Best Mortgage Rates in Canada — June 2026
We track current mortgage rates from brokers, online lenders, and Big Six banks. Best 5-year fixed rate: 4.04% (insured). Best variable: 3.30%. Rates verified June 7, 2026.
Best Mortgage Rates in Canada — June 2026
Broker/online lender rates are available to qualified borrowers through licensed mortgage brokers. Big Six rates are posted branch rates — significantly higher. Always negotiate or use a broker.
| Term | Best broker/online rate | Big Six avg (posted) | Potential saving |
|---|---|---|---|
| 1-Year Fixed — Short commitment, higher rate | ~4.59% | ~5.49% | ~0.90% less |
| 2-Year Fixed | ~4.09% | ~5.19% | ~1.10% less |
| 3-Year Fixed | ~3.99% | ~5.09% | ~1.10% less |
| 5-Year Fixed — Most popular term | 4.04% | ~4.93% | ~0.89% less |
| 5-Year Variable — Prime - discount (P-1.15%) | 3.30% | ~4.50% | ~1.20% less |
| On a $500,000 mortgage (25yr amortization): 0.89% rate difference = ~$250/month savings, ~$75,000 over the mortgage life. Always compare before renewing. | |||
Rates approximate as of June 7, 2026 — verify current rates at broker websites before applying. Insured rates require ≥5% down payment and CMHC insurance. Advertiser disclosure.
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Fixed vs. Variable: Which Is Right for You?
With the BoC overnight rate at 2.25% and prime at 4.45%, here is how to think about the fixed vs. variable decision in the current environment:
Fixed Mortgage
- Rate is locked for the full term — payments never change regardless of BoC moves
- Best for: borrowers at or near their maximum affordability, anyone who values certainty
- Risk: if rates fall significantly, you miss the savings until renewal
- Currently: best 5-year fixed at 4.04%
Variable Mortgage
- Rate moves with prime — BoC cuts lower your payment immediately
- Best for: borrowers with flexibility, those who expect rates to fall further
- Risk: if BoC raises rates unexpectedly, payments increase
- Currently: best 5-year variable at 3.30% — lower than fixed today
The Mortgage Stress Test
All Canadian mortgage applicants must qualify at the higher of: their contract rate + 2%, or 5.25%. This means even with a rate of 4.04%, you must prove you can afford ~6.04%. Plan accordingly when calculating how much you can borrow.
Mortgage Frequently Asked Questions
What is the best mortgage rate in Canada right now?
As of June 7, 2026, the best 5-year fixed mortgage rate in Canada is approximately 4.04% (insured, available through mortgage brokers). Big Six banks average ~4.93% for the same term. Variable rates are available at approximately 3.30%. Rates vary significantly by mortgage type, down payment, amortization, and your personal qualification — use a broker or comparison site for a personalized rate.
Should I use a mortgage broker or go to my bank?
A mortgage broker almost always gets you a lower rate. Brokers access 30–350+ lenders simultaneously and are paid by lenders (not by you), so their service is free. Big Six banks quote their posted rates first — always negotiable, but brokers routinely beat them by 0.50–1.00%. The main advantage of going direct to your bank: existing relationship may simplify the application process for some borrowers.
What is the mortgage stress test?
The Canadian mortgage stress test requires you to qualify at the higher of: your contract rate + 2%, or 5.25%. So if your mortgage rate is 4.04%, you must prove you can afford payments at approximately 6.04%. The stress test applies to all insured mortgages and most uninsured mortgages. It reduces the maximum amount you can borrow by roughly 20% compared to qualifying at the actual rate.
How does the Bank of Canada rate affect my mortgage?
The Bank of Canada overnight rate (currently 2.25%) sets the prime rate (currently 4.45%). Variable-rate mortgages are priced as prime + or - a spread, so BoC rate cuts directly lower variable mortgage payments. Fixed-rate mortgages are tied to Government of Canada bond yields — they can move independently of BoC decisions, sometimes falling before a BoC cut if bond markets anticipate it.
What is CMHC mortgage insurance?
CMHC (Canada Mortgage and Housing Corporation) insurance is required for any home purchase with less than 20% down payment. It protects the lender, not you. The premium is 2.80%–4.00% of the mortgage amount (depending on your down payment), added to your mortgage and paid over the amortization. With 20%+ down, you avoid CMHC insurance entirely. Insured mortgages (less than 20% down) typically get the best rates because lenders carry less risk.
Disclaimer: NorthRate does not broker mortgages and is not a licensed mortgage broker. Rates shown are indicative and for educational purposes — verify current rates and your personal qualification with a licensed mortgage broker or lender. Rate data verified June 7, 2026. Not personalized financial advice. Full disclosure →