Term | Fixed | Variable | |||||
---|---|---|---|---|---|---|---|
Insured
Lenders | Rates | ||
---|---|---|---|
As of October 21, 2025,
As of October 21, 2025,
Effective December 15, 2024, the Canadian federal government updated mortgage rules. The changes are as follows:
Changes to Mortgage Stress Test Requirement
Canada’s financial regulator, OSFI, is slashing the mortgage stress test requirement for homeowners with uninsured mortgages who switch lenders at the time of renewal from November 21, 2024. Homeowners with insured mortgages were already exempt from stress tests when renewing with a new lender.
The content below, excluding mortgage rates, was last updated on: October 21th, 2025
Bank | Prime Rate |
---|---|
TD | 4.70%* |
RBC | 4.70% |
CIBC | 4.70% |
BMO | 4.70% |
Scotiabank | 4.70% |
National Bank | 4.70% |
October 2025 Update: As of October 22, 2025, the current prime rate at Canada’s big banks was 4.7%. This is a 0.25% decrease from the previous prime rate of 4.95%, which was in effect since March 13, 2025.
Bank of Canada Rate | Last Change |
---|---|
2.50% | -0.25%September 17, 2025 |
October 2025 Update: As of October 2025, the current Bank of Canada rate is 2.50%. That’s after the latest rate cut of 0.25% on September 17, 2025.
The key factors that affect the mortgage rate a borrower gets in Canada are — economic factors, type of borrower, mortgage type, whether the rate is fixed or variable, mortgage term length, amortization period and property location. The factors and their effects on mortgage rates are explained below.
Both variable and fixed mortgage rates that are offered in Canada are influenced by the economic environment. The economic factors and their effects are explained below.
Mortgage rates in Canada can vary significantly depending on borrowers' creditworthiness. Prime borrowers with high credit scores, a strong credit history and stable income benefit from the lowest mortgage rates. Alt-A borrowers, such as self-employed borrowers with unstable income, bad credit borrowers, and private mortgage borrowers, face higher rates. The table below can help you understand how lenders categorize borrowers and the rates they are offered.
Prime Borrower | Alt-A Borrower | Private Mortgage Borrower |
---|---|---|
Excellent credit history with a credit score of 700 or higher. | Fair to good credit with a credit score typically between 550 and 700. | Poor credit history with a credit score below 550 or significant financial challenges. |
Stable and verifiable income to cover mortgage payments | May have less stable or unverifiable income (such as some self-employed borrowers) or minor credit issues that prevent qualifying for a prime mortgage. | Often have unstable income, heavy debt, or major credit issues, making them ineligible for traditional lending. |
A low debt-to-income ratio demonstrates responsible financial management. | Considered a moderate-risk profile, resulting in slightly higher mortgage rates than prime borrowers. | Considered high-risk, leading to the highest rates and limited lender options. |
Access to the best mortgage rates available in the market. | Access to competitive but higher than lowest mortgage rates higher-than-prime-borrower rates. | Access only through private or alternative lenders. |
Best Mortgage Rates from Alt-A Lenders in | |||||
---|---|---|---|---|---|
Credit Scores | |||||
500-550 | 550-600 | 600-640 | 640-680 | 680+ | |
1-Year Fixed | - | - | - | - | - |
2-Year Fixed | - | - | - | - | - |
3-Year Fixed | - | - | - | - | - |
Best Mortgage Rates from Alt-A Lenders in | |||
---|---|---|---|
Credit Score | 1-Year Fixed | 2-Year Fixed | 3-Year Fixed |
500-550 | - | - | - |
550-600 | - | - | - |
600-640 | - | - | - |
640-680 | - | - | - |
680+ | - | - | - |
Lowest Rates | Lower Rates | Regular Rates | Higher Rates |
---|---|---|---|
Insured Mortgages | Insurable Mortgages | Uninsurable Mortgages | Rental / Investment Property Mortgages |
In Canada, borrowers can get a mortgage with a fixed or a variable interest rate, depending on their risk tolerance. The rate can vary at the time of getting the mortgage as well as during the term in the case of variable-rate mortgages.
