How do I compare mortgage offers from different lenders in Canada?

Look beyond the interest rate. Compare: the total cost over the term (rate × balance × term), prepayment privileges (how much extra you can pay per year), penalty calculation method (3 months interest vs IRD), portability (can you take it to a new home), and whether it is a collateral or conventional charge (affects switching lenders at renewal). A mortgage with a slightly higher rate but better prepayment privileges and lower penalties can save you more overall.

What is the most important factor when comparing mortgage offers?

For most borrowers, the total cost over the term is the most important factor — not just the rate. A 0.10% rate difference on a $500,000 mortgage is about $250/year ($1,250 over a 5-year term). But a penalty difference (3 months interest vs IRD) can be $10,000–$20,000 if you need to break the mortgage. Prepayment privileges that let you save $5,000–$10,000 per year also outweigh small rate differences.

Should I always choose the lowest mortgage rate?

Not necessarily. The lowest rate often comes with trade-offs: restricted prepayment privileges, higher penalties (IRD), collateral charges that make switching harder, or less portability. A slightly higher rate with 20% prepayment privileges, a 3-month interest penalty, and portability can save you more money than a bare-minimum rate with restrictive terms.

What is the difference between a collateral and conventional mortgage charge?

A conventional charge registers the mortgage for the exact amount borrowed. It can be transferred to a new lender at renewal with a simple assignment (low cost). A collateral charge registers for more than you owe (often up to 125% of home value), which lets you borrow more later without re-registering — but switching lenders requires a full discharge and new registration ($1,000+ in legal fees). TD Bank and Tangerine use collateral charges by default.

Mortgage Comparison Worksheet: Compare 3 Lender Offers Side by Side (2026)

Choosing a mortgage based on rate alone is one of the most expensive mistakes Canadian borrowers make. This worksheet helps you compare up to 3 lender offers across every factor that affects your total cost.

Fill in the details for each offer and use the scoring guide at the bottom to determine which mortgage is truly the best deal.

Mortgage Comparison Worksheet

Basic Terms

Factor	Offer 1	Offer 2	Offer 3
Lender name	________	________	________
Lender type (bank / broker / online / credit union)	________	________	________
Interest rate	________%	________%	________%
Rate type (fixed / variable)	________	________	________
Term length	________ years	________ years	________ years
Amortization	________ years	________ years	________ years
Mortgage amount	$________	$________	$________

Monthly Payment and Total Cost

Factor	Offer 1	Offer 2	Offer 3
Monthly payment	$________	$________	$________
Total payments over the term (monthly payment × 12 × term)	$________	$________	$________
Total interest over the term	$________	$________	$________
Principal remaining at end of term	$________	$________	$________

Use the mortgage calculator to calculate these values for each offer.

Prepayment Privileges

Factor	Offer 1	Offer 2	Offer 3
Annual lump sum allowed (% of original principal)	________%	________%	________%
Annual lump sum in dollars	$________	$________	$________
Payment increase allowed (% per year)	________%	________%	________%
Double-up payments allowed?	Yes / No	Yes / No	Yes / No

Why this matters: If you can prepay 20% vs 10% per year, the difference over a 5-year term on a $500,000 mortgage is up to $250,000 in additional prepayments — saving thousands in interest. See prepayment privileges explained.

Penalty Structure

Factor	Offer 1	Offer 2	Offer 3
Penalty type (3-month interest / IRD / greater of both)	________	________	________
Estimated penalty if broken in Year 2	$________	$________	$________
Estimated penalty if broken in Year 3	$________	$________	$________
How is IRD calculated? (posted rate vs discount rate method)	________	________	________

Why this matters: About 60% of Canadians break their mortgage before the term is up (due to selling, refinancing, divorce, job relocation, etc.). The difference between a 3-month interest penalty ($3,000–$6,000) and an IRD penalty ($10,000–$25,000) is massive. See penalty calculation guide and big bank penalty comparison.

