Best Mortgage Rates Canada 2026: How to Compare and Save

What are the best mortgage rates in Canada right now?

As of June 2026, the best available mortgage rates in Canada are approximately 3.99% for a 5-year fixed and 3.30% for a 5-year variable on insured mortgages. The Bank of Canada has held its overnight rate at 2.25% for five consecutive announcements, keeping variable rates stable. Fixed rates have been rising due to higher Government of Canada bond yields driven by global economic uncertainty. Your actual rate depends on your credit score, down payment, mortgage type, and whether you use a broker or go directly to a bank

CURRENT BEST MORTGAGE RATES IN CANADA (JUNE 2026)

Here is what well-qualified Canadian borrowers can expect to find in the market today. These are best-available rates from brokers and monoline lenders — not the posted rates at your bank's branch.

1-Year Fixed: approximately 5.49%

2-Year Fixed: approximately 4.39%

3-Year Fixed: approximately 3.94%

5-Year Fixed: approximately 3.99%

5-Year Variable: approximately 3.30%

10-Year Fixed: approximately 5.19%

Source: Aggregated from WOWA, Ratehub, and NerdWallet Canada — June 12, 2026. Rates shown are for insured mortgages on properties under $1M for well-qualified borrowers. Rates change daily.

Important: Posted rates at Canada's Big Six banks:

RBC, TD, Scotiabank, BMO, CIBC, and National Bank 

are significantly higher, often ranging from 4.3% to 6.09% for a 5-year fixed before any negotiated discount. Always compare before accepting your bank's first offer.

WHAT TYPE OF MORTGAGE RATE IS RIGHT FOR YOU?

This is the most important decision you will make when taking out a mortgage in Canada. Here is what each option actually means for your wallet in 2026.

FIXED-RATE MORTGAGES

With a fixed rate, your interest rate and monthly payment stay the same for your entire term — usually five years. No surprises, no adjustments.

Choose fixed if you have a tight monthly budget and need payment certainty, if you are a first-time buyer already stretched to qualify, if you value peace of mind over potential savings, or if you are locking in for 3 years or more and want to avoid rate risk.

Current reality in 2026: Fixed rates have been rising. Government of Canada 5-year bond yields have moved sharply higher due to the conflict in the Middle East, which has pushed energy prices and inflation expectations upward. Fixed rates track these bond yields closely, which is why the spread between fixed and variable has widened considerably since early 2026.

VARIABLE-RATE MORTGAGES

With a variable rate, your interest rate moves up or down whenever the Bank of Canada changes its overnight rate. Your rate is expressed as "prime minus" a discount,  for example, prime minus 0.75%.

As of June 2026, the prime rate in Canada is 4.45%, and the best variable discounts bring your effective rate to around 3.30% to 3.50%.

Choose a variable if you have financial flexibility and can absorb potential payment changes, if you may move or refinance within three years since variable rates carry much lower prepayment penalties, or if you believe the Bank of Canada is more likely to cut than hike rates further.

The key risk in 2026: 

The Bank of Canada warned in June 2026 that higher oil prices and inflation risks could force a rate increase. If the overnight rate rises by even 0.50%, your variable mortgage payment increases accordingly. That said, it would take multiple hikes before variable rates matched today's best fixed rates.

Historical note: 

Over a full mortgage term, variable rates have saved Canadian borrowers money more than 90% of the time, according to a landmark York University study, but past performance does not guarantee future results.

WHAT AFFECTS YOUR MORTGAGE RATE?

Your mortgage rate is not a number that just exists in the market. It is a number the lender assigns to you specifically. 

Here is what moves it:

The Bank of Canada Overnight Rate

This directly controls variable mortgage rates. When the Bank raises or lowers its policy rate, your variable payment changes within days. The Bank held rates at 2.25% in June 2026, the fifth consecutive hold, which has kept variable rates stable.

Government of Canada Bond Yields

Fixed rates track 5-year Government of Canada bond yields, not the Bank of Canada overnight rate. Even when the overnight rate stays flat, fixed rates can rise if bond yields increase, which is exactly what happened in mid-2026 as investors responded to geopolitical uncertainty and inflation fears.

Your Credit Score

A credit score of 680 or higher is generally the threshold for lenders' best rates. Scores above 750 may unlock additional discounts. Below 680, you can still get approved, but your rate will be higher.

Your Down Payment and Mortgage Type

This is often the most overlooked factor. Whether your mortgage is insured, insurable, or uninsurable directly changes the rate a lender offers you, sometimes by 0.20% to 0.50% or more. See Section 4 for a full explanation.

Your Income, Employment Type, and Debt Load

Lenders also look at your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. Self-employed borrowers, those with rental income, or those with existing debt may be offered higher rates or face more scrutiny.

INSURED VS INSURABLE VS UNINSURABLE: THE RATE DIFFERENCE NOBODY EXPLAINS

This is the most important concept that most Canadian mortgage articles gloss over, and it directly affects the rate you are quoted.

