Today's Top Deal

Why a Variable Makes Sense

Canada's economy is in a rate hike cycle. No doubt about it. But this time around, the upside risk is potentially less than it has been in previous rate cycles.

One indication of that is the Bank of Canada's "neutral rate" estimate, which is now much less than it has been in prior decades. That true, in part, because the economy is roughly 50% more sensitive to rate hikes than in the past, the Bank says.

The Bank of Canada would have to hike its policy rate more than one full percentage point (more than one 1/4 point hike per quarter)—and maintain rates at that level or higher—in order for a typical 5-year fixed to beat this 2.39% offer, based on interest cost alone. 

That's why, for well-qualified risk-tolerant borrowers with a financial cushion, this effective prime - 1.31% variable is a sound option.

Who’s Right For This Deal

The rate shown is based on a $400,000 mortgage, fully provable income and a closing date within 90 days. Larger mortgages may qualify for lower rates and vice versa.

Consider this mortgage if you have:

• An mortgage that is already default insured or less than 20% equity
• At least 3-4 months of living expenses saved up
• A better-than-average ability to handle higher payments
• An amortization of 5 to 25 years
• Good credit and provable income.

Rate Specifics

• This rate is for default insured purchases and switches only (i.e. your mortgage must be more than 80% of your home value, or you must have default insurance already)
• Standard charge switches enjoy free legal/registration fees. If you have a collateral charge, inquire about our new collateral switch program.
• Flexible 20% annual lump sum prepayment privileges and 20% payment increase
• As with most insured mortgages, electronic appraisals are free (as a special limited time offer, rebates do not apply if the lender orders a physical appraisal)
• Note that while this is a "full-featured" mortgage, refinances with other lenders are not permitted before maturity.
• You can lock in to a 5-year fixed mortgage at any time, at the lender's then-current terms and discounted rates.
• A standard non-collateral charge makes switching lenders cheaper and easier at renewal
• Early discharge entails a 3-month interest penalty at the contract rate or prime rate, whichever is greater. 
• Full portability with a 90-day port gap, subject to re-qualification
• This offer is available to brand new clients who have not submitted an application in the last 6 months. It is based on approved credit and subject to change without notice.
• Other conditions may apply. E&OE. O.A.C.

Got a question? Live chat with our friendly mortgage concierges, or call 800-280-2460 from 9 a.m. to 8 p.m. ET (5 p.m. PT).

How It Stacks Up

Today’s top deal should be the best value in Alberta, BC, Ontario, New Brunswick, Newfoundland and PEI. But don’t take our word for it. Compare this deal to others using Canada’s most popular rate shopping tools.