Canada Mortgage Rates

This hub collects WealthNorth’s guides to Canadian mortgage and interest rates: where rates stand today, what moves them, published forecasts and how to compare the offers you get. Today’s benchmarks come first, then one line on each guide.

Rates today

The Bank of Canada publishes two kinds of mortgage rate. Its weekly table of posted rates says: “All rates presented in this table are the most typical of those offered by the six major chartered banks.” Its monthly averages, from the table “Interest rates charged for new and existing lending by chartered banks - Mortgages”, show the average rate on the mortgage funds the chartered banks advanced, which the Bank’s notes define this way: “Funds advanced represents the cumulative total of new credit extended, new draws on existing credit facilities, mortgage or term-loan renewals and refinancing for a given month.” So the funded rows cover renewals and refinancing as well as new loans, and comparing them with the posted rows shows advertised rates against what borrowers paid.

Source: Bank of Canada (posted rate series V80691335, V80691334 and V80691333; funded averages from its funds-advanced series, which include renewals and refinancing). A posted rate or an average is not the rate a lender will offer you; confirm offers with a lender or mortgage broker.

How these rates moved over the decades is in mortgage rate history, and why posted and offered rates differ is in the 5-year fixed rates guide.

Where rates are and how they got there

• Mortgage rate history in Canada: posted 1-, 3- and 5-year rates and the average rates on mortgages chartered banks funded, by year, and how today compares with past peaks and lows.
• Canada prime rate explained: what the prime rate is, how banks set it, how it follows the policy rate, and its history.
• Bank of Canada policy rate explained: what the overnight rate is, how the Bank’s scheduled decisions reach variable and fixed mortgages, and the neutral rate range.
• How bond yields affect mortgage rates: how the 5-year Government of Canada bond yield sets the benchmark for fixed rates, and what moves yields.
• Canada 5-year bond yield: where to find the current yield and how it relates to fixed mortgage rates.
• Canada 10-year bond yield: the long-term benchmark and what it reflects.
• How the US Federal Reserve affects Canadian mortgages: the routes from Fed decisions to Canadian rates, with the two central banks’ rates side by side.

What sets a rate

• How mortgage rates are determined: the policy rate and prime, bond yields, inflation, trade shocks such as tariffs, bank capital rules set by OSFI, and your own application.
• How your credit score affects your mortgage rate: how lenders use a score when they price a mortgage, and what a higher rate costs on an example loan.

Forecasts

• Canada interest rate forecast: published forecasts from economists at Canada’s large banks and Desjardins for the policy rate, bond yields and mortgage rates, each with its date, and how past forecasts turned out.

Risk scenarios

• Recession, stagflation and bank failures: how a downturn reaches mortgage rates, what changes for variable and fixed borrowers, relief options if income drops, and what happens to a mortgage when a lender fails.

Comparing and getting a rate

• How to get the best mortgage rate: posted versus discounted rates, what lenders look at, comparing lenders and brokers, and asking for a discount.
• 5-year fixed mortgage rates: the posted 5-year rate, the average rate chartered banks charged on the fixed mortgages they funded, why the posted rate matters for penalties, and a comparison checklist.
• Variable rate mortgages: how variable rates are priced from prime, fixed-payment vs adjustable-payment variables, and a comparison checklist.
• Mortgage rate holds: how a rate hold (rate lock) works, how long lenders hold a rate, and what a hold doesn’t guarantee.
• Buying down your mortgage rate: paying upfront for a lower rate and how to work out the break-even.
• Mortgage basis points explained: converting basis points to percentages and what a few basis points cost.
• APR vs interest rate: what the cost-of-borrowing disclosure counts in the APR and what it leaves out.
• How to calculate mortgage interest: the half-yearly compounding convention for fixed rates and the payment formula, with a worked example.
• Mortgage trigger rate explained: the trigger rate on a fixed-payment variable mortgage, how to calculate yours and how it differs from the trigger point.

Rates by province

Each province page shows the national benchmark rates next to the province’s own buying costs; most also list lenders.

• Ontario: Ontario land transfer tax, the first-time buyer refund and Toronto’s second land transfer tax.
• British Columbia: what a rate difference costs at B.C. prices, the property transfer tax and its first-time buyer exemption, and B.C.’s taxes on foreign and vacant ownership.
• Alberta: land titles registration fees in place of a land transfer tax, and lenders that serve the province.
• Manitoba: Manitoba’s land transfer tax brackets and Manitoba credit unions.
• Quebec: Montreal and Quebec City welcome tax brackets, the first-time buyer credit and the notary’s role.
• New Brunswick: the real property transfer tax, where to find first-time buyer help, and local lenders.
• Nova Scotia: the municipal deed transfer tax, the provincial down payment loan and local lenders.
• Prince Edward Island: the real property transfer tax and its first-time buyer exemption, and the Lands Protection Act.
• Newfoundland and Labrador: Registry of Deeds fees on the deed and the mortgage, and local lenders.

Related guides in other hubs

• Fixed vs variable mortgages: the two products compared.
• The mortgage stress test: the qualifying rate lenders test you at.
• How to negotiate a mortgage rate and the lenders and brokers hub.
• Should I break my mortgage for a lower rate? and the mortgage penalty calculator.
• Mortgage renewal guide, payment shock at renewal and the mortgage renewal calculator.
• Mortgage calculator and mortgage affordability calculator: what a given rate means for your payment and budget.
• Land transfer tax calculator: the provincial and municipal taxes the province pages describe.