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Best mortgage rates in Canada

To see today's best mortgage rates from the Big 5 Banks, click on the "Best bank rates" tab

Ratehub.ca Insights: Bond yields continue to trend lower, putting downward pressure on fixed mortgage rates. Variable rates are to remain largely stable following no change in the Bank of Canada's March 8 announcement.

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Term	Fixed	Variable
1-yr Short commitment, best when fixed rates are uncertain.	Big 6 Bank Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
2-yr Good option if you think fixed rates will be lower in 2 years.	CanWise A Ratehub Company Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
3-yr Middle of the road option. Good for minimizing risk.	Canadian Lender Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required	Prime - 0.55% ICICI Bank Canada Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
4-yr Good option when rates are much lower than 5-year fixed	Canadian Lender Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
5-yr Most popular term. Lowest rates are usually for this term.	Canadian Lender Monthly prepayment 15% Lump sum prepayment15% Rate hold July 19 Pre-approvalNot required	Prime - 1.15% Canadian Lender Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
6-yr Higher rates than 7-year term and fewer lender options.	Bank of Montreal Monthly prepayment 20% Lump sum prepayment20% Rate hold July 29 Pre-approvalNot required
7-yr Good if you think rates are going to increase significantly in the long term.	Desjardins Monthly prepayment 100% Lump sum prepayment15% Rate hold August 18 Pre-approvalNot required
8-yr
9-yr
10-yr Provides rate & payment stability, but at a very high cost.	Canadian Lender Monthly prepayment 20% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
25-yr	RBC Royal Bank Monthly prepayment -% Lump sum prepayment-% Rate hold June 19 Pre-approvalNot required

Term	Fixed	Variable
1-yr Short commitment, best when fixed rates are uncertain.	TD Bank Monthly prepayment 100% Lump sum prepayment15% Rate hold July 19 Pre-approvalNot required
2-yr Good option if you think fixed rates will be lower in 2 years.	TD Bank Monthly prepayment 100% Lump sum prepayment15% Rate hold July 19 Pre-approvalNot required
3-yr Middle of the road option. Good for minimizing risk.	Bank of Montreal Monthly prepayment 20% Lump sum prepayment20% Rate hold July 29 Pre-approvalNot required	Prime - 0.00% CIBC Monthly prepayment 100% Lump sum prepayment20% Rate hold July 19 Pre-approvalNot required
4-yr Good option when rates are much lower than 5-year fixed	Bank of Montreal Monthly prepayment 20% Lump sum prepayment20% Rate hold July 29 Pre-approvalNot required
5-yr Most popular term. Lowest rates are usually for this term.	RBC Royal Bank Monthly prepayment 100% Lump sum prepayment10% Rate hold July 19 Pre-approvalNot required	Prime - 0.45% RBC Royal Bank Monthly prepayment 100% Lump sum prepayment10% Rate hold July 19 Pre-approvalNot required
6-yr Higher rates than 7-year term and fewer lender options.	Bank of Montreal Monthly prepayment 20% Lump sum prepayment20% Rate hold July 29 Pre-approvalNot required
7-yr Good if you think rates are going to increase significantly in the long term.	Bank of Montreal Monthly prepayment 20% Lump sum prepayment20% Rate hold July 29 Pre-approvalNot required
8-yr
9-yr
10-yr Provides rate & payment stability, but at a very high cost.	Bank of Montreal Monthly prepayment 20% Lump sum prepayment20% Rate hold July 29 Pre-approvalNot required
25-yr	RBC Royal Bank Monthly prepayment -% Lump sum prepayment-% Rate hold June 19 Pre-approvalNot required

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WATCH: March 8, 2023 Bank of Canada Announcement

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Canada mortgage rates: Frequently asked questions

What is the best mortgage rate in Canada right now?

As of March 9, 2023, the best high-ratio, 5-year variable mortgage rate in Canada is 5.55%. This rate is available across Canada, in Ontario, Quebec, British Columbia and Alberta.

As of March 9, 2023, the best high-ratio, 5-year fixed mortgage rate in Canada is 4.69%, which is also available across Canada, including Ontario, Quebec, British Columbia and Alberta.

As of March 9, 2023, the average 5-year fixed mortgage rate available from the Big 5 Banks is 5.24%. Rates from the Big 5 Banks currently range from 5.04% to 5.74%.

