Blended Rate

Understand how blended mortgage rates work in Canada, when they apply, and how they help homeowners refinance or borrow more without breaking their mortgage.

Blended Rate

May 22, 2025


What is a Blended Rater?

A blended rate is an interest rate that combines the rate from an existing mortgage with the rate of a new mortgage when refinancing or increasing the loan amount.

Why Blended Rates Matter in Real Estate

In Canada, lenders use blended rates when a borrower wants to access more funds mid-term—typically through refinancing, porting, or adding to their mortgage. Rather than paying a prepayment penalty to break the mortgage, a blended rate allows borrowers to combine rates.


Blended rates are calculated using:

  • The current interest rate on the existing mortgage
  • The new rate being offered
  • The proportion of each mortgage amount
This helps homeowners:
  • Avoid prepayment penalties
  • Access equity for renovations or investments
  • Maintain flexibility while locking in new funds
Not all lenders offer transparent blended rate formulas, so borrowers should compare offers and ask for full cost breakdowns. Understanding blended rates can help homeowners manage their mortgage more strategically and minimize long-term interest expenses.

Example of a Blended Rate

A homeowner with a $300,000 mortgage at 2.8% blends in $100,000 at a new 5.2% rate, resulting in a combined rate of 3.5% without breaking their mortgage.

Key Takeaways

  • Combines old and new mortgage rates.
  • Used to avoid penalties during refinancing.
  • Helpful for borrowing additional funds.
  • Terms vary by lender.
  • Should be compared with full cost analysis.

Related Terms

  • Refinance
  • Porting
  • Mortgage Term
  • Prepayment Penalty
  • Interest Rate

Additional Terms

Sales-To-New-Listings Ratio (SNLR)

The Sales-To-New-Listings Ratio (SNLR) is a real estate metric that compares the number of homes sold to the number of new listings in a given period.. more

Market Type

Market type refers to the classification of a real estate market based on supply, demand, and pricing trends, typically categorized as buyer’s,. more

Outparcels

Outparcels are stand-alone commercial properties located near or on the outer edge of a larger retail or shopping centre complex.. more

Halo Effect

The halo effect in real estate refers to the positive influence that a popular or high-end development has on the surrounding property values and. more

Sump Pump

A sump pump is a mechanical device installed in the lowest part of a basement or crawl space to remove accumulated water and prevent flooding.. more

Structural Integrity

Structural integrity refers to a building’s ability to withstand its intended loads without failure, deformation, or collapse during its lifecycle.. more

More For You

OpEd: Toronto’s Sky-High Problem With The Crane Index Report

OpEd: Toronto’s Sky-High Problem With The Crane Index Report

This article was written and submitted by Antonio Niro, CFO at The Rose Corporation.

Each year the Crane Index Report from Rider Levett Bucknall is circulated and without fail Toronto is at the top, “winning” by an incredibly wide margin. The report acts as a high-rise construction barometer. The issue is this tool is being used to incorrectly draw conclusions about the construction industry.

Keep ReadingShow less

A Slice Of Cinematic Toronto History Lists For $7.9M

A Slice Of Cinematic Toronto History Lists For $7.9M
Sotheby's International Realty Canada

Tucked behind the hustle of Yonge Street, where few may think to look, sits a heritage building so rich in character and legacy, it practically hums with history.

Built in 1912, 18 Gloucester Lane is one of Toronto’s most quietly significant addresses — a five-storey buff brick structure that blends industrial grandeur with rare cultural pedigree.

Keep ReadingShow less

This Etobicoke Estate Boasts A Spa, Car Gallery, And Golf Course Access

This Etobicoke Estate Boasts A Spa, Car Gallery, And Golf Course Access

Sotheby's International Realty Canada

A refined Georgian-inspired estate tucked behind the trees of Etobicoke’s Islington enclave, 153 Perry Crescent is the kind of home that doesn’t just impress — it envelops.

Backing directly onto the private Islington Golf and Country Club, this newly built residence blends classical proportions with uncompromising modern luxury.

Keep ReadingShow less

Vancouver Unveils Bold 20-Year Vision to Revitalize Granville Street

​An overview of the Granville Street Plan.

An overview of the Granville Street Plan. / City of Vancouver

After much anticipation, the City of Vancouver has finally unveiled the new Granville Street Plan that will guide the future of the critical business, employment, and entertainment hub, ahead of a council meeting next week.

Since the COVID-19 pandemic, numerous businesses and hotels have shuttered their doors, many of which were located on Granville Street. Safety and homelessness have also become increasingly significant issues, with a 2021 report by Resonance Consultancy finding that Granville Street was "perceived as the most insecure area in Downtown Vancouver for both locals and tourists" and had become "mainly used as a transit corridor by Vancouverites commuting to Downtown Vancouver during the day, and as a nightlife destination in the evening."

Keep ReadingShow less

Here’s What You Missed At REALTOR® QUEST 2025 (PHOTOS)

Here’s What You Missed At REALTOR® QUEST 2025 (PHOTOS)
TRREB

TRREB REALTOR® QUEST 2025 was the place to be on May 14 and May 15, with thousands of real estate professionals attending the once-a-year blowout event.

Taking over the Toronto Congress Centre, the event is Canada's largest real estate conference and trade show, always attracting the best and brightest of the nation's real estate professionals.

Keep ReadingShow less

Cenyard Buys Out Embattled Landmark Premiere From Projects In Surrey, Coquitlam

​A rendering of the Guildford Plaza project planned for 10310 152nd Street in Surrey.

A rendering of the Guildford Plaza project planned for 10310 152nd Street in Surrey. / Arcadis

On Tuesday, Cenyard Properties announced that it had acquired full ownership of two development projects in Surrey and Coquitlam, both of which were previously joint ventures with local real estate developer Landmark Premiere Properties, which is facing distress on multiple projects.

Cenyard did not provide transaction details, except that the transactions completed on May 16 and that the total value of the two acquired properties is approximately $90 million. The company also said that it had funding from a major bank for the mortgages on both properties and that it will be "actively advancing" both projects.

Keep ReadingShow less

"No Government Is Doing Enough": Provinces Score Badly On Housing Report Cards

housing

It’s report card time – and not just for Canada’s students. The Report Card on More and Better Housing, which grades provincial and federal governments on their progress relative to the 140 policy recommendations made by the Task Force for Housing & Climate, has just been released.

And it isn’t exactly grounds for celebration. Far from it, actually.

Keep ReadingShow less

16-Storey Rental Planned For Victoria Park Ave, Near Future Stop Of Eglinton LRT

16-Storey Rental Planned For Victoria Park Ave, Near Future Stop Of Eglinton LRT
Rendering of 1641 Victoria Park Avenue/Arcadis

In mid-April, Metrolinx announced that it had begun the final leg of tunnelling for the west extension of the Eglinton Crosstown LRT. This brings the long-awaited transit line closer to completion (although there’s still no opening date in sight), and a 16-storey rental slated for 1641 Victoria Park Avenue is one example of housing that will benefit from the forthcoming transit connectivity.

The 12,679 sq.-ft site, which is on the east side of Victoria Park Avenue near the Arncliffe Crescent intersection, is currently occupied by a two-storey building that had previously been residential, but has since been adapted for office uses. The property is within walking distance of a future O’Connor Station stop of the Eglinton Crosstown LRT, according to the planning report.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved