Rate snapshot checked: 31 October 2026 | Country: Canada | Currency: Canadian dollars (CAD)
Choosing a mortgage in Canada is not only about finding the lowest advertised rate. You also need to understand the length of the mortgage term, the amortization period, whether the rate is fixed or variable, and what happens when the contract comes up for renewal. These details can change both the monthly payment and the long-term cost of owning a home.
If you are searching for mortgage rates Canada, Ratehub’s comparison updated on 30 October 2026 showed a five-year fixed market offer of 4.44% and a five-year variable offer of 3.69% at the low end. These are market offers, not a promise from a named Big Five bank or a rate that every borrower will receive. The Bank of Canada’s posted five-year conventional mortgage rate was 6.19% and its prime rate was 4.45% on 28 October 2026. These are different measures: posted rates are not the same as discounted rates available to eligible borrowers.
This guide explains Canadian mortgage rates in plain English, compares major lenders, clarifies term versus amortization, describes fixed and variable mortgages, and outlines how to compare an offer before signing. Rates are date-stamped because lender pricing can change quickly.
Quick Answer: Canada Mortgage Rates Today
On 30 October 2026, Ratehub showed a five-year fixed market offer around 4.44% and a five-year variable offer around 3.69% at the low end. Its Big Five bank rates were different and depended on the lender and product. The Bank of Canada’s posted five-year conventional rate was 6.19% and its prime rate was 4.45% on 28 October. Your personal offer depends on eligibility, mortgage insurance, down payment, location and loan details.
| Rate reference | Rate | Source date | How to read it |
|---|---|---|---|
| Lowest five-year fixed market offer | 4.44% | 30 Oct 2026 | Ratehub comparison; generic market offer, eligibility rules apply |
| Lowest five-year variable market offer | 3.69% | 30 Oct 2026 | Ratehub comparison; generic market offer, prime and variable terms apply |
| RBC five-year fixed reference | 4.84% | 30 Oct 2026 | Ratehub lender comparison |
| TD five-year fixed reference | 5.04% | 30 Oct 2026 | Ratehub lender comparison |
| CIBC five-year fixed reference | 4.99% | 30 Oct 2026 | Ratehub lender comparison |
| Scotiabank five-year fixed reference | 4.99% | 30 Oct 2026 | Ratehub lender comparison |
| BMO five-year fixed reference | 5.19% | 30 Oct 2026 | Ratehub lender comparison |
| Bank of Canada posted five-year conventional mortgage rate | 6.19% | 28 Oct 2026 | Official weekly posted-rate series, not a discounted offer |
| Bank of Canada prime rate | 4.45% | 28 Oct 2026 | Reference rate; lenders set their own products and margins |
Sources: Ratehub Big 5 bank rate comparison and Bank of Canada posted interest rates. Rates are references from the displayed dates, not a promise of credit approval or the exact rate available to every borrower.
For a comparison with U.S. mortgage structures, read our U.S. vs Canada mortgage comparison. For the difference between interest rate and APR, see our mortgage rate meaning guide. For U.S. fixed-term context, see our 15-year vs 30-year mortgage comparison.
Contents
- Canadian mortgage rate types
- Term vs amortization
- Compare banks and market offers
- What moves Canadian mortgage rates
- Example payment table
- How to shop for a mortgage
- Mortgage calculator
- FAQs
1. Fixed vs Variable Mortgage Rates in Canada
Fixed-rate mortgage
A fixed-rate mortgage keeps the agreed interest rate unchanged during the term. In Canada, common fixed terms include two, three and five years. The mortgage may have a much longer amortization period, so the borrower can finish the first contract term with a balance still outstanding and then renew or refinance.
Fixed rates provide payment certainty for the contractual period, depending on the product’s payment structure. They can suit borrowers who value predictability or who want to reduce the risk that a rate increase will raise payments or interest costs during the term. A fixed-rate contract can still have penalties if you break it early, so read the prepayment and discharge rules.
Variable-rate mortgage
A variable-rate mortgage moves according to the lender’s pricing formula, which is usually linked to the lender’s prime rate or another stated benchmark. When the benchmark changes, the rate charged to the borrower may change. The effect on the payment depends on the contract: some variable mortgages change the payment, while others keep the payment temporarily stable and adjust the amount going to principal and interest.
Variable rates can be lower than fixed offers at a given moment, but that does not make them automatically cheaper. If the benchmark rises, the interest cost can increase. Borrowers should understand the payment adjustment rules, any trigger rate or equivalent mechanism, and what happens if rates rise for an extended period.