To find the best mortgage rates in Canada in 2023, use our rate table to compare the lowest mortgage rates currently offered by Canada’s Big Banks and top mortgage lenders.

What is the forecast for mortgage rates in Canada in 2023?

Between January 2022 to December 2022 alone, fixed mortgage rates in Canada went up by nearly 100%. In the same time period, variable mortgages rates in Canada increased by an average of over 520%.

The current consensus among economists is that mortgage rates will stabilize following the Bank of Canada's March 8, 2023 rate hold, as the Bank has indicated it will maintain rates in 2023 in response to slowing inflation growth.

How high will mortgage rates rise in Canada?

On June 9, 2022, the Bank of Canada released a report that predicted that fixed rates will be at an average of about 4.50% by 2025. This average is actually less than the current average fixed mortgage rate across Canada’s Big 5 Banks (as of March 9, 2023). However, as bond yields have trended upward in recent weeks, lenders have raised their fixed mortgage rates as well; should this trend continue, fixed mortgage rates will rise slightly in the second quarter of the year.

With the Bank of Canada's decision to hold rates in its March 8 announcement and its commentary that, so long as inflation continues to decline, rates will hold steady for the rest of the year, variable mortgage rates are likely to remain stable for the duration of 2023. They may even start to decline in 2024, should economic conditions remain consistent.

How does inflation affect mortgage rates in Canada?

To combat rising inflation, the Bank of Canada increases its target for the overnight lending rate (also known as the benchmark interest rate in Canada). This in turn makes it more expensive for consumers and businesses to borrow money and incentivizes savings. As a result of people spending less and saving more, demand in the market goes down, which then decreases the rate of inflation.

When the Bank of Canada increases its benchmark interest rate, banks and other mortgage lenders also increase their prime lending rates. Since variable mortgage rates are directly tied to a lender’s prime rate (in fact, variable mortgage rates are calculated as a discount from the prime rate), when the Bank of Canada hikes its key interest rate, variable mortgage rates consequently also go up.

Fixed mortgage rates, on the other hand, are not tied to the prime rate. Instead, they are directly related to 5-year bond yields. As bond yields increase, the cost to lend money also increases. As a result, lenders raise their fixed mortgage rates.

Following surging inflation in 2022, bond yields steadily increased between early March 2022 and November 2022, along with fixed mortgage rates. After a brief reversal in December 2022 and January 2023, bond yields have once again been ticking upwards, causing fixed mortgage rates to climb as well.

How do I get the best mortgage rate in Canada in 2023?

Make sure you compare mortgage rates across the different banks, credit unions and top mortgage lenders in Canada. You can use our rate table above to compare the best mortgage rates in just a glance.

After comparing the different mortgage rates currently available, you should then get a personalized quote to see which mortgage rate you can actually get given your situation. At Ratehub.ca, we can provide you a quote in just 2 minutes. Click here and enter some basic information (i.e. down payment amount, purchase price, location) so we can show you the lowest rate you can actually get.

What is Canadian Lender and Big 6 Bank?

On our rate comparison tables, Ratehub.ca features generic brands like “Canadian Lender”. The “Canadian Lender” rate represents the lowest rate our brokerage can offer among the different lenders we work with. This means that this rate can be from a Big Bank, trust company, or lending company. The reason we do not advertise the rate under the name of the actual lender offering it, is because the rate is only available through our brokerage, via a special volume discount or promotion.

Similarly, “Big 6 Bank” is another generic provider that is used to advertise the lowest Big Bank rate that the Ratehub.ca brokerage can offer.

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A Guide to Mortgage Rates in Canada

Jamie David, Sr. Director of Marketing and Mortgages

March 9, 2023

We compare the most competitive brokers, lenders and banks in Canada to bring you today's lowest interest rates, free of charge. Canada’s current mortgage rates at the top of this page are updated every few minutes, so they are the best rates currently on offer. To better understand what rate you could be eligible for in a few simple steps, get a mortgage quote - again, it’s completely free to use and you’re under no obligation whatsoever.

Highlights from the Bank of Canada's March 8, 2023 Announcement

On March 8, 2023, the Bank of Canada held the target for the overnight rate, keeping it at 4.50%.

