You’re shopping for a mortgage in Windsor and you want the best rate. Good — even a 0.25% difference saves you thousands over the life of your mortgage. But here’s what most people don’t realize: the rate you see advertised is almost never the rate you’ll actually get.
Your credit score, down payment, employment type, and the property itself all affect what lenders will offer you. And the biggest factor? Who you work with to find that rate.
Bank vs Broker: The Rate Difference
Walk into a bank in Windsor and ask for a mortgage rate. They’ll give you their posted rate, maybe knock off a small discount, and call it a deal. But that rate is based on one lender’s products — theirs.
Mortgage Brokers vs Banks: Which Is Better?. Banks, credit unions, monoline lenders, trust companies. Each one has different pricing, different qualification criteria, and different appetite for your specific situation. For first-time buyers navigating the Windsor market, our complete first-time home buyer Windsor Ontario guide breaks down every step.
Here’s what that looks like in practice:
| Scenario | Bank Rate (typical) | Broker Rate (typical) | Savings Over 5 Years |
|---|---|---|---|
| Primary residence, 20% down | 4.89% | 4.49% | ~$5,600 |
| Primary residence, 5% down | 5.14% | 4.69% | ~$5,100 |
| Investment property | 5.59% | 5.09% | ~$6,200 |
| Self-employed | 6.29%+ | 5.49% | ~$10,000+ |
The savings are real. And broker services cost you nothing — lenders pay the broker’s fee, not you.
What Actually Determines Your Rate
Mortgage rates aren’t random. Here are the factors that matter, ranked by impact:
1. Credit Score (Biggest Impact)
Your credit score is the single biggest factor in your rate.
| Credit Score | Rate Impact |
|---|---|
| 760+ | Best available rates |
| 720-759 | +0.05-0.10% |
| 680-719 | +0.10-0.25% |
| 640-679 | +0.25-0.50% |
| Below 640 | Alternative lenders (higher rates) |
If your score is below 680, spending a few months improving it before you apply could save you more than any rate negotiation.
2. Down Payment Size
More skin in the game means less risk for the lender, which means a better rate.
- 20%+ down — best rates, no CMHC insurance needed
- 10-19% down — slightly higher rates but CMHC insurance lowers lender risk
- 5-9% down — highest CMHC premiums, but insured mortgages sometimes get better rates because CMHC guarantees the loan
Here’s the counterintuitive part: sometimes a 5% down insured mortgage actually gets a lower rate than a 20% down uninsured one. The CMHC insurance removes the lender’s risk entirely, so they can offer aggressive pricing. Your mortgage broker can run both scenarios and show you which one actually costs less over 5 years.
3. Property Type
Not all properties get the same rate:
- Owner-occupied primary residence — best rates
- Owner-occupied with rental suite — same as primary if you live there
- Investment property (1-4 units) — typically 0.10-0.50% higher
- Commercial / 5+ units — commercial lending rates apply
4. Employment Type
Salaried employees with T4 income get the smoothest approvals and best rates. Self-employed borrowers, contractors, and commission-based workers often face higher rates because income verification is more complex.
If you’re self-employed in Windsor, you don’t have to accept whatever your bank offers. Specialized lenders have stated income programs and bank statement programs that can get you closer to A-lender rates. You just need a broker who knows where to find them.
5. Fixed vs Variable
This is the rate type decision that everyone agonizes over:
Fixed rate — locked in for your term (usually 5 years). You know exactly what you’ll pay every month. Slightly higher starting rate.
Variable rate — fluctuates with the Bank of Canada’s prime rate. Typically starts lower than fixed. Your payment can go up or down during the term.
Historically, variable has saved money over time. But during rate-hike cycles, fixed provides peace of mind. There’s no universally “right” answer — it depends on your risk tolerance and financial situation.
The difference between what a bank offers and what a broker finds is usually 0.25-0.50% — and that’s thousands of dollars over 5 years, not cents. book a free strategy call with LendCity and we’ll run your application across 50+ lenders to show you exactly what you qualify for.
How to Actually Get the Lowest Rate
Here’s the playbook:
Step 1: Clean Up Your Credit
Pull your credit report 3-6 months before applying. Pay down credit card balances to below 30% utilization. Fix any errors. Don’t open new credit accounts.
Step 2: Save a Larger Down Payment (If Possible)
Every percentage point of down payment improves your position. If you’re at 18%, pushing to 20% eliminates CMHC insurance entirely and could save you $10,000+.
Step 3: Get Multiple Quotes
This is the key. Don’t just accept the first rate offered. A mortgage broker does this automatically — they submit your application to multiple lenders and bring you the best offer.
Step 4: Lock Your Rate
Most pre-approvals hold your rate for 90-120 days. If rates are trending up, lock in early. If rates are trending down, some brokers can offer a “float down” option that gives you the lower rate if it drops before closing.