How should you choose?
Compare the rate, the contract term, the payment method, prepayment privileges, penalties and your ability to handle change. A borrower who has a tight budget may value predictable payments. A borrower with more room in the budget may be able to accept rate changes, but should still test the mortgage against a higher-rate scenario.
2. Mortgage Term vs Amortization: A Key Canadian Difference
Canadian mortgage terms and amortization periods are not the same thing. The term is how long the current mortgage contract lasts before renewal or payout. The amortization period is the estimated time needed to repay the mortgage in full if the payment schedule and rate assumptions continue as planned.
For example, a Canadian mortgage may have a five-year fixed term and a 25-year amortization. The borrower makes payments for five years under that contract. At the end of the term, the balance has not been fully repaid, so the borrower normally renews with a new rate and contract terms or pays the balance from other funds.
| Concept | Example | What it changes |
|---|---|---|
| Mortgage term | 5 years | How long the contract rate and conditions apply before renewal |
| Amortization period | 25 years | The planned period to repay the original loan |
| Fixed rate | 4.34% in this illustrative example (not a current rate quote) | Interest-rate certainty during the fixed term |
| Variable rate | Prime-based variable rate | Rate can change under the contract rules |
The Financial Consumer Agency of Canada explains that term and amortization affect rates, regular payments and overall costs. Longer amortization usually lowers each payment but raises the interest paid over time. Source: Government of Canada: mortgage terms and amortization.
3. Compare Canadian Mortgage Offers: RBC, TD, CIBC, BMO and Scotiabank
There is no one bank that always has the cheapest Canadian mortgage. Promotions, mortgage insurance, loan-to-value ratio, province, borrower profile and whether the mortgage is a purchase or renewal can change the result. Comparison tables help you shortlist lenders, but a personalised quote is still necessary.
| Lender / offer | Five-year fixed reference | Five-year variable reference | Source note |
|---|---|---|---|
| Market offer | 4.44% | 3.69% | Ratehub comparison, 30 Oct 2026 |
| RBC Royal Bank | 4.84% | 4.10% | Ratehub comparison, 30 Oct 2026 |
| TD Bank | 5.04% | 4.19% | Ratehub comparison, 30 Oct 2026 |
| CIBC | 4.99% | 4.30% | Ratehub comparison, 30 Oct 2026 |
| Scotiabank | 4.99% | 3.95% | Ratehub comparison, 30 Oct 2026 |
| BMO | 5.19% | 4.37% | Ratehub comparison, 30 Oct 2026 |
Important: Ratehub’s lowest “Canadian Lender” figures are broker-exclusive market offers, not a published rate from RBC, TD, CIBC, BMO or Scotiabank. The rate you qualify for may be different because eligibility, insurance status, loan purpose and down payment matter.
These are snapshots from a third-party comparison page, not direct quotes from each lender and not guaranteed rates. Discounted offers may require mortgage insurance, specific down payments, new purchases or other eligibility conditions. Posted bank rates can be much higher than negotiated rates. The market-offer row is a comparison snapshot; lender-specific rows show separate indicative rates from the same date.
Check current lender details directly: RBC mortgages, TD mortgages, CIBC mortgages, BMO mortgages and Scotiabank mortgages.
4. What the Bank of Canada’s Posted Rates Mean
The Bank of Canada publishes weekly data on rates posted by major chartered banks for selected products. On 28 October 2026, its series showed a prime rate of 4.45%, a posted one-year conventional mortgage rate of 5.49%, a three-year rate of 6.05% and a five-year rate of 6.19%.
A posted rate is not necessarily the discounted rate a qualified borrower pays. Lenders may negotiate offers based on competition and borrower details. For a useful comparison, keep the Bank of Canada’s posted-rate series separate from broker-discounted offers and lender-specific special rates.
The series can also help follow the direction of advertised rates over time. It should not be used to infer that every bank, borrower or mortgage product is priced at the same rate. Always record the date and whether the figure is posted, advertised, discounted or personalised.
5. What Moves Mortgage Rates in Canada?
Government bond yields
Fixed mortgage rates are influenced by yields on Government of Canada bonds with similar maturities, along with lender funding costs, risk and profit margins. If bond yields rise, lenders may face pressure to increase fixed mortgage rates. If yields fall, fixed rates can sometimes decline, but lender pricing and market competition also matter.
