
- High Mortgage Rates
From fixed rates and variable rates to convertible rates, Simplii mortgages come with high-interest rates.
Even the Simplii mortgage special rates compete on the low bar with the exception of the 5-year variable mortgage.
What this means is that it will cost you more to take a Simplii mortgage than other mortgages in Canada.
- High APRs
The annual percentage rate (APR) determines the overall cost of taking a loan or mortgage. This includes both the interest rate and applicable fees.
Again, Simplii mortgages come with high APRs that will consequently result in high payments. The implications are self-explanatory.!
How to Get a Simplii Mortgage
To qualify for a Simplii mortgage, you must meet the following eligibility:
- Live in any Canadian province or territory excluding Quebec
- Reach the age of majority in your province or territory
- Have a $35,000/5% minimum principal amount
- Have an eligible credit score and valid documents
Depending on your choice, you can start with pre-approval or jump straight to the application process so long you meet the above requirements.
To get a Simplii Mortgage, all you need is to visit the application page using this link. You will be required to provide your personal information such as your:
- Full name
- Home address
- 3mail address
- Telephone number
- Postal code
- Gross annual household income
Upon completing the application process, you will be contacted about the subsequent steps by Simplii’s mortgage representative within one business day.
Bonus
Get up to $1,000 bonus by referring your friends and family to Simplii Financial using your referral link. For each referral, you will get a $500 bonus and there’s no limit on the number of people you can refer. Learn more.
Also, you will get up to $4,000 cashback when you switch your mortgage to Simplii Financial. Learn more.
PC Financial Mortgage Rates Alternatives
For obvious reasons, the Simplii mortgage rates are not a good replacement for the PC Financial mortgage rates. As a result, I don’t recommend taking a Simplii mortgage or moving your mortgage to the bank.
If I were in your shoes, I would go for either of the following mortgage lenders with below 5% rates on fixed and variable mortgages:
- Best 5-Year Fixed Mortgage Rates in Canada
| Lender | Rate |
| Butler Mortgage | 4.84% |
| Nesto | 4.79% |
| Alterna Savings | 5.09% |
| Neo Financial | 5.24% |
- Best 5-Year Variable Mortgage Rates in Canada
| Lender | Rate |
| Nesto | 5.90% |
| Butler Mortgage | 5.95% |
| Alterna Savings | 6.55% |
Note: The above rates include a mix of posted and special rates.
As you can see, all the above mortgage lenders are ahead of Simplii by far. But when comparing which mortgage lender to choose, you should have a comprehensive view by considering the:
- Interest rates
- APRs
- Payment terms
- Fees
Takeaways on PC Financial Mortgage Rates Review
The key takeaway from this PC Financial mortgage rates review is that the PC mortgage rates were replaced by Simplii Financial mortgage rates in 2017.
However, the Simplii Financial mortgage rates are on the high side, making them expensive. As such, you will be better off going with a Simplii mortgage alternative with low interest, low APR, low fees and flexible payment terms.
Hopefully, now you’re more informed about the PC/Simplii Financial mortgage rates and how to choose the best mortgage rates in Canada.
If you have any questions or concerns, kindly drop them in the comment below.
