The percentage charged by a lender for borrowing money, expressed as an annual rate.
In Canada, mortgage interest rates come in two main types: fixed (stays the same for the term) and variable (fluctuates with prime). Fixed rates are influenced by bond yields, while variable rates track the Bank of Canada overnight rate. The rate you receive depends on your credit score, down payment, property type, and whether you use a bank or broker. Brokers often access lower rates because they work with multiple lenders. Always compare the Annual Percentage Rate (APR) which includes fees.
Related terms: Fixed Rate Mortgage | Variable Rate Mortgage | Prime Rate