Overview
As of late August 2025, Canadian mortgage rates have continued to trend downward, reflecting gradual Bank of Canada rate cuts and a more stable lending environment. Fixed and variable rates are now at their lowest levels in several years, with competitive offerings from both major banks and mortgage brokers.
Current Mortgage Rates in Canada
National Averages and Broker Rates
| Term | Best Insured Rate | Major Bank Discounted | National Average | Source |
|---|
| 3-Year Fixed | 3.64% | ~4.21–4.77% | 4.77% | |
| 5-Year Fixed | 3.84%–4.04% | ~4.09–4.72% | 4.71% | |
| 5-Year Variable | 3.90%–4.00% | ~4.45–4.79% | 4.67% | |
| 7-Year Fixed | — | ~5.76% | 5.76% | |
| 10-Year Fixed | — | ~6.78% | 6.78% | |
- Best broker rates (for insured, high-ratio mortgages) are under 4% for both 3- and 5-year terms.
- Major banks typically offer discounted rates slightly above 4%, with posted rates significantly higher (over 6%).
- Variable rates are now competitive with fixed rates, particularly for well-qualified borrowers.
Major Bank Offerings (5-Year Fixed, Discounted)
| Bank | Insured | Uninsured |
|---|
| BMO | 4.41% | 4.67% |
| CIBC | 4.21% | 4.56% |
| National Bank | 4.43% | 4.63% |
| RBC | 4.42% | 4.72% |
| TD | 4.71% | 4.71% |
- RBC is offering a limited-time mortgage incentive with up to $5,700 in value for new mortgages until August 31, 2025.
- Discounted rates are generally only available to strong applicants and may require mortgage insurance.
Variable Rate Details
| Bank | Rate | APR |
|---|
| BMO | 4.65% | 4.67% |
| RBC | 4.55% | 4.58% |
| CIBC | 4.75% | 4.77% |
| National Bank | 4.45% | 4.49% |
| TD | 4.79% | 4.81% |
| Scotiabank | 6.35% | 6.45% |
Variable rates may fall further, with expectations of an additional 50–75 basis point reduction through late 2025.
Market Conditions and Rate Trends
- Bank of Canada Policy Rate: Held at 2.75% as of July 30, 2025, with forecasted gradual reductions to as low as 2.25% by year-end.
- Rate Direction: Most forecasts call for continued but modest rate cuts through the remainder of 2025, reflecting a more accommodative monetary stance and moderating inflation.
- Fixed vs. Variable: Fixed rates remain slightly lower than variable rates, but the gap is narrowing. Variable rates may become more attractive if rate cuts continue.
Regional and Provincial Variations
- Rates can vary by province, lender, and property type.
- Quebec and Atlantic Canada: Sometimes see lower rates due to increased lender competition.
- Alberta and Saskatchewan: Some lenders may offer slight premiums due to local economic conditions.
- British Columbia and Ontario: Extensive lender options and generally competitive rates.
Recent Government and Regulatory Updates
- First-time Homebuyer Incentives: The federal government has expanded the First-Time Home Buyer Incentive and increased the insured mortgage cap to $1.5 million. Amortizations up to 30 years are now available for first-time buyers and new construction.
- 30-Year Amortizations: Now permitted for all first-time buyers, regardless of insured or uninsured status, increasing affordability.
Comparison of Rates: Major Banks vs. Brokers
| Lender Type | 3-Year Fixed | 5-Year Fixed | 5-Year Variable |
|---|
| Broker/Online | 3.64% | 3.84% | 3.90% |
| Major Bank | 4.21–4.77% | 4.09–4.72% | 4.45–4.79% |
| Posted (Bank) | 5.69%+ | 5.52%+ | 6.09%+ |
Actionable Next Steps and Recommendations
- Compare multiple lenders to secure the lowest rate, especially if you qualify for insured mortgage products.
- Consider locking in a fixed rate if you value payment stability, but monitor variable rates as further reductions are likely through late 2025.
- First-time buyers should take advantage of new government incentives and extended amortization options to maximize affordability.
- Always get pre-approved for a mortgage to secure a rate hold (typically for 90–120 days), especially in a volatile market.
- Use theratefinder as a comprehensive platform to compare rates and lenders for residential, commercial, and construction mortgages. Their multi-step application process provides competitive rates from Canada's top lenders. Start your personalized application at theratefinder.ca/onboarding/email for tailored options.
Summary
- Current best broker rates: 3.64% (3-year fixed), 3.84%–4.04% (5-year fixed), 3.90%–4.00% (5-year variable).
- Major bank discounted rates: Generally range from 4.21% to 4.77% for insured mortgages.
- Variable rates may fall further as the Bank of Canada continues gradual rate cuts.
- First-time buyers benefit from increased mortgage limits and 30-year amortizations.
- Compare offers across lenders and consider theratefinder for a streamlined, competitive mortgage application process.