Compare today's best mortgage rates from Canada's top lenders. Find the lowest rates for fixed, variable, and all term lengths.
Posted rates from Canada's major chartered banks (Source: Bank of Canada)
Rates effective August 23, 2026. Subject to change. OAC.
BOC Prime Rate
4.45%
Bank of Canada
5-Yr Conventional Posted
6.09%
Chartered Banks Average
Next BOC Decision
9
Sep 2, 2026
Days remaining
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Prime Rate & 5-Year Conventional Mortgage Rate from Bank of Canada
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You're checking rates every day, refreshing lender websites, and wondering whether to lock in now or wait another week. Whether you're buying, renewing, or refinancing, understanding how Canadian mortgage rates are actually set — and what moves them — lets you time the decision and negotiate from a position of strength. Everything below explains the numbers in the table at the top of this page.
Rates move with economic conditions, Bank of Canada policy, and each lender's own funding costs and risk appetite. After the volatility of 2022–2024 and the cutting cycle that followed, pricing in 2026 is far steadier than it was — but the spread between the best and worst quote on the same file is still wide enough to cost you tens of thousands of dollars over a term.
The live numbers in the rate table above are updated pricing, not posted bank rates — so use those, not this shape-of-the-market summary, when you compare offers.
Bank of Canada overnight rate. The overnight rate drives prime, which drives variable mortgages and HELOCs. The Bank makes eight scheduled announcements a year based on inflation and growth, and lenders normally move prime within one to two business days of a change. If you're in a variable, every announcement is a payment or amortization event for you.
Government of Canada bond yields. Fixed rates track the bond market — mainly the 5-year yield. When yields rise, fixed rates follow within days or weeks; when they fall, lenders pass it on more slowly. Fixed pricing is not tied to prime, which is why fixed can move in a week the Bank does nothing at all.
Your financial profile. Lenders price your individual risk:
Lender competition. Banks, credit unions, monolines, and online lenders all fund differently and want different business at different times of the month. Shopping the whole market — or having a broker do it — routinely beats a single branch quote by 0.25% to 0.50%.
The case for fixed: a known payment for the full term, protection from increases, and simple budgeting. Fixed makes the most sense when the fixed/variable spread is narrow, when your budget has no cushion, or when rates look likely to climb.
The case for variable: variable has won over most historical 5-year windows, usually carries a cheaper break penalty (three months' interest instead of IRD — which matters if you might move, refinance, or sell), and passes any Bank of Canada cut straight through to you.
Spread analysis. When variable sits well below fixed, the savings potential is larger and you're paid to take the risk. When the two are close, the risk-reward tilts toward fixed because you're gaining certainty for almost nothing. Compare both side by side in our fixed vs variable mortgage guide.
This surprises most people: putting less down can get you a lower rate. If your down payment is under 20%, your mortgage is insured by CMHC, Sagen, or Canada Guaranty — the lender carries no default risk, so it prices the file the sharpest. Under the 2026 rules the insurable purchase-price limit is $1.5M.
Run the premium on our CMHC insurance calculator before you decide whether stretching to 20% is actually worth it.
Posted rates are the advertised bank numbers, used for qualifying math and for calculating IRD penalties. Discounted rates — what you actually pay — are typically 0.50% to 1.50% lower. The table at the top of this page shows discounted broker pricing, not posted rates.
Some lenders also run preferential programs worth asking about: first-time buyer specials, new-to-Canada programs, and professional programs for physicians, dentists, and certain licensed professions. They're rarely advertised on the branch rate sheet.
Nobody can call rates with certainty, but these are the levers economists are actually watching:
Pointing toward stable or lower rates: inflation holding near the 2% target, a Bank of Canada that has signalled patience, softening labour data, and bond yields that stay range-bound.
Pointing toward higher rates: resilient housing demand, global uncertainty pushing yields up, currency weakness feeding import prices, and any inflation re-acceleration.
A 2- or 3-year fixed lets you re-price sooner if rates fall, at the cost of a slightly higher rate today and more frequent renewals. A 5-year term buys stability and fewer decisions. If you expect to move, refinance, or sell inside the term, weigh the penalty formula heavily — check the numbers on our mortgage penalty calculator before you commit.
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Everything you need to know about mortgage rates in Canada.
As of August 2026, the best insured 5-year fixed mortgage rate in Canada starts at 4.04%, while variable rates start at 3.50%. Posted rates from the Bank of Canada are higher — the rates shown on this page reflect the best available from major lenders. Actual rates depend on your down payment, credit score, and whether your mortgage is insured, insurable, or uninsurable.
Insured mortgages have CMHC or equivalent default insurance (required when down payment is less than 20%) and typically get the lowest rates. Insurable mortgages qualify for insurance but the borrower chose to put 20%+ down — rates are slightly higher. Uninsurable mortgages (refinances, purchases over $1.5M, amortizations over 25 years) carry the highest rates because lenders bear all the default risk.
The BOC sets the overnight lending rate, which directly influences the prime rate (currently 4.45%). Variable-rate mortgages are priced as prime minus a discount (e.g., prime – 0.50%). When the BOC raises its rate, your variable mortgage payment increases; when it cuts, your payment decreases. Fixed rates are not directly tied to the prime rate — they follow Government of Canada bond yields instead.
It depends on your risk tolerance and market outlook. Fixed rates offer payment certainty for the entire term — ideal if you prefer predictability. Variable rates have historically saved borrowers money over time, but payments can fluctuate with BOC decisions. If you believe rates will decrease, variable may save you money. If you want stability, fixed is safer. A mortgage broker can help you model both scenarios based on your specific situation.
