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Best Mortgage Rates in Canada

Compare mortgage rates from top Canadian lenders. Find the best rates and terms for your home purchase or refinance.

R

RBC

Rate
5.49%
5-year fixed
Fees
$0 application fee
Pros
  • No application fee
  • Pre-approval in 24 hours
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All Pros
  • No application fee
  • Pre-approval in 24 hours
  • Flexible payment options
Cons
  • Higher rates for self-employed
  • Strict income verification
T

TD Bank

Rate
5.39%
5-year fixed
Fees
$0 application fee
Pros
  • Competitive rates
  • Online application
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All Pros
  • Competitive rates
  • Online application
  • Rate hold for 120 days
Cons
  • Limited branch hours
  • Prepayment penalties
S

Scotiabank

Rate
5.44%
5-year fixed
Fees
$350 appraisal fee
Pros
  • First-time buyer programs
  • Cashback options
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All Pros
  • First-time buyer programs
  • Cashback options
  • Skip-a-payment feature
Cons
  • Appraisal fee required
  • Higher variable rates

How to Choose the Best Mortgage in Canada

Choosing the right mortgage is one of the most important financial decisions you'll make. With rates varying between lenders and mortgage types, it's crucial to compare your options carefully. Fixed-rate mortgages offer stability with consistent payments throughout your term, while variable-rate mortgages can provide savings when rates are declining.

Consider your financial situation, risk tolerance, and long-term plans. If you value predictability and plan to stay in your home long-term, a fixed-rate mortgage might be best. If you're comfortable with some uncertainty and believe rates will drop, a variable-rate mortgage could save you thousands over the life of your loan.

Understanding Mortgage Rates in 2026

Mortgage rates in Canada are influenced by the Bank of Canada's policy rate, economic conditions, and lender competition. In 2026, rates have stabilized after the volatility of previous years, with 5-year fixed rates typically ranging from 5.39% to 5.79% depending on your down payment, credit score, and the lender you choose.

Big banks like RBC, TD, and Scotiabank often have higher advertised rates but may offer better service and more flexible terms. Credit unions and online lenders frequently offer lower rates but may have stricter qualification requirements. Shopping around can save you 0.25% to 0.50% on your rate, which translates to thousands of dollars over a 25-year amortization.

Fixed vs Variable Mortgage Rates

Fixed-rate mortgages lock in your interest rate for the entire term (typically 1-5 years), protecting you from rate increases. This makes budgeting easier and provides peace of mind. Variable-rate mortgages fluctuate with the prime rate, which means your payments can change throughout your term. Historically, variable rates have been lower than fixed rates about 70% of the time.

The choice depends on your risk tolerance and market outlook. If you expect rates to rise or want payment certainty, choose fixed. If you believe rates will stay stable or decline, and you can handle payment fluctuations, variable might save you money. Some borrowers split the difference with a combination mortgage, putting part of their loan at a fixed rate and part at a variable rate.

Frequently Asked Questions

What credit score do I need for the best mortgage rates?

Most lenders offer their best rates to borrowers with credit scores of 680 or higher. Scores above 740 typically qualify for the absolute best rates. If your score is below 680, you may still qualify but at a higher rate, or you might need to work with alternative lenders.

Should I get pre-approved before house hunting?

Yes, absolutely. Pre-approval shows sellers you're a serious buyer, helps you understand your budget, and locks in your rate for 90-120 days. This protects you if rates rise while you're shopping for a home. Pre-approval is free and doesn't commit you to that lender.

Can I negotiate my mortgage rate?

Yes! Advertised rates are often negotiable, especially if you have good credit, a large down payment, or are bringing multiple products to the lender (like a checking account or investments). Don't be afraid to ask for a better rate or to use competing offers as leverage.

What's the difference between a mortgage broker and a bank?

Banks offer their own mortgage products, while brokers work with multiple lenders to find you the best rate and terms. Brokers are typically free for borrowers (they're paid by lenders) and can save you time by shopping around on your behalf. However, banks may offer relationship discounts if you have other accounts with them.

How much can I save by comparing mortgage rates?

Even a 0.25% difference in your mortgage rate can save you thousands over the life of your loan. On a $500,000 mortgage with a 25-year amortization, a 0.25% lower rate saves you approximately $15,000 in interest. Always compare at least 3-5 lenders before making your decision.

Tips for Getting the Best Mortgage Rate

  • Improve your credit score before applying - pay down debts and fix any errors on your credit report
  • Save for a larger down payment - 20% or more eliminates CMHC insurance and qualifies you for better rates
  • Compare rates from at least 3-5 lenders including banks, credit unions, and online lenders
  • Consider a shorter amortization period - 20 years instead of 25 can save you tens of thousands in interest
  • Get pre-approved to lock in your rate for 90-120 days while you shop for a home
  • Negotiate with lenders - advertised rates are often just starting points
  • Time your mortgage renewal carefully - start shopping 120 days before your term ends
  • Consider making accelerated bi-weekly payments to pay off your mortgage faster