21 guides
Rate guides
Every guide explains one decision, shows the arithmetic with worked examples, and links to the checker or calculator that fits.
21 guides
- Numbers firstWhat is a good mortgage rate in Canada?A good mortgage rate is one at or below what lenders actually charged on similar new mortgages. Here's how to find that yardstick and what each 0.25 point costs.
- Side by sidePosted vs discounted mortgage rates: what's the difference?Posted mortgage rates are list prices, and many offers come in below them. How the two differ, what the gap costs, and why posted rates still affect penalties.
- Side by sideFixed vs variable: how to compare two mortgage offers fairlyFixed and variable mortgage offers follow different benchmarks and compound differently. How to compare them fairly, in dollars, before you choose one.
- Numbers firstInsured vs uninsured mortgage rates: why one lender quotes two pricesInsured and uninsured mortgages are priced differently, and the grader marks them against separate benchmarks. Why that is, and what the gap means in dollars.
- ExplainerHow bond yields move fixed mortgage rates in CanadaFixed mortgage rates tend to follow Government of Canada bond yields, not just the policy rate. How the link works, where it breaks and what it means for you.
- Step by stepMortgage term length: how the term you pick shapes your rateYour mortgage term sets how long the rate is locked and when you renew. How term length affects the rate, the benchmark it's judged against and your options.
- Step by stepRate holds and pre-approvals: what they protect, and what they don'tA rate hold can shield you if rates rise before closing, and a pre-approval sets a budget. What each one covers, what to get in writing and what to recheck.
- ChecklistMortgage features that can be worth more than a lower ratePenalty method, prepayment privileges, portability and charge type can outweigh a small rate gap. A checklist for comparing Canadian mortgage offers in dollars.
- Q&AMortgage prepayment penalties: three months' interest vs the IRDBreaking a closed mortgage early usually costs the higher of three months' interest or an interest rate differential. How each works, with FCAC's own example.
- ExplainerBlend and extend: how a blended mortgage rate is worked outA blend and extend combines your current mortgage rate with a new one over a longer term. How a blended rate is estimated and how to judge it against breaking.
- Q&AHow mortgage compounding works in CanadaCanadian fixed mortgage rates compound semi-annually; variable rates often compound monthly. See what that does to your payment and how to compare offers.
- ExplainerHow variable-rate mortgage payments workA variable mortgage rate moves with your lender's prime rate. Follow one illustrative payment from month one through a rate change, and see what to ask first.
- ChecklistMortgage renewal checklistA step-by-step mortgage renewal checklist: what to gather, how to read the renewal statement, how to grade the offer and how to count the cost of switching.
- Step by stepYour mortgage renewal timeline, from 120 days out to signingA working plan for the four months before your mortgage term ends: gathering documents, asking for quotes, comparing offers and the 21-day renewal statement.
- Side by sideSwitching lenders at renewal: is the lower rate worth it?Staying with your lender versus switching at renewal: the costs FCAC lists, how to work out the break-even point, and the questions to ask a new lender.
- Q&AHow to read your mortgage renewal letterWhat your mortgage renewal statement must include, what each line means, what happens if you don't reply, and how to check whether the offered rate is fair.
- ExplainerRenewing when rates are higher than your current rateIf your renewal rate is above what you pay now, see what the higher payment is made of and the levers to look at: rate, term, amortization and prepayments.
- Numbers firstWhat is a good HELOC rate in Canada?A HELOC rate is prime plus a margin. Compare it with the lowest HELOC rates lenders publish today, and see what each half point costs you a year.
- Side by sideHELOC vs refinancing your mortgageA HELOC and a mortgage refinance both tap home equity, but they differ on rate, repayment, flexibility and cost to set up. A side-by-side with worked numbers.
- ExplainerHow the Bank of Canada's rate reaches your mortgage, loans and savingsFollow a Bank of Canada policy rate change through prime, variable mortgages, HELOCs, savings and GICs, and see what a quarter point means for a household.
- Q&AThe prime rate, explainedWhat the prime rate is, who sets it, which Canadian loans are priced off it, and why the spread you negotiate above or below prime is the part you control.
Mortgage rates
How fixed and variable mortgage rates are set, compared and negotiated.
- Numbers firstWhat is a good mortgage rate in Canada?A good mortgage rate is one at or below what lenders actually charged on similar new mortgages. Here's how to find that yardstick and what each 0.25 point costs.
- Side by sidePosted vs discounted mortgage rates: what's the difference?Posted mortgage rates are list prices, and many offers come in below them. How the two differ, what the gap costs, and why posted rates still affect penalties.
- Side by sideFixed vs variable: how to compare two mortgage offers fairlyFixed and variable mortgage offers follow different benchmarks and compound differently. How to compare them fairly, in dollars, before you choose one.
- Numbers firstInsured vs uninsured mortgage rates: why one lender quotes two pricesInsured and uninsured mortgages are priced differently, and the grader marks them against separate benchmarks. Why that is, and what the gap means in dollars.
Renewals and switching
What to do in the months before your term ends.
- ChecklistMortgage renewal checklistA step-by-step mortgage renewal checklist: what to gather, how to read the renewal statement, how to grade the offer and how to count the cost of switching.
- Step by stepYour mortgage renewal timeline, from 120 days out to signingA working plan for the four months before your mortgage term ends: gathering documents, asking for quotes, comparing offers and the 21-day renewal statement.
- Side by sideSwitching lenders at renewal: is the lower rate worth it?Staying with your lender versus switching at renewal: the costs FCAC lists, how to work out the break-even point, and the questions to ask a new lender.
- Q&AHow to read your mortgage renewal letterWhat your mortgage renewal statement must include, what each line means, what happens if you don't reply, and how to check whether the offered rate is fair.
HELOCs and home equity
Judging a home equity line of credit, and when a HELOC beats a refinance.
- Numbers firstWhat is a good HELOC rate in Canada?A HELOC rate is prime plus a margin. Compare it with the lowest HELOC rates lenders publish today, and see what each half point costs you a year.
- Side by sideHELOC vs refinancing your mortgageA HELOC and a mortgage refinance both tap home equity, but they differ on rate, repayment, flexibility and cost to set up. A side-by-side with worked numbers.
Rate basics
The building blocks behind every mortgage rate: the policy rate and prime.
- ExplainerHow the Bank of Canada's rate reaches your mortgage, loans and savingsFollow a Bank of Canada policy rate change through prime, variable mortgages, HELOCs, savings and GICs, and see what a quarter point means for a household.
- Q&AThe prime rate, explainedWhat the prime rate is, who sets it, which Canadian loans are priced off it, and why the spread you negotiate above or below prime is the part you control.