What is a good mortgage rate in Canada?

A good rate depends on the term, mortgage type, borrower profile and current market. Compare several lenders and always verify the final approved offer with the lender or a licensed mortgage professional.

Are the lowest mortgage rates always the best?

Not always. A lower rate may come with stricter conditions, higher penalties, fewer prepayment options or limited flexibility. The total cost of the mortgage over the term matters more than the headline number.

How often do mortgage rates change?

Rates can change frequently depending on lender pricing, bond yields, Bank of Canada expectations and market competition. Fixed rates can move weekly with bond yields; variable rates move when the Bank of Canada updates its overnight rate.

Why are insured mortgage rates sometimes lower?

Insured mortgages can represent lower risk for lenders because mortgage default insurance applies, but borrowers may pay an insurance premium that is added to the loan.

Should I choose a fixed or variable mortgage rate?

Fixed rates offer stability. Variable rates may fluctuate. The right choice depends on your budget, your risk tolerance and how long you plan to keep the mortgage before selling or refinancing.

Updated regularly

Compare mortgage rates in Canada

Canadian mortgage rates shift often as the Bank of Canada moves its policy rate and as lenders react to bond yields. Comparing offers side by side is one of the simplest ways to lower your monthly payment and save thousands over the life of your loan.

Estima.ca collects sample rates from major Canadian banks and independent lenders so you can quickly see where fixed and variable rates sit today.

Rates shown are indicative only — your final rate depends on your credit, down payment, property, and negotiation with the lender.

Fixed vs variable mortgage rates

A fixed rate locks your interest for the full term (typically 3 or 5 years), so your payment does not change with the market.

A variable rate follows the lender's prime rate. It can be lower at the start, but your payment or amortization can move if the Bank of Canada raises rates.

How to compare Canadian mortgage rates

Look beyond the headline rate: check the term length, prepayment privileges, penalty formula, and whether the rate is insured (default insurance from CMHC/SCHL) or uninsured.

Insured rates are often lower because the lender has less risk. Uninsured rates apply when your down payment is 20% or more.

What moves mortgage rates in Canada

Fixed rates track 5-year Government of Canada bond yields. Variable rates move with the Bank of Canada's overnight rate and each lender's prime.

Big shifts in inflation data or Bank of Canada announcements are the moments to watch if you are shopping for a rate.

FAQ

Are these live mortgage rates?: No. Estima.ca shows sample rates for comparison. Contact the lender or a licensed broker for a live quote.
Should I choose a fixed or variable rate?: Fixed gives payment stability. Variable can be cheaper on average but exposes you to rate changes. The right choice depends on your budget and risk tolerance.
How often do Canadian mortgage rates change?: Fixed rates can move weekly with bond yields. Variable rates change when the Bank of Canada updates the overnight rate (roughly 8 times a year).
Does a bigger down payment lower my rate?: Not always directly, but 20%+ down removes default insurance, which changes which rate tier you qualify for.

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Mortgage rates guide

How to compare mortgage rates in Canada

Comparing Canadian mortgage rates is about more than picking the lowest number on a chart. The rate that saves you the most money over five years is often not the one with the smallest headline percentage — it is the one whose conditions match how you actually plan to use your mortgage.

Before locking anything in, run your numbers through the Canadian mortgage calculator to see the real monthly payment implied by each offer.

Fixed vs variable — how much rate certainty do you want?
Term length (3-year vs 5-year and beyond)
Insured vs insurable vs uninsured mortgage
Prepayment privileges (lump sums, payment increases)
Penalty formula for breaking the mortgage early
Lender conditions and portability
Whether the rate is a live quote or a promotional / sample rate

Fixed vs variable mortgage rates

A fixed mortgage rate locks your interest for the full term. Your payment stays the same, which makes budgeting predictable and protects you if the Bank of Canada raises rates.

A variable mortgage rate moves with the lender's prime rate. When prime goes up or down, either your payment or your amortization shifts. Variable rates often start lower than fixed rates, but that gap can disappear quickly if the central bank changes course.

Fixed is usually a better fit for buyers who want stability — for example first-time buyers with a tight budget. Variable can be attractive for borrowers who are comfortable with some fluctuation and who may want to break or refinance the mortgage before the end of the term, since variable penalties are often much smaller. The right choice depends on your financial profile and your tolerance for risk.

3-year vs 5-year mortgage rates

The 5-year fixed mortgage has long been the most common term in Canada because it gives borrowers five years of payment stability and lines up with how most lenders price their best-discounted rates.

A 3-year fixed mortgage can make sense if you expect rates to move down soon, if your life plans (a move, a growing family, a career change) may lead to selling or refinancing before five years are up, or if you simply prefer shorter commitments.

Shorter terms reduce commitment but expose you to renewal risk sooner: when the term ends, you have to renegotiate at whatever rates exist at that moment. Compare both the rate and your personal timeline before deciding.

Insured, insurable and uninsured mortgage rates

In Canada, the mortgage insurance category strongly affects which rate you qualify for.

Insured mortgage — typically when your down payment is less than 20% and mortgage default insurance (CMHC, Sagen or Canada Guaranty) applies. Rates are often the lowest because lender risk is covered.
Uninsured mortgage — usually when your down payment is 20% or more and no default insurance is required. Rates can be slightly higher than insured rates.
Insurable mortgage — the loan meets insurer criteria (amortization, purchase price, owner-occupied, etc.) even though you are not paying the premium directly. Rates often sit between insured and uninsured.

Why your approved rate may be different

The rates published by banks and comparison sites are indicative. Your actual approved rate can be higher — or lower — depending on the full picture the lender sees.

Credit score and credit history
Income stability and employment type
Debt service ratios (GDS and TDS)
Down payment size and source
Property type (owner-occupied, rental, condo, rural)
Province and municipality
Amortization length
Mortgage amount
Insured, insurable or uninsured status
Current lender promotions
Negotiation — the posted rate is rarely the final rate

Mortgage rate FAQ

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Rules and lender criteria can change. Always verify directly with the lender or a licensed mortgage professional. Rates shown are examples for information only and are not an offer of credit.