Mortgage Rate Comparison
See exactly how different mortgage rates impact your payments and total interest. Even 0.25% matters.
Loan Details
Rate Inputs
Monthly Savings (Best vs Worst Rate)
$58/mo
Over your 5-year term, that's $3,476 in payment savings
Monthly Payment
$2,862
Interest (5-yr term)
-$328,274
Interest (full amortization)
$358,631
vs. lowest rate
Best
Monthly Payment
$2,920
Interest (5-yr term)
-$324,798
Interest (full amortization)
$376,011
vs. lowest rate
+$58/mo
Understanding Rate Comparison
• Rates shown are for comparison only — actual rates depend on credit score, down payment, property type, and lender.
• Total interest over amortization assumes you renew at the same rate for each term (unlikely in practice).
• Payment difference calculations are approximate and don't account for prepayment privileges.
• Variable rate payments would change if the prime rate adjusts during the term.
How Mortgage Rate Differences Impact Your Finances
When shopping for a mortgage, most Canadians focus on the monthly payment difference between rates. But the real impact of even small rate differences extends far beyond your monthly budget. A 0.25% difference on a $500,000 mortgage might save you $67 per month — but over a 25-year amortization, that's over $20,000 in interest savings. Understanding these numbers is critical to making an informed mortgage decision.
Why Even 0.25% Matters Thousands
Let's break down the math. On a $500,000 mortgage at 5.00% over 25 years, your monthly payment is approximately $2,908 and total interest is $372,400. Bump the rate to 5.25%, and you're paying $2,975/month with $392,500 in total interest. That 0.25% difference costs you an extra $67/month and $20,100 over the life of the mortgage. On a $750,000 mortgage, the same 0.25% costs over $30,000 in additional interest. This is why rate shopping matters — and why working with a broker who has access to 30+ lenders can save you thousands.
Fixed vs Variable Rate Considerations
Fixed-rate mortgages provide payment certainty. Your principal and interest payment stays the same for the entire term, making budgeting straightforward. Variable-rate mortgages fluctuate with the Bank of Canada's policy rate — when rates drop, your payment may decrease (or more goes to principal); when rates rise, your payment increases.
Historically, variable rates have outperformed fixed rates over the long term in Canada. However, in a rising rate environment, the risk of payment shock is real. Consider your comfort level with potential increases. If a 1-2% rate rise would strain your budget, a fixed rate provides peace of mind.
When to Lock In Your Rate
Most lenders offer rate holds of 90-120 days at no cost. If you've found a property or are close to closing, locking in a competitive rate protects you from market increases. In a rising rate environment, early rate locks can save thousands. In a falling rate environment, you might want to wait — but timing the market is risky. Your mortgage broker can provide guidance on current rate trends and recommend the optimal timing for your situation.
Tips for Getting Your Best Rate
- Use a mortgage broker — they have access to 30+ lenders and can find rates you won't find on your own.
- Improve your credit score — borrowers with 680+ scores qualify for the best rates. Check your credit report before applying.
- Increase your down payment — 20% or more eliminates CMHC insurance and can unlock better rates.
- Compare at least 3-4 lenders — this calculator helps you see the impact of different rates on your specific loan.
- Don't fixate only on rate — consider prepayment privileges, portability, and penalty structures when comparing lenders.
- Get pre-approved — a pre-approval locks your rate for 90-120 days while you shop for a home.