Mortgage rates
Understanding mortgage rates in Quebec.
The best rate isn't always the lowest one. Here's how rates are set, what shapes the rate you'll actually be offered, and how to choose the term that truly fits your situation.
Rates change daily and vary by lender, borrower profile and property type. Rather than publishing numbers that would be outdated tomorrow, I give you a real, personalized rate after a short conversation.
Fixed or variable rate?
Both are valid options: the right choice depends on your risk tolerance and your medium-term plans.
- Fixed rate: your rate and payment stay the same for the whole term. You value budget predictability.
- Variable rate: your rate follows the lender's prime rate and can move up or down during the term. You accept variation in exchange for greater flexibility.
- Prepayment penalties are generally far lower on a variable rate than on a fixed rate.
The term: why five years isn't automatic
The term is how long you commit to a lender (often one to five years). It is not the amortization, which is the total repayment period, often 25 years.
- A shorter term lets you renegotiate sooner if rates come down.
- A longer term protects your payment for longer if you expect increases.
- If a sale, a move or a refinance is likely, a shorter term can save you a significant penalty.
What shapes the rate you're offered
Two borrowers almost never get the same rate on the same day. The main factors:
- Your credit file and payment history
- Your down payment and whether the loan is insured
- Your income, its stability and your debt ratios
- How the property is used: primary home, second home or rental property
- The property type and its location
- Purchase, renewal or refinance: rate grids differ
Look beyond the posted rate
A slightly lower rate can cost more overall if the contract is restrictive. Check before signing:
- How the prepayment penalty is calculated
- Prepayment privileges (extra payments, annual lump sums)
- Whether the mortgage is portable if you move
- Whether you can refinance or add a line of credit
- The renewal conditions at the end of the term
What a mortgage broker does
I shop your financing across several financial institutions and lenders, compare conditions beyond the rate itself, and present the option that works best for your situation. In most residential files, my services are at no cost to you.
Frequently asked questions about rates
Why don't you publish your rates online?
Because a posted rate is rarely the real one. Rates change daily and depend on your profile, your down payment and the property type. I'd rather give you an exact, applicable number than a generic one.
Can I lock in a rate before buying?
Yes. A pre-approval generally holds a rate for a set period, often 90 to 120 days depending on the lender. If rates drop before your purchase, you usually get the lower rate.
Can I negotiate my rate at renewal?
Absolutely. The renewal offer you receive in the mail isn't your only option. Comparing lenders at renewal is one of the easiest and most profitable moments to lower your borrowing cost.
What's the difference between the posted rate and the qualifying rate?
The qualifying rate (stress test) only checks that you could absorb a rate increase. It's higher than the rate you'll actually pay, but it determines the maximum amount you can borrow.
Is a variable rate riskier?
It's more volatile, not necessarily more expensive. It suits you well if your budget can absorb an increase, or if you might sell or refinance before the end of the term, thanks in part to generally lower penalties.
How much do your services cost?
In most residential files the broker is paid by the selected lender, so the service is free for you. Any exception would be clearly explained to you in advance.