# How do I calculate the 2026 'Trigger Rate' for you?

> The Trigger Rate is the point where the monthly interest equals the monthly payment.

Category: Product Mechanics
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/product-mechanics/how-do-i-calculate-the-2026-trigger-rate-for-you

## Answer
| Item | VRM (Fixed Payment) | ARM (Adjustable) |
|------|----------------------|------------------|
| Rate | 4.14% (5-yr fixed), 4.45% (prime) | 4.14% (5-yr fixed), 4.45% (prime) |
| Payment | Example only (not universally $2,500) | Example only (not universally $2,500) |
| Benefit | Budget Certainty | Equity Certainty |
| Risk | Trigger Rate | Payment Spikes |

## Related guide
- https://ratellow.com/guides/variable-vs-adjustable-rates

## Sources
- Bank of Canada Staff Analytical Note 2025-21 — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction