Mortgage in Canada

Want to learn more about mortgages in Canada?
Check out the latest Canadian mortgage rates, facts and statistics for 2024.
Lowest Fixed Rates
Butler Mortgage5-Year Fixed
Lowest Variable Rates
nesto5-Year Variable
The Big Banks vs Others
Where Do Canadians Get Their Mortgages?
From Banks
Lowest Mortgage Rate of Big 6 Banks
5 Year Fixed
Average 5 Year Fixed Mortgage Rate
From Banks
Average 5 Year Variable Mortgage Rate
From Banks
Average New Mortgage Size
Average Home Price
Can You Afford a Mortgage?

The average new mortgage size in Canada has increased by almost 50% from $214,203 in 2013 to $320,298 in 2023.

How Have Canadian Housing Prices Changed in the Past Year?

The average home price in Canada was $ in Invalid Date, 2024. That’s an decrease of NaN% year-over-year.

Today's Prime Rates
Today's Prime Rate
Today's Bank of Canada Rate
Current Prime Rates as of July 12, 2023
BMO logo
CIBC logo
TD logo
RBC logo
Scotiabank logo
National Bank logo
National Bank
Mortgage Characteristics
Most Popular Mortgage Term
3 to less than 5 years
With a Remaining Amortization of 25+ Years
28% to 46%
of mortgages at Canada's Big 6 Banks
Fixed or Variable Mortgage Rates
of mortgages have a fixed rate as of July 2023
Mortgages Up For Renewal
of mortgages will renew each month until August 2024
Canada's Growing Debt
Number of Mortgages in Canada
Q1 2023
7 Million
Total Outstanding Mortgage Loan Value
Q1 2023
$1.95 Trillion
How Big is the Mortgage Brokerage Industry
Mortgage Originations in 2022
$342 Billion
Lowest Mortgage Rate from Mortgage Brokers
5 Year Fixed
Largest Mortgage Insurer
sagen logo
with 37% market share
% of Mortgages That Are Insured
of outstanding mortgages in Q1 2023
Credit Scores
Average Credit Score
of Mortgage Borrowers
Borrowers with a Credit Score Less Than 600
of all new mortgages in Q2 2023
Mortgage Investment Corporations (MICs)
of all new mortgages in Q1 2023
Credit Union Membership
Canadians as of Q2 2023
Current Lowest HELOC Rate
5 Year Fixed
Canadians Owe
$151.9 Billion
in HELOC debt as of Q2 2023
HELOC Utilization Rate
Highest Fixed Mortgage Rate in History
Highest Fixed Mortgage Rate in History
5-Year Fixed Rate, August 1981
Rate Cut Probability
of a -0.25% Cut by June 19, 2024
Shared Equity Programs
First-Time Home Buyers Incentive (FTHBI)
approved applications as of September 2022
Let The Government Get a Stake

The federal government's First-Time Home Buyers Incentive (FTHBI), run by the CMHC, aims to help first-time home buyers by sharing the cost of their mortgage payments with a shared equity mortgage (SEM).

The incentive offers up to 5% for a resale home, or up to 10% for a newly built home, towards your down payment in exchange for an equity stake in your property. This makes purchasing a home more attainable for those struggling to save enough money.

As of September 2022, the CMHC had committed $311 million towards 17,448 approved applications. That’s out of the $1.25 billion that the government has budgeted for the program until March 31, 2025.

Source: CMHC

The Federal Government Will Give
$100 Million
to help fund shared equity mortgage providers
Subsidizing Investors

The federal government has committed to providing $100 million in funding to shared equity mortgage providers over 5 years.

As of September 2022, that has translated to 7 commitments of $28.95 million.

Currently, shared equity mortgages aren’t that common in Canada. There are only two main providers, Lotly and Ourboro, and they only operate in select major cities in Ontario.

Source: CMHC

Best 5-Year Fixed Mortgage Rates in Canada
Mortgage Term:
5 year
Mortgage in Canada
Learn about how mortgages work in Canada, from the basics such as interest rate and amortization, to more advanced topics like prepayment penalties and refinancing.
A mortgage is a type of loan that is used to finance the purchase of a property, such as a single-family detached home or condominium.
More generally, a mortgage is a loan where a piece of land and the building on it is used as security or collateral.
There are many different types of mortgages in Canada, including:
Basics of Mortgages
Amortization Period

The amortization period is the total length of time it takes for a borrower to pay off their entire mortgage. This will be longer than the term, with typical amortization periods in Canada being 25 years, with 30-year mortgages or longer becoming more common. A longer amortization period means lower monthly payments, but it also means paying more in interest over the life of the mortgage.


