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Mortgages in Canada: rates, payments and penalties

Compare variable rates, see what your payment schedule really saves and learn how lenders calculate the penalty before you break a mortgage.

Edited by Krish Paul Updated October 21, 2026 3 guides

Common questions

How is a mortgage prepayment penalty calculated?

On a closed fixed mortgage it is usually the higher of three months' interest or the interest rate differential (IRD). Lenders that subtract your original discount from today's posted rate can charge far more than rate moves alone suggest. Read the guide

Do accelerated biweekly payments save money?

Yes, because they add about one extra monthly payment a year. Regular biweekly payments cost almost the same as monthly ones. Read the guide

Should I pick variable or fixed?

In our October 2026 check, variable started about 1.1 points below the best fixed rate, so prime would need to average 1.1 points higher for five years before fixed wins. Read the guide

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