RATES & CALCULATORS
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*REMEMBER: The rates you see online are for insured purchases only
(less than a 20% down payment) and other conditions may apply.
What is the difference between Variable and Fixed?
Click the PDF and feel free to print!
Is it true that if you have a 20% down payment, you pay a higher rate than someone with LESS than 20% down?
Yes, in 2016 when the stress test was introduced rates became divided among down payments, programs and some lenders even have min credit ratings attached to their rates.
Here's the thing, when we put LESS than 20% down in Canada, we have to purchase default insurance (ex. CMHC, Genworth, Canada Guaranty) and this premium is added to the total mortgage. So if someone puts 10% down, a 3.1% premium is added to the mortgage. If you put 20% down, you don’t have a premium to pay. So if that premium cost were converted into a rate, its not actually cheaper.