Quick answer: A posted rate is a lender’s published sticker price. A discounted rate is what you actually sign for, and it sets your payment. On September 30, 2026, the typical posted 5-year conventional rate at the big banks, as published by the Bank of Canada, was 6.09%, while the best uninsured 5-year fixed we tracked was 4.94%. On a $500,000 mortgage, that gap is about $335 a month. Almost no qualified borrower pays the posted rate, but it can still matter later if you break your mortgage early.
If you’ve walked into a bank branch or looked at a bank’s rate page, you’ve seen the posted rate. Then a broker or a mortgage specialist quotes you something much lower. Both numbers are real. They just do different jobs.
What is a posted mortgage rate?
It’s the rate a lender publishes for each term, like a manufacturer’s suggested retail price. The Bank of Canada publishes the big banks’ typical posted 5-year conventional rate every week. On October 7, 2026, it was 6.19% (Bank of Canada).
Very few borrowers with solid income and credit ever pay it. Lenders discount from it based on the term, your file, whether the mortgage is insured and how hard they want your business.
What is a discounted mortgage rate?
It’s the rate you’re actually offered and sign for: your contract rate. It sets your payment and the interest you pay over the term. When someone says “I got 4.5%,” they mean the discounted rate.
Insured mortgages, with less than 20% down, often get lower discounted rates than uninsured ones, because the mortgage insurer carries the default risk. As of September 30, 2026, the best insured 5-year fixed we tracked was 4.54%, and the best uninsured was 4.94%.
How much does the difference cost on an Ottawa mortgage?
Here’s a $500,000 mortgage over 25 years at the posted rate and at the best uninsured discounted rate, both as of September 30, 2026:
| Posted rate | Discounted rate | |
|---|---|---|
| 5-year fixed rate | 6.09% | 4.94% |
| Monthly payment | $3,226 | $2,891 |
| Difference per month | $335 | |
| Difference over a 5-year term | about $20,100 in payments | |
Nobody should be paying the posted rate. The real point of the comparison is that the discount isn’t automatic. It depends on your file, the lender and whether anyone asked.
Does the posted rate affect the stress test?
Not anymore. You qualify at the greater of your contract rate plus 2% or 5.25%, so it’s your discounted rate plus 2% that matters (OSFI; CMHC). At 4.94%, that’s a qualifying rate of 6.94%.
When can the posted rate still matter?
Mostly if you break a fixed-rate mortgage before the term ends, because you sell, refinance or separate. Some lenders calculate the interest rate differential penalty using their posted rates, and the discount you received at the start can be part of that formula. Others use different methods. Two mortgages at the same discounted rate can carry very different penalties because of it.
That’s one item in the fine print, not a reason to pick a lender on its own. Read it alongside the others: prepayment privileges, portability if you move, and what happens if you need to refinance mid-term.
When doesn’t this apply?
Variable-rate mortgages are priced as prime plus or minus a set amount, so the posted-versus-discount comparison works differently there. Some lenders, especially monoline lenders that only do mortgages, quote a single rate rather than a posted rate and a discount. And if your file needs an alternative lender, the rate reflects that lender’s risk, not a discount off a bank’s posted rate.
Common questions about posted and discounted rates
Does anyone actually pay the posted rate?
Rarely, if they have solid income and credit. Most borrowers get a discount, and it’s normal to ask what’s available.
Why do banks publish posted rates if nobody pays them?
They’re a reference point the lender discounts from, and some lenders use them in penalty calculations.
Is the lowest discounted rate always the best mortgage?
Not always. Compare prepayment privileges, portability and how the lender calculates penalties too, especially if there’s a chance you’ll move or refinance during the term.
Do I qualify at the posted rate?
No. The stress test uses the greater of your contract rate plus 2% or 5.25%.
Where can I see the average posted rate?
The Bank of Canada publishes the big banks’ typical posted 5-year conventional mortgage rate every week.
What should you do next?
If you’ve been quoted a rate, I’ll show you how it compares with what other lenders are offering on the same file, and what the fine print says. Book a 20-minute call with Joshua Tagg.
This is commentary, not advice. Rates and figures as of October 8, 2026. Posted rates are the Bank of Canada’s weekly 5-year conventional series; discounted rates are the best we tracked as of September 30, 2026. Rates change often, and all mortgages are subject to lender approval. Joshua Tagg, Indi Mortgage.
