Current Mortgage Rates in Canada
Compare competitive rates and find the best mortgage solution for your home financing needs
Fixed vs Variable Rates
Understanding the key differences between fixed and variable rate mortgages helps you make the right choice
- Rate stays the same for entire term
- Predictable monthly payments
- Protection from rate increases
- Easier to budget and plan
- Ideal for risk-averse borrowers
- Rate fluctuates with prime rate
- Potential for lower costs if rates drop
- Typically lower initial rates
- More flexibility to break mortgage
- Option to convert to fixed
Current Rate Ranges by Term
Sample rate ranges for different mortgage terms. Actual rates vary by lender, credit profile, and market conditions.
| Term | Fixed Rate Range | Variable Rate Range |
|---|---|---|
| 1-Year | 5.24% - 6.49% | 5.95% - 6.70% |
| 2-Year | 5.14% - 6.39% | 5.85% - 6.60% |
| 3-Year | 4.84% - 6.09% | 5.75% - 6.50% |
| 4-Year | 4.74% - 5.99% | 5.65% - 6.40% |
| 5-Year | 4.64% - 5.89% | 5.55% - 6.30% |
Rate Disclaimer
These are sample rate ranges for illustration purposes only. Actual rates vary by lender, borrower profile, property type, and market conditions. Contact us for current personalized rate quotes.
Factors Affecting Your Rate
Multiple factors influence the mortgage rate you'll qualify for
Understanding Rate Types
Choose the mortgage rate type that best fits your financial goals and risk tolerance
Fixed-rate mortgages maintain the same interest rate for the entire term of your mortgage, typically ranging from 1 to 10 years. This provides complete certainty about your monthly payments, making it easier to budget and plan your finances.
Fixed rates are ideal if you value stability, expect interest rates to rise, or prefer predictable payments. While you won't benefit if rates fall, you're protected from increases.
Explore Fixed Rate OptionsVariable-rate mortgages have interest rates that fluctuate with the prime rate set by your lender. When the Bank of Canada adjusts rates, your mortgage rate typically moves in the same direction, affecting your monthly payments or the portion going to principal.
Variable rates often start lower than fixed rates and may save you money if rates remain stable or decrease. They offer more flexibility but require comfort with payment uncertainty.
Explore Variable Rate OptionsHow to Get the Best Rate
Take these steps to improve your chances of securing a competitive mortgage rate
Interest Rate
The interest rate is the cost of borrowing the principal loan amount, expressed as a percentage. This is the rate used to calculate your monthly mortgage payment.
For example, a 5% interest rate on a $400,000 mortgage means you'll pay approximately $20,000 in interest in the first year (though this varies with amortization).
APR (Annual Percentage Rate)
APR includes the interest rate plus additional costs like origination fees, broker fees, mortgage insurance premiums, and other charges. It represents the true cost of borrowing.
A 5% interest rate might have a 5.3% APR after including all fees. Always compare APR when shopping for mortgages to understand total costs.
Frequently Asked Questions
Get answers to common questions about mortgage rates
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