Mortgage & rate guides

Plain-language Canadian guides to mortgages, rates and renewals for 2026 — start with the live rate tracker, the prime rate, or run numbers in our mortgage calculators.

Quick answer

This library explains how Canadian mortgages and rates work — fixed vs variable, the stress test, renewals, HELOCs, amortization and more. Every guide reflects the Bank of Canada overnight rate of 2.25% and a prime rate near 4.45% as of 2026. Each is written in plain language, with tools and sources. This is not financial advice.

2.25%

BoC rate

4.45%

prime rate

Jul 15

next decision

Bank of Canada policy rate

2.25%

See the live rate →

All guides

Fixed vs variable mortgage in CanadaHow a locked fixed rate compares with a variable rate that follows prime.
Mortgage stress test explainedWhy you must qualify at the higher of your contract rate plus 2% or 5.25%.
Should I break my mortgage?When breaking early is worth it, and how penalties are calculated.
Mortgage renewal guide (Canada)What happens at renewal and how to shop for a better rate penalty-free.
How much down payment do you need?Minimum down payment rules and when mortgage insurance applies.
First-time home buyer guide (Canada)Programs, incentives and steps for buying your first home.
What is a HELOC?Revolving home-equity credit at prime plus a margin, up to 65% of value.
Prime rate vs fixed rateHow prime-linked and bond-linked rates differ and move.
Mortgage pre-approval guideHow pre-approval works and why a rate hold protects you.
Mortgage amortization explainedHow the total payoff period shapes your payment and interest.
What happens to my mortgage when rates drop?How a Bank of Canada cut flows through to variable and fixed borrowers.
Variable-rate mortgage explainedHow prime plus or minus a margin sets your rate and payment.
Porting your mortgageCarrying your existing rate to a new property when you move.
Blend-and-extend mortgageAveraging your rate and extending the term without a full break.
Open vs closed mortgageFlexibility to prepay versus a lower rate on a closed term.
Accelerated bi-weekly paymentsHow an extra payment a year cuts interest and shortens your loan.
How to lower your mortgage paymentExtend amortization, prepay, switch rates or improve credit — and the trade-offs.
Rate hold vs rate cut — what it meansWhat a hold at 2.25% versus a cut means for your mortgage.
HELOC vs refinanceRevolving credit versus a replacement mortgage when accessing equity.
Mortgage term vs amortizationWhy you renew several terms over one total amortization.

Rate tools

Independent & not affiliated. bankratecanada.ca (Overnight) is an independent website and is not affiliated with, endorsed by or connected to the Bank of Canada or the Government of Canada. Rate data is from the Bank of Canada Valet API; examples are illustrative only. Nothing here is financial, investment, tax or legal advice. See our Terms and Privacy Policy.

Sources: Bank of Canada — policy interest rate; Financial Consumer Agency of Canada — mortgage basics; CMHC — mortgage insurance and rules. Reviewed 5 Jul 2026.

Affordability & city tools

Put your cash to work.

No-fee accounts and low-cost money tools the big banks won't tell you about. Partner offers; Overnight may earn a commission at no cost to you. Not financial advice.

neoNeo FinancialHigh-interest savings & cashbackCASH BONUSGet offer →WWealthsimpleInvest, trade & high-interest cashCASH BONUSGet offer →PCPC FinancialNo-fee chequing, savings & pointsNO-FEEGet offer →wiseWiseLow-cost global money transfersFEE-FREEGet offer →