Hustle & GritWatch us on YouTube
The posted rate is a lender’s official, publicly listed interest rate for a given mortgage product and term — the starting point most Canadians never actually pay, since the contract rate is typically negotiated down from it.
Posted rates still show up in two places borrowers actually feel: as the reference lenders and brokers negotiate a discount from when quoting a contract rate, and as an input some lenders use when calculating a prepayment charge, particularly the interest rate differential (IRD) on a closed mortgage.
Every lender sets its own posted rates by product and term, and they don’t move in lockstep with each other or with the actual rates being offered day to day — which is why comparing two lenders’ posted rates alone tells a borrower very little about what they’ll actually pay.
IRD calculations: some lenders reference the posted rate (at origination and at the time of prepayment) as an input into the interest rate differential penalty on a closed mortgage — see IRD.
Discounted vs. posted: brokers and agents typically negotiate a contract rate below the posted rate; the size of that discount varies by lender and by file.
Lender-specific: each lender sets its own posted rates by product and term; there is no single national posted rate.
Distinct from APR: posted rate is a pre-negotiation reference point, not a cost-of-borrowing disclosure like APR.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
Every term a Canadian mortgage professional needs — defined, sourced, and kept current.
See how Treadstone can scale your brokerage — a free call, no commitment.