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TODAY'S RATES

Fixed Rate Mortgages

1 Year	2.44%
2 Year	3.09%
3 Year	2.90%
4 Year	3.54%
5 Year	3.60%
6 Year	4.39%
7 Year	4.70%
10 Year	5.04%

Cash Back Mortgages

5 Year 5% Cashback 5.39%
7 Year 5% Cashback 5.90%

Variable Rates

1 Year Variable Rate Closed
Prime – 0.30% (2.70%)

3 Year Variable Rate Closed
Prime – 0.70% (2.30%)

5 Year Variable Rate Closed
Prime – 0.70% (2.30%)

5 Year Variable Rate Open
Prime + 0.80% (3.80%)

Secured Line of Credit

Minimum payments interest only Prime + 0.50% (3.50%)

Prime Rate Today is 3.00%

Rates subject to change without notice

Updated as of September 8, 2010

Print Today’s Rates

Fixed vs Variable

Fixed Rate Mortgage

For a fixed rate mortgage, the interest rate and monthly payments stay the same for the duration of the term. For example, if your mortgage is a 5 year fixed rate mortgage with an interest rate of 4.15%, this means that the interest rate is fixed at 4.15% for the next 5 years. Because your monthly payments are based on the interest rate of 4.15%, the monthly payments will stay the same for the next 5 years as well.

Variable Rate Mortgage

The variable rate mortgage is based on the Canada Prime interest rate. Please refer to the Current interest rates section to find out the current prime rate and best variable rate mortgages available. So, for example, if your mortgage is a 5 year variable rate mortgage at Prime + 0.80%, the interest that you are paying on your mortgage is 0.80% greater than the current prime rate. The main difference between a fixed and variable rate mortgage is that for a variable rate mortgage, there is the possibility that the interest rate could fluctuate. The Canada Prime rate can fluctuate and can change anytime but is usually reviewed every six weeks. So, if the prime rate were to increase to 0.25%, your interest rate paid in the mortgage will also go up by 0.25%. Not only does the interest rate change but since your monthly payments are based on the interest rate of the mortgage, the monthly payments will change as well.

Click Here to get a long term history for the Canadian Prime Rate.

What mortgage should I go with?

So, how do you choose between a variable rate and fixed rate mortgage? Historically, statistics show that people have spent less interest on their mortgages by getting a variable rate mortgage. However, the major factor with the variable rate mortgage is that the interest rate and thus the monthly payments can fluctuate at any time. If you are a first-time home buyer, I recommend getting a 5 year fixed rate mortgage since making all of the payments associated with being a home-owner does take some getting used to. After 5 years if you find that you have the ability to tolerate the payment swings associated with the variable rate mortgage, looking into the variable rate mortgage more closely is something you may want to do.

Be Cautious……

For those choosing to go with the variable rate mortgage, keep in mind that the Canada Prime rate can change at any time and could change many times through out the year. If the Prime rate were to increase by 25 basis points 3 times during the year (which has happened in the past), would you be able to tolerate the payment changes? Do some budgeting to find out. Even if you start out with a variable rate mortgage, most lenders will allow you to lock into a fixed rate mortgage at any time. However, keep in mind that the interest rate will be based not on current interest rates but what the rate will be at the time you lock in.