Definition
The posted rate is the mortgage interest rate officially published by a financial institution on its website or in branch. It is the catalog price before any negotiation, similar to a manufacturer suggested retail price.
In Quebec and Canada, the typical gap between the posted rate and the rate actually granted (the "negotiated rate") ranges from 0.40% to 0.70% (40 to 70 basis points). This gap is wider on longer terms (5-year fixed) and during promotional periods.
The posted rate also serves as a legal reference for certain mortgage penalties, notably the Interest Rate Differential (IRD) at several Canadian chartered banks. As a result, a high posted rate can inflate the penalty even when the actual negotiated rate is low.