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Current Mortgage Rates From Canada’s Top Lenders

Compare current mortgage rates to find the lowest mortgage rate for your home buying needs.

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Nerdy Insight: Nearing the end of May, Canada’s current mortgage rates are holding steady. Five-year fixed rates remain priced well under 5% at some lenders, while three-year fixed rates are generally closer to 5%. Variable mortgage rates remain elevated after the Bank of Canada decided to hold its overnight rate at 5% on April 10, but may decrease as early as June.

Current fixed and variable mortgage rates from Canadian bank and non-bank lenders

Showing 7 of 40 results

Term

Lender

Rate

Monthly Payment

 

5 Year Fixed Rate


Desjardins

4.69%

$2,538.38

5 Year Fixed Rate


B2B Bank

4.89%

$2,589.12

5 Year Fixed Rate


First National Financial

4.89%

$2,589.12

5 Year Fixed Rate


Meridian

4.89%

$2,589.12

3 Year Fixed Rate


Scotiabank

4.94%

$2,601.87

5 Year Fixed Rate


Scotiabank

4.94%

$2,601.87

5 Year Fixed Rate


Marathon Mortgage

4.94%

$2,601.87

Disclaimer: The rates displayed do not include any taxes, fees, insurance, or other additional charges. These rates are estimates and are not guaranteed. The actual rate and loan terms you receive will depend on our partner’s assessment of your creditworthiness, loan amounts, and other relevant factors. Please note that any potential savings figures provided are estimates based on the information you and our advertising partners have provided. Terms and conditions apply.
Mortgage Brokerage licensed in ON #13072, AB, BC #X300983, MB, NL, NB #210042526, NS #2023-3000270, PE, QC #606914, SK #508695, YT

Current mortgage rates from Canada’s Big Six banks

Rates updated: May 24, 2024

Bank

2-Yr Fixed Rate

3-Yr Fixed Rate

5-Yr Fixed Rate

5-Yr Variable Rate (Closed)

7.64% 7.20% 7.04% 7.20%
7.19% 6.99% 6.84% 7.20%
7.39% 6.99% 6.84% 7.20%
7.44% 6.95% 6.79% 7.20%
7.39% 6.94% 6.79% 7.65%
7.34% 6.99% 6.84% 7.35%

Posted rates for closed mortgages with amortization under 25 years. Data source: Canada's major banks

If you’d like to take a closer look at the products and mortgage rates each of the Big Six are offering, we’ve got you covered:

Current mortgage rate update: May 22, 2024

Both fixed and variable mortgage rates have remained stable over the last week. As of May 22, some lenders were offering discounted five-year fixed rates as low as 4.69% and three-year fixed rates for 4.94%. Variable rates remain close to 6%, but may finally start dipping in June, when the Bank of Canada is expected to being lowering its overnight rate.

Even if both rate types remain static, it’s not a bad time to get a mortgage pre-approval. Getting pre-approved and locking in at today’s rates allows you to make a legitimate, lender-backed offer on a home, which can be an advantage in an undersupplied market. A pre-approval often lasts 120 days, so you won’t have to worry about paying more if rates do happen to rise during your pre-approval period. And if rates tick down, your lender should be able to craft a new mortgage offer for you.

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Current prime rates

Prime rate, the rate of interest lenders charge their preferred customers, is typically used to determine variable mortgage rates. If you’ve ever visited a bank’s mortgage rate page, you may have seen its variable mortgage rates explained as “prime minus X%”.

As you’ll see below, the prime rate at all Big Six banks is identical. That’s because each bank bases its prime rate on the Bank of Canada’s overnight lending rate. It’s worth noting, however, that TD is unique among these lenders in that they have their own prime mortgage rate, which is currently 7.35%

InstitutionPrime rate
BMO7.2%
CIBC7.2%
National Bank7.2%
Scotiabank7.2%
RBC7.2%
TD7.2%

Current mortgage rates: Projections for 2024

Fixed mortgage rates

Will fixed mortgage rates fall in 2024?

Because fixed rates are tied to investor activity in the bond market, they can be tricky to predict over the medium- and long-term. But fixed mortgage rates should soften in 2024. Once interest rates begin trending down and bond prices solidify at lower levels, fixed mortgage rates should also become more affordable. 

It ultimately depends on lenders, who tend to raise fixed rates much faster than they decrease them. Bond yields sunk rapidly throughout December 2023, and then rose for the first six weeks of 2024, but fixed rates have held relatively steady.

Variable mortgage rates

Will variable mortgage rates fall in 2024?

Relief should be coming for variable-rate mortgage holders in 2024. How much relief that might entail, and when it might actually arrive, is the billion-dollar question.

