Best Mortgage Rates in Canada
| Term | Fixed | Variable | |||||
|---|---|---|---|---|---|---|---|
Insured
Lenders | Rates | ||
|---|---|---|---|
What are the lowest mortgage rates in Canada?
As of October 21, 2025,
- The lowest 6-month fixed insured mortgage rate is 3.14%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 1-year fixed insured mortgage rate is 4.69%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 2-year fixed insured mortgage rate is 4.29%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 3-year fixed insured mortgage rate is 3.79%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 4-year fixed insured mortgage rate is 3.94%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 5-year fixed insured mortgage rate is 3.79%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 5-year variable insured mortgage rate is 3.75%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
What are the lowest conventional mortgage rates in Canada?
As of October 21, 2025,
- The lowest 6-month fixed conventional mortgage rate is 6.09%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 1-year fixed conventional mortgage rate is 4.89%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 2-year fixed conventional mortgage rate is 4.44%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 3-year fixed conventional mortgage rate is 3.84%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 4-year fixed conventional mortgage rate is 4.04%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 5-year fixed conventional mortgage rate is 3.79%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
- The lowest 5-year variable conventional mortgage rate is 3.80%, which is NaN bps lower than 30 days ago and NaN bps lower than 7 days ago
Effective December 15, 2024, the Canadian federal government updated mortgage rules. The changes are as follows:
- The price limit for insured mortgages has been raised from $1 million to $1.5 million for high-ratio mortgages (LTV greater than 80%), which means homes of up to $1.5 million will qualify for a down payment of less than 20%. The minimum down payment is 5% of the first $500,000, then 10% for the portion above $500,000.
- Insured mortgages with amortizations of up to 30 years will be available for first-time homebuyers and those purchasing newly constructed properties.
- The $1 million price limit and 25-year amortization cap remain the same for insurable mortgages.
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.
About Mortgages and Rates in Canada
The content below, excluding mortgage rates, was last updated on: October 21th, 2025
What You Should Know
- Variable mortgage rates have historically performed better than fixed mortgage rates in terms of lower overall interest costs (although not recently), but the best mortgage rate option depends on your risk tolerance and where you think Canadian interest rates are headed.
- Although insured mortgages require you to pay for mortgage default insurance, they have a lower mortgage rate compared to insurable and uninsurable mortgages which can result in lower overall costs despite the added insurance premium.
- 5-year fixed mortgages were historically the most popular mortgage in Canada; however, shorter-term fixed-rate mortgages have gained popularity since mortgage rates skyrocketed throughout 2022 and 2023. This reflects borrowers’ preference for flexibility in anticipation of a potential decline in Canada’s mortgage rates in the near future.
Today's Prime Rate:4.70%
Current Prime Rates in Canada
| 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.
Latest Bank of Canada Announcement
| 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.
What Affects Your Mortgage Rate in Canada?
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.
Economic Factors
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.
Prime Rate for Variable Mortgages
- Each bank has its own prime rate, which is based on the Bank of Canada overnight rate and is used to determine variable interest rates.
- As of the latest update on October 22, 2025, the prime rate in Canada is 4.7%.
- Variable mortgage rates change in line with changes in the prime rate.
Bond Yields for Fixed Mortgages
- Canadian bond yields with comparable terms and the overall economic climate influence Canada's fixed mortgage rates.
- When bond yields rise, fixed mortgage rates may increase, but the spread between the two can always change.
- Almost whenever bond yields fall significantly, the mortgage rates will decrease.
Economic Conditions
- When the economy is doing well, rates tend to rise.
- During economic downturns, rates usually drop to encourage borrowing and stimulate the economy.
- During a predicted economic downturn, a short-term or variable mortgage rate may benefit from potential rate cuts.
Type of Borrower
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. |
Alt-A Lender Mortgage Rates
| 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+ | - | - | - |
Mortgage Type
Mortgage Rates by Mortgage Type
| Lowest Rates | Lower Rates | Regular Rates | Higher Rates |
|---|---|---|---|
| Insured Mortgages | Insurable Mortgages | Uninsurable Mortgages | Rental / Investment Property Mortgages |
Insured Mortgages (Compulsory if down payment level is below 20%)
- Mortgage default insurance is required if you make a down payment of less than 20% of the home’s purchase price.
- Typically have lower rates because they are backed by mortgage default insurance , which protects the lender.
- They have restrictions, such as a property purchase price of under $1.5 million with an LTV over 80%, a minimum credit score of 600, and debt service ratio limits.
- Borrowers must pay for mortgage default insurance, which costs 2.8% (for an LTV of 80.01% to 85%), 3.1% (for an LTV of 85.01% to 90%), and 4.0% (for an LTV of 90.01% to 95%) of their loan amount, depending on their down payment.
Uninsurable Mortgages and Refinance
- Uninsurable mortgages don't meet the mortgage default insurance criteria, such as a mortgage amortization period that is too long, a credit score that is too low, or debt ratios that are too high.
- Uninsurable mortgages and mortgage refinancing are considered riskier by lenders as they do not have and cannot qualify for default insurance, causing them to come with higher interest rates than insured and insurable mortgages.
Insurable Mortgages
- Insurable mortgages are those with a down payment greater than or equal to 20%. Insurance isn’t mandatory for them; however, they still meet the criteria set by mortgage insurers, such as having a home price below $1 million, amortization less than or equal to 25 years and gross debt service ratio equal to or less than 44%.
