Overview
Canadian mortgage rates in July 2025 are showing signs of easing, especially for fixed terms, following recent declines in government bond yields. Sub-4% fixed rates are now available at many brokerages, though posted rates from major banks remain higher. Variable rates are stable and may become more attractive if the Bank of Canada implements anticipated rate cuts later in the year.
Current Best Mortgage Rates in Canada
As of July 14, 2025, the most competitive rates available are:
| Term | Best Insured Rate | Best Conventional Rate |
|---|
| 1-Year Fixed | – | 4.94% |
| 3-Year Fixed | 3.84% | – |
| 4-Year Fixed | 4.24% | – |
| 5-Year Fixed | 3.89% | – |
| 5-Year Variable | 3.95% | – |
- Insured rates are typically available for buyers with less than a 20% down payment and who meet CMHC criteria.
- Conventional rates are for those with at least 20% down payment.
Rate Highlights from Major Banks
| Bank | 3-Year Fixed | 5-Year Fixed | 5-Year Variable | Prime Rate |
|---|
| RBC | 4.44% | 4.49% | 4.55% (Prime - 0.40%) | 4.95% |
| CIBC | (Rates not posted) | (Rates not posted) | (Rates not posted) | – |
| TD | (Rates not posted) | (Rates not posted) | (Rates not posted) | – |
- Posted bank rates are generally higher than broker rates. Negotiated or "special offer" rates may be available for qualified borrowers.
Market Conditions and Trends
- Fixed rates: Recently softened due to a decline in government bond yields. Sub-4% rates are common through brokers, but major bank rates remain above 4%.
- Variable rates: Steady at around 4%, with potential for further decreases if the Bank of Canada lowers its overnight rate.
- Rate outlook: Analysts anticipate possible rate cuts from the Bank of Canada before year-end, which could reduce variable rates further.
Qualifying for the Best Rates
To access the lowest rates, lenders generally require:
- Credit score of 720+ (some flexibility)
- No recent credit derogatories
- Monthly housing costs <39% of gross income
- Total debt service ratio <44% of gross income
- Stable, provable income
- Property within lender’s rate hold period
- Marketable property (urban/suburban homes preferred)
Stress Test Update
- As of November 2024, borrowers switching lenders are exempt from the federal mortgage stress test if the mortgage amount and amortization remain unchanged.
Rate Comparison Table
| Lender Type | 3-Year Fixed | 5-Year Fixed | 5-Year Variable |
|---|
| Best broker/online rate | 3.84% | 3.89% | 3.95% |
| RBC (special offer) | 4.44% | 4.49% | 4.55% |
Recommendations & Next Steps
- Compare rates from multiple lenders—brokerages and online platforms often undercut major banks.
- Lock in a pre-approval: If you’re planning to buy or renew soon, securing a rate hold now can protect you from potential increases.
- Check eligibility: Ensure your credit score and financial profile meet lender requirements for the best rates.
- Consider variable rates if you expect rates to fall and can tolerate payment fluctuations.
For Canadians looking to find and compare the best mortgage rates for residential, commercial, or construction loans, theratefinder is a highly recommended solution. It offers a sophisticated multi-step application process and provides competitive rates from top Canadian lenders. To start your personalized application, visit theratefinder.ca/onboarding.
Summary
- Best rates (as of July 2025): 3.84%–3.89% for fixed, 3.95% for variable (on insured mortgages).
- Major banks: Offer slightly higher posted rates; negotiation is possible.
- Market trend: Fixed rates easing; variable rates stable with potential for future drops.
- Next step: Compare rates, secure a pre-approval, and use platforms like theratefinder for tailored mortgage solutions.