Last updated: June 2026
As of June 2026, the lowest mortgage rates in Canada are roughly 3.9%–4.0% for a 5-year fixed and around 3.3% for a 5-year variable on best-available insured mortgages. Big-bank posted rates are usually higher, and your actual rate depends on your credit, down payment, and whether you use a broker.
What are the best mortgage rates in Canada right now?
“Best available” means the lowest rate a well-qualified borrower might see, often on an insured mortgage. Posted rates at the Big Six banks are usually higher, sometimes well into the 4% to 6% range for a five-year fixed term before any negotiated discount. You can check live numbers any time on our current rate details page, and pricing shifts as bond yields and the Bank of Canada’s policy rate move.
| Mortgage type | Best available (insured) | Big bank posted (typical) |
|---|---|---|
| 5-year fixed | ~3.99%–4.04% | ~4.3%–6%+ |
| 5-year variable | ~3.30%–3.35% | higher |
| 3-year fixed | ~3.94% | higher |
The headline rate is only a starting point. What you actually pay depends on your financial profile, the type of mortgage, and how widely you shop. The rest of this guide shows how to move from the advertised number to a rate you can actually get.
Why the best rate you see isn’t always the rate you get
Several factors move your rate up or down: your credit score, the size of your down payment, whether the mortgage is insured or uninsured, the property type, and your amortization period.
Here is a point that surprises many Canadians. An insured mortgage often comes with a lower rate than an uninsured one. Mortgage default insurance, provided by CMHC, Sagen, or Canada Guaranty, protects the lender if a borrower stops paying. Because that risk is covered, lenders can offer insured borrowers a lower rate, even though those borrowers also pay an insurance premium. Insured mortgages typically apply when you put down less than 20% on a home priced under $1.5 million, a ceiling that was raised in December 2024.
There is also the stress test to factor in. The mortgage stress test is a federal qualification rule set by OSFI that requires you to prove you can afford payments at the greater of your contract rate plus 2% or 5.25%, whichever is higher. So the rate you pay and the rate you must qualify at are two different numbers. Our mortgage affordability calculator and CMHC insurance calculator can help you see how this plays out.
The takeaway is simple. A comparison site shows you a number. A broker can show you the number you would actually be offered, based on your real situation.
How mortgage rates are actually set in Canada
Fixed and variable rates are priced off two different things, and understanding that makes every rate headline easier to read.
Fixed mortgage rates track the Government of Canada bond yield, especially the five-year bond, which recently sat around 3.1%. When bond yields rise or fall, fixed rates tend to follow, usually with a short lag, because lenders set a fixed rate by adding their margin on top of the yield they can earn in the bond market. You can read a fuller explanation in our guide to how mortgage rates are determined in Canada.
Variable rates work differently. They move with each lender’s prime rate, and prime moves with the Bank of Canada’s policy rate, also called the overnight rate. On June 10, 2026, the Bank of Canada held that rate at 2.25%, where it has sat since late 2025. Most bank prime rates are around 4.45%, and a variable mortgage is usually priced as prime minus a discount.
What does that mean for the months ahead? The Bank’s long run of cuts has ended, and the outlook is genuinely uncertain. Financial markets have priced in the possibility of a small quarter-point increase later in 2026, while many economists expect rates to simply hold. Because fixed and variable respond to different forces, they can move in opposite directions, which is why the best rate keeps shifting from week to week.
Fixed vs variable: which gets the better rate right now?
Right now a five-year variable rate, around 3.3%, is lower than a five-year fixed, roughly 3.9% to 4.0%, on best-available insured mortgages. But variable rates can change during your term, and the gap between the two is narrower than it has often been in the past. There is no single right answer, and the better choice depends on your budget and how much rate movement you can comfortably handle.
When a fixed rate makes sense
A fixed rate locks your interest rate and payment for the entire term. It typically suits people who value certainty, are budgeting tightly, or worry that rates could climb. You trade the chance of savings for peace of mind. You can compare the two side by side in our variable vs fixed rate mortgage guide.
When a variable rate makes sense
A variable rate can save you money if rates hold steady or fall, but it carries risk if they rise. One thing to watch is the trigger rate, the point at which rising rates mean your payment no longer covers the interest you owe. Because some forecasters now see a possible rate increase, the old assumption that variable always wins no longer holds.
Some borrowers split the difference with a shorter term, such as a one, two, or three-year fixed, planning to renew into a different rate later. A broker can model both fixed and variable against your actual numbers so you can see the real payment difference before you commit.