INSURED MORTGAGES

Lowest Rates

If your down payment is less than 20% on a home priced under $1 million, your mortgage must be insured by CMHC, Sagen, or Canada Guaranty. The insurance protects the lender, which means they can offer you their lowest rates, typically the numbers you see advertised on comparison sites.

Middle Rates

If you put 20% or more down on a home under $1 million with a 25-year amortization or less, your mortgage could technically qualify for insurance even though you chose not to purchase it. Lenders treat these as slightly higher risk than insured mortgages, so rates are a small step higher.

Highest Rates

Your mortgage is uninsurable and rates are highest in these situations: 

• you are refinancing rather than purchasing or renewing
• your home purchase price is over $1 million
• your amortization is longer than 25 years, or you are buying an investment or rental property. 

In these situations, lenders bear all the default risk themselves, so your rate will be higher than what you see advertised.

The takeaway: When comparing rates online, always verify whether the advertised rate applies to your specific mortgage type. An insured rate of 3.99% does not mean you will get 3.99% on a $1.2M home or a refinance.

BANK VS MORTGAGE BROKER: WHERE TO GET THE BEST RATE

This question comes up constantly, and the answer matters financially.

Going directly to your bank means you get one offer from one lender with rates set by that bank's internal pricing. Banks can negotiate, but only within their own product lineup.

Working with a mortgage broker means one application goes to 50 or more lenders simultaneously. Brokers have access to banks, credit unions, trust companies, and monoline lenders, mortgage-only lenders who often offer sharper rates because they have no branch overhead.

In 2026, the difference between a bank's best posted rate and a broker's best rate on a 5-year fixed can reach 0.70% to 1.05%. On a $400,000 mortgage over 25 years, even a 0.70% difference adds up to thousands of dollars in interest saved over the term.

Broker services are typically free to you. The lender pays the broker a finder's fee, so you get access to more lenders without paying more out of pocket.

Brokers are especially valuable if you are self-employed or have variable income, if you are a newcomer to Canada with limited credit history, if you are renewing and looking to switch lenders, or if you are buying an investment property or refinancing.

HOW TO QUALIFY FOR THE LOWEST MORTGAGE RATE

If you want the lowest rate available to you, work through this checklist before applying:

Check and improve your credit score

Pull your credit report from Equifax or TransUnion before applying. Pay down revolving credit balances, avoid opening new credit accounts in the months before your application, and dispute any errors. A score of 680 qualifies for standard best rates; 750 or above may unlock additional discounts.

Choose the right down payment strategy

If you are buying a home under $1 million and can put down less than 20%, the insured mortgage route often gets you a lower rate than if you put down exactly 20%. This seems counterintuitive, but it is a well-known feature of Canadian mortgage pricing.

A pre-approval locks in a rate for 90 to 120 days. If rates fall before you close, most lenders will honour the lower rate. If rates rise, you are protected.

Compare at least three lenders

Do not accept the first rate your bank offers. Even if you ultimately go with your bank, having a competing offer from a broker or another lender gives you negotiating leverage.

Minimise your debt load before applying

Lenders look at your GDS ratio, which is housing costs as a percentage of gross income and is usually capped at 39%, and your TDS ratio, which covers all debt payments, including housing, and is usually capped at 44%. Paying down a car loan or credit card before applying can directly improve your qualifying rate.

2026 MORTGAGE RENEWAL STRATEGY: WHAT TO DO IF YOU'RE RENEWING THIS YEAR

Over one million Canadian mortgages are up for renewal in 2026. Many of these borrowers locked in during 2020 and 2021 at rates below 2.50%, and they are now facing renewals at rates that are roughly double what they originally paid.

Here is how to handle your renewal strategically:

Start early: 120 days out minimum

Most lenders allow you to lock in a renewal rate up to 120 days before your maturity date. If rates drop before your renewal date, you can often re-lock at the lower rate. If rates rise, you are protected.

Do not automatically sign your bank's renewal letter

Banks send renewal offers that are rarely their best rate. You have no obligation to renew with your current lender. Switching lenders at renewal typically costs nothing, the new lender often covers the discharge and legal fees.

Compare your renewal options

Get quotes from at least one mortgage broker and compare what they can offer against your current lender's renewal offer. The spread can be meaningful: even a 0.25% lower rate on a $500,000 balance saves roughly $1,250 per year.

Consider your term length carefully

In 2026, with rate uncertainty driven by geopolitical factors and inflation pressures, a 3-year fixed might offer more flexibility than a 5-year lock-in, allowing you to reassess when more economic clarity emerges. Variable rates are currently lower but carry the risk of rate increases.

Budget for payment shock if you are moving from sub-2% rates

If your original mortgage was at 2.10% and you are renewing at 4.00%, your monthly payment on a $400,000 balance increases by approximately $340 per month. Build this into your financial planning now, before renewal.

