Canadian mortgage
rates 2026 —
the complete guide.
A practitioner’s guide to how Canadian mortgage rates are set, how to read what your bank quotes you, and how to lock the lowest one for your file. Updated for 2026 lender market conditions, OSFI B-20 rules, and the current Bank of Canada policy rate environment.
Four things this guide
covers in full.
Most borrowers ask the same four questions. This guide answers them with practitioner math, not marketing copy.
Fixed rates follow Government of Canada bonds
A 5-year fixed mortgage tracks the 5-year GoC bond yield. When the yield moves, lender rate sheets follow within days. The spread over the benchmark — not the yield itself — is where broker negotiation and lender competition make a difference.
The math, not the marketing
Variable has historically cost less over long periods, but past performance isn’t a forecast. The useful test is modelling both options under flat, falling, and rising rate scenarios and seeing what each costs if rates move the wrong way.
Six factors that move your personal rate
Credit score, loan-to-value, income type, property type, amortization, and channel all shift your rate from the advertised starting point. The advertised rate assumes a best-case file. A broker’s job is to put your actual file where it prices best.
The stress test limits your max mortgage, not your payment
Federally regulated lenders must qualify uninsured borrowers at the greater of contract rate +2 % or 5.25 %. This doesn’t change your monthly payment — it caps how much you can borrow. We model both numbers before you write an offer.
How a broker
shops your rate.
Three steps. One credit inquiry.
100+ lenders competing for your file.
We profile your file
Credit score, loan-to-value, income type, property type, term preference, and amortization — we map every variable before approaching lenders, so we only go where your file prices well.
We shop 100+ lenders
A-lenders, monolines, credit unions, and B-lenders each run different rate sheets. We identify the tier your file lands in and submit where it prices best — usually three to five lenders competing on your file.
We lock your rate
Most A-lenders hold rates 90–120 days. If rates drop before funding, we re-shop and capture the lower rate where the lender allows — at no cost to you. No commitment required until you have a firm purchase agreement.
We can help across
many situations.
Tap any situation below to see how we approach it.
If you’re…You’re weighing fixed vs variable and want the real math
You’re weighing fixed vs variable and want the real math
We model both options under three rate scenarios — flat, down 1 %, up 1 % — and show what each costs over your term. The answer depends on the current fixed-variable spread and your personal break-even on variable-rate risk.
See today’s fixed-variable spreadIf you’re…Online rates look lower than what your bank is quoting you
Online rates look lower than what your bank is quoting you
Advertised rates assume a best-case insured file. Your bank quote reflects your specific file. We shop your actual file across 100+ lenders and apply the Rate Beat Guarantee against any Big-6 written offer on a like-for-like product.
Get a competing rateIf you’re…You want to understand the stress test before making an offer
You want to understand the stress test before making an offer
We simulate your file at the qualifying rate before you write a single offer. The difference between the qualifying rate and your contract rate is the difference between ‘easy approval’ and ‘TDS too high.’
Run the stress test calculatorIf you’re…Your mortgage renewal is within the next 4 months
Your mortgage renewal is within the next 4 months
You can hold a rate now and still re-shop if rates fall before you fund. We benchmark your bank’s renewal offer against our live board and show you the gap — before you sign anything.
Benchmark my renewal offerIf you’re…You’re self-employed or have variable income
You’re self-employed or have variable income
Full-document business-for-self and stated-income paths are available through specialist A and B lenders. Two years of NOAs and T1 Generals is the standard; we know which lenders are most flexible on income type and documentation.
Explore self-employed optionsIf you’re…You’re doing early research before your first home purchase
You’re doing early research before your first home purchase
Start with a rate consultation, not a credit pull. We’ll show your stress-tested maximum, model your down payment stack, and give you a real budget to shop inside — before you ever set foot in a showing.
Start my pre-approvalRate board —
by term and lender tier.
Lowest purchase rates on our 100+ lender panel as of October 23, 2026. Insured rates shown; uninsured and refinance files typically price higher.
| Term | Lowest purchase rate (typically insured) |
|---|---|
| 1-yr fixed | 4.19% |
| 3-yr fixed | 3.99% |
| 5-yr fixed | 4.14% |
| 5-yr variable | 3.00% (Prime − 1.45%) |
| 10-yr fixed | 5.29% |
| Lender type | Best for |
|---|---|
| Big-6 banks | Established borrowers, relationship banking |
| Monolines (A-lenders) | Best rate for clean files; often lowest pricing |
| Credit unions | Files that fit a provincially regulated lender |
| Alt-A / B-lenders | Self-employed, bruised credit, complex income |
| Private / MIC | Bridge financing, equity-based, time-sensitive deals |
Rates shown are the lowest placeable purchase rates and change daily. See the full live board including all products and terms.
