Mortgage Rates

Understanding Mortgage Rates

choose from a wide variety of lenders with rates and terms that fit your lifestyle.


5 Year Fixed Insured 3.09%
5 Year Fixed Conventional 3.49%
Variable Rate – Insured (prime-75) 2.45%
Adjustable Rate Mortgage (prime-40) 2.80%


What is Prime Rate

The prime rate, also known as the prime lending rate, is the annual interest rate Canada’s major banks and financial institutions use to set interest rates for variable loans and lines of credit, including variable-rate mortgages. The prime rate in Canada is currently 3.20%.


What is an open mortgage?

An “open-term mortgage” is an appealing option to those who plan on paying off their mortgage sooner rather than later. This type of mortgage can be repaid fully or partially at any time usually without prepayment interest fees. If you want to convert them to another term, you can do so at any time again without prepayment interest fees. The interest rates for open mortgages tend to be higher than those of closed mortgages because they have such flexibility.


What is a closed mortgage?

A “closed-term mortgage” is the common choice for people who aren’t planning to pay off their mortgage soon. The interest rates for closed term mortgages tend to be lower than that of open mortgages. With closed term mortgages, you’re able to save on interest costs, and hopefully, this will help you to pay your mortgage back quicker. Fixed or variable options are available for closed term mortgages, but there’s a restriction on the principal amount that you can pay towards our mortgage each year.

If you want to renegotiate your rate, you will need to pay a prepayment charge. Besides, you will need to pay this prepayment charges, if you want to pay off the balance of your mortgage before the end of the term or if you want to prepay more money than your mortgage will allow you to.


Comparison: Variable vs. Fixed Mortgage Rates
Fixed Mortgage Rates

More than 50% of Canadians have fixed mortgage rates, which means the monthly payment stays the same over the full term. You will be protected against fluctuating interest rates so that it can set up and you don’t have to worry about it.


Variable Mortgage Rates

With a variable mortgage, your rates are typically lower, but they will vary over the term. Your payments will change based on the prime rate.


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