Posted Rate vs. Special Mortgage Rate in Alberta
Short answer
Posted rates are the lender's advertised shelf rates — often higher than what negotiable borrowers actually pay. Special or discounted rates are the lower offers available through brokers, mortgage specialists, or promotions. Most Alberta borrowers should compare discounted rates, not posted rates, when budgeting payments.
The plain-English version
Big banks publish posted rates for each term length. These serve as reference points for penalties (especially Interest Rate Differential on fixed mortgages) and for conversion rates on variable-to-fixed switches. Few new borrowers pay posted rates — discounts of 1%–2% or more off posted are common on competitive files.
Special rates are the market-facing offers: broker channel rates, bank specialist discounts, and limited-time promotions. They reflect current competition and your profile. The gap between posted and discounted rates is why two borrowers at the same lender can have very different contract rates depending on when and how they applied.
Alberta-specific considerations
- Alberta broker channels are active — comparing bank specialist rates with broker monoline rates often beats walk-in posted pricing.
- Renewal letters sometimes quote rates closer to posted — negotiate or shop before accepting the first offer.
- Understanding posted rates matters for IRD penalty calculations if you break a fixed mortgage early.
Example scenario
A bank's posted 5-year fixed rate is 6.54%, but the same week's special rate for a qualified buyer is 5.19%. On a $400,000 mortgage over 25 years, that 1.35% gap is roughly $280/month. Always ask for the discounted contract rate, not the branch posted board rate.
Common mistakes to avoid
- Using posted rates on the lender's website for payment planning without asking for your actual discount.
- Accepting a renewal offer without comparing discounted market rates.
- Not knowing that IRD penalties reference posted rates — making early breakage costlier than expected.
- Assuming the lowest advertised special rate applies to every file regardless of credit or down payment.