Housing guide · Updated October 5, 2026
Mortgage rates in Canada today
Official Bank of Canada rates as of October 2, 2026, what they mean for your payment, and how to get a better rate than the posted one.
5-year fixed (posted)
6.09%
big-bank advertised rate
Prime rate
4.45%
variable rates move with prime
Bank of Canada rate
2.25%
drives prime and variable rates
Canadian mortgage rates today
Official Bank of Canada figures, latest October 2, 2026. Updated weekly.
| Rate | Now | 1-yr change | Monthly payment per $100k* |
|---|---|---|---|
| 1-year fixed (posted) | 5.49% | -0.60 | $610 |
| 3-year fixed (posted) | 6.05% | +0.00 | $643 |
| 5-year fixed (posted) | 6.09% | +0.00 | $645 |
| Prime rate | 4.45% | -0.25 | $551 |
| Bank of Canada policy rate | 2.25% | – | – |
*25-year amortization. Posted rates are the big banks' advertised rates; most borrowers negotiate lower. Variable rates are usually priced as prime minus a discount. Run your own numbers →
Fixed or variable?
A fixed rate stays the same for your whole term, so your payment never changes. A variable rate is set as prime plus or minus a margin, so it moves whenever the Bank of Canada changes its policy rate (now 2.25%) and prime follows (now 4.45%).
Pick fixed if a payment increase would strain your budget. Variable can cost less if rates fall during your term, but you carry the risk if they rise.
Posted rates vs the rate you'll actually get
The rates above are the big banks' posted rates. Almost nobody pays them: lenders and brokers routinely offer discounts, especially with a strong credit score, a 20% down payment or an insured mortgage. Get quotes from at least three lenders or a broker before you sign.
The posted 5-year rate still matters: some lenders use it to calculate the penalty if you break a fixed mortgage early.
How to get a lower rate
- ✓Raise your credit score before you apply: pay down card balances and fix report errors.
- ✓Compare banks, credit unions and a mortgage broker; the difference is often a quarter point or more.
- ✓Get a pre-approval to hold a rate while you shop. Lenders hold it for 60 to 130 days, depending on the lender.
- ✓Ask for the rate in writing and whether you'll automatically get a lower rate if rates fall before closing.
You still have to pass the stress test
Whatever rate you negotiate, banks must check that you could afford payments at the higher of 5.25% or your contract rate plus 2%. That's what limits how much you can borrow.
Frequently asked questions
What is the current 5-year fixed mortgage rate in Canada?
The Bank of Canada's latest posted 5-year conventional mortgage rate is 6.09% (October 2, 2026). Discounted rates from lenders and brokers are usually lower.
What is the prime rate in Canada today?
Prime is 4.45%. Variable mortgage rates are set as prime plus or minus a margin.
What is the Bank of Canada policy rate?
The target for the overnight rate is 2.25%. When it changes, banks' prime rates and variable mortgage rates usually change the same day.
How much is the payment on a $500,000 mortgage?
Multiply the per-$100,000 payment in the table by five. Use our mortgage calculator for your exact rate and amortization.
Related tools
Sources
- Bank of Canada: Interest rates (Valet data)
- FCAC: Preparing to get a mortgage (stress test)
- FCAC: Getting preapproved for a mortgage
Figures checked against these official sources on October 5, 2026. We re-check them every week; see what changed.
Plan the next step for your home
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