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Rates are based on an average mortgage of $300,000
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 4.99% | 5.75% | 5.75% | 6.74% |
7.49%
|
| 2-year fixed rate | 6.09% | 5.64% | 5.64% | 6.24% |
7.09%
|
| 3-year fixed rate | 5.54% | 5.69% | 5.69% | 5.84% |
6.70%
|
| 4-year fixed rate | 5.39% | 5.49% | 5.49% | 5.49% |
6.49%
|
| 5-year fixed rate | 5.09% | 5.24% | 5.24% | 5.39% |
5.74%
|
| 7-year fixed rate | 5.49% | 5.44% | 5.44% | 5.85% |
6.70%
|
| 10-year fixed rate | 6.09% | 6.14% | 6.14% | 6.25% |
7.25%
|
| 3-year variable rate | 6.10% | 6.50% | 6.50% | N/A |
8.60%
|
| 5-year variable rate | 5.95% | 6.10% | 6.10% | 6.25% |
6.75%
|
| HELOC rate | 7.20% | 7.20% | 7.20% | 7.20% | N/A |
| Stress test | 6.99% | 7.24% | 7.24% | 5.25% | N/A |
Updated November 15, 2023
A mortgage is a loan generally taken on to buy a home, land or other real estate. The borrower or purchaser of the home agrees to pay a lender (often a bank) the principal amount plus interest over a set period of time. The property serves as collateral to secure the loan, should the borrower default.
A fixed rate mortgage or loan, also called a term loan, is where the interest rate stays fixed for the entire length of one term (which you and your lender agree upon).
A variable rate mortgage is where the interest rate may change periodically during the term of the mortgage, but the monthly payment of the borrower will remain the same. As a result, payments towards the principal of your mortgage can increase or decrease depending on the interest rate.
The choice of fixed or variable depends on your tolerance for interest rate fluctuations. In a low interest rate environment, a variable rate could save you a lot of money, however if you like knowing your payments will stay the same, regardless of interest rate fluctuations, fixed is ideal.
Within mortgages consumers can opt for closed or open mortgages. Closed mortgages penalize you for paying off all or part of your mortgage early whereas an open mortgage is flexible and allows you to increase your regular payments or pay a lump sum each year.
The most common amortization period is 25 years. As far as the big banks are concerned, the amortization period was historically 30 years for a borrower who made a minimum 20% down payment on their home.
But a stubborn inflation environment and continued high interest rates has changed the thinking on amortization periods. The Bank of Canada notes that homeowners are beginning to stretch their budgets by looking for mortgages with amortization periods beyond 25 years. In 2019, the share of buyers seeking longer time frames was at 34% and in 2022 the number rose from 41% to 46% – nearing half of all buyers. In some cases, they are now going as high as 40 years.
The Bank says: “A longer amortization period reduces the size of monthly payments, helping lower debt-servicing costs, but increases the period of household vulnerability because equity is built more slowly.”
Mortgage insurance or CMHC insurance is required for homeowners who purchase a home with a down payment of less than 20%. This insurance is meant to protect the lender, not you. The benefit is that it allows you to buy a home even if you have less than 20% of the purchase price saved for a down payment.
If you decide on purchasing a home with less than 20% of the down payment saved, you will need CMHC insurance.
BoC's Latest News
The BoC states that they are ready to raise their benchmark interest rate further in their notes of the deliberations surrounding the interest rate decision on July 12, which saw the policy rate rise 25 basis points to 5%. The next rate decision is scheduled to take place on September 6, 2023.
In the past year and a half, Canadians have seen interest rates go from historic lows to highs not seen in decades. This has had the effect of changing how buyers can qualify for mortgages and the stress tests placed on them to assess risk.
The federal government introduced the stress test back in 2016 for mortgage holders who were making a down payment of between 5% and 19% and were required to purchase mortgage default insurance. In 2018, the Office of the Superintendent of Financial Institutions – the government agency that regulates federally incorporated lenders – changed the stress test to include buyers who make a down payment of at least 20 per cent and are uninsured.
The most recent changes introduced a new mortgage qualifying rate for all uninsured and insured mortgage applications submitted on or after June 1, 2021. Buyers must prove they can handle payments based on either the benchmark rate of 5.25% or the rate offered by your lender plus 2% – whichever is higher.
