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Mortgage Rates 2020

Mortgage Rates in 2020 are not the only factor when considering the right mortgage, but they are the most important one. At Homefund, we get the lowest rates available. Our lender partners often have special promotions that will save you thousands of dollars on your mortgage.

“You come to us for the rate, you’ll be back for the service!”™

Date updated: May 8, 2020

Term Posted Bank Rates Homefund Best Rates
6 months 3.34% 3.25%
1 year 3.44% 3.29%
2 year 3.54% 2.99%
3 year 3.89% 2.94%
4 year 3.94% 2.94%
5 year 4.99% 2.49% – 2.79%
5 year Variable Rate 2.45% 2.15% – 2.45%
6 year 5.64% 3.25%
7 year 5.80% 2.99% – 3.14%
10 year 6.10% 3.09% – 3.24%
Secured Line of Credit Prime + 1.00% Prime + 0.50%

Rates are subject to change at any time without notice. Contact our office for other mortgage products. Rates based on Prime Residential. No Fees For Qualified Applicants.

Historical Rates in Canada

This chart has tabulated the conventional mortgage since 2005 for 1 and 5 years fixed rates, along with the Bank of Canada overnight lending rate. The rates charted are Bank Posted Rates, but actual approved rates are typically discounted. A study conducted on behalf of CAAMP estimates that the average discount on a 5 year mortgage was 1.40% below the Bank Posted 5 year fixed rate.

Percentage of Mortgages by Type,
For New Purchase Mortgages and Recent Renewals
Mortgage Type Purchase
During 2018
Renewal or
Refinance During
All Mortgages
Fixed Rate 68% 67% 68%
Variable or Adjustable Rate 30% 25% 27%
Combination 2% 8% 5%
All Types 100% 100% 100%
Source: Mortgage Professionals Canada survey, fall 2018

Fixed vs Variable Rate Mortgages

One of the more important decisions right from the start is choosing a fixed rate or variable rate mortgage term. Economists provide predictions, and for over 20 years at Homefund we have seen them being off the mark. So how do you decide with confidence? Homefund Mortgage Specialists can’t predict the future, so we examine and remove as much risk as possible. We analyze mortgage rate trends, mortgage conditions and other mortgage variables to provide you with the right guidance.

Chief economist Will Dunning of Mortgage Professionals Canada provides reports on the state of the residential mortgage market in Canada. These reports are based largely on consumer surveys, and the housing market environments.

The study found that 68% of mortgage holders have fixed-rate mortgages, 27% have variable-rate, and 5% have “combination” mortgages. Combined mortgages have part of the payment based on a fixed rate and part based on a variable rate.

Fixed-rate mortgages were chosen by 68% of homebuyers during 2018. Also, 67% of homeowners in 2018 renewed with a fixed-rate mortgage.

The spread between fixed-rate mortgages and variable-rate mortgages averaged about 0.55 of a percentage point. The spread can be seen as the cost of “insurance”, which means the monthly mortgage cost will be unchanged for five years. Based on a $300,000 mortgage the cost of the spread averaged about $85 per month during.

At present, a typical “special offer” interest rate is 3.75% for 5-year fixed-rate mortgages versus 3.05% for variable rates, for a spread of 0.70 points, and the cost of the insurance has increased to $110 per month. Most homebuyers choose to accept the additional cost that is associated with fixed-rate mortgages. Others are taking the chance that over the 5-year term of the mortgage interest rate increases will be minor and they will be better off with the variable rate.

Rates are subject to change at any time without notice. Contact our office for other mortgage products. Rates based on Prime Residential. No Fees For Qualified Applicants.