Canadians with variable-rate mortgages and home equity lines of credit (HELOCs) will see their rates stay unchanged for the first time in a year.
Canadians with fixed-rate mortgages aren't affected by the announcement directly, but can likely expect lower or stabilized rates when they renew at the end of their current term, as long as bond yields trend lower in response.
Anyone planning to get a fixed-rate mortgage in the next couple of months should still get pre-approved, as this will protect them from any unexpected rate increases.
With variable rates remaining unchanged, the mortgage stress test criteria stays the same as well. To see how much you can qualify for, use our mortgage affordability calculator.
In this latest announcement, the Bank expressed its belief that inflation is continuing to move in the right direction. So long as this trend persists, it is reasonable to expect that rate hikes will be over for the remainder of 2023.

Factors that can affect your personal interest rate

It’s important to understand that the best mortgage rate you qualify for may change depending on your unique borrowing profile. Here are some of the factors that influence what mortgage rate you qualify for:

The type of mortgage: If your mortgage is for a refinance, rather than a purchase or renewal, you’ll be eligible for higher rates. For individuals with an existing mortgage who have good credit and more than 20% equity in their homes, in addition to refinancing, you can also explore a home equity line of credit (HELOC).

Your down payment: If you’re purchasing a home and your down payment is less than 20% of the purchase price and the value of the home you are purchasing is less than $1 million, you’ll be required to purchase mortgage default insurance (sometimes known as CMHC insurance). This insurance is added to your mortgage amount and, while it will cost you money, it will result in a lower mortgage rate as your mortgage is less risky for your lender. If you’re renewing your mortgage, in order to be eligible for the lowest mortgage rates you would have needed to purchase CMHC insurance on the original mortgage.

Your intended use of the property: Your mortgage rate will be higher if you plan to rent your property out vs. live in it as your primary residence.

Your amortization period: Insurable mortgages (i.e. mortgages for homes valued at less than $1 million with a down payment of less than 20% of the purchase price) in Canada have a maximum amortization period of 25 years. Regardless of the price of your home, if you make a down payment of at least 20%, you are able to access a mortgage that allows a longer amortization period, such as a 30-year period. While longer amortization periods will usually result in a lower monthly payment, they can come with a slightly higher interest rate. Moreover, by taking longer to pay back the mortgage, you will pay more in interest overall than you would with a shorter amortization period.

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Choosing the mortgage with the best rate that's right for you

Variable vs. fixed mortgage rates

The difference between fixed and variable mortgage rates is whether or not they will change over the term of your mortgage. Fixed rates will stay the same over the course of your mortgage term (usually 5 years), while variable rates will change alongside changes in your lender’s prime rate.

Fixed mortgage rates:

Fixed mortgage rates are a historically popular option, with 5-year fixed mortgage rates accounting for nearly two-thirds of all mortgage requests made on Ratehub.ca in 2022. The benefit of a fixed mortgage is that you are protected against interest rate fluctuations, so your regular payments stay constant over the duration of your term, regardless of what happens in the market. A fixed rate mortgage is ideal for you if you have a low appetite for risk. You’ll know how much you’ll be paying monthly right from the outset and not have to monitor interest rates.

Variable mortgage rates:

Variable mortgage rates are typically lower than fixed rates but can vary over the duration of your term. Variable mortgages are prone to market behaviour (via the prime rate) which affects your payments. That means your payment amounts can change over time. Variable rates remained substantially lower than fixed rates throughout 2021 and into 2022, leading a large number of buyers to opt for 5-year variable-rate mortgages. However, as variable-rate mortgages have climbed to rates that are nearly equal to - and at times higher than - fixed-rate mortgages over the course of multiple rate hikes in 2022, their popularity has diminished.

While variable rates are generally lower, they do fluctuate and can be viewed as more risky when compared to fixed rates. That said, variable mortgage rates have some key advantages you should know about:

You can convert a variable rate to a fixed rate at any time without a penalty as long as you stay with your original mortgage lender.
Breaking a variable rate mortgage is substantially less expensive than breaking a fixed rate mortgage. To estimate the cost of breaking your mortgage, our mortgage penalty calculator is a useful tool.

According to York University Professor Moshe Milevsky’s landmark 2001 study, historically, over 90% of Canadians who have maintained a variable mortgage rate throughout their entire mortgage term have paid less in interest than those who have stuck to a fixed rate.

Selecting a mortgage term

Choosing between a short-term mortgage or a long-term mortgage can also affect your interest rate. A short-term mortgage generally offers a lower rate, and, as it requires more frequent renewal, you can benefit from lower interest rates when you renew, if rates stay low at your renewal. Long-term mortgages, on the other hand, offer stability, as you won’t need to renew it often. However, long-term mortgage holders may not be able to take advantage of lower interest rates if the market fluctuates.

