Mortgage rates in Canada today: 5-year fixed, variable and prime

Benchmark rates, with their date

Rate	Value	Data as of
Policy interest rate (target overnight rate)	2.25%	October 13, 2026
Prime rate	4.45%	October 7, 2026
Fixed mortgage 5 years and over (uninsured, market reference)	4.49%	July 2026 average
Variable-rate mortgage (uninsured, market reference)	3.86%	July 2026 average
Government of Canada 5-year bond (what 5-year fixed rates follow)	3.55%	October 13, 2026

Source: Bank of Canada (Valet), re-read at every site update. Mortgage rates are financial-system averages on new uninsured loans — not a posted rate, and not an offer.

Fixed or variable: what moves each one

The 5-year fixed rate mainly follows the Government of Canada 5-year bond yield (3.55% as of October 13, 2026), a few days behind. The current gap between the two is about 0.94 points: the lender's margin and the cost of risk. Fixed rates can therefore rise or fall before a Bank of Canada decision, on market expectations alone.

The variable rate is quoted as "prime minus X". Prime tracks the policy rate almost point for point (today 4.45%, 2.20 points above the policy rate). The average variable rate sits 0.59 points below prime. It moves on announcement day — the next one is scheduled for October 28, 2026. To choose between the two, see fixed vs variable.

Getting better than average

Published rates are averages: some borrowers pay less, some pay more. What lowers yours: a down payment under 20% (the loan is then insured, and insured loans often get a lower rate, at the cost of the insurance premium — see down payment and mortgage insurance), a good credit score, income that is easy to document, and above all making several lenders compete.

A mortgage broker runs that comparison at no cost on a standard file: the lender pays them. Your bank, by contrast, only shows you its own rates. Before signing, also run the stress test: you must qualify at the contract rate plus 2 points, or 5.25% if higher.

Frequently asked questions

What is the mortgage rate in Canada today?

In Canada, the average 5-year fixed mortgage rate is 4.49% and the average variable rate is 3.86% (averages for uninsured loans published by the Bank of Canada, July 2026 average). Banks' prime rate is 4.45% and the policy rate is 2.25%. These are market benchmarks, not a lender's offer: your rate depends on your down payment, your credit, mortgage default insurance and negotiation — a broker compares several lenders for you.

What is the prime rate in Canada?

Canadian banks' prime rate is 4.45% (data as of October 7, 2026, Bank of Canada). It follows the policy rate, currently 2.25%, and is the base for variable-rate mortgages and lines of credit.

Where can I find the best 5-year fixed mortgage rate?

No average gives YOUR best rate: it is negotiated on your file. The two levers that matter most are making several lenders compete — which a mortgage broker does, free on a standard file — and timing the rate hold: a pre-approval usually guarantees a rate for 90 to 120 days.

Will mortgage rates go down?

Variable rates will move with Bank of Canada decisions (next announcement: October 28, 2026). Fixed rates depend on the 5-year bond yield, which moved +36 basis points over three months. Nobody knows what comes next: be wary of forecasts presented as certainties.

Are these the rates banks post?

No. They are the average rates actually granted on new loans, published by the Bank of Canada. The big banks' "posted" rates are higher and mostly serve to calculate prepayment penalties.

Sources

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