Current Rates

Current variable mortgage rate is

3.70%

Current prime rate is

4.45%

    • Terms
    • Bank Rates
    • Payment Per $100k
    • Our Rates
    • Payment Per $100k
    • Savings
    • 6 Months
    • %
    • $0.00
    • %
    • $0.00
    • $0.00
    • 1 Year
    • 7.29%
    • $718.41
    • 4.89%
    • $575.36
    • $143.05
    • 2 Years
    • 6.89%
    • $693.64
    • 4.44%
    • $550.14
    • $143.50
    • 3 Years
    • 6.54%
    • $672.25
    • 4.14%
    • $533.64
    • $138.61
    • 4 Years
    • 6.34%
    • $660.15
    • 4.14%
    • $533.64
    • $126.52
    • 5 Years
    • 6.49%
    • $669.22
    • 4.14%
    • $533.64
    • $135.58
    • 7 Years
    • 6.70%
    • $681.99
    • 4.49%
    • $552.92
    • $129.08
    • 10 Years
    • 7.19%
    • $712.19
    • 5.19%
    • $592.47
    • $119.72
Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. *O.A.C. E.& O.E.

Understanding Mortgage Rates in Canada

Interest rates are one of the most important factors when choosing a mortgage, but they are not the only one. Understanding how mortgage rates are determined and how fixed and variable options work can help you make a more informed financial decision.

How Rates Are Determined

In Canada, chartered banks set their prime lending rate based on the Bank of Canada’s overnight rate. Changes in this rate directly impact variable-rate mortgages and lines of credit.

Fixed mortgage rates are influenced by Government of Canada bond yields, which fluctuate based on global economic conditions and market expectations.

Fixed vs Variable Rates

Fixed-rate mortgages provide payment stability throughout the term, while variable-rate mortgages fluctuate with the prime rate and may increase or decrease over time.

The Lowest Rate Isn’t Always the Best Mortgage

Many lenders are currently offering highly competitive mortgage rates to attract renewal business. While low rates are important, focusing only on the interest rate can sometimes overlook other major financial considerations.

One of the most important factors homeowners should understand is the mortgage penalty calculation in case the mortgage is broken before maturity.

Life circumstances can change unexpectedly. Homeowners may need to refinance, sell their property, relocate, separate, or restructure their finances before the end of their mortgage term.

In Quebec, many mortgages are broken before maturity due to refinancing opportunities, property sales, or family changes. In these situations, mortgage penalties can vary significantly from one lender to another.

Some financial institutions calculate penalties using internal posted rates, which can result in substantially higher costs for the homeowner.

Other lenders may use more flexible calculations based on the client’s actual contract rate, potentially creating much lower penalties and greater long-term flexibility.

This is why mortgage renewal should never be based only on the advertised interest rate. The mortgage structure, flexibility, terms, and future financial strategy are equally important.

 

Before You Sign Your Renewal Offer, Explore Your Options

Comparing lenders at renewal time may help reduce costs and improve your long-term mortgage flexibility.