Portability and Flexibility

Factor	Offer 1	Offer 2	Offer 3
Portable? (can transfer to new property)	Yes / No	Yes / No	Yes / No
Assumable? (buyer can take over the mortgage)	Yes / No	Yes / No	Yes / No
Charge type (collateral / conventional)	________	________	________
Switching cost at renewal (assignment vs full discharge)	$________	$________	$________
Blend-and-extend available?	Yes / No	Yes / No	Yes / No

Why this matters:

Portability saves you the penalty if you move during the term. See portability guide.
Collateral charges (TD, Tangerine) make it harder to switch lenders at renewal — you pay $1,000+ in discharge and registration fees instead of a simple $200–$400 assignment.
Conventional charges transfer easily between lenders at low cost.

Rate Hold and Application Details

Factor	Offer 1	Offer 2	Offer 3
Rate hold period	________ days	________ days	________ days
Rate drop protection? (get lower rate if rates fall)	Yes / No	Yes / No	Yes / No
Lender covers appraisal cost?	Yes / No	Yes / No	Yes / No
Lender covers legal fees? (for switches)	Yes / No	Yes / No	Yes / No
Cash-back offer?	$________	$________	$________

How to Score Each Offer

Assign points to each offer based on the following criteria. The highest total score is your best mortgage.

Scoring Guide

Criteria	Points	How to Score
Lowest rate	3 points	Give 3 to the lowest rate, 2 to the second, 1 to the highest
Best prepayment privileges	3 points	20% = 3 pts, 15% = 2 pts, 10% = 1 pt
Lowest penalty risk	3 points	3-month interest = 3 pts, IRD with fair calculation = 2 pts, Posted-rate IRD = 1 pt
Conventional charge	2 points	Conventional = 2 pts, Collateral = 0 pts
Portable	1 point	Yes = 1 pt, No = 0 pts
Rate hold 120 days	1 point	120 days = 1 pt, 90 days = 0 pts
Lender covers fees	1 point	Covers appraisal and/or legal = 1 pt

Score Summary

Criteria	Offer 1	Offer 2	Offer 3
Lowest rate	__/3	__/3	__/3
Best prepayment privileges	__/3	__/3	__/3
Lowest penalty risk	__/3	__/3	__/3
Conventional charge	__/2	__/2	__/2
Portable	__/1	__/1	__/1
Rate hold	__/1	__/1	__/1
Lender covers fees	__/1	__/1	__/1
TOTAL	__/14	__/14	__/14

Common Trade-Off Scenarios

Scenario 1: Slightly Higher Rate but Better Flexibility

	Option A	Option B
Rate	4.34%	4.44%
5-year cost difference	—	+$1,250
Prepayment privilege	10%	20%
Penalty type	Posted-rate IRD	3 months’ interest
If you break in Year 3	$18,000 penalty	$5,000 penalty

Winner: Option B — the $1,250 higher cost over 5 years is far outweighed by $13,000 in penalty savings if you break the mortgage.

Scenario 2: Low Rate with Collateral Charge

	Option A	Option B
Rate	4.29%	4.39%
5-year cost difference	—	+$1,250
Charge type	Collateral	Conventional
Cost to switch at renewal	$1,200+ (full discharge)	$200–$400 (assignment)

Winner: Depends — if you plan to switch lenders at renewal, Option B’s lower switching cost may offset the rate difference. If you plan to stay with the lender or need flexible borrowing, Option A’s collateral charge may be advantageous.

Using This Worksheet

Print or save this page for each mortgage comparison
Call each lender and ask for every data point in the tables above
Fill in the numbers — do not rely on verbal estimates for penalties (ask for written confirmation)
Score each offer using the scoring guide
Consider your personal situation — if you are very likely to move in 2–3 years, penalty structure matters more than rate

Best Mortgage Rates in Canada — Current rates across lenders
How Mortgage Penalties Are Calculated — Understanding IRD vs 3 months’ interest
Mortgage Brokers vs Banks vs Online Lenders — Which lender type is best
Collateral vs Conventional Mortgage — Charge type matters
Mortgage Calculator — Calculate payments for each offer
First-Time Buyer Checklist — Step-by-step buying checklist
Renewal Checklist — Step-by-step renewal checklist