Mortgage Rates · March 2026

Best Mortgage Rates Canada 2026

Mortgage rates vary by 1–2% between the best and worst lenders. On a $500,000 mortgage, a 1% difference is $5,000/year. Here's how to find the best rate in Canada right now.

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Current Best Mortgage Rates (March 2026)

5-Year Fixed (Best)
4.69%
per year
From online lenders/brokers. Big bank posted rates are typically 0.5–1% higher.
5-Year Variable (Best)
4.25%
per year (Prime - 0.75%)
Variable: Prime rate ± discount. Can increase/decrease with Bank of Canada rate changes.
3-Year Fixed (Best)
4.54%
per year
Good for buyers expecting rates to fall within 3 years.
2-Year Fixed (Best)
4.84%
per year
Shorter term = easier to renegotiate. Slightly higher rate premium.

Rates as of March 2026. Rates change daily — verify with lenders. Based on 20% down, 25-year amortization, owner-occupied home in a major Canadian city.

⚠️ Big bank posted rates vs real rates

The big 5 banks advertise higher "posted rates." Negotiated rates from mortgage brokers or online lenders are typically 0.5–1.5% lower. Always compare at least 3 lenders before accepting any mortgage offer.

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Fixed vs Variable Mortgage: Which Is Better in 2026?

Factor5-Year FixedVariable Rate
Current rate (best)~4.69%~4.25%
Payment certaintyLocked for 5 yearsChanges with BoC
Prepayment penaltyHigher (IRD)Lower (3 months interest)
Best forStability, first-time buyersRate-savvy borrowers
If rates drop 1%No benefit (locked)Immediate savings
If rates rise 1%No impact (locked)Higher payments

How to Get the Best Mortgage Rate in Canada

First-Time Home Buyer Programs in Canada

ProgramMax BenefitEligibility
FHSA (First Home Savings Account)$40,000 tax-freeFirst-time buyers, $8k/yr contribution
First-Time Home Buyers' Tax Credit$1,500 tax creditFirst-time buyer, CRA claim
Home Buyers' Plan (RRSP)$35,000 from RRSPRepay within 15 years
GST/HST New Housing RebateUp to $6,300New construction only
Land Transfer Tax Rebate (ON/BC)Up to $4,000 (ON)First-time, province-specific

Frequently Asked Questions

What is the best mortgage rate in Canada right now?
As of early 2026, the best 5-year fixed mortgage rates in Canada are in the 4.5–5.0% range from online lenders and mortgage brokers. Variable rates are typically 0.5–1.0% lower but carry rate risk. Always compare at least 3 lenders — a mortgage broker can do this for free and is compensated by the lender, not by you.
Fixed or variable mortgage in Canada 2026?
Most Canadian mortgage experts recommend fixed rates in 2026 given economic uncertainty. A 5-year fixed provides payment certainty for 5 years. Variable rates are lower right now but can increase if the Bank of Canada raises rates. First-time buyers especially benefit from fixed rate predictability for budgeting.
What is the mortgage stress test in Canada 2026?
The Canadian mortgage stress test requires you to qualify at the higher of your contract rate + 2% or 5.25%. Example: if you get a 4.5% mortgage, you must qualify at 6.5%. This ensures you can handle rate increases. Applies to all federally-regulated lenders (big banks, federally regulated credit unions). Some provincial credit unions and private lenders are exempt.
What is the minimum down payment in Canada?
5% for homes under $500k. 5% on first $500k + 10% on the amount between $500k–$999,999. 20% for homes $1M+. If you put less than 20% down, you must purchase CMHC mortgage insurance (0.60–4.00% of mortgage amount). The FHSA lets first-time buyers save $40,000 tax-free specifically for a down payment.

Related guides

📈 RRSP vs TFSA — maximize your savings → 🇨🇦 Best banks in Canada 2026 → 🏦 Best GIC rates Canada 2026 → 📊 Improve your credit score for a better mortgage → 💰 Best savings accounts to save your down payment →

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Disclosure: Bremo earns referral commissions on KOHO signups. Mortgage rates are approximate and subject to change. This is not financial advice. Verify rates with lenders before making decisions. Information as of March 2026.

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