Subprime mortgages in Canada are home loans offered to individuals with lower credit scores or unstable financial histories, making them higher risk borrowers. The term ‘subprime’ refers to these borrowers’ less-than-ideal credit status. Subprime mortgages typically carry higher interest rates to compensate for the increased risk of loan default. However, despite the higher cost, subprime mortgages can provide a route to homeownership for those who may struggle with securing a traditional loan. Potential homeowners should carefully understand the implications of a subprime mortgage, balancing risk and financial capacity, before proceeding.