Fixed Rate Mortgage
Variable Rate Mortgage
In Canada, mortgages with term lengths of 5 years are the most common. As of June 2024, mortgages with a term of 5 or more years account for nearly 50% of all fixed-rate mortgage outstanding balances in Canada. However, mortgages in Canada can have as short as a 6-month term to as long as a 10-year term .
The mortgage term that you choose will affect your mortgage rate. Fixed mortgage rates are set by adding a risk premium (and a profit margin) over the yield of bonds with similar time to maturity. Shorter-term mortgages tend to pose less risk to the lender if mortgage rates increase in future than longer-term mortgages, but more importantly, they have less time to benefit the lender through their profit margin. Therefore, mortgage lenders often charge significantly higher margins on both short-term (1-2 years) and long-term (7-10 years) mortgages, making medium-term mortgages (3-5 years) the most competitive. Longer-term mortgages seem to command higher rates because of weaker competition and more interest rate risk. This may be untrue in certain economic conditions.
The main factor when deciding between a long or short mortgage term is if you think rates will go up or down. Short-term fixed-rate mortgages are ideal for those who believe interest rates will decrease. They allow for more frequent mortgage renewals and renegotiations, potentially leading to savings if rates drop or your financial situation improves, qualifying you for a better rate.
Long-term fixed-rate mortgages suit those expecting interest rates to rise . They provide stability and protection from rate increases, letting you lock in your rate for longer.
At the end of each term, you have three main options:
Amortization period refers to the total time it takes to pay off your mortgage. The standard amortization period in Canada is 25 years; however, some lenders offer amortization periods of up to 40 years. Lenders in Canada tend to offer lower mortgage rates for an amortization period of up to 25 years compared to longer amortization periods, as a longer amortization period makes a mortgage uninsurable and thus increases its funding cost. You will also end up spending much more in interest costs with a longer amortization period. However, your regular mortgage payments will be higher with a shorter amortization period.
The mortgage rates you are offered can vary based on where the property is located in Canada and on how competitive the market is. Some of the laws, regulations and licenses relating to mortgages are provincial. Thus some lenders are active in some provinces and not in all of them. Even the same lender may offer different rates in different provinces. Further, lenders may offer better rates and may be more willing to negotiate for homebuyers in major cities because housing markets in major cities are more liquid, and lenders' loss in the event of default would be lower.
Some lenders may offer different rates for different types of properties, such as detached homes and condos. Condo mortgage rates can be a bit higher than for single-family homes, as their prices have been more volatile, and thus they are perceived as slightly riskier.
If your down payment is less than 20%, you must pay for mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC) or another mortgage insurer like Sagen or Canada Guaranty. This one-time premium amount is paid upfront and depends on your down payment size, with a lower down payment resulting in a higher premium.
Down Payment | CMHC Insurance Premium |
---|---|
5% - 9.99% | 4.00% |
10% - 14.99% | 3.10% |
15% - 19.99% | 2.80% |
Source: CMHC Mortgage Loan Insurance Cost
Mortgage brokers can be invaluable in navigating the complex mortgage landscape.
A mortgage broker is a licensed professional that acts as an intermediary between you and potential mortgage lenders. They are expected to assess your financial situation and work to find you the best mortgage product and rate available. For prime mortgages, mortgage brokers are typically compensated by the lender through a commission (e.g., finder’s fee of around 1%), which means there is no direct cost to you. However, some of them (shown in our table) go with much smaller compensation to buy-down the rates. For private mortgages, the broker’s commission is typically paid by the borrower. When there is a fee, your broker is required to disclose it.
Brokers can access a wide range of lenders and products, often securing better rates than you could find on your own. They also handle much of the paperwork, making the process smoother for you.
Look for a broker with a good reputation, experience, and a comprehensive network of lenders. Ask for referrals, compare the lowest mortgage rates on this page, and read reviews to find a trustworthy broker. Also, check for the broker's licence registration with the provincial regulator. For example, FSRA (Financial Services Regulatory Authority of Ontario) licences mortgage brokers in Ontario .
