Mortgage Rates in Canada Today

Frequently asked questions

What are mortgage rates in Canada today?

As of October 12, 2026, the prime rate in Canada is 4.45%, HomeCalc's reference rate for a typical 5-year fixed mortgage (20% or more down) is 5.15%, and a strong-credit HELOC is commonly prime + 0.50% (4.95%). To qualify, lenders stress-test you at the greater of your contract rate + 2.00% or 5.25% — 7.15% on a 5.15% rate. These are the reference rates HomeCalc uses in its calculators, refreshed weekly. The rate you're offered depends on your lender, credit, down payment, and whether your mortgage is insured or uninsured.

What is the prime rate in Canada right now?

The big banks' prime rate is 4.45% as of October 12, 2026. Banks set prime themselves, but it moves with the Bank of Canada's policy interest rate, which the Bank reviews on eight fixed announcement dates each year. Variable-rate mortgages and HELOCs are priced as prime plus or minus a margin, so their rates change when prime changes.

Is a fixed or variable mortgage rate better?

Neither is better for everyone. A fixed rate locks your payment for the term; a variable rate is prime plus or minus a discount and changes when prime moves. As of October 12, 2026, HomeCalc's reference rates are 5.15% for a typical 5-year fixed and about 4.60% for a 5-year variable on a conventional (20%+ down) mortgage. A lower variable rate today is not a promise about future payments, and breaking a fixed mortgage early usually costs more in penalties than breaking a variable one.

What are current home equity loan and HELOC rates in Canada?

A home equity line of credit (HELOC) is variable and quoted against prime. A common quote for strong credit at a major lender is prime + 0.50%, which is 4.95% with prime at 4.45%. Your own margin depends on the lender, your credit and your equity. A second mortgage or home equity loan from an alternative or private lender usually costs more than a bank HELOC.

Why is the insured mortgage rate lower than the uninsured rate?

When you put less than 20% down, the mortgage must carry default insurance (CMHC, Sagen or Canada Guaranty), which protects the lender, so lenders often price insured mortgages lower even though the borrower pays the premium. The lowest published insured 5-year fixed rate was 4.34% as of October 12, 2026, against HomeCalc's 5.15% reference for a typical conventional big-bank rate. Part of that gap is insurance, and part is best-in-market versus typical big-bank pricing.

What rate is used for the mortgage stress test?

You must qualify at the greater of your contract rate plus 2.00% or 5.25%. At HomeCalc's 5.15% reference rate, that is 7.15%. You don't pay the qualifying rate; lenders use it to check that your debt ratios would still work if rates rose.

Where are mortgage rates headed over the next 5 years?

HomeCalc does not forecast mortgage rates, and nobody can reliably predict them five years out. Variable rates follow the prime rate, which moves with the Bank of Canada's policy rate, announced on eight fixed dates each year on the Bank's published schedule. Fixed rates tend to follow Government of Canada bond yields. Instead of betting on a prediction, check that you could still afford your payment at the stress-test rate, and compare your options again at renewal.