But even with more stringent requirements getting the best mortgage rates requires five main things:
Credit score– This will show lenders your trustworthiness and how likely you are to pay down debt
Down payment – The more you save and have for a down payment, the lower your rate may be. Lenders want to reduce risk and so if you have more to put down towards your house, the more you may get a lower rate.
Type of rate – If you choose a fixed rate mortgage your payment and rate will stay the same throughout your full term. A variable rate mortgage will fluctuate based on the prime lending rate set by the lender.
Mortgage loan term – Choosing fixed rate mortgages can allow you to lock into lower rates if, for example, you choose a 5-year term versus a shorter 1-year term.
Personal Income – Mortgage lenders will want to know you have the ability to pay your mortgage and your debt to income ratio (percentage that evaluates your debt compared to your gross income) can sustain payments
Appraisal Value – Appraisals can change the value of the home you are purchasing and ultimately your mortgage rate. If you’ve saved 20% for a downpayment and then the appraiser values the home less than you thought, your downpayment becomes less than 20%, which could affect the risk factor and mortgage rate your lender would be willing to provide.
The best mortgage rates change weekly and RATESDOTCA tracks them all.
But getting the true best mortgage rate isn’t as simple as it seems. That’s because, contrary to popular opinion, the best mortgage rate is often not the lowest mortgage rate. The best mortgage rate is one that minimizes your overall borrowing costs. You can virtually never know that by merely looking at the rate itself. Prudent mortgage research entails more of a process.
It starts with finding the lowest mortgage rates for the most suitable term. That serves as your “shortlist” of mortgage options. You can then review the conditions and features that apply to each rate until you find a mortgage that checks all your boxes.
Getting an online mortgage can be a great option for consumers who prefer a fully digital experience – from approval to renewal – compared to an in-person transaction at a traditional financial institution.
If you’re considering that approach, be aware of the advantages and disadvantages:
Buying your first home can be stressful. It’s likely the largest investment you’ll ever make. Here are some helpful mortgage tips to relieve some of that stress.
Ever since Canada saw a steady rise in inflation, the Bank of Canada has been raising rates. This began in March 2022 and continued up until July 2023, which amounts to 10 rate hikes.
The most recent rate increase from the Bank of Canada saw its benchmark interest rate go up by 25 basis points, marking the first time since April 2001 that the figure hit five per cent.
The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.
| Year | Conventional Mortgage - 5 Year | Conventional Mortgage - 3 Year | Conventional Mortgage - 1 Year | Prime Rate |
|---|---|---|---|---|
| 2023-12-06 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-29 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-22 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-15 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-08 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-11-01 | 7.04% | 7.24% | 8.09% | 7.20% |
| 2023-10-25 | 7.04% | 7.14% | 8.09% | 7.20% |
| 2023-10-18 | 7.04% | 7.14% | 8.09% | 7.20% |
| 2023-10-11 | 7.04% | 7.14% | 8.09% | 7.20% |
| 2023-10-04 | 7.04% | 7.14% | 7.84% | 7.20% |
| 2023-09-27 | 6.84% | 7.04% | 7.79% | 7.20% |
| 2023-09-20 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-09-13 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-09-06 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-08-30 | 6.84% | 7.04% | 7.89% | 7.20% |
| 2023-08-23 | 6.79% | 6.89% | 7.89% | 7.20% |
| 2023-08-16 | 6.79% | 6.89% | 7.79% | 7.20% |
| 2023-08-09 | 6.79% | 6.89% | 7.79% | 7.20% |
| 2023-08-02 | 6.79% | 6.95% | 7.79% | 7.20% |
| 2023-07-26 | 6.49% | 6.54% | 7.49% | 7.20% |
| 2023-07-19 | 6.49% | 6.54% | 7.49% | 7.20% |
| 2023-07-12 | 6.49% | 6.54% | 7.69% | 6.95% |
| 2023-07-05 | 6.49% | 6.74% | 7.14% | 6.95% |
| 2023-06-28 | 6.49% | 6.54% | 7.14% | 6.95% |
| 2023-06-21 | 6.49% | 6.40% | 6.94% | 6.95% |
| 2023-06-14 | 6.49% | 6.40% | 6.94% | 6.95% |
| 2023-06-07 | 6.49% | 6.40% | 6.94% | 6.70% |
| 2023-05-31 | 6.49% | 6.24% | 6.34% | 6.70% |