Navigating mortgages can be challenging. Here are some common questions and answers.
Mortgage rates in Canada are expected to go down by the end of 2024. As of the latest update on September 20, 2024, variable mortgage rates are expected to decline 0.75% by the end of 2024. Fixed mortgage rates are also expected to slightly decline, but their decline is forecasted to be significantly less than that of variable rates. It’s even possible that fixed mortgage rates in Canada might not even go down by the end of 2024. Checking mortgage rate forecasts that are regularly updated as per market expectations can help you understand where Canadian mortgage rates are headed in the future.
There is no lender which consistently offers the best mortgage rates in Canada. However, you will often find that smaller lenders or monoline lenders that work through mortgage brokers advertise lower rates to attract borrowers. Also, some brokers such as Butler Mortgage use part of their compensation to reduce the rate they offer. This means that the lowest mortgage rates you will see are frequently offered by a mortgage broker. Currently, the best mortgage rate in Canada for a 5-year fixed rate mortgage is offered by nesto, at 3.79%. The lowest rates are for insured mortgages.
These factors give you access to better mortgage rates:
The best mortgage rates in Canada are given to “prime borrowers” by A lenders, like banks and credit unions. Prime borrowers have a credit score of over 700 and stable documented income. If your credit score is below 700, you should improve it to be eligible for the lowest rates. Another credit score threshold to look for is a score of 600, which is the minimum score to qualify for an insured mortgage. Insured mortgage rates are the best rates you can get because they have no risk of loss for the lender. For example, today’s lowest 5-year insured mortgage rate is 3.79%, compared to the current lowest 5-year uninsurable mortgage rate of 4.09%.
There are also insurable mortgage rates, which are slightly higher than insured rates but still lower than uninsurable rates. With insurable mortgages, the borrower qualifies for an insured mortgage, such as when a prime borrower’s home purchase price is under $1 million, but the borrower has made a down payment of 20% or more. In such a scenario, they do not have to pay for mortgage default insurance. Instead, the lender is still able to insure the mortgage, allowing them to give a better mortgage rate.
Working with a mortgage broker can help to get a better mortgage rate in Canada. They compare mortgage rates between multiple lenders, negotiate rates on your behalf, and may even have volume discounts with lenders. We are displaying some of the best ones in the mortgage rate table on top of this page, allowing you to easily compare the best rates. Plus, they may buy down rates, meaning that they give up some of their own commission to get you a lower rate. This can give you access to lower rates than directly from mortgage lenders.
Canadian mortgage lenders typically update their rates every few days. Fixed mortgage rates are based on bond yields , and lenders usually only adjust them when there are significant shifts in bond yields. Variable mortgage rates are mainly influenced by the Bank of Canada’s policy rate , which may change at eight predetermined meeting dates during the year, outside of special circumstances such as the COVID-19 pandemic. Still, banks may change variable rates slightly, independent of Bank of Canada meetings, if they want to attract more (or fewer) customers.
While mortgage rates do fluctuate, and they can change at any time, they do not change as frequently as stock prices. This is largely due to the nature of mortgage lending.
Unlike stock prices, which react instantly to market sentiment or news during trading hours, mortgage rates are influenced by broader economic factors, both Canadian and international. These include bond yields, inflation expectations, and central bank policies, such as the Bank of Canada's interest rate changes. Lenders need time to assess risk, conditions, and their own cost of borrowing before adjusting their rates, resulting in fewer rate changes over short periods. For example, if the bond yield moves up or down, it will need to stay in that range for a while before banks become comfortable to change their rates.
While mortgage rates may not change every minute, they are still subject to market fluctuations and can be adjusted multiple times a week by lenders. To ensure that any changes are reflected in the rates we display and to best show you the most up-to-date rates from a wide number of lenders, the Canada mortgage rates on this page are updated three times daily: in the morning, afternoon, and evening.
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