Overview of Current Rates
Mortgage rates in Canada are influenced by the Bank of Canada’s policy rate, lender competition, and broader economic conditions. As of August 2026, the Bank of Canada’s overnight rate sits at 2.25%, a level held since the July 15, 2026 decision. This rate directly influences the prime rate charged by chartered banks, which stood at 4.45% for the major banks as of August 19, 2026.
Using the latest data from the Bank of Canada and major comparison sources, we present current posted and special rates for fixed and variable mortgage terms. Posted rates are the public rates set by each lender, while special rates are discounted offers often available to qualified borrowers.
- Bank of Canada overnight rate: 2.25% (held as of July 15, 2026)
- Major bank prime rate: 4.45% (as of August 19, 2026)
- Lowest insured 5-year fixed rates: around 3.94% (as of August 2026)
- Lowest insured 5-year variable rates: around 3.35% (as of August 2026)
Sources: Bank of Canada, WOWA.ca, Ratehub.ca, nesto.ca
Fixed Rates by Term
Fixed mortgage rates lock in your interest rate for a set term, providing predictable payments. Posted rates from the Bank of Canada for major chartered banks give a useful benchmark: as of August 19, 2026, the posted 1-year rate was 5.49%, the 3-year rate was 6.05%, and the 5-year rate was 6.09%. However, actual borrowers often negotiate or access special rates that are significantly lower.
For example, TD’s posted rates on the same date included a 1-year fixed at 5.49%, 2-year at 4.89%, 3-year at 6.05%, and 5-year at 6.09%. TD’s special rates were 4.64% for a 3-year fixed and 4.84% for a 5-year fixed. CIBC’s special rates were 4.74% for a 3-year fixed and 4.94% for a 5-year fixed. These special rates are often available to borrowers with good credit and a down payment, and they reflect the competitive market for insured or highly qualified borrowers.
Nationally, the lowest insured 5-year fixed rate reported by comparison sites was approximately 3.94% as of mid-August 2026, showing that the best advertised rates can be well below posted levels.
- Posted 1-year fixed (Bank of Canada): 5.49%
- Posted 3-year fixed (Bank of Canada): 6.05%
- Posted 5-year fixed (Bank of Canada): 6.09%
- TD special 3-year fixed: 4.64%
- TD special 5-year fixed: 4.84%
- CIBC special 3-year fixed: 4.74%
- CIBC special 5-year fixed: 4.94%
Sources: Bank of Canada, TD Canada Trust, CIBC, Ratehub.ca
Variable Rates
Variable mortgage rates move with the lender’s prime rate. With the major bank prime rate at 4.45% (except TD’s special mortgage prime rate of 4.60% for some variable products), variable rates are often quoted as prime minus a discount.
As of August 2026, special 5-year variable rates among major banks ranged from RBC’s 3.65% to Scotiabank’s 4.90%, with CIBC at 4.05%, BMO and National Bank at 4.10%, and TD at 4.29%, according to NerdWallet. Some independent lenders offered even lower rates, around 3.59%–3.60%, including Meridian, Marathon Mortgage, Pine Financial, and Radius Financial.
It’s important to note that variable rates are not necessarily tied to the Bank of Canada’s posted prime for all products; each lender sets its own prime rate for variable products, and TD’s different rate is one example.
- Major bank prime rate (excl. TD variable): 4.45%
- TD mortgage prime rate for variable products: 4.60%
- Lowest variable rates from major banks: RBC 3.65%, CIBC 4.05%, BMO 4.10%, National Bank 4.10%, TD 4.29%, Scotiabank 4.90%
- Independent lender rates: around 3.59%–3.60%
Sources: WOWA.ca, TD Canada Trust, NerdWallet Canada
Comparison Table of Major Lenders
The table below compares key mortgage rates from major Canadian lenders as of mid-to-late August 2026. These figures come from official lender websites and comparison platforms, but rates change frequently, so always verify the latest figures.
| Lender | Prime Rate | Posted 5-Year Fixed | Special 5-Year Fixed | Special 5-Year Variable | Special 3-Year Fixed |
|---|---|---|---|---|---|
| TD | 4.45% (4.60% for variable products) | 6.09% | 4.84% | 4.24% | 4.64% |
| CIBC | 4.45% | 6.49% | 4.94% | 4.05% | 4.74% |
| RBC | 4.45% | — | — | 3.65% | — |
| BMO | 4.45% | — | — | 4.10% | — |
| Scotiabank | 4.45% | — | — | 4.90% | — |
| National Bank | 4.45% | — | — | 4.10% | — |
Sources: WOWA.ca, TD Canada Trust, CIBC, NerdWallet Canada
How to Use These Rates
These rates serve as a market snapshot to help you gauge the current landscape. When comparing offers, remember that advertised special rates often require a mortgage default insurance (for insured mortgages) and are available to well-qualified borrowers. Your personal rate may be higher or lower depending on your credit score, down payment, amortization, and the lender’s assessment.
When evaluating a variable rate, consider how changes in the Bank of Canada’s policy rate could affect your payments. For example, if the prime rate rises, your variable rate typically rises as well, unless you have a fixed payment adjustable-rate mortgage (which adjusts the amortization instead). Fixed rates, by contrast, lock in your rate for the term, shielding you from rate increases during that period.
The Bank of Canada’s posted rates are not necessarily the best available; they are calculated as the statistical mode of rates posted by the six largest banks, according to a specific methodology. Actual rates from lenders may be lower, especially for insured mortgages.