| 2023-05-24 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-05-17 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-05-10 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-05-03 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-26 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-19 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-12 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-04-05 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-03-29 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-03-22 | 6.49% | 6.14% | 6.29% | 6.70% |
| 2023-03-15 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-03-08 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-03-01 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-22 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-15 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-08 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-02-01 | 6.49% | 6.14% | 6.34% | 6.70% |
| 2023-01-25 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2023-01-18 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2023-01-11 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2023-01-04 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-28 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-21 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-14 | 6.49% | 6.14% | 6.34% | 6.45% |
| 2022-12-07 | 6.49% | 6.05% | 6.09% | 5.95% |
| 2022-11-30 | 6.49% | 6.14% | 6.09% | 5.95% |
| 2022-11-23 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-11-16 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-11-09 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-11-02 | 6.49% | 6.04% | 6.09% | 5.95% |
| 2022-10-26 | 6.49% | 6.04% | 6.09% | 5.45% |
| 2022-10-19 | 6.49% | 6.04% | 6.09% | 5.45% |
| 2022-10-12 | 6.14% | 6.04% | 6.09% | 5.45% |
| 2022-10-05 | 6.14% | 6.04% | 6.09% | 5.45% |
| 2022-09-28 | 6.14% | 5.74% | 5.69% | 5.45% |
| 2022-09-21 | 6.14% | 5.64% | 5.69% | 5.45% |
| 2022-09-14 | 6.14% | 5.64% | 5.39% | 5.45% |
| 2022-09-07 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-31 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-24 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-17 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-10 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-08-03 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-07-27 | 6.14% | 5.64% | 5.19% | 4.70% |
| 2022-07-20 | 6.04% | 5.39% | 4.74% | 4.70% |
| 2022-07-13 | 6.04% | 5.39% | 4.74% | 3.70% |
| 2022-07-06 | 6.04% | 5.39% | 4.74% | 3.70% |
| 2022-06-29 | 6.04% | 5.39% | 4.74% | 3.70% |
| 2022-06-22 | 6.04% | 5.24% | 4.69% | 3.70% |
| 2022-06-15 | 5.64% | 4.89% | 4.29% | 3.70% |
| 2022-06-08 | 5.39% | 4.49% | 3.79% | 3.70% |
| 2022-06-01 | 5.39% | 4.49% | 3.79% | 3.20% |
| 2022-05-25 | 5.39% | 4.49% | 3.79% | 3.20% |
| 2022-05-18 | 4.99% | 4.39% | 3.49% | 3.20% |
| 2022-05-11 | 4.99% | 4.39% | 3.49% | 3.20% |
| 2022-05-04 | 4.99% | 4.09% | 3.29% | 3.20% |
| 2022-04-27 | 4.99% | 4.09% | 3.29% | 3.20% |
| 2022-04-20 | 4.99% | 3.89% | 3.09% | 3.20% |
| 2022-04-13 | 4.79% | 3.89% | 3.09% | 2.70% |
| 2022-04-06 | 4.79% | 3.89% | 3.09% | 2.70% |
| 2022-03-30 | 4.79% | 3.69% | 2.99% | 2.70% |
| 2022-03-23 | 4.79% | 3.49% | 2.94% | 2.70% |
| 2022-03-16 | 4.79% | 3.49% | 2.79% | 2.70% |
| 2022-03-09 | 4.79% | 3.49% | 2.79% | 2.70% |
| 2022-03-02 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-23 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-16 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-09 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-02-02 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-26 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-19 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-12 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2022-01-05 | 4.79% | 3.49% | 2.79% | 2.45% |
| 2021 | 4.79% | 3.49% | 3.09% | 2.45% |
| 2020 | 5.19% | 3.94% | 3.64% | 3.95% |
| 2019 | 5.34% | 4.29% | 3.64% | 3.95% |
| 2018 | 4.99% | 3.74% | 3.24% | 3.20% |
| 2017 | 4.64% | 3.39% | 3.14% | 2.70% |
| 2016 | 4.64% | 3.39% | 3.14% | 2.70% |
| 2015 | 4.79% | 3.44% | 3.14% | 3.00% |
| 2014 | 5.34% | 3.95% | 3.14% | 3.00% |
| 2013 | 5.24% | 3.70% | 3.00% | 3.00% |
| 2012 | 5.29% | 4.05% | 3.50% | 3.00% |
| 2011 | 5.19% | 4.15% | 3.35% | 3.00% |
| 2010 | 5.49% | 4.25% | 3.60% | 2.25% |
| 2009 | 6.75% | 6.25% | 5.60% | 3.50% |
| 2008 | 7.54% | 7.55% | 7.35% | 6.00% |
| 2007 | 6.45% | 6.40% | 6.30% | 6.00% |
| 2006 | 6.30% | 6.00% | 5.80% | 5.00% |
| 2005 | 6.05% | 5.60% | 4.80% | 4.25% |
| 2004 | 6.35% | 5.80% | 4.75% | 4.50% |
| 2003 | 6.70% | 6.00% | 4.90% | 4.50% |
| 2002 | 6.85% | 5.75% | 4.60% | 4.00% |
| 2001 | 7.95% | 7.80% | 7.70% | 7.50% |
All rates presented in this table are the most typical of those offered by the six major Canadian chartered banks in the beginning of each year.