Bank of Canada policy and prime rates
The Bank of Canada’s policy rate has a closer link with prime rates and many variable-rate mortgage products than with the exact rate on every fixed mortgage. When banks change prime rates, variable mortgage costs may change depending on the contract. Fixed rates often move with bond markets and expectations before an official policy announcement.
Inflation and economic outlook
Inflation affects expectations about future interest rates and bond returns. Stronger inflation can push yields up, while sustained cooling can create room for lower yields. Employment, consumer spending, housing activity and global developments also affect market expectations.
Your down payment and mortgage insurance
A smaller down payment may mean mortgage default insurance is required, subject to the applicable Canadian rules. Insured mortgages can be priced differently from uninsured mortgages, and some advertised low rates apply only to specific insured or high-ratio products. Compare like with like rather than comparing an insured special with an uninsured posted offer.
Renewal timing
Borrowers with a five-year term may face a different rate when they renew. If the rate is higher, the payment may rise or more of the payment may go toward interest. If the rate is lower, renewal may reduce costs, but the balance, remaining amortization and new terms still matter.
6. Example: How Rate Changes Affect a Canadian Mortgage Payment
Consider a CAD $400,000 mortgage with a 25-year amortization. The table below uses approximate monthly payments calculated at different annual rates. The figures are examples only; Canadian mortgage compounding conventions, payment frequency, lender rounding, insurance, fees and the exact contract can affect the result.
| Illustrative rate | Approx. monthly payment | Monthly budget impact vs 4% |
|---|---|---|
| 3.50% | About C$2,000 | About C$100 lower |
| 4.00% | About C$2,100 | Reference case |
| 4.50% | About C$2,210 | About C$110 higher |
| 5.00% | About C$2,330 | About C$230 higher |
| 6.00% | About C$2,560 | About C$460 higher |
These are rounded planning figures. Use a Canadian payment calculator or request a lender’s schedule to get a more exact amount for your contract. The point is that even a half-point movement can change a household’s monthly cash flow. It is sensible to check affordability at a rate above the one you hope to receive.
Use the Easy Calculator Smart Mortgage Calculator for an initial estimate. Confirm whether the calculator’s assumptions match Canadian payment-frequency and compounding conventions before using the result as a final repayment schedule.
7. How to Compare Canadian Mortgage Offers
Start with the same loan assumptions for each lender: property price, down payment, province, occupancy, mortgage type, term, amortization and whether the mortgage is insured. Then compare the actual rate, payment, fees, prepayment rights, portability, renewal options and penalties if you break the contract early.
Read the prepayment conditions
Canadian mortgage contracts may allow annual lump-sum payments or payment increases within limits. Going beyond those privileges may result in a penalty. A fixed-rate mortgage can use a penalty calculation that is materially higher than a few months of interest, depending on the contract. Ask the lender to explain the method before signing.
Check portability and discharge costs
If you expect to move before the term ends, ask whether the mortgage can be ported to a new property and what conditions apply. Portability does not remove every cost or guarantee approval for the new property. Also ask about discharge, transfer and administrative fees.
Compare renewal planning
Do not wait until the final weeks of the term to think about renewal. Check when the lender will provide renewal information, what options are available and how much of the balance will remain. A renewal quote should be compared with other lenders before you accept it.
8. What to Know About Canada’s Mortgage Qualification Rules
Mortgage approval is not determined by the advertised rate alone. Lenders review income, employment, assets, credit history, debts, property value and the amount borrowed. Depending on the borrower and mortgage type, qualification rules may require the borrower to demonstrate that they can manage payments at a qualifying rate above the contract rate.
Rules for maximum amortization can depend on down payment, first-time buyer status, new-build purchases and current federal policy. The Financial Consumer Agency of Canada explains that if the down payment is below 20%, maximum amortization can be 30 years for first-time buyers and/or buyers of new builds, and 25 years for other cases; insured-mortgage rules and eligibility should be checked against current official guidance.
Source: Government of Canada mortgage term and amortization guidance. Confirm current eligibility rules with a lender because regulations and product limits may change.
9. Common Mistakes to Avoid
- Assuming the lowest advertised rate is open to everyone: eligibility conditions may apply.
- Confusing term and amortization: a five-year term does not mean the mortgage is repaid in five years.
- Ignoring penalties: breaking a mortgage can cost thousands of dollars in some cases.
- Comparing fixed and variable rates without payment risk: a lower starting rate may move higher.
