Peoples Bank Mortgage Rates & Reviews
Peoples Bank Background
Peoples Bank is a financial services provider that was founded in 1985, and is based in Vancouver, British Columbia. The bank is a subsidiary of the Peoples Group, which is owned by the Triple Five Group. Peoples Bank primarily offers mortgages through mortgage brokers across Canada, along with offering chequing and savings accounts, and guaranteed investment certificates (GICs). Peoples Bank is a member of the Canadian Deposit Insurance Corporation, and its parent company Peoples Group has over $6.5 billion in assets under management.
Peoples Bank Fixed Mortgage Rates
A fixed rate mortgage from Peoples Bank will give you the security of having the same mortgage rate throughout your entire mortgage term. Even if Peoples Bank mortgage rates are to rise, you will only need to worry about it when you go to renew your mortgage at the end of your mortgage term. Out of all fixed rate mortgage options, the most popular ones are the 3 year fixed mortgage and the 5 year fixed mortgage. This is because both options provide the benefit of not having to renew your mortgage often, which is more convenient. As well, it gives home buyers more security having longer time periods with the same mortgage rate.
| Term | Rate | Monthly Payment |
|---|---|---|
1-Year Fixed | 6.09% | $2,581 |
2-Year Fixed | 5.19% | $2,370 |
3-Year Fixed | 5.09% | $2,347 |
4-Year Fixed | 4.89% | $2,301 |
5-Year Fixed | 4.59% | $2,234 |
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Peoples Bank Variable Mortgage Rates
A variable rate mortgage from Peoples Bank will allow you to benefit if Peoples Bank mortgage rates fall, with your mortgage rate following the prime rate. However, if the prime rate is to rise, you will be paying more interest, which makes getting a variable rate mortgage more uncertain. If your mortgage rate falls or rises, your monthly mortgage payments will still remain the same, however the breakdown within your mortgage payment will differ. More will go towards interest payments if mortgage rates rise and less will go to your principal balance, while if mortgage rates fall, more will go towards your principal balance and less to interest.
| Term | Rate | Monthly Payment |
|---|---|---|
5-Year Variable | 4.40% | $2,192 |
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Peoples Bank Prime Rate
The Peoples Bank prime rate is used to determine the final interest rate for mortgages. The way that the prime rate is used is by adding or subtracting a spread to it to get the final interest rate on your variable rate mortgage. This means if the prime rate fluctuates, your variable mortgage rate will also fluctuate.
Current Peoples Bank Prime Rate: 4.7%
Peoples Bank Mortgage Break Penalty
If you are to break your mortgage before your term is up, you may incur a prepayment penalty. Breaking your mortgage before the end of your term is common, especially to refinance your mortgage, pay off your mortgage balance early, or to sell your home. For both variable rate and fixed rate mortgages, your penalties will be the following:
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest (at PBC’s Prime rate) | Greater of 3 Months’ Interest or the IRD amount |
The interest rate differential amount is the difference between the current posted rate for the time remaining on your mortgage term, and your current mortgage rate. This difference is multiplied by the time remaining on your mortgage to determine the interest rate differential.
To see how much you can expect to pay in prepayment charges, utilize the Peoples Bank mortgage penalty calculator below:
Peoples Bank Mortgage Prepayment Calculator
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home and purchasing a new home, in which a mortgage transfer will apply. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
What is the remaining balance on your mortgage?
What is the term-length and type of your current mortgage?
What is your current mortgage interest rate?
If applicable, what was the rate discount you received when you signed your current mortgage agreement?
When did your current mortgage start?
Who is your current mortgage lender?
What is TD's current interest rate for a 3-year fixed rate mortgage?
How is my mortgage penalty calculated?
Peoples Bank Mortgage Features
Mortgage Portability
On your Peoples Bank mortgage, you may be able to port that mortgage to a new home if you are selling your home and wanting to purchase a new one. This can help you save money, by not needing to pay a prepayment penalty for breaking your mortgage. This can effectively save you thousands of dollars, while helping make the process simpler. If you do have a good mortgage rate as well, this allows you to keep it for the rest of your term.
Prepayment Allowance
To prepay your mortgage balance without needing to pay a mortgage break penalty, you can pay up to the limit that Peoples Bank allows each year. This limit is 20% of your original mortgage balance for closed mortgages, while open mortgages allow you to pay as much as you choose at any time without penalty. You also have the option to increase your monthly mortgage payments by 20% without penalty. Both of these options will rapidly speed up how long it takes to pay off your mortgage, as all of the extra payment goes towards your principal mortgage balance.
Payment Frequencies
Peoples Bank allows you to choose how often you want to pay your mortgage, with options such as weekly, bi-weekly, and monthly payments. This lets you pick a frequency that fits with your employment pay schedule, and with your life the best. The more frequently you decide to make your payments, the faster you will pay off your mortgage, and with less interest costs. This is because you are reducing your mortgage balance more often.
Contacting Peoples Bank
The parent company, People’s Group, has a branch location in Vancouver at 888 Dunsmuir Street, #1400. However, if you are looking to contact Peoples Bank, the best option may be online. For new mortgage inquiries, you can call Peoples Bank at 877-441-1984, or email at residentialmortgages@peoplesbank.ca. You are also able to get a mortgage through a mortgage broker, who will be your point of sale while helping you find a mortgage.