Mortgages in Canada

A mortgage is a loan secured by a property, repaid over an amortization period and typically renewed every few years. In Canada, your rate, term and qualification depend on the lender and federal and provincial rules.

By Promissory.ca Editorial Team Reviewed against official Canadian sources Last updated: 2026-09-16

What mortgages are

A mortgage is secured against your home. You choose a term (the period the rate is fixed for) and an amortization (the total repayment period). Federally regulated lenders apply a minimum qualifying rate — the greater of the contract rate plus 2% or 5.25% — under OSFI Guideline B-20.

Eligibility

You have a down payment meeting the federal minimum
You can document income, employment and down-payment source
Your debt-service ratios meet the lender's and the stress test requirements
You have a satisfactory credit history

How it works

Get a mortgage pre-approval to lock a rate while you shop
Compare fixed and variable rates and the term length
Confirm the qualifying rate used under the federal stress test
Budget for closing costs, property tax and default insurance if your down payment is under 20%
Review prepayment privileges and penalties before signing

What to watch for

The minimum down payment is 5% up to $500,000, 10% on the portion from $500,000 to $1,500,000, and 20% above $1,500,000
A down payment under 20% requires mortgage default insurance
Variable-rate mortgages change with the lender's prime rate; fixed rates do not
Breaking a fixed mortgage early can trigger a significant prepayment penalty

Frequently asked questions

What is the federal mortgage stress test?

Federally regulated lenders must qualify you at the greater of your contract rate plus 2% or 5.25%, under OSFI Guideline B-20. This is designed to ensure you can still pay if rates rise.

How much down payment do I need in Canada?

The federal minimum is 5% on the portion of the price up to $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% above $1,500,000. A down payment under 20% requires mortgage default insurance.

Should I choose a fixed or variable rate mortgage?

A fixed rate gives payment certainty; a variable rate can be lower but fluctuates with prime. The right choice depends on your tolerance for payment changes and your timeline.

Can I get a mortgage in Canada with less than perfect credit?

Some lenders work with bruised credit, but expect a higher rate and possibly a larger down payment. A mortgage professional can explain the options available to you.

Related tools and guides

Calculators

Guides

Find mortgages by province

Important legal information

Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.

Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.

Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.

Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.

There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.

Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.

We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.

If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.

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