Current Mortgage Refinance Rates in Canada
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip a payment.Very good annual pre-payment. Best rate from Bank Of Montreal 3.89%5 yearvariable $2,087monthly payment Other rates from Bank Of Montreal4.36% 3 year fixed $2,192 per month 4.79% 4 year fixed $2,290 per month 4.80% 2 year fixed $2,292 per month 4.99% 5 year fixed $2,336 per month 5.42% 1 year fixed $2,437 per month |
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip a payment.Very good annual pre-payment. Best rate from First National 3.95%5 yearvariable $2,100monthly payment Other rates from First National4.54% 3 year fixed $2,232 per month 4.74% 2 year fixed $2,278 per month 4.74% 4 year fixed $2,278 per month 4.94% 5 year fixed $2,324 per month 5.14% 1 year fixed $2,371 per month |
 Lender highlights Some mortgage features.Good monthly pre-payment.Skip a payment.Good annual pre-payment. Best rate from Scotia Bank 4.00%5 yearvariable $2,111monthly payment Other rates from Scotia Bank4.34% 2 year fixed $2,187 per month 4.39% 3 year fixed $2,198 per month 4.54% 4 year fixed $2,232 per month 4.59% 5 year fixed $2,244 per month 4.94% 1 year fixed $2,324 per month |
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip payment not available.Very good annual pre-payment. Best rate from RFA 4.10%5 yearvariable $2,133monthly payment Other rates from RFA4.94% 5 year fixed $2,324 per month |
 Lender highlights Strong mortgage features.Good monthly pre-payment.Skip a payment.Good annual pre-payment. Best rate from Strive Capital 4.10%5 yearvariable $2,133monthly payment Other rates from Strive Capital4.84% 3 year fixed $2,301 per month 4.94% 5 year fixed $2,324 per month |
Mortgage refinance rate update: September 2026
If you’re considering a mortgage refinance in September, your options could be better.
Variable refinance rates remain the cheapest option, and will continue hovering near their current levels until at least the end of October, when the Bank of Canada’s next overnight rate decision. But there are worries that the Bank may need to hike interest rates to fight inflation in late 2026 or early 2027.
That means a 3.9% variable refinance rate secured in the next several weeks could rise to 4.4% within six months.
Fixed refinance rates are almost that high already, which makes a fixed-rate refi quite costly.
If you’re considering going fixed for your refinance, consider reaching out to a lender sooner rather than later. Activity in the bond market signals that lenders may have to raise their fixed rates this month, which would make refinancing more expensive for those who wait.
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Why are mortgage refinance rates higher?
There are various theories around why mortgage refinance rates are typically higher than purchase mortgage rates.
One is that lenders assume greater risk when they extend homeowners more credit over a longer period of time. If you refinance your mortgage, borrow against your home equity and opt for a longer amortization period, for example, it adds extra time during which you might fail to make good on your mortgage payments.
Another possible explanation is that refinances can result in lower profits for lenders. Let’s say you agree to a five-year fixed rate mortgage at 5% but are able to refinance at 3% after two years. The result is three years of savings for you, but three years of reduced earnings for your lender. Charging a higher rate on your refinance mitigates these losses. (Hefty prepayment penalties help, too.)
How to get the best mortgage refinance rate
Refinancing a mortgage requires applying for a new home loan. To be approved, the lender will put your finances under the microscope again. Before offering you the best refinance rate, your lender will want to see:
Debt service ratios well below the limits laid out by the Canada Mortgage and Housing Corporation and other mortgage insurance providers. These limits include a gross debt service ratio of 39% and a total debt service ratio of 44%
The highest credit score you can manage. A score of 700 or higher, for example, will demonstrate creditworthiness to lenders.
On-time mortgage payments since becoming a homeowner. Missed mortgage payments are the reddest of flags.
Your current lender may not approve a refinance if your credit score has decreased or you’re experiencing debt issues. That doesn’t mean you’re out of options. There are plenty of B lenders that specialize in bad credit mortgages where you may be able to get refinanced.
Other mortgage refinance costs to consider
With all things mortgage-related, there’s more to think about than just the interest rate you’re offered. That’s especially true when it comes to refinancing, where other costs can include:
Prepayment penalties. Refinancing before the end of your mortgage term means breaking your mortgage contract, paying off your loan in full ahead of time and paying what can be a hefty penalty. How much you pay will depend on your interest rate type and how your lender calculates your penalty amount.
A home appraisal. Your lender will use a professional appraisal to determine your home’s value before deciding how much you can borrow against it.
Legal fees. As with your original mortgage, a real estate lawyer will be required to facilitate the transaction.
Mortgage discharge fees. You may have to pay to discharge your mortgage if you refinance with a new lender.
An opportunity to lock in at a lower rate will always sound enticing, but the benefits have to be weighed against the total cost to ensure you’re making the right long-term decision for your household.
Frequently asked questions
What are current interest rates for refinancing a mortgage?
As of September 2026, mortgage refinance rates are uncomfortably high. Three- and five-year fixed rates start around 4.25%, while variable rates are typically 3.8% or higher.
Should I refinance to save 1% on my mortgage rate?
Shaving 1% off of your mortgage rate will reduce the interest you pay over the rest of your term. Whether you save money overall will depend on how much your prepayment penalties, legal fees and home appraisal cost you.
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Clay Jarvis
Clay Jarvis
Clay Jarvis