The Best Mortgage Rates in Canada
What are the best mortgage rates in Canada right now?
As of October 2025, the lowest fixed mortgage rates in Canada are below 3.8%, while the lowest variable rates are around 3.7%. 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 | 4.57% | 4.41% | 4.54% | 4.43% | 6.05% | 4.524% |
3-Year Variable | 8.03% (open) | 4.42% | -- | -- | 6.10% | -- |
5-Year Fixed | 4.51% (insured) 4.66% (uninsured) | 4.21% (insured) 4.56% (uninsured) | 4.43% (insured) 4.63% (uninsured) | 4.32% (insured) 4.62% (uninsured) | 6.09% | 4.661% (insured) 4.661% (uninsured) |
5-Year Variable | 4.42% | 4.52% | 4.64% | 3.93% (insured) 4.23% (uninsured) | 5.15% | 4.561% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
Canadian mortgage rate update: October 2025
The Bank of Canada cut its overnight rate on September 17, 2025.
Variable mortgage rates will soon decrease by 0.25%.
If unemployment continues rising, home buyers may retreat back to the sidelines.
October should be a month of stability for Canadian mortgage rates.
Variable mortgage rates will stay at their current levels until at least October 29, when the Bank of Canada is scheduled to announce its next overnight rate decision. A rate cut from the Bank will result in a similar decrease in variable rates. (After the Bank reduced the overnight rate from 2.75% to 2.5% on September 17, variable rates dipped by as much as 30 basis points at some lenders.)
Expect variable rates to hover around 4% for most of October, though some brokerages and direct lenders are offering variables for considerably less.
Fixed mortgage rates might also be static this month. Government bond yields, which fixed mortgage rates tend to follow, have somewhat flattened out after falling for much of September. If yields avoid any dramatic shifts, fixed rates will, too.
Fixed rates may not dip this month, but they’re still fairly approachable. Brokers are offering three- and five-year fixed rates for less than 3.9%, but they’re still well over 4% at Canada’s biggest banks.
2025 mortgage rate forecast
Homeowners could see lower variable rates by the end of the year, but fixed rates aren’t expected to change much.
Variable rates will fall again if the Bank of Canada lowers its overnight rate during one of their two remaining meetings this year (scheduled for October 29 and December 10). Some economists expect a cut of 0.25 percentage points before the end of the year, which would reduce three- and five-year variable rates by the same amount.
The future of fixed mortgage rates depends on government bond yields. When yields rise or fall over an extended period of time, fixed rates typically follow suit.
Yields are hard to predict in the current economic climate: Recession fears tend to drive yields down, while inflation historically pushes them up. As a result, economists see three- and five-year government bonds hovering around their current levels or inching up slightly by year’s end. If yields experience only minor shifts, fixed rates shouldn’t change much before the end of 2025.
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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