Remember, find the best rates PLUS the best mortgage features! That's what counts!

Rates are subject to change at any time without notice. Rates based on Prime Residential. 



Average rate over 26 years is 11.71%

Historical Interest Rates
Over the past 19 years the average interest rates according to CMHC was 11.5%. The interest rates we have in Canada today are at an all time low. This is another reason to consider the security of a fixed rate term. 20 years ago most people would lock in their mortgage rate for 25 years… while most people today take the 5 year term because that has been the popular "flavour" over the past 15 years.

Going with longer terms
Now it is an appropriate time to consider a longer-term mortgage because the rates are so low. With the 5 year rate only ¼% to ½ lower than the 10-year option right now, it makes more sense than ever to lock in for 10 years and not have to worry about your mortgage rate being higher 5 years from now, if you had chosen a 5 year term.

How about short term mortgages?
With the 6-month rate being just about equal to the 3 or 5 year rate it starts to make more sense than ever to lock in for longer terms.

A couple years ago the 6-month rate was 1.5% - 2% lower than 5-year rates, and then it made more sense to take the gamble with a shorter-term mortgage.

Remember you need to look at your own unique scenario in deciding… you may be moving again 1 year from now, therefore you would best be suited taking a 1 year term at the most. We can always help you with advice if you're not sure which to take.

A lower rate can save you big bucks!
Because the mortgage most people require to buy a home is so large, a small difference in the interest rate can really add up over the life of a mortgage - usually 20 or 25 years. Here are some examples.

First, let's look at the total cost of buying a home with a mortgage. A $160,000 mortgage loan at an interest rate of 7 per cent will cost you an unbelievable $176,200 in interest over 25 years. That means your total outlay is $336,200, not including your down payment. The impact of interest rates on the cost of your mortgage is so great that even if you manage to only lower your interest rate by a fraction, you can significantly reduce that total price tag. For instance, if you reduce the interest rate in the above example by half a percentage point, you would save $14,685 over 25 years. Another effective way to cut your total bill is by paying the loan off faster. For instance, shortening the amortization (or life) of the mortgage to 20 years will save you $40,785 in interest.

Note that these calculations assume that interest rates will remain constant for the next two decades or more. Chances are they won't. When your mortgage comes up for renewal in six months or a year or five years, whatever term you have chosen, rates may be substantially higher - or lower. This will have a significant impact on your payments.

The Interest Rate Gamble
Borrowers today are forced to play mortgage-rate roulette. Each time your loan comes up for renewal, you are faced with the difficult choice between less expensive, short-term financing and more expensive, longer-term financing.