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.

Canadian mortgage market update: May 2025

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

• Real estate update: Canada’s housing market showed continued signs of weakness in April 2025, with buyers hesitant to re-enter the market. The Canadian Real Estate Association (CREA) reported 44,300 home sales for the month, marking a 9.8% drop from April 2024 and effectively unchanged from March, which had already set a 16-year low. According to CREA’s Senior Economist, Shaun Cathcart, high interest rates are no longer the main obstacle. Instead, fears around tariffs, inflation, and a possible recession are keeping buyers on the sidelines. New listings fell slightly month over month by 1% but were up 1.2% year over year, with 94,234 homes brought to market in April. The sales-to-new listings ratio (SNLR) rose marginally to 46.8% in April from 46.4% in March. CREA considers a ratio between 45% and 65% indicative of a balanced market, where buyers don’t face intense competition. Home prices continued to decline, as the national average fell 3.9% year over year to $679,866. CREA’s MLS Home Price Index, which smooths out volatility, dropped 1.2% from March and 3.6% compared to April 2024. Looking ahead, the Bank of Canada is expected to cut interest rates two more times in 2025, but upward inflation pressures could limit how far borrowing costs can fall. Fixed mortgage rates have also held steady, as bond yields remain elevated due to global market uncertainty.

Read more: April Canadian home sales flat as buyers stick to the sidelines

• CPI update: Canada’s inflation rate slowed to 1.7% in April, down from 2.3% in March, according to Statistics Canada. The drop was largely driven by an 18.1% decline in gasoline prices, influenced by weaker global demand, rising oil supply from OPEC, and the removal of the federal carbon tax. While this pushed the headline number lower, inflation excluding energy came in at 2.9%, pointing to continued cost pressures in other parts of the economy. Food prices remained a major driver of inflation, with grocery costs rising 3.8% year-over-year and restaurant prices up 3.6%. Shelter costs rose by 3.4%, including a 6.8% increase in mortgage interest costs. Though mortgage cost growth continues to grow, it has slowed down from over 10% in January, highlighting the impact of the Bank of Canada’s rate cuts over the past year. Core inflation, which the Bank of Canada uses to assess long-term trends, stayed above target. The CPI-median rose to 3.2%, and CPI-trim hit 3.1%, suggesting that inflationary pressure hasn’t fully eased. With its next rate decision set for June 4, the central bank faces a tough choice between supporting the economy and addressing sticky core inflation.

Read more- Canadian CPI comes in at 1.7% in April as energy prices plunge

Housing market outlook for 2025

CREA has updated its housing forecasts for 2025 and 2026. While CREA's January forecast predicted a recovery in the housing market, growing tariff risks have caused a decline in buyer confidence, leading to a slowdown in home sales and price increases in some areas. This marks the largest revision between CREA’s quarterly forecasts since the 2008-2009 financial crisis. For 2025, CREA now forecasts 482,673 residential properties will be sold, representing a minimal decline of 0.02% from 2024. This is a sharp downward revision from the 8.6% growth initially projected. The national average home price is expected to decrease by 0.3% to $687,898, which is about $30,000 lower than the earlier forecast. Looking ahead to 2026, CREA expects a slight rebound in home sales, with a forecasted 2.9% increase to 496,487 units sold. However, this will still fall short of the 500,000 mark for the fourth consecutive year. The national average home price is expected to rise by 1.2%, reaching $696,074 in 2026. Given the ongoing volatility and uncertainty regarding interest rates and trade conditions, CREA’s forecast remains highly uncertain.

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 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.