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How Bank of Canada Rate Changes Affect Your Mortgage Payments

For example, if you have a $500,000 mortgage secured at nesto’s 5-year variable low rate of , your monthly payment would be $2,553. On every $100,000 balance, your mortgage payment will be $511, while you’ll be stress-tested on a mortgage payment of $611 if you’re looking to purchase a home or refinance your mortgage.

_{Common mortgage amounts and corresponding mortgage payments on nesto’s 5-year variable low rate of on a 25-year amortization. Qualified mortgage payments apply to all home purchases and mortgage refinances and are based on stress-tested payments at the minimum qualifying rate (MQR). The MQR is defined as the greater of 5.25% (Benchmark rate) or your contract rate plus 2%.}

February 2024 vs. February 2025: What’s Different?

How Has Housing Affordability Changed in the Past Year? Renting vs. Owning

Today, Canada’s benchmark home price is $660,300, while a year ago, it was $687,700, which has decreased by 4%. However, the lowest 5-year variable mortgage rate at nesto has decreased from 5.15% a year ago to today. These changes mean that Canada’s average monthly mortgage payment has decreased from $3,511¹ to $3,035². This implies that nationally, the average insurable mortgage payment decreased by $411 or 0.14% from a year ago. In comparison, during that same period, Canada’s average national rent decreased by 2.3% from $2,107 to $2,060, which in dollars is $47 year-over-year.

_{*1 and 2: Values for mortgage payments calculated based on nesto’s variable rate over a 25-year amortization period with a 20% downpayment using the average/benchmark home price in the stated month as reported by CREA for the location.}

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