Rate glossary
The mortgage rate terms that decide what you pay
The difference between a posted rate, a special, and what you actually sign is where the money is. Here's what each term means, in plain language.
What is a posted mortgage rate?
A posted rate is a lender's official sticker price, the rate it advertises publicly and files with the Bank of Canada, and it's one almost nobody actually pays. It matters mainly because some prepayment penalties (the IRD) are calculated from it, so a high posted rate can quietly cost you if you ever break the mortgage early.
What is a special or discounted rate?
A special is the lower rate a lender will actually offer, below its posted rate. It's still a starting point, since an engaged shopper, especially through a broker, usually signs below even the advertised special. The gap between posted, special, and what people actually sign is what this site measures.
What is the invisible discount?
The invisible discount is the gap between the posted rate and what borrowers actually sign for. In our data it has run roughly 150 to 300 basis points depending on the rate cycle. Lenders don't advertise it because it's discretionary and negotiated case by case.
What does insured, insurable, and uninsurable mean?
Insured (high-ratio) means less than 20% down, so the mortgage carries default insurance, and lenders price these lowest because the loan is the least risky to them. Insurable (conventional) means 20% or more down on a purchase that still meets insurance rules. Uninsurable means the loan can't be insured at all, typically a refinance, a rental, an amortization over 25 years, or a property over $1.5M, and it carries the highest rates.
What is the IRD (interest rate differential) penalty?
The IRD is the penalty many lenders charge to break a fixed mortgage early. Big banks often calculate it from their posted rates, which can make it several times larger than a monoline lender's penalty on the same balance. It's the part of a mortgage's cost people rarely check until they're leaving, and a big reason the posted rate still matters.
Is cashback on a mortgage free money?
It isn't free money. Comparing matched cells (same month, term, and borrower profile), cashback deals carry a rate about 5 basis points higher than plain ones. The cheque, worth 1 to 5% of the mortgage, is often what makes a switch pencil out, but you pay for it in the rate, so compare your net rate rather than the headline cash.
What is an achievable rate versus an average rate?
An achievable rate is what an engaged shopper can realistically sign for, based on what people like them actually got. It's not an average of all borrowers, many of whom take the first offer they're given. This site benchmarks you against the achievable rate for your cohort rather than a market average.
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