Evaluate Canada’s best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms.
|Insured||80% LTV||65% LTV||Uninsured||Editor's Tips|
Canada's rate market has never been this flat for this long. Bond yields — which influence fixed mortgage rates — just keep drifting sideways in a quarter-point range, as they have for nine months. That's a remarkable historical anomaly.
The Bank of Canada's overnight rate, which underpins variable mortgage rates, is just as flat.
But make no mistake, there is pent-up demand ahead from a locked-down economy that's coiling like a spring. We just have to play the waiting game as people slowly get vaccinated. The more who do, the closer we get to that first Bank of Canada rate hike. That's the consensus economist view, anyway — to the extent you put faith in economists.
The predictions that follow are based on Bank of Canada forecasts and implied (future or forward) rates in the bond market. Take them all with a grain of salt because a lot can change over the course of years.
The 5-year fixed (insured, insurable or uninsured)
The 1-year fixed (insured or insurable purchases and switches only)
The 5-year variable (insured purchases only)
Glossary: Insured: A mortgage that has customer-paid default insurance (typically purchases with less than a 20% down payment); Insurable: A mortgage that has lender-paid default insurance and 20% equity or more; Uninsured: A mortgage without default insurance (this includes all refinances, all amortizations over 25 years, purchases of properties over $1 million, non-owner-occupied rental properties and other mortgages not meeting default-insurance rules).
Most benchmark rates were little changed last month. These values are as of February 1, 2021:
*Lowest nationally available mortgage rates.
The economy remains fragile to say the least. Here are the main indicators worth watching: