Canadian Mortgage Renewal Rate Methodology
FairRate Canada is an educational comparison and reporting product. It is not a mortgage broker, lender, brokerage, law firm, or financial advisor. The current free benchmark comparison supports 5-year fixed renewal offers only; FairRate does not compare unsupported terms or variable-rate offers against that reference.
This page documents the product rules, source controls, calculations, and limitations behind the comparison. See the separate benchmark sources and freshness documentation for source-level details.
What the checker is trying to answer
For a supported 5-year fixed renewal offer, FairRate asks whether the quoted rate is below, near, or above the fresh public comparison context available at the time of the check. That comparison is a screening aid, not a statement that another rate is available to the borrower.
Data and inputs used
Borrower-supplied renewal details such as quoted rate, remaining balance, amortization, province, and approximate equity position.
Fresh public Canadian 5-year fixed mortgage-rate context when FairRate can verify a usable source and sample.
The difference between the quoted 5-year fixed rate and the displayed comparison context, expressed in basis points.
Illustrative scheduled-payment math using Canadian semi-annual compounding. Payment differences are not presented as guaranteed savings or exact interest savings.
Primary public sources
Bank of Canada interest-rate statistics
Official Canadian interest-rate and financial-market context used where applicable.
Bank of Canada Valet API documentation
Documentation for retrieving official Bank of Canada time-series observations.
Government of Canada marketable bond yields
Government of Canada bond-yield context relevant to fixed-rate market conditions.
Official macroeconomic sources provide context rather than a borrower-specific lender quote. FairRate may also use current public mortgage-rate observations when they pass the documented usability and freshness controls.
Current comparison context
Typical 5-year fixed context
4.24%
Rate context as of July 21, 2026
Source context: Public Canadian 5-year fixed mortgage-rate pages · not a lender offer.
This is public comparison context, not a lender quote, approval, guaranteed market rate, or statement that every borrower should receive the same pricing.
How free result labels are created
For supported 5-year fixed offers, FairRate converts the basis-point difference into a plain-language label using the rules below. These are product rules, not regulatory classifications or predictions of negotiation outcomes.
Potentially strong offer
Quoted rate at or below the displayed 5-year fixed comparison context.
Close to comparison context
Quoted rate up to 20 basis points above the displayed comparison context.
Above comparison context
Quoted rate 21–60 basis points above the displayed comparison context.
Meaningfully above comparison context
Quoted rate more than 60 basis points above the displayed comparison context.
How payment differences are estimated
FairRate estimates scheduled monthly payments at the borrower's quoted rate and at the displayed comparison rate using the entered remaining balance, entered remaining amortization, and Canadian semi-annual compounding.
The difference is a payment comparison. It is not an exact interest-savings estimate and does not account for every fee, penalty, prepayment, payment-timing difference, refinancing cost, switching cost, tax, or product restriction.
Important limitations
Public rate pages can change quickly and may contain advertised rates with eligibility conditions that do not apply to every borrower.
The comparison does not mean the borrower qualifies for the displayed rate or that another lender will offer it.
Credit profile, income, property type, insurance status, equity, relationship pricing, fees, penalties, and lender policies can affect available terms.
FairRate does not know every private, discretionary, promotional, or negotiated lender offer in the market.
The reports are educational decision aids and are not substitutes for licensed mortgage, legal, or financial advice.
Independence and privacy
FairRate is not a mortgage broker or lender and does not arrange mortgages.
FairRate does not sell borrower inquiries to banks, brokers, or lenders.
FairRate does not earn lender-referral commissions on the report purchase flow.
Paid reports are consumer-paid products intended to help borrowers review their own renewal offers.
Important limitation: FairRate Canada is an independent consumer-paid educational comparison and reporting product — not a lender, mortgage broker, mortgage agent, law firm, financial advisor, or mortgage underwriter. FairRate does not arrange mortgages, take applications, approve credit, or sell mortgage inquiries to lenders or brokers. The current benchmark-backed checker and paid benchmark reports support 5-year fixed renewal offers only and use fresh public 5-year fixed comparison context when a usable source is available. Broader Bank of Canada data may be used for contextual purposes. Results are not a lender quote, approval, qualification result, personalized advice, or guarantee of a lower rate or savings. Verify current rates, eligibility, fees, penalties, product terms, and switching costs with the relevant lender and, where appropriate, a licensed mortgage professional or other qualified advisor.
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