Best Mortgage Rates in Canada
Bank of Canada Reference Rates
Prime Rate
4.45%
As of September 9, 2026
Overnight Rate
2.25%
BoC policy rate
5-Yr Fixed (Posted)
6.19%
Major bank benchmark
Source: Bank of Canada Valet API · September 9, 2026
Current Mortgage Rates by Lender
Rates as of August 2, 2026 — verify with lender| Lender | 5-Yr Fixed | 5-Yr Variable | Get Rate |
|---|---|---|---|
| Lowest Fixed Nesto Digital broker | 4.09% | 3.40% | Get Rate → |
Tangerine Direct bank | 4.49% | 4.00% | Get Rate → |
First National Monoline lender | 4.49% | 3.70% | Get Rate → |
Ratehub Broker marketplace | 4.04% | 3.65% | Get Rate → |
Meridian CU Credit union | 4.24% | 3.80% | Get Rate → |
Scotiabank Big Six | 4.24% | 3.95% | Get Rate → |
BMO Big Six | 4.89% | 4.05% | Get Rate → |
TD Bank Big Six | 4.94% | 4.10% | Get Rate → |
RBC Big Six | 4.99% | 4.15% | Get Rate → |
Rates are indicative only. OAC. Insured vs. uninsured rates may differ. Always verify with lender.
Fixed Rate Mortgage
- ✅ Payment stays the same for the full term
- ✅ Protection if rates rise
- ✅ Easier to budget
- ⚠️ Higher penalty to break early (Interest Rate Differential)
- ⚠️ Misses out if rates fall significantly
Best for: first-time buyers, those who value certainty
Variable Rate Mortgage
- ✅ Historically saves money over fixed (most rate cycles)
- ✅ Lower penalty to break (usually 3 months interest)
- ✅ Benefits from BoC rate cuts
- ⚠️ Payment (or amortization) changes with prime rate
- ⚠️ Harder to budget if payment-variable
Best for: those with financial cushion, in rate-cut cycles
The Mortgage Stress Test (2026)
To get a mortgage from a federally regulated lender (all major banks), you must qualify at the higher of:
Your contract rate + 2%
e.g. 6.09%
if contract rate is 4.09%
Minimum floor rate
5.25%
whichever is higher
FAQ
How often do mortgage rates change in Canada?
Posted bank rates can change any day, but most significant moves happen after Bank of Canada rate announcements (8 times per year). Variable rates move immediately with prime rate changes. Fixed rates are tied to bond yields and move more frequently.
Is it better to use a mortgage broker or go directly to a bank?
Brokers can access dozens of lenders (including monoline lenders like Nesto) and often find lower rates than going directly to a bank. They're paid by the lender, so their service is free to you. Recommended for most Canadians.
What is a monoline mortgage lender?
Monolines (like Nesto, First National, MCAP) only offer mortgages — no chequing, savings, or other products. Because mortgages are their only focus, they often offer sharper rates and more flexible terms than the Big Six.
Do credit unions have better mortgage rates than banks?
Often yes — credit unions aren't subject to the federal stress test and sometimes offer competitive rates. However, they may require membership and your mortgage stays with them (harder to transfer). Provincial regulation varies.
What is the mortgage stress test in Canada?
The federal stress test requires you to qualify at the higher of: your contract rate + 2%, or 5.25%. This applies to all federally regulated lenders (banks). Credit unions in some provinces may not require it.
Fixed vs variable mortgage — which is better in 2026?
With the Bank of Canada in a rate-cutting cycle, variable rates may save money over a 5-year term if cuts continue. Fixed rates offer certainty. Most Canadians choose 5-year fixed for predictability, but variable can work well if you can tolerate payment fluctuations.
How much down payment do I need in Canada?
As of December 15, 2024, the insured mortgage cap is $1.5M. Minimum 5% on the first $500,000, then 10% on the portion from $500K–$1,499,999. For homes $1.5M and above, 20% minimum is required and CMHC insurance does not apply.
What is CMHC mortgage insurance?
CMHC (Canada Mortgage and Housing Corporation) insurance is mandatory if your down payment is less than 20%. The premium ranges from 0.6% to 4.0% of the mortgage amount, added to your mortgage.
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