- Waiting until renewal to shop: earlier planning creates more time to compare options.
- Ignoring full ownership costs: property tax, insurance, maintenance and condo fees affect affordability.
10. Renewal Planning: Start Before the Deadline
A mortgage renewal is not only paperwork. It is a chance to compare the remaining balance, the new payment, interest rate, fees and contract terms. Borrowers should start early enough to understand the current lender’s offer and compare alternatives. A new lender may offer a lower rate, but it can also require a new application, updated income documents, appraisal, legal work or other checks.
Ask for the renewal offer in writing and compare it with current market quotes. If the remaining amortization is shorter than when you first borrowed, the payment can still rise even if the rate stays similar. If you extend amortization to lower the payment, you may pay interest for longer. The Financial Consumer Agency of Canada warns that extending amortization can add thousands or tens of thousands of dollars in interest over time.
11. Three Questions to Ask a Broker or Lender
First, ask whether the rate shown is a posted rate, a discounted rate or a personalised quote and what conditions are required to receive it. Second, ask what it would cost to break the mortgage early, including the penalty calculation and discharge fees. Third, ask how the payment and interest cost would change if you choose a different term, amortization or fixed/variable structure.
Write down the answers and compare them across offers. A small difference in the rate may be outweighed by a large penalty, a restrictive prepayment feature or a less suitable renewal date. Understanding the contract helps prevent unpleasant surprises if your plans change.
12. Frequently Asked Questions
What are mortgage rates in Canada today?
On 30 October 2026, Ratehub’s comparison showed the lowest five-year fixed market offer around 4.44% and the lowest five-year variable offer around 3.69%. The Bank of Canada’s posted five-year conventional rate was 6.19% and its prime rate was 4.45% on 28 October. These are different market measures and eligibility conditions. These rates use different methods and eligibility rules.
Which Canadian bank has the lowest mortgage rate?
No bank is always the lowest. Advertised rates vary with term, fixed or variable structure, insurance, province, purchase or renewal and borrower profile. Compare several written offers on the same assumptions.
What is a five-year fixed mortgage term?
It means the contract rate and conditions generally apply for five years. It does not mean the entire mortgage is paid off in five years. The amortization period may be 25 or 30 years, subject to eligibility and lender rules.
Is a variable mortgage cheaper than a fixed mortgage?
Not necessarily. The initial rate may be lower, but it can change according to the contract. A variable loan should be tested against higher-rate scenarios to see whether the household could handle a larger payment or interest cost.
What is the difference between posted and discounted rates?
A posted rate is the bank’s published rate for a product. A discounted rate is an offer that may be available to eligible borrowers after pricing adjustments. They should not be compared as if they are identical.
Can I change lenders when my mortgage term ends?
Often, borrowers can compare renewal offers from other lenders, subject to qualification, appraisal, legal, registration and other requirements. Check all costs and timing well before the current term expires.
Where can I estimate a mortgage payment?
Use the Easy Calculator Smart Mortgage Calculator as an initial estimate, then confirm Canadian payment rules and final numbers with a lender.
13. Final Thoughts
Canadian mortgage rates depend on market conditions, mortgage type, contract term and the borrower’s profile. On 30 October 2026, Ratehub showed market offers around 4.44% for a five-year fixed mortgage and 3.69% for a five-year variable mortgage. The Bank of Canada’s posted five-year conventional rate was 6.19% on 28 October. These are different products and rate measures, not guaranteed personal offers. These figures cannot be compared without noting how they were gathered.
Before signing, understand term versus amortization, compare fixed and variable structures, read prepayment rules, and review the full cost of borrowing. Shop around and make sure the payment remains comfortable even if the next renewal rate is higher than today’s rate.
Research Method and Sources
- Ratehub: Big 5 bank mortgage rates, checked 30 October 2026.
- Bank of Canada: posted rates offered by chartered banks.
- Financial Consumer Agency of Canada: mortgage terms and amortization.
- Financial Consumer Agency of Canada: choosing a mortgage.
- Easy Calculator Smart Mortgage Calculator.
Rate examples are dated snapshots or rounded payment illustrations. They are not lender quotes. Verify published rates, eligibility, fees and rules before applying.
Disclaimer
This article is for general education only and is not financial, mortgage, tax or legal advice. Canadian mortgage eligibility, rates and rules can change and vary by borrower and property. Confirm current information with lenders and official government sources. Payment examples are estimates and may exclude insurance, fees and other housing costs.
