When it comes to getting a mortgage in Canada, misinformation spreads faster than interest rate changes.
From “the bank always gives the best rate” to “you can’t break your mortgage,” Canadians often make big financial decisions based on myths — and those mistakes can cost thousands of dollars over time.
Let’s debunk five of the most common mortgage myths and set the record straight.
Myth 1: Your Bank Will Always Give You the Best Mortgage Rate
Fact: Banks are not obligated to give you the best deal — they give you the deal that benefits them.
Most banks offer posted rates that look standard but often include hidden fees or penalties. Mortgage brokers, on the other hand, have access to multiple lenders and can negotiate much lower rates on your behalf.
Tip: Even a small rate difference of 0.25% can save you thousands over the life of your mortgage.
Myth 2: Fixed Rates Are Always Safer Than Variable Rates
Fact: Not always.
While fixed rates offer stability, variable-rate mortgages can lead to greater long-term savings, especially when rates trend downward (as many experts predict in 2025).
Variable rates also come with lower penalties if you need to refinance or sell your home early — giving you flexibility and control.
Cannect Insight: Historically, Canadians with variable-rate mortgages have paid less interest overall than those locked into fixed rates.
Myth 3: You Need a 20% Down Payment to Buy a Home
Fact: You can buy a home with as little as 5% down in Canada.
Yes, you’ll need mortgage insurance through CMHC or a private insurer if your down payment is under 20%, but this opens doors for first-time buyers who would otherwise be priced out.
Don’t let the 20% myth stop you from entering the market — the key is working with an advisor who can help you choose the smartest structure for your situation.
Myth 4: Breaking a Mortgage Is Too Expensive
Fact: Sometimes, not breaking your mortgage is what’s really expensive.
Penalties can vary depending on your lender and mortgage type — but with today’s fluctuating rates, refinancing or switching to a better product can save you far more in interest.
At Cannect, we often see clients who save thousands by breaking a high fixed-rate mortgage and moving to a more flexible option.
Myth 5: All Mortgage Brokers Are the Same
Fact: Not even close.
Some brokers work on a commission basis, which can influence their recommendations. Others, like Cannect, are non-commissioned and focus solely on what’s best for you — not what pays them more.
With unbiased advice, transparent terms, and access to Canada’s lowest loan-to-value mortgages, Cannect ensures you make a decision that truly benefits you.
Believing mortgage myths can cost you money, flexibility, and peace of mind. Whether you’re a first-time buyer, refinancing, or tapping into home equity, it’s crucial to base your decisions on facts — not assumptions.
Contact the Cannect team today for clear, unbiased guidance that prioritizes your financial goals.
📞 Call 416-766-9000 or start online at Cannect.ca.