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.
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?
Factor
5-Year Fixed
Variable Rate
Current rate (best)
~4.69%
~4.25%
Payment certainty
Locked for 5 years
Changes with BoC
Prepayment penalty
Higher (IRD)
Lower (3 months interest)
Best for
Stability, first-time buyers
Rate-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
1
Use a mortgage broker. Brokers shop rates from 20–50 lenders simultaneously and are paid by lenders (not you). They consistently find rates 0.2–0.5% lower than going direct. Brokers handle all paperwork.
2
Improve your credit score first. A score above 720 qualifies you for the best rates. Check your score free with KOHO — then pay down credit card balances 30+ days before applying for a mortgage.
3
Get pre-approved before house hunting. Pre-approval locks in a rate for 90–120 days. Apply with multiple lenders within 14 days — credit bureaus treat multiple mortgage inquiries as one pull.
4
Negotiate with your current bank last. Get a competing offer from a broker, then bring it to your bank. Banks will often match or beat broker rates to retain your business.
5
Consider online lenders (HSBC, First National, MCAP). Online-only lenders have lower overhead and consistently offer rates 0.3–0.7% below major bank posted rates.
First-Time Home Buyer Programs in Canada
Program
Max Benefit
Eligibility
FHSA (First Home Savings Account)
$40,000 tax-free
First-time buyers, $8k/yr contribution
First-Time Home Buyers' Tax Credit
$1,500 tax credit
First-time buyer, CRA claim
Home Buyers' Plan (RRSP)
$35,000 from RRSP
Repay within 15 years
GST/HST New Housing Rebate
Up to $6,300
New 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.
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.