Current Mortgage Rates

As of March 2026, the best insured 5-year fixed mortgage rate in Canada starts at 3.74%, while variable rates start at 3.45%. 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 $1M, 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 March 18, 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 30+ 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.