Mortgage rates move daily based on bond markets, inflation trends, and lender funding costs. The rates below reflect current market pricing available through our lending partners.
All rates shown are “starting from” and subject to credit profile, income structure, property type, and equity position.
What’s Driving Today’s Rates
Fixed mortgage rates are largely influenced by Government of Canada bond yields. When bond yields rise, fixed rates typically increase. When they fall, fixed rates may ease.
Variable rates move with Prime and change when the Bank of Canada adjusts its policy rate.
Markets can shift quickly. Securing the right structure at the right time helps protect your long-term financial plan.
5-Year Variable
The Flexible Option
Suitable for borrowers comfortable with some payment fluctuation who value potential savings if rates decline. Often attractive for business owners, commissioned professionals, higher-income borrowers, and those with shorter time horizons or strategic refinancing plans.
Most major banks offer a variable-rate mortgage where the payment remains fixed unless Prime rises enough to trigger a payment adjustment. In contrast, many monoline lenders and major trusts offer Adjustable-Rate Mortgages (ARM) where payments move up or down immediately with Prime.
The penalty to break a standard variable mortgage is typically three months’ interest, which is generally much lower and more predictable than the Interest Rate Differential (IRD) applied to fixed-rate mortgages.
Insured (Less Than 20% Down)
• Major Banks – 5-Year Variable: Prime – 0.65% ≈ 3.80%
• Major Trusts – 5-Year ARM: Prime – 0.75% ≈ 3.70%
• Major Trusts – 3-Year ARM: Prime – 0.55% ≈ 3.90%
(Prime currently 4.45%)
5-Year Fixed
The Stability Choice
Designed for homeowners who prioritize predictable payments and long-term budgeting clarity. Your interest rate and payment remain fixed for the full term, regardless of bond market or Bank of Canada movements.
Often preferred by:
• Families seeking stable monthly expenses
• Borrowers renewing from historically low rates
• Clients with tighter qualification ratios
• Homeowners planning to remain in the property long term
Fixed-rate mortgages are influenced primarily by Government of Canada bond yields. Movements in bond markets can cause pricing changes quickly.
Penalty Considerations:
If a fixed-rate mortgage is broken early, lenders typically apply an Interest Rate Differential (IRD) calculation. At major banks, this IRD penalty can be substantially higher due to posted-rate formulas. In contrast, many monoline lenders and major trusts use more transparent rate calculations, which may result in significantly lower penalties.
Because of this difference, lender selection matters just as much as rate selection.
Insured (Less Than 20% Down)
• Major Banks – 5-Year Fixed: ≈ 4.34%
• Major Trusts – 5-Year Fixed: ≈ 4.09%
3-Year Fixed
The Strategic Balance
Offers payment stability without committing to a longer five-year term. A practical choice during periods of rate-cycle uncertainty.
This term may be suitable for:
• Homeowners who expect rates to ease within the next few years
• Borrowers planning to sell, refinance, or restructure before five years
• Clients who want stability but prefer shorter commitment
• Investors managing medium-term holding strategies
At the end of the third year, you may sell, refinance, or switch lenders without penalty once the term has fully matured. This built-in shorter horizon can provide flexibility compared to a five-year commitment.
Like other fixed-rate mortgages, pricing is influenced by Government of Canada bond yields. Shorter-term bonds can move differently than five-year bonds, which may create opportunities depending on market conditions.
Penalty considerations still apply if the mortgage is broken before maturity. As with five-year fixed mortgages, major banks typically use posted-rate IRD calculations, which can result in higher penalties. Many monoline lenders and trusts use more transparent rate structures that may reduce penalty exposure.
Insured (Less Than 20% Down)
• Major Banks – 3-Year Fixed: ≈ 3.96%
• Major Trusts – 3-Year Fixed: ≈ 3.99%
Alternative / Self-Employed
The Structured Solution
Designed for business owners and borrowers with non-traditional income documentation who require tailored underwriting.
Many self-employed clients minimize taxable income for legitimate tax planning purposes. However, lower reported income may not accurately reflect true cash flow. Alternative (“B”) lenders provide structured solutions when standard bank guidelines do not align with your financial profile.
If you have operated an incorporated business for two or more years, certain major trusts may:
• Allow higher Total Debt Service (TDS) ratios
• Accept alternative income verification methods
• Provide more flexible credit guidelines
Income verification may include:
• Most recent 12 months of business bank statements
• Signed income declaration
• Supporting business invoices or contracts
This structure can bridge the gap between strong equity and complex income documentation.
Typical Conventional Pricing (20%+ Down)
• 1-Year & 2-Year Fixed: ≈ 4.64% (Credit Score 680+) up to 5.29% (500+)
• 3-Year Fixed: ≈ 4.74% (680+) up to 5.29% (539+)
Pricing depends on credit score, equity position, property type, and overall risk profile.
Fees & Structure
Lender fee: typically approximately 1% of the mortgage amount
Broker fee:
For alternative (“B”) lending files, a broker fee is generally applicable. B lenders typically provide lower compensation to brokers compared to traditional “A” lenders. The broker fee reflects the additional underwriting complexity, structuring, documentation review, and risk management involved in securing these approvals.
All fees are fully disclosed and confirmed in writing prior to commitment.
Important Considerations
Most lenders (banks and trusts) will apply a modest pricing premium for:
• Conventional (uninsured) mortgages
• Rental or investment properties
• Amortizations longer than 25 years.
Alternative lending is not a “last resort” — it is often a strategic solution when income structure does not fit standard bank formulas.
Private Mortgages
Through Mortgage Investment Corporations (MICs)
Private mortgages are short-term financing solutions typically arranged through Mortgage Investment Corporations (MICs) or individual private lenders.
They are generally considered when traditional bank (“A”) or alternative (“B”) lending options are not suitable.
Common scenarios include:
• Urgent closing timelines
• Credit challenges
• Significant tax arrears or debt restructuring
• Properties that do not meet institutional guidelines
• Temporary bridge financing
Private lending focuses primarily on equity position rather than income qualification.
Typical Structure
• Term: Open to 1 year
• Interest rates: typically higher than B lending
• Interest-only payments are common
• Loan-to-Value (LTV): typically up to 75%–80% for 1st mortgages (lower for 2nd mortgages)
• Lender fee: often 1%–3%
• Broker fee: typically 1%–2%
• MIC offers both 1st and 2nd mortgages
Pricing depends heavily on:
• Loan-to-Value (LTV) ratio
• Property location and type
• Exit strategy
• Overall risk profile
Important Considerations
Private mortgages are generally intended as short-term solutions, not long-term financing.
A clear exit strategy — such as refinancing back to A or B lending, selling the property, or restructuring income — should be established before proceeding.
When structured properly, private financing can provide time and flexibility to stabilize a situation.
Secure Your Position
If you are purchasing, refinancing, or renewing within the next few months, consider applying for a mortgage pre-approval so we can review your situation in detail.
A pre-approval not only secures a potential rate hold, it also gives you time to properly organize income and down payment documentation. Once you have an accepted conditional offer, timelines can be tight. Preparing in advance reduces stress and avoids unnecessary delays.
Several prime lenders can hold a mortgage rate for up to 120 days upon pre-approval submission.
If rates increase, you are protected.
If rates decline, most lenders will adjust to the lower rate.
A structured review today can provide clarity and flexibility while markets remain dynamic.