Inflation dropped to 2.9% in January — not quite low enough to spur the Bank of Canada to decrease its overnight rate. If inflation trends lower in the first four months of 2024, a small reduction in the overnight rate could be in the cards for June.  

The Bank isn’t likely to reduce the overnight rate as aggressively as it jacked it up. It will take time for variable mortgage rates to come back to Earth.

Mortgage calculators to assist your home buying journey

Understanding current mortgage rates

What is a mortgage rate?

A mortgage rate is the rate of interest a mortgage lender charges to borrow their money. The mortgage interest rate you’re offered will be a percentage of the principal, or the original amount you borrow.

Because mortgage interest generally compounds over a long period of time, the rate charged has a major effect on the overall cost of a mortgage. Assuming a 20% down payment, a $500,000 mortgage with a rate of 5% interest would result in a total interest charge of $372,407 over the course of 25 years. Knock that rate down to 4%, and the interest would add up to $289,030 — a difference of more than $83,000.

Calculating mortgage interest by hand can be time-consuming. Using a mortgage payment calculator is a quicker way of understanding how much a particular mortgage rate might cost you.

Posted vs. special mortgage rates

If you’re exploring mortgage rates at a large mainstream lender, like a Big Six bank, you might see two different categories of mortgage rates: posted rates and special rates.

Posted rates, a bank’s publicly advertised mortgage rates, will be higher than its special rates. In fact, when you first see posted rates, you might be surprised at how high they are. 

Take a look at the current average posted rates at Canada’s chartered banks below, according to the Bank of Canada. These rates are for conventional mortgages, which involve a down payment of at least 20%.

TERMCONVENTIONAL MORTGAGE RATES
1-year fixed7.84%
3-year fixed6.99%
5-year fixed6.84%
Prime rate7.20%

Pretty steep, aren’t they? One theory behind why posted rates are so high is that they are intended to be negotiated down during mortgage discussions to make borrowers feel as if they scored a great deal. And if a borrower doesn’t negotiate, the bank can charge the full posted rate and make more money.  

Special rates are posted rates that have been discounted. This might be done to create limited- time offers, but some banks’ discounted rates are also the rates they offer their mortgage broker partners.

Nerdy Tip: Make yourself familiar with a bank’s posted and discounted rates to put yourself into a stronger negotiating position. No matter how well you prepare yourself, however, know that the rate you’re offered will ultimately depend on your financial situation.

Mortgage rate types

Fixed mortgage rates

A fixed mortgage rate will not change for the entirety of your mortgage term, which is how long your current mortgage contract is in effect. Even if mortgage rates rise or fall during your term, the rate attached to your mortgage will not change — nor will the principal and interest portions of your mortgage payment.

For example, if you take out a five-year, fixed-rate mortgage at 5% in 2023, your rate won’t change until it’s time to renew your mortgage in 2028. That predictability is one reason why fixed-rate mortgages are so popular in Canada. They’re also widely available at Canadian banks.

A lender’s fixed mortgage rates are based on activity in the government bond market. Fixed rates on one-, three- and five-year mortgages, for example, tend to follow the yields on one-, three- and five-year bonds. If one of those bond yields rises, expect the associated mortgage interest rate to increase, too. 

Variable mortgage rates

With a variable mortgage rate, your rate could rise or fall during the mortgage term. That’s because variable mortgage rates are based on lenders’ prime rates, which increase or decrease whenever the Bank of Canada adjusts its overnight rate. 

If you take out a variable-rate mortgage and your lender’s prime rate changes, your rate will increase or decrease by the same amount. How that affects your mortgage payment depends on what kind of variable-rate mortgage you have:

The trigger rate

The unpredictability of an ARM might make it seem like the riskier of the two options, but a VRM carries a significant risk of its own. If interest rates rise quickly, your mortgage payment may no longer even cover the monthly interest costs. When this happens, you’ve hit what’s known as the trigger rate.

Once you reach your trigger rate, your bank may require you to either make a lump-sum payment or increase your mortgage payments to ensure you’re at least covering your interest charges. You may also have the option of switching your mortgage to a fixed rate for the rest of your term.  

Which is better: fixed or variable?

Choosing between fixed- and variable- rate mortgages is a bit of a gamble no matter what you decide.

With a variable-rate mortgage, you run the risk of watching your rate, and potentially your mortgage payment, balloon to the point where you can no longer afford your home. If rates decline and then stay low, however, you could save a pile of money.

A fixed-rate mortgage provides predictability, and can therefore be easier to budget around. But by committing to a fixed mortgage rate, it’s harder to benefit if rates decrease. To access a lower rate in the middle of your mortgage term, you’d probably have to break your mortgage so you can refinance. That could require paying a steep prepayment penalty.