WHERE ARE MORTGAGE RATES HEADED IN 2026?

No one can predict mortgage rates with certainty, but here is what the data and forecasters suggest as of June 2026:

Variable rates: Stable, with upside risk

The Bank of Canada held its overnight rate at 2.25% on June 10, 2026,  the fifth consecutive hold. Most economists do not expect cuts in the near term. The next rate announcement is scheduled for July 15, 2026. The risk is to the upside: ongoing conflict in the Middle East, higher energy prices, and inflation running near 3% have all led policymakers to signal that rate hikes could be considered if inflation does not moderate.

Fixed rates: Elevated and rising

Government of Canada 5-year bond yields are expected to remain elevated and could climb further, to as high as 3.70% by year-end 2026, according to current forecasts. This means fixed mortgage rates could continue their upward drift. Large increases are unlikely, but the direction of risk is up.

What this means for borrowers

If you want rate certainty, locking in now at a 3-year or 5-year fixed protects you from further increases. If you believe the geopolitical situation will stabilise and inflation will fall back toward the Bank's 2% target, the variable may still offer savings over a full term. Avoid the temptation to wait for rates to drop; the current rate environment suggests patience may cost you rather than save you.

COMPARE RATES WITH RATESWISE

RatesWise makes it simple to see what rates you actually qualify for, not just what's advertised.

Step 1: Enter your purchase price and down payment. This determines whether your mortgage is insured, insurable, or uninsurable, which directly affects your rate options.

Step 2: Select your province. Mortgage rates and rules vary by province across Canada.

Step 3: Choose your preferred term and amortisation. The 5-year fixed is the most popular choice in Canada, but 3-year terms are growing in popularity in 2026.

Step 4: See live rates from multiple lenders,  not just posted rates, but real rates for borrowers with your profile.

Step 5: Connect with a licensed mortgage expert. If you find a rate you like, RatesWise can connect you directly with a broker to get started.

RatesWise updates rates daily. 

Frequently Asked Questions

What is a good mortgage rate in Canada?

A good mortgage rate depends on market conditions, your credit profile, down payment amount, mortgage type, and lender requirements. Comparing multiple lenders can help you determine what rates are currently available for your situation.

How often do mortgage rates change?

Mortgage rates can change daily based on factors such as bond yields, central bank decisions, lender competition, and economic conditions.

Should I choose a fixed or variable mortgage rate?

A fixed-rate mortgage provides predictable payments, while a variable-rate mortgage may offer greater flexibility and potential savings when interest rates decline. The best option depends on your risk tolerance and financial goals.

Can I negotiate my mortgage rate?

Yes. Many lenders have room to negotiate, especially if you have strong credit, stable income, or competing offers from other lenders.

Does my credit score affect my mortgage rate?

Yes. Borrowers with stronger credit profiles often qualify for more competitive mortgage rates and lending terms.

How can I estimate my mortgage payments?

A mortgage calculator can help estimate monthly payments based on the loan amount, interest rate, amortization period, and down payment.

Compare Mortgage Rates and Estimate Your Payments

Ready to explore your options?

Compare current mortgage rates from multiple Canadian lenders, estimate your monthly payments, and explore mortgage options tailored to your financial goals with RatesWise. 

SUMMARY: HOW TO GET THE BEST MORTGAGE RATE IN CANADA IN 2026

Getting the best mortgage rate in Canada comes down to five things:

First, know your mortgage type: insured, insurable, or uninsurable. The difference affects your rate before you even negotiate.

Second, check your credit score and aim for 680 or above. A score of 750 or higher unlocks the best pricing.

Third, compare more than one lender. Use a mortgage broker to see 50 or more options with one application.

Fourth, understand the fixed vs variable tradeoff in today's environment. Variable is cheaper right now, but fixed offers more certainty.

Fifth, if you are renewing in 2026, start 120 days early and do not sign your bank's first offer without shopping around.

RatesWise makes it simple to compare real, current rates from lenders across Canada, so you can see exactly what you qualify for before making one of the biggest financial decisions of your life.

[Compare Live Mortgage Rates on RatesWise →]

Conclusion

Finding the best mortgage rate in Canada is about more than choosing the lowest number. The right mortgage should align with your budget, financial goals, and long-term plans. By comparing lenders, understanding mortgage terms, and using tools like mortgage calculators, you can make a more informed borrowing decision.

Whether you're buying your first home, renewing an existing mortgage, refinancing, or investing in property, taking the time to compare options can lead to significant savings over the life of your mortgage.

Why Trust RatesWise?

At RatesWise, our goal is to simplify complex financial decisions with clear, practical, and research-backed information. We review mortgage products, rate trends, and lender offerings to help Canadians compare options and make informed choices.

Disclaimer: Information provided is for educational purposes only and should not be considered financial, legal, or mortgage advice.