Source: Bank of Canada
Have more questions about getting a mortgage in Canada? Get your answers here...
The first place to get the lowest and best mortgage rates in Canada is RATESDOTCA. We will help you compare mortgage rates in Canada and quickly provide quotes as you embark on home ownership.
You can also speak with mortgage brokers who are working for you and will bring you the best rates from a variety of competing lenders. They are not employed by lenders and are required to advise and help you find the best mortgage rates in Canada.
Everyone is different and operates in different circumstances. If you prefer to know your payments regardless of interest rate fluctuations, then a fixed-rate mortgage is best for you. If you can tolerate market fluctuations, perhaps a variable rate mortgage would suit you. It’s best to talk to your lender about options and what makes sense based on your financial means.
A high-ratio mortgage is when you make a down payment of less than 20%. This means you have a loan-to-value ratio of more than 80% form your lender. When this occurs, you will be required to take CMHC insurance to protect the lender.
Sites like RATESDOTCA can offer you comparison rates from a variety of lenders and usually provide the lowest rates available. Mortgage brokers can also provide advice and comparisons from a variety of lenders for the best mortgage rates in Canada.
The main predictor for interest rate, and mortgage rate changes, is by looking at the Government of Canada 5-Year bond yield. Currently, the Yield is pricing in a pause for interest rate hikes in 2023 as inflation numbers have come down from a peak of 8.1% to 3.4%. The market is also pricing in an interest rate drop, perhaps in the summer of 2024.
The next Bank of Canada meeting an announcement on interest rates will take place in September, which may give an indication of how things will go up to the end of 2023.
The best default insured rates (for people with down payments less than 20%) are typically quoted by mortgage brokers. The best uninsured rates, especially for borrowers with less than 20% down payments, generally come from banks. Some of the most competitive conventional lenders are the new e-banks, which we display in our rate tables.
This Mortgage Payment Calculator shows you your payments and amortization for any rate(s) you find on this website. You can even assume lump-sum prepayments to estimate how much faster you’ll be able to pay down your loan.
Restricted mortgages (a.k.a. “low frills mortgages") have boomed in popularity the last five years. Lenders realize that consumers want the lowest rate, so they’ve tried to strip out features from their mortgages to get the pricing lower. For some borrowers who plan no financing changes for five years, low-frills mortgages may make sense. For most Canadians, the small rate savings isn’t worth the much higher potential costs after closing. Those costs can bite you if you break, port, increase or otherwise refinance before your mortgage maturity date. Hence, for the majority of homeowners, it’s worth the small premium for a “full-featured” mortgage
Generally, not. The lowest rates in Canada are typically offered on default insured mortgages. Those are for people who put down less than 20% on their home purchase. Low insured rates are also available to people who transfer their already-insured mortgage to a new lender. Those who put down 20% or more get conventional rates, which are usually (but not always) higher than insured rates. Occasionally, however, someone putting down 35% or more on a home purchase under $1 million can get great rates similar to high-ratio rates.
*Based on the difference between estimated deep-discount 5-year fixed rates from Canada's top six banks and the lowest comparable rates on RATESDOTCA, as of January 14, 2022.
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