Scheduled Payment Comparison Framework
A mortgage rate difference can affect scheduled payments, but the rate spread alone is not an exact interest-cost or savings calculation. FairRate uses payment context and explicit assumptions instead of presenting balance-times-spread as a real cost.
The shortcut FairRate does not treat as exact cost
That shortcut ignores Canadian mortgage compounding, amortization, declining principal, payment timing, fees, penalties, prepayments, switching costs, and whether an alternative rate is actually available to the borrower.
What a scheduled-payment comparison can show
For a supported 5-year fixed renewal offer, FairRate can estimate scheduled monthly payments at the quoted rate and at the displayed comparison rate using the entered balance, remaining amortization, and Canadian semi-annual compounding.
The difference is payment context. It is not proof of exact interest savings, not a promise that the borrower qualifies for the comparison rate, and not a complete lender-switch or renewal decision calculation.
Inputs and conditions that can change the result
Current FairRate Canada scope
The benchmark-backed checker currently supports Canadian 5-year fixed renewal offers only. It uses fresh public 5-year fixed comparison context when a usable source is available and fails closed when supported fresh context cannot be verified.
Variable-rate and other-term offers should not be forced against a 5-year fixed reference. Province is contextual and does not create province-specific benchmark pricing.
Related FairRate pages
Review a supported offer
Use the free checker for a Canadian 5-year fixed renewal offer. The comparison is educational and does not guarantee another rate or savings.
Start Free 5-Year Fixed Check →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.