Rates are the first thing everyone asks about, and the most misunderstood part of a mortgage. Here are straight answers to the questions we hear most.
How Are Mortgage Rates Actually Determined?
Fixed rates are priced primarily off Government of Canada bond yields, since lenders fund fixed mortgages with matching-term bonds. Variable rates are priced as prime rate plus or minus a spread, and prime rate moves with the Bank of Canada's policy rate. Your specific rate then reflects the lender's own funding costs, your risk profile, and how much they want your business that week.
Fixed or Variable, Which Is Better Right Now?
There's no universal answer, it depends on your risk tolerance, how long you plan to keep the mortgage, and where the Bank of Canada is expected to move next. Fixed gives payment certainty; variable has historically saved money more often than not over a full term, but with more month-to-month uncertainty. We walk through the current gap and your specific situation before recommending either.
Why Do Rates Differ Between Lenders for the "Same" Mortgage?
Each lender has its own funding cost, risk appetite, and current sales targets. A bank, a monoline lender, and a credit union can all price the identical mortgage differently in the same week, which is exactly why comparing across lenders, rather than accepting the first offer, regularly saves real money.
Does My Credit Score Affect My Rate?
Yes, though less dramatically on a standard insured mortgage than people expect, since insurer pricing is fairly standardized. It matters much more on uninsured, alternative, and private mortgages, where pricing is risk-based and a stronger score can meaningfully lower your rate.
Can I Actually Negotiate My Mortgage Rate?
To some extent, yes. Posted rates are rarely the final rate, and having a competing offer in hand from another lender is the single most effective way to get a better one. This is a large part of what working with a mortgage agent across 50+ lenders actually accomplishes.
How Often Do Rates Change?
Fixed rates can move daily with bond markets. Variable rates and prime rate change only when the Bank of Canada adjusts its policy rate, which happens on scheduled announcement dates roughly eight times a year.
Have a Specific Rate Question?
Ask us directly, we'll give you a straight answer, not a sales pitch. Talk to Sean.