The Best Mortgage Rates in Canada
What are the best mortgage rates in Canada right now?
As of January 6, 2025, the lowest fixed mortgage rates in Canada are just shy of 3.7%, while the lowest variable rates are 3.4%. These rates are available at select brokerages and direct lenders. Rates at Canada's Big Six banks are generally much higher.
The rate you’re offered will ultimately depend on factors like your credit score, how much debt you have, how much income you earn, and whether you apply for your mortgage with a Big Six bank or through a broker.
Popular mortgage rates at Canada's biggest banks
3-Year Fixed | 4.42% | 4.41% | 4.44% | 4.43% | 6.05% | 4.674% |
3-Year Variable | 7.78% (open) | 4.17% | -- | -- | 5.95% | -- |
5-Year Fixed | 4.51% (insured) 4.66% (uninsured) | 4.21% (insured) 4.56% (uninsured) | 4.43% (insured) 4.58% (uninsured) | 4.32% (insured) 4.62% (uninsured) | 6.09% | 4.811% (insured) 4.811% (uninsured) |
5-Year Variable | 4.17% | 4.27% | 4.49% | 3.68% (insured) 3.98% (uninsured) | 4.90% | 4.411% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
Canadian mortgage rate update: January 2026
It’s a new year, but for mortgage rates in Canada, 2026 brings more of the same: static variable rates and fixed rates that threaten to edge higher.
Variable rates haven’t moved since the Bank of Canada held its overnight lending rate at 2.25% in December, and they won’t budge until the Bank delivers either a rate cut or rate increase. Neither is expected to happen for most of 2026, so variable rates might be as good as they’re going to get for months.
If the Bank maintains the overnight rate when it hands down its next rate decision on January 28, the lowest variable rates in Canada should remain around 3.4% until at least mid-March.
Fixed mortgage rates face a much greater risk of increasing in January.
Government bond yields, which lenders use to price their fixed rates, hit a three-month high in December, receded over the holidays and then shot back up to begin the year. This kind of sustained upward pressure on yields gives lenders plenty of leeway to increase their fixed rates.
Fixed rates didn’t move much in December, so they’re not likely to spike in January. Three-year fixed rates and five-year fixed rates in Canada should still be available for less than 3.9% at the end of the month.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates aren’t expected to experience much change in 2026.
In December, the Bank of Canada said its overnight rate is at “about the right level” to fight inflation and support the economy, which should rule out any imminent rate cuts or increases.
So long as the Bank maintains its overnight rate, variable mortgage rates won’t budge. But if the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point.
Fixed rates
As of January 2026, it’s possible that fixed mortgage rates will increase in the short-term in response to elevated bond yields.
Long-term fixed-rate projections, however, are difficult to make with any accuracy. Bond yields, which lenders use to price their fixed rates, are determined by factors that are hard to predict, like the state of the economy and the expectations of individual investors.
Some institutions do their best, though. The British Columbia Real Estate Association, for example, expects fixed rates to remain at their current levels for most of 2026.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
5 ways to get the best mortgage rate
Improve your credit score 📈 Borrowers with a credit score of 680 or higher tend to get the best mortgage rates. Lower credit scores may mean working with an alternative lender that offers higher rates.
Tackle your debt 🏦 Paying off debt improves your credit score and increases cash flow. Debt payments, including your mortgage, should total less than 44% of your household income.
Boost your down payment 💰 Making a larger down payment and borrowing less reduces a lender's risk. They may reward you with a lower interest rate.
Compare multiple offers ⚖️ Don't limit yourself to one option when looking for a mortgage; get offers from a few lenders. A few minutes of your time could result in thousands in savings.
Negotiate 💪 Always ask lenders if they can improve on their rate offers. If this makes you feel uncomfortable, use a mortgage broker, who will negotiate for you.
Is now a good time for me to get a mortgage?
You’re ready to get a mortgage if:
You’ve built up your down payment savings.
Your credit score is in a good spot.
You know what you’re looking for in a home.
The next step is to talk to a mortgage lender or mortgage broker. Already found a rate you like? You’re definitely ready to start a conversation.
A mortgage lender represents a single institution or business that sells mortgages, like a bank. A mortgage broker has access to rates from many lenders. Working with a broker can be a more efficient way of comparing many options, but some buyers may prefer to negotiate directly with lenders.
What to expect when you talk to a mortgage professional
If you haven’t done this before, here’s what you can expect the first time you talk with a mortgage lender or mortgage broker:
Provide information about your current living and employment situations.
Talk about the type of home you’re looking for and where you’d like to buy.
Clarify whether you’re applying for the mortgage alone or with a co-borrower.
The initial conversation is usually a fact-finding call for the mortgage provider. It's also a chance for you to ask any questions you have about the application process and what it will be like to work with them. Your initial conversation with a mortgage provider might also include pre-qualification, a non-binding, rough estimate of what you might be able to borrow.
Getting quotes from lenders should be a straightforward, low pressure process. Getting a quote doesn’t commit you to a rate, a mortgage lender or a mortgage broker. At this point in the process, it just involves a conversation. No reputable lender or broker will offer you a rate until you go through the full pre-approval process, and you won’t start that until you’re ready.
Frequently asked questions
How can I get a lower mortgage rate?
How can I get a lower mortgage rate?
You might be offered a lower mortgage rate if you provide a larger down payment or pay down your debts to lower your debt ratios and improve your credit score. It can also be worthwhile to compare rates among different lenders and negotiate the best rate possible with the one you decide to work with.
What are the pros and cons of choosing a fixed vs. variable rate?
What are the pros and cons of choosing a fixed vs. variable rate?
In a nutshell | Benefits | Risks | |
|---|---|---|---|
Fixed-rate mortgage | You pay the same interest rate for the entire length of your mortgage term. | Predictable payments can be easier to plan for. | High prepayment penalties if you break your mortgage early. |
Variable-rate mortgages | Your interest rate rises or falls along with your bank’s prime rate. | If rates decrease, your mortgage gets cheaper. Can be switched to a fixed-rate at any time. | If mortgage rates rise and stay elevated, your mortgage could cost you significantly more than you budgeted for. |
Hybrid mortgages | Part of your mortgage is subject to a fixed rate of interest and the rest to a variable rate. | Can help you navigate a volatile rate environment. | Complicated; requires a good understanding of mortgage rate dynamics. |
Will I get a lower mortgage rate from a mortgage broker?
Will I get a lower mortgage rate from a mortgage broker?
Possibly. Unlike a bank’s mortgage advisor, a mortgage broker has relationships with multiple lenders. That allows them to shop around for the mortgage product that best suits your needs. Mortgage brokers can negotiate on your behalf and provide alternative paths to homeownership if your application is turned down.
What happens at the end of a mortgage term?
What happens at the end of a mortgage term?
When your mortgage term ends you’ll have a few options to choose from. You can either:
Pay off your mortgage in full.
Renew your mortgage with either your current lender or a new lender.
What's the lowest mortgage rate in Canadian history?
What's the lowest mortgage rate in Canadian history?
From January to March 2021, it was possible to get a five-year fixed mortgage rate of 1.39%. From November 2021 to January 2022, you could find variable mortgage rates as low as 0.85%.
What are mortgage prepayment penalties?
What are mortgage prepayment penalties?
Prepayment penalties are fees that may be incurred if you pay off too much of your mortgage before the end of its term. If you have a closed variable-rate mortgage, your prepayment charge will be three months’ interest on the prepayment amount. For fixed-rate mortgages, the penalty is generally calculated using an interest rate differential (IRD), which varies by lender.
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Clay Jarvis
Clay Jarvis
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