Typical Fixed Rates by Term
As of August 19, 2026, the Bank of Canada reported the typical posted conventional mortgage rates at the six major banks as follows: 5.49% for a 1-year term, 6.05% for a 3-year term, and 6.09% for a 5-year term. These are posted rates for conventional mortgages, which are typically uninsured.
Fixed-rate mortgages lock in an interest rate for the entire term, so your payment stays the same regardless of changes in the Bank of Canada's policy rate. Lenders may offer discounts off these posted rates, so your actual rate could be lower.
- 1-year fixed: 5.49%
- 3-year fixed: 6.05%
- 5-year fixed: 6.09%
Sources: Bank of Canada
Typical Variable Rates and Prime Rate
As of August 27, 2026, the Bank of Canada's target for the overnight rate was 2.25%, and the prime rate at major banks was 4.45% as of August 26, 2026. Variable-rate mortgages are typically priced as prime minus a discount or prime plus a premium. This means your rate changes when the prime rate changes.
Major lenders generally offer variable-rate mortgages with either variable or fixed payments. With a fixed-payment variable-rate mortgage, your payment amount stays the same, but if interest rates rise, more of your payment goes toward interest and less toward principal. There is a trigger rate at which your payment covers only the interest and none of the principal.
- Prime rate: 4.45% (August 26, 2026)
- Target for the overnight rate: 2.25% (August 27, 2026)
- Variable rates typically move with the prime rate.
Sources: Bank of Canada
Insured vs Uninsured Rate Differences
Why? Because the mortgage default insurance reduces the lender's risk, so they can offer a better rate. The Bank of Canada's posted rates for conventional mortgages (as shown above) are for uninsured mortgages, so they are typically higher than the rates you might be offered for an insured mortgage.
Lenders may also offer different rates depending on whether you are a new borrower or renewing an existing mortgage. Always ask your lender about the rate for both insured and uninsured options.
- Insured mortgages usually have lower rates.
- Conventional (uninsured) posted rates are typically higher.
Sources: Bank of Canada
How to Read the Table and What Affects Your Rate
The table below summarizes the typical posted rates from the Bank of Canada. These are posted rates, not necessarily the rates you will be offered. Your actual rate depends on your credit score, the size of your down payment, your loan-to-value ratio, and the lender's pricing policies.
The Bank of Canada's policy interest rate directly influences the prime rate that commercial banks use for loans such as mortgages. When the policy rate changes, prime rate and variable mortgage rates often change in the same direction. Fixed mortgage rates, on the other hand, are more influenced by bond yields and are less directly tied to the policy rate.
- The policy rate affects the prime rate and variable mortgage rates.
- Fixed rates are influenced by bond yields and market conditions.
- Your personal financial profile affects the rate you are offered.
| Term | Posted Rate |
|---|---|
| 1-year fixed | 5.49% |
| 3-year fixed | 6.05% |
| 5-year fixed | 6.09% |
Sources: Bank of Canada
How to Get a Personalized Rate Quote
To find the rate you are likely to qualify for, you need to get a personalized quote from a lender or mortgage broker. Each lender sets its own rates, and they may offer discounts off posted rates. You will typically need to provide information about your income, employment, credit history, and down payment.
Be sure to compare offers from multiple lenders, as rates can vary. Also, ask about both insured and uninsured options, and consider the term and rate type that best fits your financial situation.
- Get quotes from multiple lenders or a broker.
- Provide your financial details to receive a personalized rate.
- Compare both fixed and variable options.
Sources: Bank of Canada
Frequently asked questions
What is the current prime rate in Canada?
As of August 26, 2026, the prime rate at major Canadian banks was 4.45%, according to the Bank of Canada. The prime rate is the rate banks use to price variable-rate loans, including variable-rate mortgages.
Sources: Bank of CanadaHow often do mortgage rates change?
Mortgage rates can change at any time. Fixed rates may change in response to bond yields and market conditions, while variable rates typically change when the Bank of Canada adjusts its policy interest rate or when lenders change their prime rate. The Bank of Canada's target for the overnight rate was 2.25% as of August 27, 2026.
Sources: Bank of CanadaWhy do insured mortgages have lower rates?
Insured mortgages lower the lender's risk because the mortgage default insurance protects the lender if the borrower defaults. As a result, lenders typically offer a lower interest rate on insured mortgages compared to uninsured ones.
Sources: Bank of CanadaDo all lenders charge the same rate?
No, lenders set their own rates, and they may offer discounts off posted rates. The Bank of Canada publishes typical posted rates, but your actual rate will depend on the lender and your individual financial situation.
Sources: Bank of CanadaWhere can I find the most current rates?
The Bank of Canada publishes interest rates posted by major banks on its website, typically updated weekly. For the most current rates, you can also contact lenders directly or use a mortgage broker, who can provide quotes from multiple lenders. As of August 19, 2026, the Bank of Canada reported posted conventional mortgage rates for 1, 3, and 5-year terms, and the prime rate was 4.45% as of August 26, 2026.
Sources: Bank of CanadaSources
- Interest rates posted for selected products by the major chartered banks - Bank of Canada — Bank of Canada
- Daily Digest - Bank of Canada — Bank of Canada
- Understanding our policy interest rate — Bank of Canada
- Variable-rate mortgages with fixed payments: Examining trigger rates — Bank of Canada