Data Transparency
LendGuide Rate Methodology
How we source, verify, and display Canadian mortgage rates — and the formulas that power our calculators.
Where Our Rates Come From
Broker (Best Available) Rates
The “best broker rates” displayed on LendGuide.ca represent the best available insured rates accessible through licensed Canadian mortgage brokers at the time of publication.
These rates are:
- •Sourced from broker rate sheets updated weekly
- •Verified against multiple broker networks
- •Representative of rates available to qualified borrowers with: credit score 680+, down payment appropriate to loan type, stable verifiable income, and purchase or transfer (not refinance, which carries higher rates)
Note: Actual rates offered to individual borrowers may be higher or lower based on their specific financial profile, property type, and lender assessment.
Bank Posted Rates
Bank posted rates are sourced directly from the Bank of Canada's Valet API, which aggregates weekly survey data from Canada's chartered banks. These are the rates banks advertise publicly — not the discounted rates available upon negotiation or through a broker. They are displayed for comparison purposes only.
API Series Used:
V121764 — 1-year fixed posted rate
V121765 — 2-year fixed posted rate
V121766 — 3-year fixed posted rate
V121770 — 5-year fixed posted rate
V122514 — Bank prime rate
Update frequency: Daily automated sync, Monday–Friday at 9:00 AM ET
Insured vs Insurable vs Uninsured Rates
Canadian mortgage rates fall into three distinct categories. Understanding which applies to you is critical because rates differ significantly across them.
Insured
Lowest rates- —Less than 20% down payment
- —CMHC (or Sagen/Canada Guaranty) insurance required
- —Maximum purchase price: $1,499,999
- —Maximum amortization: 25 years
- —Lowest rates — lender has zero default risk
Insurable
Slightly higher- —20%+ down payment
- —Meets CMHC eligibility criteria
- —Maximum purchase price: $999,999
- —Maximum amortization: 25 years
- —Rates slightly above insured
Uninsured
Highest rates- —Purchase price over $1 million
- —Refinances (never insurable)
- —30-year amortization mortgages
- —20%+ down required by default
- —Highest rates — lender bears full default risk
Unless otherwise specified, “best rates” on LendGuide.ca refer to insured rates — the lowest available category and the most commonly quoted in rate advertising.
How Often Rates Are Updated
| Data Type | Update Frequency |
|---|---|
| Prime rate | Daily (automated) |
| Variable mortgage rates | Daily (automated) |
| Fixed mortgage rates (broker) | Weekly (manual review) |
| Bank posted rates | Daily (automated) |
| Home prices | Monthly |
| Government program details | As announced |
| Site year display | Annual (Jan 1, automated) |
Calculation Methodology
Monthly Payment Formula
All mortgage payment calculations on LendGuide.ca use Canadian semi-annual compounding as required by the Interest Act (Canada). This is legally mandated for all Canadian mortgages and differs from US calculators, which use monthly compounding.
Formula
Effective monthly rate (r) = (1 + annual_rate / 200)^(1/6) − 1
Monthly payment = P × r × (1+r)^n / ((1+r)^n − 1)
P = principal (mortgage amount)
r = effective monthly rate (from formula above)
n = amortization in months
This produces mathematically accurate Canadian mortgage payments that match lender calculations. Some US-based calculators use monthly compounding, which produces slightly different (slightly higher) results.
Stress Test Calculation
The federal mortgage stress test qualifying rate is prescribed by OSFI Guideline B-20. All federally-regulated lenders (banks) must apply it. Most credit unions and provincially regulated lenders also apply it in practice.
Qualifying Rate
Stress test rate = max(contract_rate + 2.00, 5.25)
GDS = (P+I + property_tax/12 + heating + condo×0.5) / (income/12)
TDS = (GDS_housing + all_other_debts) / (income/12)
GDS maximum: 39%
TDS maximum: 44%
CMHC Premium Calculation
CMHC (and equivalent Sagen / Canada Guaranty) mortgage default insurance premiums are calculated as a percentage of the insured mortgage amount, applied in tiers based on the loan-to-value ratio.
| Down Payment | LTV | Premium Rate |
|---|---|---|
| 5% – 9.99% | 90.01% – 95% | 4.00% |
| 10% – 14.99% | 85.01% – 90% | 3.10% |
| 15% – 19.99% | 80.01% – 85% | 2.80% |
| 20%+ | ≤ 80% | 0% (no CMHC) |
The premium is added to the mortgage amount and amortized over the life of the loan. Provincial sales tax (PST) applies to the premium in ON, QC, MB, and SK — this cannot be added to the mortgage.
Important Limitations
Rates shown on LendGuide.ca are for informational and comparison purposes only. They do not constitute an offer to lend.
Actual rates are determined by lenders based on individual borrower qualification including credit score, income verification, property appraisal, and loan-to-value ratio.
LendGuide.ca makes no guarantee that any specific rate will be available to any specific borrower.
Past rates are not indicative of future rates. Mortgage rates can change at any time without notice.
LendGuide.ca is not a licensed mortgage broker or lender. We do not provide mortgage advice. Consult a licensed mortgage professional for advice specific to your situation.