Bank of Canada 5-Year Conventional Mortgage Rate
6.19%
5-Year Conventional Mortgage Rate
Observation date: 2026-10-14
Source: Bank of Canada
Why We Use a Bank of Canada Reference Rate
Individual lender offers can change frequently and depend on factors such as mortgage insurance, loan-to-value ratio, credit profile, property type and term features. The Bank of Canada series above is a public reference point, not a promise of the rate a borrower will receive. Always verify a current offer directly with lenders or a licensed mortgage professional.
Understanding Mortgage Rates
Reference Rates vs. Actual Mortgage Offers
The Bank of Canada series above is a public benchmark, not a lender quote. The rate offered to a borrower can differ materially based on:
- Your credit score (higher is better)
- Down payment and loan-to-value ratio
- Whether the mortgage is insured or uninsured
- Term length, fixed or variable structure, and product features
- Current lender pricing and market conditions
Types of Mortgage Rates
Fixed Rate
Your rate stays the same for the entire term (typically 1-5 years). Provides payment stability and protection against rate increases.
Variable Rate
Your rate is generally linked to the lender's prime rate and can increase or decrease during the term. Compare the actual variable spread with available fixed offers.
Hybrid/Combination
Split your mortgage between fixed and variable rates. Helps balance stability with potential savings from variable rates.
What Affects Your Mortgage Rate?
Key Factors
- Credit Profile: Credit history and overall borrower risk can affect eligibility and pricing
- Down Payment / Loan-to-Value: The loan-to-value ratio and whether the mortgage is insured can affect pricing; insured mortgages can sometimes receive lower contract rates even though insurance premiums add cost
- Income & Employment: Stable, documented income preferred
- Property Type: Lender pricing and eligibility can differ for owner-occupied, rental and other property types
- Amortization: Available pricing and qualification can vary by amortization and mortgage type
- Term Length: Rates and features vary by term; compare total cost, flexibility and renewal risk rather than assuming one term is always best
- Mortgage Type: Insured mortgages sometimes have lower rates
How to Compare Mortgage Offers
1
Shop Around
Don't accept the first offer. Compare rates from multiple banks and use a mortgage broker to access more lenders.
2
Improve Your Credit Score
Pay bills on time, reduce credit card balances, and fix any errors on your credit report before applying.
3
Increase Your Down Payment
A larger down payment lowers the amount you need to borrow. At 20% down, borrower-paid high-ratio mortgage insurance is generally not required, but the lowest advertised contract rate is not always the lowest total-cost option.
4
Negotiate
Ask whether the lender can improve the quoted rate or fees, and compare written offers using the same term, mortgage type and features.
5
Consider Rate Holds
Ask lenders about rate-hold periods and their float-down policy. The length of the hold and whether a lower rate is automatically available can vary by lender and product.
6
Bundle Services
Some lenders offer relationship pricing or bundled products. Compare the mortgage terms and any bundle requirements rather than the rate alone.
Fixed vs. Variable: What to Compare
| Factor |
Fixed Rate |
Variable Rate |
| Payment Stability |
Rate is fixed for the term; scheduled payments are typically stable under the contract |
Rate changes; the payment or amortization can change depending on the mortgage product |
| Starting Rate |
May be above or below a comparable variable offer |
May be above or below a comparable fixed offer |
| Interest Savings |
Cost depends on the rate path and term selected |
Cost depends on prime-rate changes and product terms |
| Risk Level |
More payment/rate certainty during the term |
More exposure to rate changes |
| Best For |
Borrowers who prioritize rate certainty |
Borrowers comfortable with rate variability |
| Prepayment Penalty |
Formula depends on the lender and mortgage contract; fixed mortgages may use an interest-rate-differential calculation in some cases |
Formula depends on the lender and mortgage contract; review the actual prepayment clause before choosing a product |
Rate Trends and Predictions
Mortgage rates are influenced by several factors:
- Bank of Canada Policy Rate: The overnight rate directly impacts variable rates and indirectly affects fixed rates
- Bond Yields and Funding Costs: Fixed mortgage pricing is often influenced by Government of Canada bond yields, lender funding costs and competition
- Economic Conditions: Inflation, employment, GDP growth all affect rate decisions
- Global Markets: International economic conditions influence Canadian rates
- Competition: Lender competition can drive rates lower
Important Note on Rate Predictions
Future mortgage rates are uncertain. Forecasts can change as inflation, bond yields, economic conditions and Bank of Canada policy evolve. Compare more than one rate scenario and choose mortgage terms that fit your budget, timeline and tolerance for payment or renewal risk.
Other Lenders to Consider
Mortgage offers can come from several types of lenders and channels:
- Banks and federal credit unions: Offer mortgages directly under their own underwriting and product rules
- Provincial credit unions: Offer mortgage products under the rules and pricing applicable to their institution and province
- Mortgage finance companies and other lenders: May offer products through direct or broker channels
- Mortgage brokers: May provide access to multiple lenders and product types; lender access, compensation and any borrower-paid fees can vary
Ready to Calculate Your Mortgage?
Use our free calculators to estimate your payments and see how different rates affect your affordability.
Payment Calculator
Pro Tips for Rate Shopping
- Get pre-approved before house hunting to know your budget
- Ask how mortgage-shopping credit inquiries may be treated by the credit bureau/scoring model used
- Don't just focus on rate - consider prepayment privileges, portability, and penalties
- Ask whether the offered rate, fees or features can be improved before accepting the commitment
- If using a mortgage broker, ask which lenders they can access and whether any broker or lender fees apply
- Read the fine print - some low rates come with restrictions
Frequently Asked Questions
Why are posted rates higher than what people actually pay?
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A lender's posted or reference rate may differ from the rate offered for a specific mortgage. Discounts and pricing depend on the lender, product, loan-to-value ratio, insurance status, borrower profile and market conditions. Compare actual offers using the same term and features rather than relying on a fixed discount from a posted rate.
How often do mortgage rates change?
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Fixed mortgage pricing can change as bond yields, funding costs and lender pricing change. Variable mortgage rates are usually linked to a lender's prime rate, which can change around Bank of Canada policy-rate decisions, although each lender sets its own prime rate and product spread.
Should I lock in a rate now or wait?
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Whether to accept a rate now or wait depends on your purchase or renewal timeline, budget, risk tolerance and the terms being offered. Ask each lender about its rate-hold period, expiry date, float-down policy and any conditions, because these vary by lender and product.
What's a good mortgage rate in Canada right now?
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A competitive mortgage rate depends on the same-date offers available for your mortgage type, term, insurance status, loan-to-value ratio and borrower profile. Compare several like-for-like offers and also review penalties, prepayment privileges, portability, fees and restrictions — not just the headline rate.
Can I negotiate my mortgage rate?
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Some lenders have flexibility on pricing or may respond to competing offers, while others use more standardized pricing. It is reasonable to ask whether a better rate or fee structure is available and to compare the complete mortgage terms before accepting an offer.
The Bank of Canada value shown above is a public reference series, not a lender offer. Verify current mortgage pricing and terms directly with lenders or a licensed mortgage professional.