Rates change daily and differ by lender, by borrower and by product. Here is what actually sets your rate, and how a broker gets you a better one than a single bank will show you.
There is no single "mortgage rate". On any given day there are hundreds, and the one you are offered depends on the lender, the product, your file and the day you lock it. Understanding the moving parts is the difference between accepting the first rate you see and getting the best one you qualify for.
Variable-rate mortgages are priced off your lender's prime rate, which moves with the Bank of Canada's policy rate. When the Bank changes its rate, prime follows within days, and your variable rate follows prime. The Bank announces its decisions eight times a year on a published schedule.
Fixed-rate mortgages are priced off Government of Canada bond yields, mainly the five-year yield for a five-year term. Bond yields move every day with inflation expectations and economic news, which is why a fixed rate quoted on Monday can be different by Thursday. Lenders add a spread on top of the yield to cover their costs and margin.
Mortgages with less than 20% down carry default insurance, which protects the lender. Because the lender's risk is lower, insured mortgages often get the lowest advertised rates. Uninsured mortgages, with 20% or more down, are priced a little higher, and refinances and rental properties higher again. The lowest rate in an ad is usually an insured purchase rate that many borrowers do not qualify for.
Two people applying on the same day at the same lender can be quoted different rates. The lender is pricing risk, and these are the inputs:
A slightly higher rate with a fair prepayment penalty can cost less than the lowest rate with a punishing one, especially if you may sell or refinance before the term ends. We look at the whole product, not just the headline number.
Your bank quotes its own rates. A broker submits your application to many lenders at once: the major banks, credit unions and monoline lenders who only sell through brokers. They compete for the file, and you take the best offer. On most residential mortgages our service costs you nothing, because the lender pays us when the mortgage funds.
A pre-approval locks a rate for a period, commonly 90 to 120 days depending on the lender, while you shop for a home. If rates rise, you keep the locked rate. If they fall, a good broker gets you the lower one. Details on our pre-approval page.
Canadian Mortgage Group Corp is a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario, Brokerage #11392. This page is general information, not financial advice or an offer of credit. Mortgage products, rates and approval are subject to lender criteria and change without notice (O.A.C.).
It depends on the day, the lender and your file. Rather than quote a number that will be out of date tomorrow, we shop your application across many lenders and show you the best rates you actually qualify for. Call 905-896-2642 or request a quote and we will have current options for you quickly.
Neither is always better. Fixed gives certainty for the term; variable has historically cost less over time but moves with the Bank of Canada. The right answer depends on your budget, your risk tolerance and how long you plan to stay. We walk through both with real numbers for your situation.
Advertised rates are usually for insured purchases with strong credit and specific terms. Refinances, rentals, uninsured mortgages and different credit profiles are priced differently. A broker tells you your real rate up front.
On most residential mortgages, no. The lender pays the brokerage when the mortgage funds. If a fee would ever apply, for example on some private or complex files, we tell you before you commit.
Typically 90 to 120 days, depending on the lender. A pre-approval locks the rate for that period while you shop.
Tell us a little about what you need. A CMGC broker will reach out with your options, no obligation, no cost.
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