Sources: Bank of Canada, Ratehub.ca
Methodology and Sources
This page compiles rates from official lender websites and reputable comparison sources, as cited throughout. The Bank of Canada’s posted rates are calculated as the statistical mode of the six largest banks’ posted rates, using specific rules to resolve ties, as described in the Bank of Canada’s methodology notes.
Special rates are promotional rates offered by lenders and may require certain conditions, such as a minimum down payment or mortgage default insurance. Average rates, such as the 5-year fixed average, are typically calculated by aggregating rates from a set of major lenders, as done by nesto, based on the six largest lenders. For example, as of August 21, 2026, the average 5-year fixed conventional rate was 4.92%, and the average 5-year variable rate was 4.16%.
Additionally, the Bank of Canada publishes volume-weighted average interest rates on new mortgages, which reflect actual funded loans. As of June 2026, the average on new insured mortgages was 4.22% for all terms, 3.79% for variable-rate, and 4.01% for fixed-rate terms of 5 years and over. For uninsured mortgages, the averages were 4.32% for all terms, 3.90% for variable-rate, and 4.21% for fixed-rate terms of 5 years and over.
Rates change frequently, and the data on this page reflects sources dated between June and August 2026. Always confirm current rates with your lender or a licensed mortgage broker before making a decision.
- Bank of Canada posted rates: mode of six major banks’ posted rates
- Average rates (nesto): based on six largest lenders
- Volume-weighted average rates (Bank of Canada): based on actual funded loans
Sources: Bank of Canada, nesto.ca
Side-by-Side Category and Decision-Criteria Matrix
When choosing between a fixed and variable mortgage, consider how each aligns with your financial situation and risk tolerance. Fixed rates offer payment stability but may be higher than variable rates if interest rates remain stable or decline. Variable rates can be lower initially but carry the risk of payment increases if the prime rate rises.
The table below summarizes key decision criteria to help you evaluate which type of mortgage might suit your needs. Your personal circumstances, including your budget, income stability, and future plans, should always inform the final decision.
| Criterion | Fixed Rate | Variable Rate |
|---|---|---|
| Rate stability | Rate is locked for the term, payments predictable | Rate fluctuates with prime rate, payments may change |
| Rate risk | No exposure to rate increases during term | Exposed to prime rate changes, which can increase payments |
| Potential savings | May be lower than variable when rates are expected to rise | Can be lower than fixed when rates are stable or falling |
| Break penalties | Often higher, based on interest rate differential | Typically lower, usually three months’ interest |
| Flexibility | Less flexibility to benefit from rate decreases | Can benefit if variable rates fall, but risk if they rise |
Sources: WOWA.ca, NerdWallet Canada
Frequently asked questions
Why do mortgage rates vary between lenders?
Mortgage rates vary because lenders have different cost structures, risk appetites, and competitive strategies. The Bank of Canada’s posted rates are a statistical summary of the six largest banks’ posted rates, but each lender sets its own rates based on its funding costs, operational expenses, and market positioning. Some lenders may offer lower rates to attract new customers, while others may focus on service or relationship banking. Additionally, rates for insured and uninsured mortgages often differ because the default insurance reduces the lender’s risk.
Sources: Bank of Canada, Ratehub.caAre the rates on this page the best available?
No. The rates shown are representative posted and special rates from a selected set of lenders and comparison sources as of the noted dates. They are not necessarily the lowest rates available in the market. Independent lenders and credit unions may offer lower rates, as seen in the variable rate comparison, where some offered 5-year variable rates around 3.59%–3.60%, lower than most big banks. To find the best rate for your specific situation, you would typically shop around, negotiate with lenders, or work with a mortgage broker who can access multiple lenders.
Sources: NerdWallet Canada, Ratehub.caHow often is this page updated?
This page is updated periodically to reflect major changes in the market and when credible sources publish new rate data. The rates we quote are sourced with specific dates, typically from mid-to-late August 2026. Since mortgage rates can change frequently, we recommend checking a current source like the Bank of Canada’s posted rates page or a reputable rate comparison site for the most up-to-date numbers. We do not provide real-time updates.
Sources: Bank of Canada, Ratehub.caWhat is the difference between advertised and actual rates?
Advertised rates are the rates a lender publicly promotes, such as special fixed rates or variable rates tied to a prime minus a discount. Actual rates are what you personally qualify for after the lender evaluates your application. Factors such as your credit score, down payment, income, and the mortgage’s insurance status (insured or uninsured) influence the final rate. Additionally, some advertised rates are based on the six largest lenders and may not reflect the best rate you could negotiate.
Sources: Ratehub.ca, Bank of CanadaSources
- Interest rates posted for selected products by the major chartered banks - Bank of Canada — Bank of Canada
- Best Mortgage Rates Canada (Compare 40+ Lenders) | WOWA.ca — WOWA.ca
- Best mortgage rates Canada | Compare Canada mortgage rates | Ratehub.ca — Ratehub.ca
- Mortgage Rates Canada | Compare Today's Best Rates — nesto.ca
- Mortgages Rates - TD Canada Trust — TD Canada Trust
- Current CIBC Mortgage Rates Across Canada — CIBC
- Current Variable Mortgage Rates In Canada - NerdWallet Canada — NerdWallet Canada
- Interest rates charged for new and existing lending by chartered banks - Bank of Canada — Bank of Canada
- Notes on Canadian interest rates - Bank of Canada — Bank of Canada