Overview
As of late August 2025, Canadian mortgage rates have stabilized following a period of gradual rate cuts by the Bank of Canada. Borrowers can access a range of fixed and variable rate options, with rates varying by lender, term, and whether the mortgage is insured. Major banks and brokers are offering competitive rates, and several government programs remain available to assist homebuyers.
Current Canadian Mortgage Rates (August 2025)
National Averages and Best Rates
| Mortgage Type | Best Rate (Broker/Lender) | Big 6 Bank Discounted | Posted Rate (Big 6) |
|---|
| 3-Year Fixed | 3.64% | 4.21–4.77% | 5.69–6.13% |
| 5-Year Fixed | 3.84% | 4.42–4.72% | 6.09–6.12% |
| 5-Year Variable | 3.90% | 4.55–4.71% | N/A |
| 7-Year Fixed | 5.76% | N/A | N/A |
| 10-Year Fixed | 6.78% | N/A | N/A |
Key notes:
- Best available rates are typically offered by mortgage brokers and online lenders, especially for insured mortgages and borrowers with strong credit profiles.
- Bank "posted rates" are higher and rarely what qualified borrowers pay. Always negotiate and compare "discounted" or special offer rates.
- Variable rates are currently based on prime rates set around 4.95%, with typical discounts of 0.40–1.00%.
Market Conditions and Rate Outlook
- Bank of Canada Policy Rate: Held at 2.75% since July 2025; further gradual reductions are expected if inflation trends downward.
- Bond yields are stable (around 2.9%), supporting steady fixed rates.
- Economic context: Inflation remains just above target (3.05%), and job market softening may prompt further rate cuts by year-end.
- Forecast: Major banks anticipate a gradual decrease in mortgage rates through late 2025 and into 2026, with policy rates possibly reaching 2.0–2.25% by 2026.
Major Canadian Bank Offerings
| Bank | 5-Year Fixed (Discounted) | 5-Year Variable (Discounted) | Special Offers/Notes |
|---|
| RBC | 4.42% (insured) | Prime - 0.40% (4.55%) | Up to $5,700 in value on select mortgages |
| TD | 4.71% (insured/uninsured) | N/A | |
| BMO | 4.41% (insured) | N/A | |
| CIBC | 4.21% (insured) | N/A | |
| National Bank | 4.43% (insured) | N/A | |
Note: Rates shown are for insured mortgages; uninsured rates are typically 0.2–0.3% higher.
Government Programs and Incentives
- First-Time Home Buyer Incentive: Shared-equity program offering 5–10% of a home’s purchase price to first-time buyers, reducing mortgage payments. Conditions apply and vary by location.
- Home Buyers’ Plan (HBP): Allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free to purchase or build a home.
- GST/HST New Housing Rebate: Rebates part of the GST/HST paid on new or substantially renovated homes.
- Provincial programs: Many provinces/territories offer additional rebates or tax credits for first-time buyers (e.g., land transfer tax rebates in Ontario, BC, PEI).
Provincial Variations
- Land Transfer Taxes: Ontario, BC, Quebec, and some other provinces/major cities levy additional land transfer taxes. Rebates may be available for first-time buyers.
- Down Payment Minimums: National standards apply, but some provincial programs can assist with down payment or closing costs.
- Regulation and Fees: Closing costs, lender fees, and insurance premiums may vary by province.
First-Time Homebuyer Programs (Canada-wide & Provincial)
- Federal First-Time Home Buyer Incentive: Available across Canada, with higher limits in Toronto, Vancouver, and Victoria CMAs.
- Ontario: Land Transfer Tax Rebate (up to $4,000), Toronto adds a municipal rebate.
- British Columbia: Property Transfer Tax Exemption on homes up to $500,000.
- Quebec: First-Time Home Buyer Tax Credit.
- Other provinces/territories: Check provincial/territorial government sites for current incentives.
Rate Comparison Table
| Mortgage Type | Best Rate (Broker) | Big 6 Bank Discounted | Typical Posted Rate |
|---|
| 3-Year Fixed | 3.64% | 4.21–4.77% | 5.69–6.13% |
| 5-Year Fixed | 3.84% | 4.42–4.72% | 6.09–6.12% |
| 5-Year Variable | 3.90% | 4.55–4.71% | N/A |
Actionable Next Steps and Recommendations
- Always compare rates from multiple lenders—including banks, brokers, and credit unions—to obtain the best offer.
- Consider a rate hold: Many lenders offer pre-approvals with rate holds for 90–120 days, protecting you if rates rise during your home search.
- Evaluate fixed vs. variable: With stable bond yields and a potential for further rate cuts, variable rates may become more attractive, but fixed rates offer certainty.
- Maximize incentives: If you’re a first-time buyer, ensure you’re leveraging all available federal and provincial programs.
- Use theratefinder: For a comprehensive, up-to-date rate comparison and access to the best rates from top Canadian lenders, start your application at theratefinder.ca/onboarding/email. The platform offers a multi-step application process and personalized solutions for residential, commercial, and construction mortgages.
Summary
Canadian mortgage rates in August 2025 are stable, with best rates for qualified borrowers in the 3.6–3.9% range for key terms. Rate outlook is mildly downward for the rest of 2025. Major banks and brokers are competitive, and government programs provide strong support—especially for first-time buyers. Comparing rates and incentives, and using platforms like theratefinder, will ensure you secure the best possible mortgage solution for your needs.