Alterna fixed mortgage rates are very competitive when compared to those offered by Canada’s big banks, which can be enticing. On the other hand, Alterna is relatively new on the Canadian banking scene, being in operation as a bank only since 2000 (albeit under a variety of names).
One of their selling features is that you can apply, be approved for, and receive your mortgage funds without ever having to set foot in a physical bank branch. They claim that their “end-to-end digital mortgage” is a first in Canada, and this sort of modern convenience can be attractive to younger, more digitally savvy customers.
Alterna closed fixed rate mortgage features
Here’s what Alterna has to offer in terms of fixed rate mortgages.
Why You Want It
Easily lock in your mortgage online + Get up to $800 in closing costs covered.
Special Features
- Covers up to $800 in closing costs
- High-Ratio mortgages available
Provinces
AB, BC, MA, NB, NL, NS, NT, NU, ON, PE, SA, YU
Fixed Rate
Fixed Closed
1 Year
5.29%
2 Year
4.98%
3 Year
4.29%
4 Year
4.49%
5 Year
4.39%
Features
Rate Type
Fixed Closed
Pre-approval
Rate Guarantee (days)
120
Bank Prime Rate
4.7%
# Of Prepayments Allowed Per Year
See Issuer for Details
% Of Prepayment Allowed
2,000%
# Of Payment Increases Allowed Per Year
See Issuer for Details
Max Payment Increase Allowed
20%
Promotion Available
N/A
Promotion End Date
N/A
Alterna closed fixed rate mortgage rating: 3.1 stars
Alterna’s fixed rate mortgage offering is very simple and straightforward. There aren’t a lot of bells and whistles here, but for most people that’s actually ok. Why complicate things? Alterna bank mortgage rates are very competitive, and with their flexible prepayment options, and all-online application process, they have a lot to offer.
On the other hand, they do lose some points for lacking some of those extra options that some people may be looking for. They have no mortgages with over 25-year amortizations at all, no 6-month convertible option, and their promotion is lacklustre at best.
Rating methodology
To calculate our Genius Ratings, we compare the features of the account or product in question with other similar products in Canada. We give each feature a score out of 5 based on that comparison. Once we’ve rated all the features, we run them through our proprietary algorithm to produce a final rating out of 5.
Learn more about our rating methodology.
The pros of an Alterna closed fixed rate mortgage
Here’s what Alterna fixed rate mortgages have going for them.
Pros
Very competitive standard rates
Alterna mortgage rates for fixed mortgages are better than those posted by Canada’s big banks, and even beat those posted by online-only banks like Tangerine. If you’re looking to save the most money on your mortgage, and don’t care who your mortgage is with, Alterna should be on your radar.
Flexible prepayment options
All of Alterna’s mortgages have flexible prepayment privileges, where you can pay up to 20% of your original mortgage balance per year. There aren't any limits on how many prepayments you can make, and you can increase your regular payments as many times as you like as long as you don't pass that 20% mark each year. These are valuable and easy-to-remember guidelines.
Fully online mortgage process
In this modern age, the convenience and simplicity of doing the vast majority of your banking online is a huge selling feature for many people. On the other hand, not everyone is going to be comfortable with the idea of taking on as large a debt as a mortgage completely online without ever talking to someone face-to-face. If you’re in Ontario, Alterna has a few branches you can visit, in this case.
The cons of an Alterna closed fixed rate mortgage
Of course, nothing is perfect. There are a few drawbacks to be aware of.
Cons
No amortizations over 25 years
While they’re not that common, occasionally someone will want a mortgage with an amortization of over 25 years. These let you reduce monthly payments, but you’ll end up paying much more in interest over time. Many banks don’t offer them, and Alterna is on that list.
No 6 month convertible rates
More common is a 6 month convertible mortgage. Most banks do offer these as an option for people who just want a short-term mortgage that they can change into another type of mortgage in the future. Alterna doesn’t offer one of these options, which may be limiting for some people.
Uninspiring promotional bonus
And while mortgage promos are generally pretty lacklustre when weighed against the massive amounts of debt you’re taking on, Alterna’s is even less inspiring. Regardless of the size of your mortgage, Alterna is willing to pay up to $800 of your closing costs (which will likely soar well above $800, when everything is factored in). It’s a nice thing, it’s just not going to make anyone choose Alterna over anyone else.
Alterna closed fixed rate mortgage alternatives
Here’s how Alterna fixed rate mortgages stack up to some of those offered by Canada’s big banks.
 |  |  |  | |
|---|---|---|---|---|
| Account | Alterna Closed Fixed Mortgage | nesto | Meridian Closed Fixed Mortgage | BMO Closed Fixed Rate Mortgage |
| Genius Rating | ||||
| Why You Want It | Easily lock in your mortgage online + Get up to $800 in closing costs covered. |  $350 GeniusCash + Get the lowest rate guaranteed + 150 day rate lock
| Get up to 5% cash back + Competitive rates and excellent customer service. | Pre-approval available online + Get an extra long 130-day rate guarantee. |
| Fixed Rate | Fixed Closed
| Fixed Closed
| Fixed Closed
| Fixed Closed
|
| Rate Type | Fixed Closed | Fixed Closed | Fixed Closed | Fixed Closed |
| Pre-approval | | | | |
| Rate Guarantee (days) | 120 | 150 | 120 | 130 |
| Bank Prime Rate | 4.7% | 4.45% | 4.45% | 4.7% |
| # Of Prepayments Allowed Per Year | See Issuer for Details | See Issuer for Details | Unlimited | 1 |
Show More | ||||
| See rates & details See more Alterna products Compare | I Want This Deal See more nesto products Compare | See rates & details See more Meridian Credit Union products Compare | Learn More See more BMO products Compare |
FAQ
Is Alterna Bank safe?
Alterna Bank is as safe as any bank. It is a federally regulated institution under the Canadian Bank Act, and it is a member of the Canadian Deposit Insurance Corporation, meaning that any money you have deposited with Alterna is insured up to the standard maximums. You can read more about CDIC coverage here: CDIC Coverage: What Every Canadian Should Know.
Does Alterna have any physical branches?
It does. Alterna has over 30 physical locations, although they are all located in Ontario. If you want to bank with Alterna, and you’re not local to any of these branches, you’ll have to do all of your banking online or over the phone.
Does Alterna have good fixed mortgage rates?
At the time of writing, Alterna had some of the best posted fixed mortgage rates of any in Canada. If you’re interested in maximizing your savings and don’t care who your mortgage is with, you should take a look at Alterna as one of your possible mortgage lender options.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
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