Broker floor: 3.60% · Bank average: 4.00% · Stress test qualifying rate: 5.60%. For excellent credit (750+) borrowers doing a refinance in Quebec.
Paid report options after the free check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.
Variable rate mortgages float with the Bank of Canada prime rate (currently 4.45%). The broker floor reflects prime minus 0.85%, adjusted for credit tier. The bank average reflects prime minus 0.45%. For excellent credit borrowers, an additional 0 basis points applies above the excellent-credit baseline.
The result for a 1-Year variable mortgage with excellent credit is a broker floor of 3.60% and a bank average of 4.00%. These are the two anchors used to evaluate any offer. On a $500,000 mortgage, the benchmark payment is approximately $2,641/month and this combination's rate produces approximately $2,523/month — $118 less than the 5-year fixed excellent-credit benchmark.
Rates are illustrative based on Bank of Canada benchmark data and do not constitute a lender quote. Verify current rates with your lender.
| Rate anchor | Rate | What it means |
|---|---|---|
| Broker floor | 3.60% | Lowest rate available through the broker channel for this profile |
| Bank average | 4.00% | Typical rate at major bank retail branches |
| Posted ceiling | 5.99% | Bank's starting-point rate before discounting — never pay this without negotiating |
| Stress test qualifying rate | 5.60% | Rate used to calculate maximum qualifying mortgage (contract rate + 2%, min 5.25%) |
Quebec charges droits de mutation (Welcome Tax) on all real estate transfers, collected by the municipality.
Brackets are adjusted annually. Montreal applies an additional surtax on properties over $500,000. No first-time buyer exemption exists provincially.
Mortgages in Quebec are regulated by the Autorité des marchés financiers (AMF). Quebec borrowers qualify at the federal stress test rate. Quebec mortgages require notarization, adding to closing costs. Desjardins and National Bank are dominant lenders in this province.
| Value threshold | Tax rate |
|---|---|
| Up to $53,200 | 0.5% |
| Up to $266,200 | 1.0% |
| Up to $532,300 | 1.5% |
| Above prior bracket | 2.0% |
Excellent credit (750+ credit score) qualifies you for the most competitive mortgage rates available in Canada. Lenders view this tier as low-risk, providing access to broker-channel rates and strong negotiating leverage.
With excellent credit, you qualify for rates at or near the broker floor — the lowest tier available in the market. Your bank renewal offer may still start higher, but you have the strongest position to negotiate it down.
Improving your credit tier: Excellent credit borrowers are at the top tier. Focus on maintaining this status: keep credit utilization below 30%, avoid new credit applications within 90 days of a mortgage application, and ensure all accounts remain current.
To maintain excellent credit: make all payments on time, keep utilization low, and monitor your credit report annually for errors through Equifax or TransUnion.
A 1-year fixed term provides maximum flexibility. Borrowers who expect rates to fall within 12 months or who anticipate selling, refinancing, or having major life changes in the near term benefit most from the shorter lock-in period.
Typical borrower profile: Typical 1-year fixed borrowers include those expecting rate declines, sellers within 12 months, or borrowers waiting to qualify for a larger mortgage. The break penalty is the smallest of any fixed term.
Rate vs 5-year benchmark: 1-year fixed rates currently sit approximately +0.00% versus the 5-year fixed broker floor. Shorter terms can carry a premium when the market prices in future rate declines or when lenders price renewal risk into the shorter commitment.
Tradeoff vs 5-year fixed: Choosing 1-year over 5-year means renewing five times in a decade versus twice. Each renewal is an opportunity to benefit from lower rates — or a risk of higher rates. The net outcome depends on the rate path, which is impossible to predict with certainty.
A mortgage refinance in Quebec replaces your existing mortgage to access equity, consolidate debt, or change terms. Refinances require full stress test requalification at 5.60%, regardless of whether you stay with the same lender.
Stress test: All refinances require requalification at 5.60%, even with the same lender. Your maximum refinance amount is limited by your gross income at the qualifying rate — you may not be able to access as much equity as you expect, particularly if your income hasn't grown proportionally with home values.
CMHC insurance: Refinances cannot be CMHC-insured. Any refinance results in a conventional (uninsured) mortgage, even if your original mortgage was insured. Maximum loan-to-value for a refinance is 80% of the property value.
Special considerations: For Quebec refinances: breaking your existing mortgage before maturity triggers a penalty — typically 3 months' interest for variable mortgages and the greater of 3 months' interest or IRD for fixed mortgages. Model the penalty against the rate or equity benefit before proceeding.
For a 1-Year variable mortgage at a contract rate of 3.60%, the federal stress test qualifying rate is 5.60% (the contract rate plus 2%, minimum 5.25%).
On a $500,000 mortgage at the qualifying rate of 5.60% over a 25-year amortization, the monthly payment would be approximately $3,081/month. Lenders apply a 32% Gross Debt Service (GDS) ratio to determine the qualifying income, meaning total housing costs — principal, interest, property tax, and heat — cannot exceed 32% of your gross income.
Stress test calculations are for illustrative purposes only. Your lender will apply the qualifying rate to your specific balance, amortization, and income documentation.
Based on current Bank of Canada benchmark data, 1-Year variable mortgage rates for excellent credit borrowers (750+ credit score) in Quebec range from approximately 3.60% (broker floor) to 4.00% (bank average). The posted ceiling is 5.99%. These are illustrative rates based on BoC fallback data — actual rates vary by lender, insured status, and individual profile. Always verify with your lender.
All refinances require requalification at 5.60%, even with the same lender. Your maximum refinance amount is limited by your gross income at the qualifying rate — you may not be able to access as much equity as you expect, particularly if your income hasn't grown proportionally with home values.
With a 1-Year variable mortgage at 5.60% (stress test qualifying rate), a $500,000 mortgage on a 25-year amortization requires approximately $115,863 in gross annual income to qualify at a 32% GDS ratio. Excellent credit borrowers in Quebec should work with a broker to confirm their specific qualifying income.
Choosing 1-year over 5-year means renewing five times in a decade versus twice. Each renewal is an opportunity to benefit from lower rates — or a risk of higher rates. The net outcome depends on the rate path, which is impossible to predict with certainty.