Every week I see headlines like: “5-year fixed rates are now 3.84%.”
And almost every week, someone asks me: “Can I get that rate?”
The honest answer? Maybe. But maybe not.
Here’s why.
The Part the Headlines Don’t Explain
When media outlets quote current mortgage rates, they’re usually referencing insured rates — the lowest pricing tier in Canada.
Those rates apply to a very specific type of mortgage. But not all mortgages qualify for insured pricing.
In Canada, there are actually three different mortgage pricing categories.
Understanding which one you fall into can prevent major confusion at renewal or refinance time.
The Three Mortgage Rate Categories
Not All Mortgage Rates Are Created Equal
Insured (The Headline Rate)
Backed by default insurance through organizations like:
These typically require:
Because the lender is protected by insurance, these mortgages receive the lowest rates available.
Even though the borrower doesn’t pay insurance, the lender can insure the mortgage behind the scenes.
Rates are typically slightly higher than insured — but still competitive.
These include:
These mortgages cannot be insured.
That means the lender carries more risk — and pricing reflects that.
Rates here are typically higher than insured or insurable.
Many current articles discuss:
But here’s the key:
If you refinance to consolidate debt, you likely move from insured or insurable pricing into conventional pricing. That means the “headline rate” may not apply.
That doesn’t mean refinancing is bad. It just means you need a strategy — not a headline.
Now, Let's Look at how mortgage rates are actually determined
Rates are influenced by:
Government Bond YeildsFixed Rates
Most commonly weighted by the 5yr Cdn Bond Yeild.
The Bank of CanadaVariable Rates
Those announcements that everyone gets fired up for every couple of months.
Cool, got it...but how do the lenders decide which rate they will offer you. (Because you deserve to understand the why behind policy — not just feel its impact).
These factors help establish what banks and lenders define as “risk.” The amount of risk they assume determines the rate they will offer.
how you own versus how much the bank owns
is the home owner-occupried or is it a rental property
the length of time it will take to fully repay your mortgage
The Real Takeaway
Before making decisions based on what you see online:
Mortgage strategy is about context, not just percentages. If you’re approaching renewal or considering a refinance, make sure you’re comparing apples to apples.
Remember, this is YOUR money. Let's make it work for you!