FAQ

It depends on how much certainty you want. A fixed rate stays the same for your whole term, so your payment doesn't change, but fixed rates are usually a little higher.¹ A variable rate can go up or down during your term; it may start lower, but your costs can rise if rates go up.¹

Some variable mortgages keep your payment the same when rates change. Then, if rates rise, more of each payment goes to interest and less to paying down what you owe, and your lender may raise your payment if rates reach a "trigger point" set out in your contract.¹

To compare the two with your own numbers, try the fixed vs variable calculator.

This site shows the rates each lender advertises to everyone. The rate you're offered also depends on your situation, such as your down payment, credit and the type of mortgage, and on whether you qualify for a discounted rate.² Many banks also give existing clients lower rates through relationship pricing.

You may be able to negotiate a lower rate, so it pays to shop around before you commit.²

The best rate for you depends on your situation, but two numbers give you a feel for the market. The tiles at the top of the main page show the lowest rate any lender in the table is advertising today. The rate history charts also show the big banks' typical posted rate, published weekly by the Bank of Canada. Special offers are often well below posted rates, so if you're quoted something close to the posted rate, it's worth asking for better.⁸

Yes. You don't have to renew with the same lender, and it's worth starting to shop around a few months before your term ends.³ Switching can come with its own costs, such as setup, appraisal or administration fees, and new mortgage insurance premiums if you increase the amount or extend the amortization.³

If you have an uninsured mortgage and move it from one federally regulated lender to another without increasing the amount or the amortization, the new lender doesn't have to apply the prescribed stress-test rate. It still checks that you can afford the mortgage.⁴

Switching in the middle of a term is different: breaking your mortgage early usually means a penalty.

Federally regulated lenders, such as banks, must send you a renewal statement at least 21 days before your term ends. It lists the balance, the interest rate, the payment frequency, the term and any fees.³ If you don't act, your mortgage may renew automatically on terms that aren't the best available. You may qualify for a lower rate than the one in your renewal letter, so tell your lender about offers you've had from others.³

At least 5% of the first $500,000 of the price, plus 10% of the part between $500,000 and $1.5 million. Homes of $1.5 million or more need 20% down. With less than 20% down, you'll also need mortgage default insurance.⁵ The insured vs uninsured chapter explains what that costs.

Lenders check that you could still afford your payment if rates rose, by testing you at a higher rate than you'll actually pay: the greater of your rate plus 2% or 5.25%.⁶ The How much can I afford? calculator includes it.

Usually the higher of three months' interest or an amount called the interest rate differential (IRD), which lenders generally use when your rate is higher than today's rates and you signed less than 5 years ago. Lenders work out the IRD in different ways, so ask yours for the exact figure.⁷ The penalty calculator gives an estimate.

No. It's general information to help you understand mortgages and compare advertised rates. Talk to a lender or a qualified professional about your own situation, and confirm the current rate and terms with the lender before you decide.