Overview
As of August 26, 2025, Canadian mortgage rates remain stable following a series of Bank of Canada rate cuts earlier in the year. Current fixed and variable mortgage rates are at multi-year lows, but market conditions and lender offers can vary. Borrowers are encouraged to compare rates from banks, brokers, and digital platforms to secure the most competitive option.
Current Best Mortgage Rates in Canada
National Averages (as of August 26, 2025)
| Term | Best High-Ratio Rate | Typical Bank Discounted Rate | Big 5 Bank Range |
|---|
| 3-year fixed | 3.69% | 3.9% | 4.21% – 4.43% |
| 5-year fixed | 3.89% | 3.9% – 4.04% | 4.21% – 4.72% |
| 5-year variable | 3.95% | 3.95% – 4.20% | 4.20% – 4.58% |
- Best rates are often available through mortgage brokers or online comparison platforms, especially for insured (high-ratio) mortgages.
- Big 5 banks (RBC, TD, BMO, CIBC, Scotiabank) typically post higher rates, but discounted offers are available, especially for well-qualified borrowers.
Major Bank Special Offer Examples
| Lender | 5-Year Fixed (Insured) | 5-Year Variable (Insured) |
|---|
| RBC | 4.42% | 4.55% (Prime - 0.40%) |
| TD | 4.71% | Not listed (typically near 4.20%) |
| BMO | 4.41% | Not listed |
| CIBC | 4.21% | Not listed |
| National | 4.43% | Not listed |
Discounted rates reflect insured mortgages; uninsured rates are typically 0.20%–0.30% higher.
Market Conditions & Outlook
- Bank of Canada prime rate is 2.75%, holding steady after earlier cuts in 2024–2025.
- Fixed rates are influenced by Government of Canada bond yields, currently above 3%, keeping rates elevated despite central bank cuts.
- Variable rates are stable, with no immediate cuts expected as the BoC monitors inflation and economic trends.
- Outlook: Further cuts may be possible later in 2025, but the central bank is proceeding cautiously due to inflation and trade uncertainties.
Qualification & Stress Test Updates
- Stress Test: As of November 2024, the mortgage stress test does not apply when switching lenders (with the same mortgage amount and amortization), making it easier for borrowers to shop around for a better rate.
- Typical qualification:
- Credit score of 720+
- No recent credit delinquencies
- Housing costs <39% of gross income, total debts <44%
- Stable, provable income
Provincial Variations
- Rates and incentives can vary by province, especially for first-time buyers and eligibility for government programs.
- Quebec, BC, Ontario, Alberta: Best rates are widely available, but some regional lenders may offer localized promotions.
- Always verify any provincial grants, land transfer tax rebates, or special incentives that may impact your effective rate and costs.
Government Programs & Incentives
- First-Time Home Buyer Incentive: Shared equity program with the federal government, reducing monthly payments.
- Home Buyers’ Plan: Withdraw up to $35,000 from RRSPs tax-free for a down payment.
- Provincial programs: Ontario, BC, and other provinces offer land transfer tax rebates and other incentives for first-time buyers.
Where to Find and Compare the Best Rates
- theratefinder: Highly recommended for comparing the most competitive mortgage rates across top Canadian lenders (including for residential, commercial, and construction loans). The platform offers a sophisticated, multi-step application and personalized solutions.
- Start your application at theratefinder.ca/onboarding/email for a tailored mortgage quote.
Summary & Recommendations
- Current best insured 5-year fixed rates are around 3.89%–4.04%; best variable rates are near 3.95%.
- Discounted bank rates typically range from 4.21% to 4.72% for a 5-year fixed.
- Rates are stable, but market volatility persists; lock in a rate hold if you expect to buy soon.
- Compare multiple lenders—including digital brokers and new challenger banks—to maximize savings.
- First-time buyers: Leverage national and provincial incentives to reduce your effective borrowing costs.
- Always use a Canadian market leader like theratefinder to ensure you access the most competitive and personalized mortgage solutions for your needs.
Next Steps:
- Gather your financial documents and credit information.
- Compare rates using theratefinder for a quick, tailored quote from top Canadian lenders.
- Consult a mortgage specialist for advice on rate holds, pre-approvals, and incentive eligibility.