Common questions,
clear answers.
Rates, stress test, fixed vs variable, lender tiers — answered plainly.
What is the best Canadian mortgage rate today?
On our live rate board (as of October 23, 2026) the lowest 5-year fixed is 4.14% and the lowest 5-year variable is 3.00%, for a well-qualified purchase (typically insured, under 20 % down). Uninsured and refinance files usually price higher. Your rate depends on your file; see today’s full rate board.
How are mortgage rates set in Canada?
Variable rates track the lender’s prime rate, which moves with the Bank of Canada’s policy (overnight) rate. Fixed rates follow Government of Canada bond yields of a similar term plus a lender spread. Lenders widen or narrow that spread based on competition, funding costs and risk.
Should I choose fixed or variable in 2026?
Choose the payment you can carry if rates move against you, not a forecast. Variable has often cost less over long periods, but the past isn’t a prediction, and the current fixed-variable spread is on our live rate board. Variable usually carries a smaller penalty to break (three months’ interest). We model both for every file; see our payment calculator.
Why are the rates I see online lower than what my bank quotes me?
Online rates usually quote the best-case file (strong credit, insured, owner-occupied, fully documented income). Your bank quote reflects your specific file. As a brokerage we shop 100+ lenders against your file, which often beats a bank’s walk-in offer. Our Rate Beat Guarantee applies against a written Big-6 offer on a comparable, like-for-like product; see the terms.
What is the ‘stress test’ and how does it affect my rate?
Federally regulated lenders must qualify you at the greater of your contract rate + 2 % or 5.25 %, so an illustrative 4.39 % contract rate qualifies at 6.39 %. It doesn’t change what you pay; it limits how much you can borrow. Uninsured straight switches at renewal have been exempt since November 21, 2024. Provincially regulated lenders such as credit unions set their own qualifying policies.
When is the best time to lock a rate?
When you have a firm purchase agreement, or a renewal within about 120 days. Many lenders hold rates for 90–120 days; if rates drop before you fund, we re-shop and capture the lower rate where the lender allows it.
Are mortgage rates negotiable in Canada?
Yes. The advertised rate is a starting point. Lenders have some discretion depending on file quality, channel (broker vs branch) and how much new business they want. A brokerage negotiates on your behalf and can bring more than one lender to the table.
What is the difference between insured, insurable, and conventional rates?
Insured: under 20 % down, premium paid, lowest rates. Insurable: 20 %+ down but the lender insures themselves on the back end to lower cost of capital; they pass some savings to you. Conventional / uninsured: 20 %+ down with no insurance; lender absorbs all credit risk; rates may be slightly higher than insurable. Each tier has its own rate sheet.
What rate can a newcomer to Canada get?
Many newcomers with permanent residence or a valid work permit can qualify for mainstream rates through lender and insurer newcomer programs (CMHC, Sagen and Canada Guaranty all run one), subject to income, down payment and credit alternatives. See our newcomer page.
What about commercial or alt-A rates?
They price above prime residential rates. B-lender (alt-A) lenders such as Home Trust and Equitable Bank charge more than A-lenders and commonly add a 1–2 % lender fee; private lenders cost more again. See commercial and alt-lending.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a mortgage specialist in your city
The rate you access depends partly on which lenders compete for your file — and that varies by market. Every Mortgage Squad advisor is an FSRA-licensed mortgage broker who shops 100+ lenders on your behalf, not a bank employee working from a single rate sheet.
Sources
Primary sources for the rules and figures above. Rules, rates and lender policies change, so confirm anything you plan to act on with a licensed advisor.
- 1. Financial Consumer Agency of Canada, Interest on mortgages: How fixed and variable mortgage interest is calculated and how prime-linked rates move.
- 2. Bank of Canada, Policy interest rate: The Bank sets its target for the overnight rate on eight fixed announcement dates a year; lenders' prime rates follow it.
- 3. Department of Finance Canada, Government announces boldest mortgage reforms in decades (Sep 16, 2024): From December 15, 2024: insured-mortgage price cap raised from $1M to $1.5M; 30-year amortization for all first-time buyers and all buyers of new builds.
- 4. OSFI, Minimum qualifying rate for uninsured mortgages: Uninsured borrowers qualify at the greater of the contract rate plus 2% or 5.25%; OSFI does not expect the test on uninsured straight switches at renewal (no increase in amount or amortization).
- 5. CMHC, What are the general requirements to qualify for homeowner mortgage loan insurance?: Eligibility for insured mortgages: purchase price limit, minimum down payment (including 1-4 unit owner-occupied rules), amortization, credit and debt-service limits.
- 6. Bank of Canada, Upcoming events (rate announcement schedule): Dates of upcoming interest rate announcements.