Compare the best Big 5 Bank mortgage rates

Getting a mortgage is a major financial commitment and can make big changes to your lifestyle. So, taking the time to choose the right mortgage is really important. For most Canadians, the Big 5 Banks are what they will think of first when they consider taking the mortgage plunge, but the big banks are not your only choice.

Below are some essential details about getting a mortgage from one of the Big 5 Banks, or from any other kind of lender.

Impact of U.S. tariffs on the Canadian housing market

On April 2, 2025, the U.S. announced new tariffs that would affect global trade. While Canada was exempt from the U.S. 50% reciprocal tariffs imposed on other countries, it still faces a 25% tariff on imports not covered under the Canada-United-States-Mexico Agreement (CUSMA), steel, aluminum, and foreign cars and parts. 

These developments have caused significant fluctuations in global markets, including steep drops in stock prices and bond yields. In Canada, the 5-year government bond yield fell to its lowest level since 2022 on the morning of April 3rd, driving mortgage rates lower. Currently, Canadian mortgage rates are at some of the lowest levels in recent years, with insured mortgages available at 3.74% and uninsured mortgages at 3.99%.

The Bank of Canada (BoC), initially expected to cut interest rates in response to economic turmoil, has instead chosen to hold rates steady. The BoC is monitoring global economic conditions closely but has opted for caution, with no immediate rate cuts expected.

While lower mortgage rates offer an advantage to borrowers, the Canadian housing market is showing signs of slowing down. Home sales in February 2025 dropped 10.4% compared to the previous year, with reduced buyer activity and softening prices.

Also read: How could 25% US tariffs impact Canadian mortgage rates?

Canadian mortgage market update: March 2025

With the Bank of Canada having carried out a seventh policy rate cut in March 2025, activity might start to pick up in the Canadian housing market. Variable mortgage rates dropped by roughly the same amount as the policy rate, and with markets anticipating more cuts in 2025, further downward pressure on rates is expected. 

Fixed mortgage rates are tied to the bond market rather than directly to the Bank of Canada and its rate decisions, and in response to the U.S. tariff threats, bond yields have dropped. This, in turn, has allowed some lenders to reduce their fixed mortgage rates. 

Anyone shopping for a mortgage rate in Canada right now should be aware of the economic factors below.

• Real estate update: February home sales saw a sharp decline, with the recent tariff concerns dampening buyer confidence. The Canadian Real Estate Association (CREA) reported that 32,195 properties were sold in February, reflecting a 9.8% month-over-month drop and a 10.4% decline year over year. This marks the lowest sales level since November 2023. Sellers also pulled back, with new listings falling 12.7%, reversing January’s surge in inventory. While this caused the sales-to-new-listings ratio (SNLR) to edge up to 49.9%, it still remains in a largely balanced territory. Inventory levels continued to rise to 4.7 months of supply, moving closer to the long-term average of five months. Even as the market cools, affordability is improving. Home prices softened in February, bringing the national average price down to $668,097, a 3.3% decline year over year. The Bank of Canada’s seven consecutive rate cuts have brought its benchmark interest rate to 2.75%, bringing variable mortgage rates down to 3.95%. Fixed rates, meanwhile, have fallen to 3.89% in response to lower bond yields.

Read more- Canadian home sales plunge 10% in February due to tariff fears

• CPI update: Statistics Canada’s latest Consumer Price Index (CPI) report, released on March 18, 2025, shows that Canada’s annual inflation rate climbed to 2.6% in February. The rise was largely driven by the federal tax holiday ending on February 15, which reinstated GST and HST on previously exempt products. Though inflationary pressures extended beyond the tax adjustment. Even with tax effects removed, the seasonally adjusted CPI still rose by 0.4%. Travel tour prices surged 18.8% year-over-year, while passenger vehicle insurance premiums climbed 7.5%. Gas price growth slowed to 5.1%, down from 8.6% in January. Meanwhile, shelter costs continued to moderate as mortgage interest costs rose by a modest 9% year-over-year and rent prices also showed signs of easing, increasing 5.8% annually. Core inflation continued its steady climb with both the CPI median and CPI trim rising to 2.9%. Meanwhile, uncertainty surrounding U.S. tariffs on Canadian exports is raising further concerns about inflationary pressures. For the Bank of Canada, this latest data adds complexity to its policy decisions. While further rate cuts were widely anticipated, economists now suggest the BoC may pause its easing cycle to control inflation.

Read more: February CPI shoots to 2.6% following end of tax holiday

Housing market outlook for 2025

The Canadian Real Estate Association (CREA) has released its updated housing market forecast for 2025, providing an outlook for buyers and sellers across the country. The forecast anticipates a rebound in market activity driven by two and a half years of pent-up demand, easing borrowing costs, and a typical surge in spring listings. CREA projects that approximately 532,704 houses will be sold in 2025, an 8.6% increase from 2024 and a notable revision from the previously forecasted 6.6% rise. This upward adjustment reflects stronger-than-expected market performance in late 2024. The trend is set to continue into 2026, with transactions increasing by 4.5% to 556,662. Average home prices are forecast to rise 4.7% year-over-year to $722,221 in 2025, slightly above the 4.4% growth predicted previously, with an additional 3.3% increase to $746,379 in 2026. 

Canadian mortgage reform update

On September 16, 2024, the federal government announced sweeping changes to mortgage qualification rules for first-time home buyers, as well as those purchasing newly-constructed homes.

As of December 15, 2024:

• 30-year amortizations will be available for all first-time home buyers, regardless of whether they have an insured mortgage. These extended amortizations are also available for any purchase of new construction.
  
  
• The maximum purchase price for an insured mortgage (where less than 20% down is paid) will be increased to $1.5 million, from the current $1 million.
  

These are some of the most impactful mortgage reforms announced since 2012, and are anticipated to increase first-time home buyers’ affordability and access to the housing market. 

Learn more about these new mortgage rule changes on the Ratehub.ca blog

Posted rates vs. best rates

When comparing bank mortgage rates, it’s important to know that these rates represent the banks' posted mortgage rates. The posted rate is simply the rate that the bank is advertising in public. However, banks are often able to offer even lower rates in order to secure a borrower's business. You may be able to access these discounted rates through negotiation, or by reaching out to a representative mortgage broker. Some banks offer rates several percentage points below what is posted, so it's worth taking the time to see if you can get a better offer.

Bank rates vs. broker rates

As you may have noticed, bank mortgage rates are almost always higher than those of mortgage brokers. That is because mortgage brokers have access to rates from multiple banks and credit unions, as well as insurance and trust companies. That means they can shop around for you. Brokers also receive bulk discounts from lenders based on the high volume of their business that they can pass along to you.

As a result, it’s unlikely that a bank will post a lower rate than a mortgage broker. However, if you present the lowest market rate to your bank as part of the negotiation process, they may offer to match it. That said, we don’t recommend pitting the banks and brokers against each other to compete for your business. What we do recommend is comparing broker mortgage rates and bank mortgage rates alongside each other, and deciding which offer is best for you.

Comparing mortgage rates with Ratehub.ca

Whether you're considering using a bank or broker, a variable or fixed mortgage rate, or a one to a 10-year term, we can help. Our tools find the best mortgage rates for every category and type of lender, personalized to you. Our goal at Ratehub.ca is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly and providing them with the best online application and offline customer service to close their mortgage all in one place.