- They usually have higher rates than insured mortgages because they lack default insurance protection, which increases the lender's risk exposure. However, the lender can choose to obtain insurance on these mortgages and pay for the insurance themselves.
- Insurable mortgage rates can vary significantly based on the loan-to-value ratio (LTV) , which is the proportion of your property's value that you are borrowing. For example, a 65% LTV (equivalent to making a 35% down payment) will usually result in a lower interest rate than an 80% LTV (equivalent to making a 20% down payment).
Rental/Investment Property Mortgage
- Mortgages for rental or investment properties generally have higher interest rates than primary residence mortgages.
- Lenders will also require a higher down payment for rental and investment properties.
Fixed vs. Variable Rate
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
- The interest rate remains constant throughout the term of the mortgage.
- Provides stability due to predictable mortgage payments.
- Typically offered in 6-month, 1, 2, 3, 4, 5, 7 and 10-year terms.
Variable Rate Mortgage
- Interest rates can fluctuate based on changes in the prime rate during the term.
- While variable-rate mortgages have fixed payments, the interest portion of the payment may increase or decrease based on changes in the prime rate.
- The payments of adjustable-rate mortgages (ARMs) vary with changes in the prime rate. This leads to savings if rates decrease but also higher payments if rates increase.
- Both variable and adjustable-rate mortgages offer flexibility but some uncertainty, as the rate can affect how much you pay over time.
- Historically, variable-rate mortgages have performed better than fixed-rate mortgages in the long run in terms of lower interest costs, leading to potential savings for borrowers. However, this hasn’t been true recently.
Mortgage Term Length
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.
Short-Term Mortgages (6 months to 2 years)
- May come with higher interest rates compared to longer terms because lenders often demand a higher percentage margin on a shorter term than a longer-term loan.
- For borrowers expecting interest rates to drop or planning to sell the property in the near future.
Medium-Term Mortgages (3 to 5 years)
- Provide a balance between stability and the flexibility of a shorter commitment compared to long-term options.
- Competition among Canadian mortgage lenders is most intense for 5-year fixed and 3-year fixed-rate mortgages due to their popularity, which helps keep these rates lower.
Long-Term Mortgages (Longer than 5 years)
- Typically have higher interest rates due to the extended risk for lenders.
- Offer long-term stability and predictable payments, appealing to risk-averse borrowers.
- For borrowers planning long-term residence and wanting to lock in current mortgage rates to avoid potential future rate increases.
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.
What happens at the end of a mortgage term?
At the end of each term, you have three main options:
- Renew with your current lender: Signing for another term with your existing lender means your mortgage payment and interest rate may change, but your lender might not reassess your credit score or debt service ratios.
- Switch to a new lender: If you move an uninsured mortgage to a new lender, you'll need to pass the mortgage stress test and be reassessed. This may give you access to better rates or terms, but it requires more paperwork and approval. Insured mortgage holders can switch lenders without undergoing the stress test. The stress test requirement for renewing uninsured mortgages with a new lender was removed on November 21, 2024.
- Refinance: Refinancing a mortgage involves signing a new mortgage agreement, possibly with a different rate or lender. This replaces your existing mortgage with a new one, allowing you to change the terms and conditions. Refinancing requires passing the mortgage stress test and can enable you to borrow more money using your home equity .
Amortization Period
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.
Location and Type of Property
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.
CMHC Mortgage Default Insurance
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.
Cost of CMHC Insurance Premiums
| 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
Mortgage brokers can be invaluable in navigating the complex mortgage landscape.
What is a Mortgage Broker?
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.
Benefits of Using a Mortgage Broker
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.
How to Choose a Mortgage Broker?
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 .
- Shop around by using mortgage rate comparison websites such as WOWA, Ratehub, and NerdWallet Canada . Compare mortgage rates Canada from different Canadian mortgage lenders to find the best deal for your financial situation.
- Consider working with a mortgage broker who can negotiate on your behalf and provide access to a wider range of lenders. This includes lenders that do not offer their products directly to borrowers. Some mortgage brokers also offer mortgage buydowns, such as Butler Mortgage, 6ix, or Citadel Mortgages. These brokers lower the mortgage rate you get by decreasing their broker commissions.
- Consider a shorter amortization period (the length of time it takes to pay off the entire mortgage), as this can lead to overall savings. Keep in mind that a shorter amortization period reduces overall interest costs, but it will result in higher monthly payments.
- Be aware of hidden fees or penalties associated with your mortgage, and read the fine print carefully before signing any agreements.
- Regularly review your mortgage rate and consider refinancing if market conditions or your financial situation change.
Mortgage Rates Canada: Common Questions
Navigating mortgages can be challenging. Here are some common questions and answers.
Will Canadian Mortgage Rates Go Down in 2024?
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.
Which Lender Has the Best Mortgage Rates in Canada?
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.
How Do I Get a Better Mortgage Rate?
These factors give you access to better mortgage rates:
- 1) A credit score over 700,
- 2) Either by purchasing mortgage default insurance, which is compulsory with a down payment of less than 20%, or putting a down payment of more than 35% for uninsured mortgages, and
- 3) Shopping around by checking mortgage rates offered by different lenders and mortgage brokers and also mortgage rate comparison websites such as WOWA.
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.
How Often Do Mortgage Rates Change?
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.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.