The short answer
Two rates, two uses
| Posted rate | Negotiated rate | |
|---|---|---|
| What it is | The lender’s published rate for a term | The rate offered to your file after comparison |
| What it is used for | Reference, and the base of some penalty calculations | What you pay |
| Who gets it | Everyone | Depends on the file: down payment, income, credit, property |
Cloutier Services hypothécaires rates are published each morning next to posted rates on the Today’s mortgage rates page.
A dated example
| Term (fixed, October 7, 2026) | Offered rate | Posted rate | Gap |
|---|---|---|---|
| 1 year | 4.64% | 5.49% | 0.85 point |
| 2 years | 4.29% | 5.14% | 0.85 point |
| 3 years | 4.39% | 6.05% | 1.66 points |
| 4 years | 4.50% | 6.09% | 1.59 points |
| 5 years | 4.54% | 6.19% | 1.65 points |
Why the gap matters for the penalty
For a fixed rate, the prepayment penalty is the higher of three months’ interest and the interest rate differential. Depending on the contract’s method, the differential can be calculated from posted rates, with or without the discount you were given. A large discount at the start can therefore produce a higher penalty. See Mortgage penalty: differential or three months.
How to read a rate without being misled
- Compare two rates of the same term and the same type (fixed or variable).
- Ask whether the rate is held and for how long.
- Ask for the penalty method before you sign, not after.
- Compare the cost over the term, not just the payment.
Frequently asked questions
Is a lower posted rate always better?
No. Compare the conditions: penalty, prepayment privileges, term.
Why is the gap larger on some terms?
Lenders price each term from their own funding cost and strategy. The gap in the table is not constant from one term to another.
Is the rate on the page the one I will get?
It is an indicative rate for Quebec. The offer depends on the down payment, income, credit and property.