First-Time Buyer Mortgage Planning Guide › Chapter 7

Rajiv, what rate will I get?

By Rajiv Verma, Mortgage Broker · Mortgage Architects, FSRA Brokerage Licence #12728 · Updated November 3, 2026

Short answer: I can’t tell you until your application is in. A rate is set when a lender reviews your file, and an advertised rate may not reflect what you’ll be offered. Some lenders offer promotional rates that aren’t advertised and only show up once an application is live. More importantly, the rate is only one part of what your mortgage really costs.

What moves my rate up or down?

1. Insured or uninsured. Insured mortgages usually get the lowest rates because the lender’s risk is covered.
2. Your credit. Your score and history decide which lenders compete for you.
3. How you earn and prove income. Salaried files are simplest; self-employed, commission or new jobs can change your lender options.
4. Term and type. Fixed or variable, one year or five, each priced differently.
5. Amortization. 25 or 30 years affects your payment, total interest, and sometimes the rate or premium.
6. The property and its use. Owner-occupied, rental, condo or rural can price differently.
7. Your closing timeline. A quick close and a long rate hold can come with different rates.

This is why your neighbour’s rate, or the one on a billboard, tells you very little about yours.

What should I check besides the rate?

A lower rate is useful, but I wouldn’t recommend a mortgage until I’d checked these 10 things:

1. Penalty to break it. How is it calculated if you sell or refinance early? Watch for restricted mortgages that look cheap but limit how you can get out.
2. Prepayment privileges. How much extra can you pay each year without a charge?
3. Portability. Can you take the mortgage to your next home, and how long do you get between selling and buying?
4. Term length. Does five years fit your plans?
5. Amortization. What payment can you manage, and how much interest will you pay over time?
6. Payment structure. With a variable rate, does your payment change when prime moves, or does only the principal portion change?
7. Refinancing options. What would it cost to access your equity later?
8. Fees. Add lender, appraisal and legal costs before comparing offers. Cash-back mortgages usually carry a higher rate and a payback if you break early.
9. Mortgage registration. A standard or collateral charge affects how easily you can switch lenders later.
10. Approval conditions. Can this lender finance your income and this property, meet your closing date, and hold your rate long enough?

Is the lowest rate the best deal?

A 0.10% lower rate on a $500,000 mortgage saves roughly $500 in interest in the first year. One penalty on the wrong mortgage can cost many times that. The question isn’t “what’s the lowest rate?” It’s “what’s the best total cost for what I’m likely to do in the next five years?”

Frequently asked questions

Why can’t you quote me a rate right now?
Because your rate depends on your file: insured or not, credit, income, term, property and timing. I can give you a real rate once your application is in.

Is a broker’s rate better than my bank’s?
Often a broker can access lender rates and promotions that aren’t advertised, but the right mortgage depends on more than rate.

What’s the most expensive mistake with a “cheap” rate?
A restrictive mortgage with a high penalty, when you need to sell or refinance early.

Is the lowest rate always the best mortgage? → · What does it cost to break my mortgage? →

Next up · Chapter 8How much cash do I need at closing?Continue reading →

Need a Realtor or a real estate lawyer? I can refer you to people I work with. Ask me during your Coffee Chat.

Rajiv Verma, Mortgage Broker · Mortgage Architects, FSRA Brokerage Licence #12728 · 15 Gateway Blvd, Unit 201, Brampton, Ontario · Office 289.505.0631 · Direct 647.291.7116
This guide is general education, not personal financial, legal or tax advice. Rates shown are examples as of November 3, 2026, for comparison only, and are not a quote or a commitment to lend. Your rate and approval depend on your application, credit, income, property and lender guidelines. Program rules can change.