Mortgages and rates

Mortgage rates

A mortgage rate is the rate of interest charged on a mortgage. While banks and other mortgage providers may advertise a particular percentage, the actual rate depends on the borrower’s credit history, among other factors. There are two main types of mortgages rates – fixed and variable. A variable mortgage rate fluctuates based on the so-called prime rate, a benchmark lenders usually adjust based on movements in the Bank of Canada’s trendsetting overnight rate. When rates rise, homeowners pay more in interest. A fixed interest rate mortgage typically locks in payments for a set term of two to five years.

Mortgages can also be open or closed. Open mortgages allow for a full or partial repayment at any time without a penalty. Closed mortgages generally offer lower rates, but may charge penalties if the borrower renegotiates the rate, makes additional payments or repays the entire mortgage ahead of schedule.

Charts are updated daily.

• Open, variable to 2 years
• Closed, variable to 5 years
• 6-20 years