The term is how long your mortgage contract is for. Mortgage terms in Canada can range from 6 months to 10 years, but they typically range from 1 to 5 years. Your fixed rate or variable rate spread will remain the same for your term length. After the term expires, borrowers have the option to renew their mortgage or find a new lender with better rates. You can also refinance a mortgage anytime during a term.

Payment Frequency

Borrowers can choose how often they make mortgage payments, with common options including monthly, bi-weekly, or weekly mortgage payments. Making more frequent payments through accelerated bi-weekly or accelerated weekly payments can save money on interest in the long run.

Interest Rate

Mortgage interest rates can be fixed or variable, with fixed rates staying the same throughout the term and variable rates changing based on your lender’s prime rate. Variable rates are expressed as the prime rate plus or minus a certain percentage, also known as the “spread.” This spread remains the same for your selected term length.

Advanced Mortgage Topics
Prepayment Penalties

Prepayment penalties are fees charged by lenders if a borrower pays off their closed mortgage before the end of their term, or if they make more prepayments than allowed each year in their mortgage agreement.

Down Payment

A down payment is the initial amount of money that a borrower must pay towards the purchase of a property. In Canada, the minimum down payment required for a home purchase is 5% of the purchase price for homes under $500,000, however, homes over $1 million require a 20% down payment. The portion of the home price over $500,000 but less than $1 million have a 10% down payment requirement.

Debt Service Ratios

Lenders use debt service ratios to determine if a borrower can afford a mortgage. These ratios are Gross Debt Service (GDS) and Total Debt Service (TDS). GDS compares the borrower's monthly income to their monthly housing costs, while TDS compares monthly income to housing costs plus other debt payments.

Closing Costs

Closing costs are fees associated with finalizing a home purchase, such as legal fees, appraisal fees, property survey and real property report, title insurance, title search, and land transfer taxes. These costs can add up to 2-5% of the purchase price of a property.


Refinancing is the process of replacing an existing mortgage with a new one, typically to borrow more money using built-up home equity, or to lock-in a lower interest rate.

CMHC Insurance

CMHC (Canada Mortgage and Housing Corporation) insurance is required for all mortgages with down payments of less than 20%. This insurance protects lenders in case the borrower defaults on their loan. The cost of CMHC insurance is added to the mortgage and paid off over time. Mortgage default insurance can alternatively purchased from Canada Guaranty or Sagen. These two are private sector alternatives to the CMHC, which is a Crown corporation.

Closed vs. Open Mortgages
Closed Mortgages

Have a set term and payment schedule, and prepayment penalties if you pay off the loan early or exceed your annual prepayment privileges.

Open Mortgages

Allows borrowers to make lump sum payments or pay off the entire mortgage without penalty, but come with a higher mortgage rate.

How Do I Get a Mortgage?
iconA Good Credit Score

Lenders will review your credit report to determine if you are eligible for a mortgage. Generally, banks want to see a credit score of at least 600. Private lenders might have no minimum credit score requirement.

iconSteady Income

Lenders want to see that you have a steady income to ensure you can make your monthly payments. Usually, banks want to see at least two years of employment history.

iconDown Payment

You’ll need to make a down payment of at least 5% to buy a home under $500,000, with homes over $1 million requiring a down payment of at least 20%. Your lender would also check the source of your down payment.

The Mortgage Stress Test

Federally-regulated lenders are required to check to see if you can afford your mortgage, even if interest rates increase, by testing your mortgage affordability at a higher interest rate. This is known as the mortgage stress test.

You can skip the mortgage stress test by:

  • Going with a credit union, B lender, or private lender
  • Renewing with the same lender
Where Can I Get a Mortgage?

Often with the strictest eligibility requirements, major banks in Canada offer mortgages.

iconCredit Unions

These are member-owned financial institutions that offer mortgages and other banking services.

iconB Lenders

These are alternative lenders who offer mortgages to individuals with lower credit scores or unique financial situations.

iconMortgage Brokers

These are professionals who can help you compare different mortgage options from various lenders. There are many lenders who do not offer their mortgages directly to the public and only lend through mortgage brokers.

iconPrivate Lenders

Private lenders are individuals or companies that provide mortgages to borrowers, who often have bad credit, high debt, or otherwise can’t qualify for a mortgage at a bank, with high interest rates.