You’ll generally pay a higher prepayment penalty on a fixed-rate mortgage than on a variable-rate mortgage. Details like this are why you should consult a mortgage professional before making any decisions on how to structure your home loan.

Comparing current mortgage rates

Shop for a mortgage the way you’d search for a new vehicle: you wouldn’t normally buy the first car you see at the first dealership you walk into, and you shouldn’t commit to a mortgage until you’ve compared multiple offers across different lenders.

If you want to compare current mortgage rates from the top lenders and brokers in different provinces, you can consider:

When comparing mortgages, don’t simply look at the current mortgage rates on offer. You have to compare the conditions of the loans you’re investigating, too. Some attractive rate offers, for example, might come with down payment conditions that not all borrowers will be able to meet. Other rates might only apply to term lengths or rate types that don’t align with your homeownership plans. 

Compare mortgage rates using APR

Many lenders publish mortgage interest rates alongside corresponding annual percentage rates (APR). An APR includes any additional fees the lender may charge, so it’s a more accurate indication of what a mortgage might cost.

When comparing current mortgage rates among lenders, always try to compare APRs to get a more accurate sense of what each loan might cost you.

Broker vs. bank: Who offers the best current mortgage rates?

When getting a mortgage, you’ll generally have to choose between going directly to a lender, like a bank, or working with a mortgage broker. Deciding between the two might come down to who can score you the best current mortgage rate.

Generally speaking, a mortgage broker should offer you a wider array of options. Unlike a bank’s mortgage advisors, brokers aren’t tied to a single financial institution. They can field offers from multiple lender partners, which might include B lenders and private lenders, in addition to some Big Six banks. 

Part of a mortgage broker’s job is to negotiate a better rate for you. They only earn a commission when a mortgage is finalized, so it’s in their best interest to negotiate a mortgage you can afford to sign. Bank employees with revenue targets, however, may not feel quite as motivated to cut you a deal. 

Current mortgage rates and the stress test

In addition to affecting the cost of your home loan, current mortgage rates also impact how much mortgage you can qualify for by influencing the mortgage stress test.

If you’re applying for a mortgage at a federally regulated financial institution, the stress test requires you to qualify at either 5.25% or the rate being offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, your finances would have to support the same loan at 7% for you to qualify.

If that’s not the case, your lender will reduce the amount you’re offered until you can pass the stress test at the qualifying rate. 

How to get the best mortgage rate

Boost your credit score

A credit score of 680 or higher will help you get approved for a mortgage at most Canadian lenders. The longer the list of lenders willing to work with you, the more mortgage offers you’ll have to choose from. The increased choice gives you a little more control over what your loan will cost — and a better shot at being offered the best mortgage rate.

Before applying for a mortgage or mortgage pre-approval, check your credit score and see where it stands. If there are some financial habits you can tweak to improve your credit score, get tweaking. And if you’re stuck for ideas, reach out to your bank’s financial advisor, a mortgage broker or a credit counsellor to get some ideas from a professional. 

If your credit score is below 680, you should still be able to apply for a mortgage with a B lender, but a B lender mortgage might come with significantly higher interest rates. 

Pay down debt

Paying down your credit balances can also help reduce the mortgage rate you’re offered. 

If you’re carrying significant debt from a credit card, personal loan or line of credit, lenders may have legitimate concerns about your financial decision-making or your ability to also pay for a mortgage. Any risk they see in your debt service ratios or credit history could give them a reason to offer you a higher rate.

Negotiate

Whether you’re dealing with a big bank or small alternative lender, don’t accept the first rate offer you’re presented with.  

Negotiating is a must during the mortgage process. Even if your lender isn’t willing to decimate its rate offer for you, getting a little shaved off your rate can make a significant difference.

Here’s a quick example using a home priced at $500,000. We’ll assume a 20% down payment ($100,000), a principal of $400,000 and an amortization period of 25 years.

In this case, negotiating that 5% rate offer down by a few percentage points would save you over $13,000.

Frequently asked questions about current mortgage rates

Is 5% a good mortgage rate?

As of April 10, 2024, 5% would be slightly higher than what many lenders are charging for three- and five-year fixed-rate mortgages. You’re unlikely to find a rate of 5% on shorter fixed-rate terms. For a variable-rate mortgage, you’re likely to pay more than 6% until the Bank of Canada starts reducing its overnight rate.

When will mortgage rates be lower?

As of April 2024, bond market activity indicates that fixed mortgage rates might rise in the short term, but they’re not likely to spike suddenly. Variable mortgage rates will decrease when the Bank of Canada lowers its overnight rate. That could happen as early as June 2024.

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