Open vs. closed mortgages

If you’re wondering whether to get an open or closed mortgage, the answer is, while an open mortgage may make sense in certain circumstances, the overwhelming majority of Canadians opt for a closed mortgage. While open mortgages have extra flexibility that you might need, closed mortgages are by far the more popular choice not only due to their lower rates, but also because most home buyers do not intend to pay off their mortgages in the short term. Moreover, fixed-rate open mortgages do not exist and variable-rate mortgages are very rare. The most common type of open mortgage is the Home Equity Line of Credit (HELOC). Below are some quick facts about the differences between open and closed mortgages, and you can also find more detailed information on our blog about open vs. closed mortgages.

Closed mortgages:

Closed mortgages have lower rates compared to open mortgages. Closed mortgages can come in fixed and variable form, but place restrictions on the amount of principal you can pay down each year. If you pay off the entire principal in a closed mortgage before the set term, you will face a prepayment penalty, which is normally a 3-month interest charge.

Open mortgages:

Open mortgages allow you to pay off your entire mortgage balance at any time throughout the term. The drawback is that you pay a premium for that option in the form of higher rates. You might opt for an open mortgage if you are planning to move in the near future, or if you’re expecting a lump sum of money through an inheritance or bonus that would allow you to pay more of your mortgage off.

How do I qualify for a mortgage?

While it’s important to think about qualifying for the best rates, you should also give some thought to the basics that you’ll need to qualify and get approved for your mortgage. To qualify for a mortgage, here are some of the most important things that prospective lenders will want to see.

A good credit score - You should have a credit score of 680 or higher to qualify for the best mortgage rates, but to qualify for a mortgage at all, you’ll need a credit score of at least 560. In addition to looking at your credit score, prospective lenders will also consider any derogatory information from your credit report, such as any missed payments (particularly if they have gone to collections). If you have bad credit, generally defined as a credit score of less than 660, you are unlikely to qualify for the best mortgage rates, and instead you’ll need to use a sub-prime mortgage lender like Equitable Bank or Home Trust. If your credit score is even less than 600, you will most probably need to use a private lender like WealthBridge. Sub-prime mortgage lenders are happy to work with people with a poor credit history, but they will charge higher mortgage rates. It's a good idea to have a detailed understanding of how your credit score affects your ability to obtain a mortgage.

Proof of income - You’ll also need to provide proof of income in the form of pay stubs and/or tax documents like your Notice of Assessment (NOA). Keep in mind that if you recently started a new job, even with proof of income, many lenders will want to see that you’ve held the position for at least a year.

Ability to pass a mortgage stress test - Finally, to be eligible for the mortgage amount you want, you will need to pass a mortgage stress test. The stress test ensures that you can still afford your mortgage payments at a higher mortgage rate, which is called the qualifying rate and is set by the Bank of Canada. So, for example, if you were being offered a mortgage rate of 2.25%, the lender might do a stress test to see if you could still afford payments at the qualifying rate of 5.25%.

Historical Canada mortgage rates

Looking at historical mortgage rates is a good way to understand which types of mortgage attract higher rates. They also make it easier to understand whether we’re currently in a low or higher rate environment, relatively speaking.

Here are some of Canada’s lowest mortgage rates of the year for different types of mortgages over the past five years.

Source: Ratehub Historical Rate Chart

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Is it worth working with a mortgage broker?

First, what exactly is a mortgage broker? Independent mortgage brokers are licensed mortgage specialists who have access to multiple lenders and mortgage rates. They essentially negotiate the lowest rate for you, and because they acquire high quantities of mortgage products, mortgage brokers can pass volume discounts directly to you. There are advantages to getting a mortgage directly from a lender as well as getting a mortgage through a broker, but there are differences between going with a bank vs. a mortgage broker. While going directly to your current bank lets you consolidate your financial products, using a broker allows you to shop around quickly and easily, at no cost to you.

Luckily, you don’t need to choose one or the other. You can speak to multiple banks and use a mortgage broker if you want to. Ratehub.ca is a great place to start, as we compare the best mortgage rates in Canada from multiple lenders. Once you’ve compared your options, we can put you in contact with your chosen provider.