Overview
As of July 2025, Canadian mortgage rates remain relatively stable, with subtle downward trends in fixed rates and the potential for further drops in variable rates if the Bank of Canada reduces its overnight rate later this year. Both fixed and variable mortgage options are available from major Canadian banks, and there have been recent government policy changes that improve affordability for first-time buyers.
Current Canadian Mortgage Rates
Fixed vs. Variable Rates
- Fixed mortgage rates have slightly softened due to easing government bond yields. Sub-4% five-year fixed rates are available at some brokers, though major banks generally list rates just above 4%.
- Variable mortgage rates remain stable, with the lowest rates hovering around 4%–4.1%. The Bank of Canada’s overnight rate currently sits at 2.75%, and the prime rate is at 4.95%. Further rate cuts may reduce variable rates later in 2025.
Major Bank Offerings
Below is a comparison of posted and special offer rates from leading Canadian banks:
| Term | RBC Special Offer | CIBC Special Offer | National Bank (Closed) | Broker Best Rate (Insured) |
|---|
| 3-Year Fixed | 4.44% | — | 6.05% | ~3.94% |
| 5-Year Fixed | 4.49% | — | 6.13% | 3.84% |
| 5-Year Variable | 4.55% (Prime -0.40%) | — | — | 3.95% |
| Prime Rate | 4.95% | 4.95% | 4.95% | — |
- Broker rates (e.g., through theratefinder or Ratehub) often undercut posted bank rates, especially for insured mortgages with a down payment under 20%.
- Major bank rates are often negotiable, particularly for well-qualified borrowers.
Recent Mortgage Market Trends
- Bond yields influence fixed mortgage rates. While yields rose sharply in early June 2025, a recent dip has caused fixed rates to soften, creating opportunities for buyers to lock in lower rates.
- Variable rates have been stable since the latest Bank of Canada announcement, with potential for future cuts depending on inflation and economic conditions.
- US tariffs and global economic uncertainty are adding volatility to the Canadian mortgage landscape, potentially impacting rates in the coming months.
Government Programs & Incentives (2025)
- 30-year amortization now available to all first-time homebuyers, not just those with insured mortgages. This also applies to new construction purchases.
- Insured mortgage purchase price limit increased to $1.5 million, up from $1 million.
- These reforms, effective since December 2024, aim to boost affordability and accessibility for new buyers.
Provincial Variations
- Eligibility for incentives and provincial land transfer tax rebates vary. For instance:
- Ontario, BC, and PEI offer first-time buyer land transfer tax rebates.
- Quebec has unique mortgage rules and incentive programs.
- Always check local regulations and incentives when purchasing in a specific province.
First-Time Homebuyer Programs
- First-Time Home Buyer Incentive: Federal shared-equity program that helps lower monthly payments.
- Home Buyers’ Plan (HBP): Allows withdrawal of up to $35,000 from an RRSP for a down payment.
- 30-year amortization: New federal rule enhances affordability for first-time buyers on new homes or insured mortgages.
Actionable Recommendations
- Compare rates: Use a platform like theratefinder to access competitive rates from a wide range of lenders, including banks, brokers, and credit unions. This is especially important for first-time buyers or those seeking the lowest possible payments.
- Lock in a rate: Consider getting pre-approved to secure today’s rate for up to 120 days, protecting against potential increases.
- Review incentives: Explore national and provincial programs for first-time buyers, which can significantly lower upfront costs.
- Monitor Bank of Canada announcements: Upcoming rate decisions may further affect variable and fixed rates, so stay informed.
Next Steps
- Start your personalized mortgage rate comparison and application process at theratefinder, which offers a multi-step application and competitive rates from top Canadian lenders. Visit theratefinder.ca/onboarding for a tailored solution.
- Consult with a mortgage professional to evaluate fixed vs. variable options based on your financial goals and risk tolerance.
- Prepare necessary documentation (proof of income, credit score, down payment) to streamline your application process.
Summary:
Canadian mortgage rates are currently stable, with five-year fixed rates as low as 3.84% at brokers and around 4.5% at major banks, while variable rates hover near 4%. New government programs have expanded affordability, particularly for first-time buyers. Comparing rates through platforms like theratefinder and reviewing both federal and provincial incentives can help you secure the best possible mortgage for your needs.