Rates Today Explained
In late 2016, the rate landscape in Canada shifted dramatically when the Federal Government changed its policies on how Mortgage Default insurance works. Lenders costs on funds for different types of mortgages changed, which as a result, shifted rate offerings on different types of mortgages.
Rates are now dependent on several main factors:
Your downpayment: If your downpayment is less than 20% of the total purchase price, you will qualify for the most preferred rates. In some cases, if you have 35% or more down, you may also qualify for preferred rates.
Amortization Period: If your mortgage is amortized over 25 years, then you may qualify for a more preferred rate, versus a 30 year amortization.
Type of Transaction: If you are purchasing, renewing your mortgage (in some cases), and you qualify at 25 years, then you will qualify for more preferred rates. If you are refinancing your mortgage, you will receive the standard rate.
Confused? Check out our Mortgage Glossary page.