The Bank of Canada makes 8 scheduled interest rate announcements per year, roughly every 6 weeks. The next announcement is on September 2, 2026. After each announcement, banks typically update their prime rate within 1-2 business days. Between announcements, posted and discounted rates can still change based on bond market movements and lender competition.
To qualify for the best advertised rates, you generally need a credit score of 680 or higher. Scores above 760 may qualify for additional rate discounts from some lenders. Below 680, you may still get approved but at higher rates. Below 600, you'll likely need alternative or private lending. Other factors also matter: your debt-to-income ratio, employment stability, and down payment size all influence the rate you're offered.
The posted rate (also called the benchmark or qualifying rate) is the standard rate published by banks — currently 6.09% for a 5-year conventional fixed. It's used to stress-test your mortgage application. The discounted rate is what you actually pay — negotiated through a broker or directly with a lender. Discounted rates are typically 1-2% lower than posted rates. The gap between posted and discounted rates is often larger with mortgage brokers who have access to wholesale pricing.
Yes. Most lenders offer rate holds (also called rate locks) for 90 to 120 days from the date of pre-approval. This protects you if rates increase before your closing date. If rates drop during your hold period, many lenders will honour the lower rate. Rate holds are free and don't commit you to that lender. Getting pre-approved early is a smart strategy, especially in a rising rate environment.
Several strategies can help: (1) Use a mortgage broker who compares rates from 50+ lenders; (2) Improve your credit score above 760; (3) Make a larger down payment to qualify for insured or insurable rates; (4) Choose a shorter amortization period; (5) Consider a shorter term (e.g., 3-year fixed instead of 5-year); (6) Bundle other products like home insurance with your lender; (7) Negotiate — don't accept the first rate offered.
The mortgage stress test requires all borrowers (even those with 20%+ down payments) to qualify at the higher of their contract rate + 2%, or the BOC qualifying rate (currently 5.25%). For example, if your contract rate is 4.00%, you must prove you can afford payments at 6.00%. This rule, introduced by OSFI, ensures borrowers can handle rate increases. It reduces your maximum borrowing amount by roughly 20% compared to qualifying at the actual rate.
Straight answers to the questions we hear most from Toronto and Ontario borrowers comparing rates in 2026.
Nobody can promise a direction. Fixed rates track 5-year Government of Canada bond yields, and variable rates move only when the Bank of Canada changes its policy rate on one of its eight scheduled announcement dates. The practical move is to lock a rate hold (usually 90–120 days) while you shop, because a hold protects you if rates rise and most lenders still float you down if their rate drops before closing.
A "good" rate is the lowest rate you actually qualify for on your own file — insured, insurable and uninsured mortgages are priced differently, and an insured purchase with less than 20% down is normally the cheapest tier. Compare the same term, the same amortization and the same prepayment privileges before deciding anything, and check today's posted numbers on our current rates page.
Advertised rates almost always assume a default-insured, owner-occupied purchase with a strong credit profile and a standard charge. Rentals, refinances, 30-year amortizations, self-employed income, credit scores under 680 and alternative lending each carry a premium. Ask for the rate sheet tier your file falls into so the comparison is honest.
Fixed buys certainty and a known payment. Variable can cost less over a full term if the Bank of Canada cuts, but the penalty to break a variable is usually three months' interest instead of an IRD calculation, which matters if you may sell or refinance early. Run both through our fixed vs variable guide with your own balance before choosing.
Most Canadian lenders hold an approved rate for 90 to 120 days from approval. If rates fall inside that window, the majority will honour the lower rate at closing. If your closing date is further out than the hold, ask about extended-hold products before you commit.
Yes. Federally regulated lenders still qualify you at the greater of 5.25% or your contract rate plus 2%. OSFI removed the stress test for straight switches at renewal where nothing else changes, but it still applies to purchases, refinances and any increase in your loan amount.
Brokers shop dozens of lenders — big banks, credit unions, monolines and alternative lenders — against one application, so you see the full market rather than one rate sheet. On typical A-lender business the broker is paid by the lender, not by you, so the comparison costs nothing.
On a $600,000 mortgage over a 25-year amortization, roughly 1% more interest adds about $340 to the monthly payment and more than $20,000 in interest over a 5-year term. That is why a 15-minute rate comparison is usually the highest-paid quarter hour in the whole process.
Sometimes. Ontario credit unions are provincially regulated, so their qualifying rules can be more flexible for self-employed or rental income, and their posted rates are competitive. Weigh the rate against portability, prepayment privileges and the penalty formula before switching for a few basis points.
Most A lenders want 680 or higher, and the sharpest pricing generally starts around 720. Below 600 you are typically looking at B-lender or private options priced well above prime, so a few months of repairing utilization and payment history before you apply is usually worth real money.
A shorter term gets you back to market sooner if rates ease, at the cost of renewal risk. A 5-year term buys stability. Many 2026 borrowers split the difference with a 3-year fixed so their renewal lands after the current rate cycle plays out.
The Bank of Canada has eight scheduled policy rate announcements per year. Lender prime rates normally follow within a day or two, and variable-rate mortgage payments or amortizations adjust from there depending on whether your product is adjustable or fixed-payment variable.
Yes, and you should. Bring a written competing approval — that single document moves more rate than any conversation. Also negotiate prepayment privileges, the penalty formula and portability, because those terms often cost more than a small rate gap.
Insured mortgages (less than 20% down, purchase price under the $1.5M insurable limit) carry default insurance, so the lender takes less risk and prices lower. Uninsured mortgages — 20%+ down, refinances and most rentals — are priced higher even though you avoid the insurance premium.
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