Bank rates vs broker rates: why a broker often wins
An independent broker compares offers from 50 or more lenders, including banks, credit unions, trust companies, and monoline lenders, all from one application. That means you see more than one lender’s best offer side by side. In most cases the broker is paid by the lender you choose, so the service is typically free to you.
Brokers tend to add the most value on complex files. If you are self-employed, have a lower credit score, or need alternative lending, a single bank may simply say no, while a broker often knows which lenders are likely to say yes. Pegasus specializes in exactly these situations, including bad-credit mortgage solutions. Complex files like these are where Razi Khan, Founder and Mortgage Broker at Pegasus, has spent more than 20 years helping Canadians, including through the 2008 downturn the company was built in. Putting more lenders, and more options, on your side is the whole idea behind why working with a broker can pay off.
How to get the lowest mortgage rate you qualify for
Getting a low rate is partly about timing and partly about preparation. A few steps can meaningfully improve the rate you are offered.
- 1Strengthen your creditAim for a score around 680 or higher, pay down outstanding balances, and avoid taking on new credit in the months before you apply.
- 2Get your down payment rightA larger down payment lowers your loan size, but an insured mortgage can come with a lower rate, so weigh the insurance premium against the rate savings. Our down payment calculator and mortgage payment calculator can help you compare scenarios.
- 3Get a pre-approval with a rate holdA rate hold is a lender’s promise to reserve a specific rate for you, often for up to 120 days, which protects you from increases while you shop or close. You can start with our instant pre-approval certificate or read how to lock a rate without overpaying.
- 4Compare more than one lenderA broker can do this in a single application, so you are not relying on one bank’s offer.
- 5Choose your term with the outlook in mindWith cuts likely finished and a small hike possible, the right term length depends on how much certainty you want.
- 6Look at total cost, not just the ratePrepayment privileges, penalties, portability, and fees all matter, because the cheapest rate is not always the cheapest mortgage.
Best rates by situation: buyers, renewals and refinances
Your best rate also depends on where you are in your homeownership journey.
First-time buyers often qualify for insured, high-ratio pricing and can buy with a smaller down payment. Savings tools such as the First Home Savings Account and the RRSP Home Buyers’ Plan can help you build a down payment. The CMHC First-Time Home Buyer Incentive ended in March 2024 and is no longer available, so plan around the programs that still exist. Our first-time home buyer page walks through the current options.
Renewing your mortgage is one of the best moments to find a better rate, yet many people simply sign the renewal letter their lender sends. You can often do better by shopping around. Since November 2024, OSFI no longer requires uninsured borrowers to pass the stress test when they switch lenders at renewal, which makes moving for a lower rate easier. See our notes on the removed stress test for uninsured renewals and what to know about mortgage renewal in Canada.
Refinancing, where you replace your mortgage to access equity, is typically priced a little higher than a purchase and is capped at 80% of your home’s value. It can still make sense for debt consolidation, though you should weigh any penalty for breaking your current term.
If you are self-employed or have credit challenges, alternative lenders offer options at different rates, and a broker can match your file to the right one.
A quick note on location. The best available rates are broadly similar across Canada, whether you are in Toronto, Vancouver, Calgary, Ottawa, or anywhere in Ontario, British Columbia, or Alberta. What changes by region is home prices, land transfer taxes, and which lenders operate there, not the headline rate. In Quebec, mortgages are also closed before a notary, an extra step worth planning for.
Frequently asked questions
What is the best mortgage rate in Canada right now?
Are mortgage rates going down in Canada in 2026?
Should I choose a fixed or variable mortgage rate?
Can a mortgage broker really get me a lower rate than my bank?
How can I qualify for the lowest mortgage rate?
Do mortgage rates differ by province or city?
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & references
- Bank of Canada — policy interest rate and the June 10, 2026 decision (held at 2.25%): bankofcanada.ca
- OSFI — Guideline B-20 residential mortgage underwriting and the qualifying (stress test) rate: osfi-bsif.gc.ca
- CMHC — mortgage loan insurance: cmhc-schl.gc.ca
- Department of Finance Canada — expanded $1.5 million insured-mortgage price cap (effective December 15, 2024): canada.ca
- Ratehub & WOWA — best mortgage rates in Canada (accessed June 2026): ratehub.ca
- NerdWallet Canada — Big Six posted mortgage rates (accessed June 2026): nerdwallet.com