A mortgage is a rate, a term and a penalty.
Buying, renewing or refinancing: enter your amount and your rate, then read what the contract says happens if you leave before the term ends.
Purchase
The down payment, the qualifying rate and the monthly payment: that trio says what you can buy, not the price on the sign.
Renewal
The renewal letter your lender sends is rarely the best it can do.
Refinance
Leaving a term early costs a penalty, calculated differently on a fixed or a variable rate.
Fixed rates recorded
| Product | Rate | Source and date |
|---|---|---|
| 1-year fixed, closedDesjardins | 5.49% | Source · October 7, 2026 |
| 2-year fixed, closedDesjardins | 5.59% | Source · October 7, 2026 |
| 3-year fixed, closedDesjardins | 6.04% | Source · October 7, 2026 |
| 4-year fixed, closedDesjardins | 6.09% | Source · October 7, 2026 |
| 5-year fixed, closedDesjardins | 6.14% | Source · October 7, 2026 |
| 7-year fixed, closedDesjardins | 6.39% | Source · October 7, 2026 |
| 10-year fixed, closedDesjardins | 6.89% | Source · October 7, 2026 |
| 1-year fixed, closed (average posted rate)Banque du Canada | 5.49% | Source · October 7, 2026 |
| 3-year fixed, closed (average posted rate)Banque du Canada | 6.05% | Source · October 7, 2026 |
| 5-year fixed, closed (average posted rate)Banque du Canada | 6.19% | Source · October 7, 2026 |
Recorded on (19 days ago). How we record rates
Rates posted by the lender, not offers: your rate depends on your file. The Bank of Canada figure is the average of banks’ posted rates.
Put numbers on your situation
For information only: not an approval, and not a rate offer.
How we calculate
Annuity formula: the principal is spread over equal payments, interest included, across the amortization.
Assumptions
- The rate compounds semi-annually, as Canadian law requires.
- The rate and payment frequency stay fixed for the entire amortization.
Limits
- Taxes, insurance and closing fees are not included.
- The real rate changes at each renewal.
For information only: not an approval, and not a rate offer.
How we calculate
We keep the lower of two caps: housing at 32% of gross income, or housing plus debts at 40%. The maximum payment is converted to a loan amount, then the down payment is added.
Assumptions
- The calculation uses the qualifying rate (stress test), not the contract rate.
- Taxes and heating are estimated from what you enter.
Limits
- Lenders apply their own criteria: credit score, job stability, income type.
- The result is an order of magnitude, never a pre-approval.
For information only: not an approval, and not a rate offer.
How we calculate
The premium depends on the loan-to-value band reached and is added to the loan; the payment is then calculated on that total.
Assumptions
- The premium is not paid upfront, so it accrues interest over the whole amortization.
- An amortization over 25 years adds a surcharge.
Limits
- Scales and down payment thresholds change by regulation and differ between insurers.
- Above the price ceiling set by the rules, no insurance is available.
For information only: not an approval, and not a rate offer.
How we calculate
We calculate the payment on the remaining balance and remaining amortization, first at the old rate, then at the new one. The only difference between the two is the rate.
Assumptions
- Same balance, same remaining term and same payment frequency in both cases.
Limits
- Does not account for an amortization extension or renewal fees.
For information only: not an approval, and not a rate offer.
How we calculate
The penalty is the higher of three months of interest or the interest rate differential (fixed rate), or three months of interest (variable rate). We add the fees, then divide by the monthly saving: the number of months to break even.
Assumptions
- The lender’s comparable rate for the remaining term is the one you enter.
- If the new rate is not lower, there is no break-even point.
Limits
- Each lender has its own way of computing the rate differential; your contract rules.
For information only: not an approval, and not a rate offer.
How we calculate
The calculation is progressive: each band of the taxable base is taxed at its own rate, then the amounts are added. The base is the higher of the price paid or the municipal valuation.
Assumptions
- Montréal applies extra bands beyond the provincial scale.
Limits
- Thresholds are indexed yearly and other municipalities may differ: confirm with your notary.
- Not every refund and exemption is modelled.
For information only: not an approval, and not a rate offer.
How we calculate
We compare total cost over the term: a fixed payment on one side; on the other, the starting variable rate then that rate plus the expected increase. We also find the increase at which the two costs are equal.
Assumptions
- The increase is a single, permanent step after the number of months entered.
Limits
- In reality rates rise and fall: this model simplifies on purpose.
- The break-even increase matters more than the “winner”.
For information only: not an approval, and not a rate offer.
How we calculate
We compare the interest on your debts at the current pace with the same debts spread over the mortgage amortization. The payment almost always drops, but total interest can rise.
