Mortgage Loans · Canada
Mortgage Loans: Borrowing Against Property
A mortgage loan is money borrowed to buy or refinance property, secured by that property and repaid over a long amortization. The term you sign is usually far shorter than the amortization, so most borrowers renew several times. How much you pay depends on your rate, term and how quickly you repay.
- Product family Mortgage Loans
- Availability Canada-wide, licence-dependent
- Cost basis Lender-set, within federal limits
- Where it is regulated Federal ceiling + provincial rules
A mortgage is the largest loan most Canadians ever take on, and small differences in structure add up over decades. Understanding a few core mechanics makes the paperwork far less intimidating.
How mortgage loans work
You borrow against a property, and the lender registers a charge against title as security. Your term is the length of the current contract, often a few years. Your amortization is the full schedule for paying the loan off, which can run much longer. At renewal, you negotiate again. Canadian fixed-rate mortgages are compounded semi-annually by law, so the posted rate is not exactly the effective annual cost.
Fixed or variable: the core choice
A fixed mortgage loan locks your rate for the term, so the payment is predictable and you are protected if rates climb. A variable rate moves with the lender's prime rate, so you may pay less when rates fall and more when they rise. Neither wins in every scenario; it comes down to how much uncertainty you can carry.
What decides your approval
Federally regulated lenders generally work to a total debt service ratio ceiling of about 44% and apply a qualifying stress-test rate above the contract rate under OSFI Guideline B-20. Down payment size matters too, and the Financial Consumer Agency of Canada explains the rules that apply. A shorter amortization lowers total interest but raises the payment.
How a mortgage differs from other loans
- The property secures the debt, so default can lead to losing it.
- Amounts are far larger and amortizations far longer than personal loans.
- Most people renew or refinance several times over the life of the loan.
- Prepayment privileges let you pay extra, but breaking a term early costs money.
Comparing mortgage loan quotes means matching rates against terms, penalties, prepayment options and fees, not just the headline number. Only the Bank of Canada sets the policy rate that influences the market; no single lender sets it for everyone. Your own situation drives the decision, so a licensed professional is the right person to consult for something this large. LoanGoose is a loan matching and comparison service, not a lender. The lowest rates are only available to the most qualified applicants.
What it costs
| Rule | Figure | What it means | Publisher |
|---|---|---|---|
| Mortgage qualification — total debt service | about 44% | A stress-test rate above the contract rate is applied too (Guideline B-20). | Office of the Superintendent of Financial Institutions |
| Fixed-rate mortgage compounding | semi-annually | Required by Canadian law for fixed-rate mortgages. | Financial Consumer Agency of Canada |
| Criminal rate of interest (federal ceiling) | 35% per year | Above this, an agreement is a criminal offence. | Government of Canada (Justice Laws) |
No amount, term or rate is attached to any link on this page. Anything a lender offers you depends on your file and their own criteria.
What you need before you compare
- Your goal in one sentence. The amount, the date you need it, and the date you can repay it.
- Your real monthly surplus. What is genuinely left after every fixed cost — not what you hope is left.
- A current picture of your credit file. You can request a free copy of your report from each national bureau, and correcting an error is free.
- Every existing debt and its rate. Consolidation maths only works when you can see the whole board.
- The total cost of each option. Compare total repayment, not the headline rate.
- A check that the lender is licensed. Federally regulated banks fall under FCAC; provincial regulators license most other lenders.
Rules where you live
| Province or territory | Payday lending status | Local page |
|---|---|---|
| Newfoundland and Labrador | Licensed regime — federal cap applies | Mortgage Loans in Newfoundland and Labrador |
| Prince Edward Island | Licensed regime — federal cap applies | Mortgage Loans in Prince Edward Island |
| Nova Scotia | Licensed regime — federal cap applies | Mortgage Loans in Nova Scotia |
| New Brunswick | Licensed regime — federal cap applies | Mortgage Loans in New Brunswick |
| Quebec | Payday lending not licensed | Mortgage Loans in Quebec |
| Ontario | Licensed regime — federal cap applies | Mortgage Loans in Ontario |
| Manitoba | Licensed regime — federal cap applies | Mortgage Loans in Manitoba |
| Saskatchewan | Licensed regime — federal cap applies | Mortgage Loans in Saskatchewan |
| Alberta | Licensed regime — federal cap applies | Mortgage Loans in Alberta |
| British Columbia | Licensed regime — federal cap applies | Mortgage Loans in British Columbia |
| Yukon | Province-dependent | Mortgage Loans in Yukon |
| Northwest Territories | Province-dependent | Mortgage Loans in Northwest Territories |
| Nunavut | Province-dependent | Mortgage Loans in Nunavut |
Provincial rules change. Confirm the current position with the regulator before relying on it — see the sourced rules table.
Compare mortgage loans options
This is a matching step, not an application with us — we are not a lender. Checking does not commit you to anything, and no amount, term or rate is promised here.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
Questions people actually ask
What is a mortgage loan?
It is a loan secured by property, used to buy or refinance real estate and repaid over a long amortization. Your term is the current contract length, which is usually shorter, so most borrowers renew more than once.
How do you get a mortgage loan in Canada?
You apply with a lender, provide income and down payment details, and the property is appraised. Federally regulated lenders generally work to a total debt service ratio ceiling of about 44% and apply a stress test above the contract rate.
Should you choose a fixed or variable mortgage?
A fixed rate locks your payment for the term and protects you from increases. A variable rate moves with the lender's prime rate, so it can fall but can also rise. Which suits you depends on your budget and comfort with uncertainty.
What is mortgage loan insurance?
It protects the lender if you default, and it is generally required when your down payment is below a set threshold. The cost is usually added to your mortgage. The <a href="https://www.cmhc-schl.gc.ca/">Canada Mortgage and Housing Corporation</a> publishes details on how it works.
How long does a mortgage amortization last?
Amortizations commonly run for decades, while the term you sign is much shorter. A longer amortization lowers the payment but increases total interest. Many borrowers shorten it over time by using prepayment privileges.
Can you pay a mortgage off early?
Many mortgages allow extra payments within annual limits set out in your agreement. Going beyond those limits, or breaking the term entirely, usually triggers a prepayment charge. Check the terms before paying a large lump sum.
Where to go next
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Personal Loans
Compare personal loan offers from Canadian lenders and see what fits your budget.
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Payday Loans
How payday loans work in Canada, what they cost, and why cheaper options are worth checking.
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Cash Advances
What a cash advance really costs, and how it differs from a short-term loan or an instalment loan.
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Instalment Loans
Compare instalment loans with fixed payments spread over a set schedule you agree to up front.
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Short-Term Loans
Compare short-term loan options in Canada and see how repayment timing drives the real cost.
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Loans for Bad Credit
How borrowing works when your credit history is uneven, and what to check before you apply.
All loan types · Borrowing by province · Calculators
Sources for this page
- OSFI Guideline B-20 — residential mortgage underwriting —
- FCAC — debt and borrowing —
- Criminal Code s. 347 — criminal rate of interest —
- FCAC — debt and borrowing —
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.