Step 5: Read the Fine Print
A low rate means nothing if the mortgage comes with restrictive terms. Watch out for:
- Prepayment penalties — some mortgages charge huge penalties for paying extra or refinancing early
- Porting restrictions — can you transfer the mortgage if you move?
- Bona fide sale clauses — some lenders only let you break the mortgage if you sell the property
- Collateral charge vs standard charge — collateral charges make it harder to switch lenders at renewal
A 4.49% rate with flexible terms is almost always better than a 4.39% rate with a rigid mortgage that traps you for 5 years.
Windsor-Specific Considerations
Windsor’s market has some unique characteristics that affect rates:
Property values are lower than the GTA. This is good for affordability, but some lenders have minimum loan amounts. If you’re buying a $200,000 property with 20% down, your $160,000 mortgage might not qualify for the best “high-ratio” pricing that some lenders reserve for larger mortgages. Understanding how residential mortgage financing works in smaller markets helps you identify lenders who actively serve the Windsor area with competitive pricing.
Investment properties are popular here. Windsor’s rental market is strong, so many buyers are purchasing rentals. If that’s you, make sure your broker understands investment property lending — the qualification rules are different, and the right broker in Windsor can structure your application to use rental income in your favour.
Cross-border buyers exist. If you’re buying in Windsor and also considering Detroit or Michigan properties, you need a broker who handles both Canadian and U.S. lending. Not many do — but it’s one of the advantages of working with a team that’s based right here on the border.
If you’re self-employed, a contractor, or earn commission, don’t accept your bank’s rate as final — specialized lenders have programs built for your situation. schedule a free strategy session with us and we’ll find the lenders that actually understand your income.
When to Refinance for a Better Rate
Already own a home in Windsor? Refinancing can save you money if:
- Current rates are 0.50%+ lower than your existing rate
- You’re more than 2 years into a 5-year term
- The penalty to break your mortgage is less than your savings
- You want to access equity for renovations or investing
Run the numbers before refinancing. The savings from a lower rate need to exceed the cost of breaking your current mortgage (penalty + legal fees + appraisal). Your broker should do this analysis for you — if the math doesn’t work, a good broker will tell you to wait.
Frequently Asked Questions
What are the current mortgage rates in Windsor?
Is it worth using a mortgage broker instead of going to my bank?
Should I choose a fixed or variable rate mortgage?
How much does a 0.25% rate difference actually save?
What credit score do I need for the best rates in Windsor?
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.
Written by
LendCity
Published
February 8, 2026
Reading Time
7 min read
Interest Rate
The cost of borrowing money, expressed as a percentage. It determines how much you pay on top of the principal borrowed.
Fixed Rate Mortgage
A mortgage where the interest rate stays the same for the entire term, providing predictable monthly payments regardless of market changes.
Variable Rate Mortgage
A mortgage where the interest rate fluctuates with the prime rate, meaning your payments or amortization can change over time.
Mortgage Broker
A licensed professional who shops multiple lenders to find the best mortgage rates and terms for borrowers. Unlike banks, brokers have access to dozens of lending options.
Credit Score
A numerical rating (300-900 in Canada) that represents your creditworthiness, affecting mortgage rates and approval. 680+ is typically needed for best rates.
Credit Utilization
The percentage of your available credit that you're using. Keeping this under 30% helps maintain a healthy credit score.
Prepayment Privileges
Terms in your mortgage that allow extra payments without penalty, typically 10-20% of the original balance annually. Helps pay off your mortgage faster.
CMHC Insurance
Mortgage default insurance from Canada Mortgage and Housing Corporation. For 1-4 unit investment properties, investors must put 20%+ down (no insurance available). However, CMHC offers MLI Select for 5+ unit multifamily properties, and house hackers can access insured mortgages with 5-10% down.
Refinance
Replacing an existing mortgage with a new one, typically to access equity, get a better rate, or change terms. Investors commonly refinance to pull out capital for purchasing additional properties (cash-out refinance) while retaining ownership of the original property.
Insured Mortgage
A mortgage backed by mortgage default insurance from CMHC, Sagen, or Canada Guaranty, required when the down payment is less than 20% on owner-occupied properties. The insurance premium (ranging from 2.8% to 4% of the mortgage) is added to the loan. Insured mortgages qualify for lower interest rates because the lender's risk is covered by the insurer.
Open Mortgage
A mortgage that can be paid off in full or in part at any time without penalty. Open mortgages carry higher interest rates than closed mortgages to compensate for this flexibility. They're useful for borrowers who expect to sell soon, receive a lump sum, or refinance in the near term.
Closed Mortgage
A mortgage with restrictions on how much extra you can pay during the term, typically limited to 10-20% of the original balance per year. Prepaying beyond the allowed amount triggers a penalty (usually three months' interest or the interest rate differential). Closed mortgages offer lower rates than open mortgages in exchange for less flexibility.
Hover over terms to see definitions, or visit our glossary for the full list.