The best five-year fixed mortgage rates in Canada 2022 + MORE Dec 10th

For the majority of Canadians, buying a home will be the single biggest purchase they ever make, and getting a mortgage is an essential part of this process. But how do you ensure you get a mortgage that you can actually afford over the long term? That’s where a mortgage payment calculator comes in.

Why use a mortgage payment calculator?

Just how much a home mortgage will end up costing you over the long haul can be hard to fully grasp, especially when you factor in interest. A mortgage payment calculator is an indispensable tool that will help you understand what your payments will be over time. It also gives you a more accurate sense of what you can afford. 

By using a mortgage calculator to estimate your payments, you’ll have a more realistic picture of the options available to you—and you’ll be better placed to assess mortgage products. In short, a mortgage payment calculator can help you see how a mortgage fits within your current financial plans, as well as how it may affect your future goals…

Mortgages

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5-year fixed mortgage rates in more detail

By Sandra MacGregor on  December 8, 2022

After consecutive years of record-low interest rates in Canada, we are entering a period of rising rates—which makes the cost of borrowing money, be it for a mortgage or a student loan, more expensive. The possibility of more rate hikes can make the stability of a five-year fixed mortgage rate seem like a good option compared to one with a variable rate—especially for first-time homebuyers or those about renew their existing mortgage. In fact, five-year fixed-rate mortgages are the most popular mortgage product in Canada…

If you plan to purchase a property, you’re likely aware that you’ll need a down payment. This is the portion of the purchase price you pay upfront and that is deducted from the amount you owe on the property. 

But how much will you need to save to cover the down payment on a property? While there are minimum down payment rules set out by the government of Canada, it ultimately comes down to the cost of the home you plan to purchase. 

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*I’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.

What’s a mortgage down payment? 

Many people don’t have enough money on hand to cover the full cost of buying a home. When this happens, the buyers are still expected to pay a set amount upfront. This is known as the down payment. The amount you’ll need for the down payment depends on the purchase price and the minimum down payment rules set out by the government of Canada…

Here’s what you likely did see: the overnight rate went up by yet another 0.50% on December 7 to 4.25%. Another staggering increase at a time when most experts predicted rates would start levelling out. Not only is this rate hike significant – it’s actually record-breaking. A whopping 4.00% increase in just 9 months took us from some of the lowest rates of this century to the highest.

So why hasn’t Macklem eased up yet? Hasn’t the economy cooled enough? In my opinion, there’s something bigger going on that’s making Canada’s economy a lot messier than it needs to be. 

Trudeau vs. Macklem

The Bank of Canada and the federal government are entirely separate entities with the same mandate: to ensure the health of the Canadian economy…