Assumptions
- Each debt is repaid at a constant payment; rates stay fixed.
Limits
- A debt whose payment does not cover the interest is not priced: the total would be wrong.
- Refinancing fees and penalties are not included.
Two offers at the same rate are not the same deal
| Clause | What it changes | What to ask the lender |
|---|---|---|
| Term | How long the rate is locked in, usually 1 to 5 years. Not the same as amortization. | What happens if you sell or refinance before it ends. |
| Fixed or variable | Fixed locks the payment; variable follows the lender’s prime rate. | Whether the variable converts to fixed, and at what rate. |
| Penalty | On a fixed rate, the greater of three months’ interest or the interest rate differential (IRD). Every lender calculates the IRD its own way. | The exact calculation method, written in the contract. |
| Prepayment | The share of the principal you can pay down each year without penalty. | The annual cap, and whether you can double a payment. |
Run the numbers before you talk to a lender
First purchase
The listed price is not what you will pay: add the default insurance premium, the land transfer duties and the notary.
- Down payment and CMHC premium
- Land transfer duties (welcome tax) and notary
- Payment at the qualifying rate
Renewal
The renewal letter your lender sends is rarely its best rate. Compare before you sign it and send it back.
- Remaining balance and amortization
- Payment at the new rate
- Dollar gap between two offers
Refinancing
Breaking a term costs a penalty, plus the notary and the appraisal. Work out how many months of savings it takes to recover them.
- Penalty: three months’ interest or IRD
- Notary, appraisal, discharge
- Months to recover the costs
Reading to go further
// Mortgages
How does Quebec's refundable first-home tax credit work?
What the credit refunds, who can claim it, when the money arrives and how to include it in a first-purchase budget.
// Mortgages
What is the mortgage stress test and how does it affect your loan?
Why a lender qualifies you at a rate higher than your contract rate, and what that changes for the amount you can borrow.
// Mortgages
How is the mortgage loan insurance premium calculated?
The loan-to-value ratio, the CMHC premium table, the minimum down payment and the Quebec sales tax, explained with an example to replace.
Every guide in this section
- What Is the Minimum Down Payment to Buy a Home in Canada?
- Can You Rely on ChatGPT or Another AI for Your Mortgage?
- Top 10 Free Mortgage Calculators in Quebec
- Top 9 Sites to Compare Mortgage Rates in Canada
- Top 10 Resources and Tools for a Quebec First-Time Buyer
- Build a Budget Before Buying a First Home in Quebec
- Down Payment Sources and the Records Buyers Should Keep
- Insured or Conventional Mortgage: Understand the Difference
- Fixed or Variable Mortgage: Compare Risk Beyond the Posted Rate
- Choose a Mortgage Term That Fits the Household Plan
- 20-, 25- or 30-Year Amortization: Payment and Interest Effects
- Mortgage Preapproval: What It Actually Confirms
- Closing Costs to Plan for When Buying a Home
- Quebec Property Transfer Duties: Prepare for the Post-Closing Bill
- Pre-Purchase Inspection: Put Repairs Into the Budget
- Buying a Condo: Review Fees and the Contingency Fund
- Buying a Plex: Rental Income, Expenses and Financing
- Mortgage Renewal: Start Comparing at the Right Time
- Breaking a Mortgage: Penalty, Savings and Break-Even Point
- Refinancing to Consolidate Debt: Calculate the True Cost
- Home Equity Line of Credit: Flexibility and Risks
- Mortgage Prepayments: Reduce Interest Without a Penalty
- Accelerated Payments: When They Really Change the Schedule
- Buying After a Separation: Budget, Equity and New Qualification
- New or Resale Home: Compare Costs Beyond the Price
- Financing Condition in a Promise to Purchase
- Mortgage Broker or Direct Lender: Compare the Service
- Cashback Mortgage: Calculate the Full Cost
- Mortgage Portability When Moving
- Transferring an Assumable Mortgage to a Buyer
- Standard or Collateral Mortgage Charge
- Co-Borrower, Co-Signer or Guarantor: Measure the Commitment
- Self-Employed: Prepare Mortgage Income Evidence
- Rental Property: Test Financing and Cash Flow
- Mortgage Prepayment Privileges: Read the Annual Limits
- Fixed-Payment Variable Mortgage: Monitor the Trigger Rate
- Switch Lenders at Renewal: Documents and Timing
- Blend and Extend a Mortgage Before Maturity
- Construction Mortgage: Understand Progress Draws
- Bridge Financing Between a Sale and Purchase
- Buying Out a Property Share After Separation
- Lender Mortgage Insurance or Personal Coverage
- Title Insurance: Role, Limits and Difference From Inspection
What people ask most
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