How to Get the Best Mortgage Rate in Canada

The rate you’re offered isn’t set by the market alone: it depends on the lender, your file and what you ask for. This guide covers how posted and discounted rates differ, what lenders look at, how to compare lenders and brokers, how to ask for a lower rate, and what a rate difference costs. Here “best” means the lowest rate on a mortgage whose terms suit you, not the lowest number advertised. It’s part of the mortgage rates hub; for one product at a time, see 5-year fixed rates and variable rates.

Posted rates and the rates borrowers get

The Financial Consumer Agency of Canada (FCAC) describes the posted rate as “the rate lenders advertise for their products”, and says: “A discounted rate is lower than the lender’s posted rates. Ask your lender if they can offer you a discounted rate.” The Bank of Canada publishes the posted rates of the six major chartered banks each week; its notes say the figures are “the most typical of those offered by the six major chartered banks.” As of September 30, 2026:

Source: Bank of Canada, conventional mortgage rates, series V80691333, V80691334 and V80691335. A posted rate is not the rate a lender offers you; confirm offers with a lender or broker.

Alongside those, the Bank tracks what chartered banks actually charged: a monthly average across all the mortgage money they lent out, whether as new loans, renewals or refinancings. Treat the figures as averages rather than offers; the fixed series spans terms of 5 years and over, not only 5-year terms. For July 2026:

Source: Bank of Canada, table A4 (funds advanced), series V122667780, V122667786, V122667776 and V122667782.

An insured mortgage carries mortgage loan insurance: With less than 20% down you need mortgage loan insurance. See insured vs uninsured mortgages. The posted rate can matter even if you never pay it, because lenders can use posted rates when they calculate a prepayment penalty (see how mortgage penalties are calculated). How lenders arrive at their rates in the first place is covered in how mortgage rates are determined, and where they may go next in interest rate forecasts.

What lenders look at

FCAC’s guide to choosing a mortgage lists what the rate your lender offers may depend on:

• the length of your mortgage term
• the type of interest you choose (fixed or variable)
• the current posted interest rate offered by your lender
• your credit history
• whether you’re self-employed
• whether you qualify for a discounted interest rate
• the type of lender (a bank, credit union, financing company or mortgage investment company)
• the specific lender

Some of these you choose (the term, the type of rate, the lender) and some you can work on before you apply. On credit, FCAC’s guide to mortgage interest says: “If you have good credit history, you may be able to get a lower interest rate on your mortgage.” How your credit score affects your mortgage rate covers what lenders check, and improving your credit score for a mortgage the steps.

Qualifying is a separate test from pricing: whatever rate you’re offered, the lender checks that you could afford the payments at a higher qualifying rate under the mortgage stress test (for an insured mortgage at any lender, and for an uninsured one at a federally regulated lender).

Get quotes from more than one lender

FCAC’s preapproval guide says: “Different lenders may have different interest rates and conditions for similar products. Talk to several lenders to make sure you’re getting the best mortgage product for your needs.” It names banks, caisses populaires, credit unions, mortgage companies, insurance companies, trust companies and loan companies among the lenders that offer mortgages. Types of mortgage lenders and big bank vs monoline lender compare them.

Quotes are only comparable when they’re for the same term, the same type of rate, the same amortization and the same down payment. A rate is only part of an offer, so the 5-year fixed guide has a checklist of the terms to compare beside it.

Use a mortgage broker

From the same FCAC guide:

• “Mortgage brokers don’t lend money directly to you. They arrange transactions by finding a lender for you.”
• “Some lenders only offer their products directly to borrowers, while some mortgage products are only available through brokers.”
• “Mortgage brokers don’t all have access to the same lenders. This means the mortgages available vary from broker to broker. When you’re dealing with a mortgage broker, ask which lenders they work with.”
• “Mortgage brokers generally don’t charge fees for their services. Instead, they usually receive a commission from the lender when they arrange a transaction.”
• “The provinces and territories regulate mortgage brokers.”

A broker and a direct lender can both be worth a quote. How mortgage brokers get paid and how to choose a mortgage broker go further.

Ask for a lower rate

FCAC says: “When you apply for a mortgage, your lender offers you an interest rate. You may be able to negotiate a lower rate with your lender.” A written quote from another lender for the same term and features gives you something concrete to ask about. How to negotiate your mortgage rate covers the approach, and buying down your mortgage rate covers paying up front for a lower rate.

Compare the whole offer, not only the rate

A lower rate can come with terms that cost more later. FCAC points to a few trade-offs:

• Cash back. “Usually, if you use the cash back feature, your interest rate is higher.”
• Open or closed. “Open mortgages typically have higher interest rates than closed mortgage with similar terms.”
• Prepayment privileges. “Not all lenders allow prepayment privileges on closed mortgages. These privileges vary from lender to lender.”
• Breaking the mortgage. Breaking a closed mortgage, paying it off early or prepaying more than your privileges allow usually costs the higher of 3 months' interest and the interest rate differential (IRD) on a fixed rate, and typically 3 months' interest on a variable rate; your mortgage contract sets the exact method and comparison rate, and a federally regulated lender must tell you how it calculates the penalty. The mortgage penalty calculator estimates one.

The cost of borrowing a lender discloses can include more than interest; see APR vs interest rate.

Hold the rate while you shop

A preapproval can hold an interest rate for 60 to 130 days, depending on the lender. FCAC suggests asking how long the rate is guaranteed, whether you automatically get the lowest rate if rates go down, and whether the preapproval can be extended. Mortgage rate holds compares what the big banks state.

What a rate difference costs

FCAC notes that “small differences in the interest rate can have a significant impact on your costs.” The example below uses hypothetical rates, not current offers, and keeps the same rate for the whole amortization, which a mortgage renewed every few years won’t have. Payments are computed with interest compounded semi-annually; your contract states how your lender compounds.

To model your own numbers, use the mortgage calculator. Mortgage basis points explained shows what smaller rate moves cost.

Fixed or variable

FCAC’s comparison: “A fixed interest rate stays the same for the entire term. It’s usually higher than a variable interest rate for a similar term.” A variable rate moves with your lender’s prime rate. Which suits you is a product choice covered in fixed vs variable mortgages; how each is priced and compared is in the 5-year fixed and variable rate guides. At renewal you shop again: FCAC notes that “Every time you renew your mortgage term, you renegotiate your mortgage interest rate”, and the best time to renew covers when to start.