The method, plainly.

FixWise builds a market-implied Bank of Canada policy-rate path from Canadian overnight-rate market data. It uses Montréal Exchange one-month and three-month CORRA futures settlement prices, then anchors them with Bank of Canada CORRA and target overnight-rate data.

The futures-implied rates are mapped onto Bank of Canada announcement dates before mortgage payments are projected. Published 2026 announcement dates are used directly. Later dates use a projected cadence until the Bank publishes the next official calendar.

The mortgage projection uses a stepwise path because Bank of Canada policy-rate changes happen at discrete announcement dates. The curve is a market snapshot. It is not a guarantee or promise of future Bank of Canada decisions.

The app estimates future lender prime by preserving today’s prime spread, which is the difference between the lender’s current prime rate and the Bank of Canada target rate.

It then applies the borrower’s contractual variable discount or premium to projected prime. For example, prime minus 0.90% remains prime minus 0.90% throughout the projection.

For adjustable-rate mortgages, payments are recalculated as projected rates change, using the current balance, remaining amortization, and payment frequency.

For fixed-payment variable mortgages, the payment stays fixed unless the entered payment is changed. If interest is higher than the payment, the schedule flags negative amortization risk.

The fixed comparison uses the actual fixed conversion offer entered by the user. It does not substitute a generic advertised fixed rate.

FixWise compares projected interest, payments, ending balance, payment range, and break-even fixed rate over the selected comparison period.

The breakpoint analysis shows the market-implied result plus the rate-path move where the opposite choice starts to make economic sense.

The recommendation is intentionally limited. It says whether the model leans fixed, variable, or neutral based on the assumptions entered. It does not tell a borrower what they should do.

The market-implied curve reflects market pricing at a point in time. It is not a guarantee. Actual Bank of Canada decisions, lender prime rates, and fixed conversion offers may be higher or lower.

Public quote pages are acceptable for this prototype, but production use should move to a licensed market-data feed or an approved benchmark distribution channel.

The app does not read the borrower’s mortgage contract. It does not verify penalty formulas, portability features, prepayment privileges, cashback clauses, or lender-specific conversion terms.