Canada Mortgage Rates August 27 , 2025
🇨🇦 Today’s Mortgage Rates
A real-time look at the key indicators and best available mortgage rates from across the Canadian market. All data is updated daily.
Bank of Canada Rate
2.75%
Anchors variable mortgage rates
Major Bank Prime Rate
4.95%
Benchmark for variable loans
5-Yr Gov Bond Yield
~3.4%
Influences fixed mortgage rates
Best 5-Year Fixed Insured Rates
| Rate | Details | Action |
|---|---|---|
| 4.09 % | Standard | Get Best Rates |
| 4.14 % | 5 Year Promo Rate (60 day) | Get Best Rates |
| 4.24 % | No Frills | Get Best Rates |
| 4.24 % | Insured Lender Switch | Get Best Rates |
| 4.29 % | Temporary Residents | Get Best Rates |
Best 5-Year Variable Insured Rates
| Rate | Details | Action |
|---|---|---|
| 4.20 % | Standard | Get Best Rates |
| 4.25 % | Standard (Bundled Pricing) | Get Best Rates |
| 4.25 % | Insured Lender Switch | Get Best Rates |
| 4.25 % | 5 Year ARM Promo | Get Best Rates |
| 4.30 % | Standard Rates (90 day) | Get Best Rates |
Best 3-Year Fixed Insured Rates
| Rate | Details | Action |
|---|---|---|
| 3.69 % | 3 Year Quick Close Promo | Get Best Rates |
| 4.24 % | Insured Lender Switch | Get Best Rates |
| 4.29 % | Standard | Get Best Rates |
| 4.29 % | Insured Transfer | Get Best Rates |
| 4.29 % | Standard – Purchase | Get Best Rates |
Best 3-Year Variable Insured Rates
| Rate | Details | Action |
|---|---|---|
| 4.15 % | Standard | Get Best Rates |
| 4.70 % | Standard – High Ratio | Get Best Rates |
| 4.95 % | Standard | Get Best Rates |
Best 5-Year Fixed Conventional Rates
| Rate | Details | Action |
|---|---|---|
| 4.44 % | Standard – $1M+ | Get Best Rates |
| 4.44 % | 5 Year Promo Rate (60 day) | Get Best Rates |
| 4.44 % | Conventional Insurable | Get Best Rates |
| 4.49 % | TD Flexline Term Portion | Get Best Rates |
| 4.54 % | Front Line Program | Get Best Rates |
Best 5-Year Variable Conventional Rates
| Rate | Details | Action |
|---|---|---|
| 4.45 % | Conventional Insurable | Get Best Rates |
| 4.50 % | Standard | Get Best Rates |
| 4.50 % | Variable | Get Best Rates |
| 4.55 % | Standard – $1M+ | Get Best Rates |
| 4.59 % | TD Flexline Term Portion | Get Best Rates |
What’s Driving the Rates?
Mortgage rates are shaped by powerful economic forces. This section breaks down the three key drivers: the Bank of Canada’s policy, the government bond market, and inflation. Use the tabs below to explore how each component influences the rate you’re offered.
The Conductor: Bank of Canada & Prime Rate
The Bank of Canada (BoC) sets the “Policy Interest Rate” to control inflation. This rate directly influences the “Prime Rate” at commercial banks. When the BoC changes its rate, prime rates change almost immediately.
How it affects you: Your variable-rate mortgage is priced as ‘Prime +/- a discount’. So, when the BoC moves, your interest cost changes.
Your Mortgage Toolkit
Making the right choice requires the right tools. This section provides interactive elements to help you compare your options, understand key regulations, and calculate what you can truly afford.
Fixed vs. Variable: Which is Right for You?
This is the biggest decision for most borrowers. Use the toggle to see a direct comparison of features, risks, and benefits for each type. The content will update to highlight the key points for your selection.
The Mortgage Stress Test Calculator
In Canada, you must qualify at a rate higher than your actual contract rate. This “stress test” reduces your borrowing power. Enter your details below to find your qualifying rate and see its impact.
Finding the Right Lender
The Canadian mortgage market has options beyond the big banks. Understanding the different tiers of lenders—’A’, ‘B’, and Private—is key to finding a solution that fits your financial profile, especially if you don’t fit the traditional mold.
‘A’ Lenders
(Prime)
Includes major banks and credit unions. They offer the lowest rates but have the strictest requirements.
- Best For: Strong, stable income & excellent credit.
- Credit Score: Typically 680+
- Rates: Most competitive (e.g., 4-5%)
- Fees: Generally none.
‘B’ Lenders
(Alternative)
Specialty lenders for those who don’t meet ‘A’ criteria. A strategic short-term bridge to improve your profile.
- Best For: Self-employed, bruised credit, new to Canada.
- Credit Score: Flexible (e.g., 600-680)
- Rates: Higher (e.g., 5.5-7.5%)
- Fees: 1-2% of loan amount is common.
Private Lenders
(‘C’ Lenders)
A last resort option. These are individuals or companies funding mortgages from their own capital, focusing on property value over borrower profile.
- Best For: Urgent needs, significant credit issues.
- Credit Score: Often not a primary factor.
- Rates: Highest (e.g., 7-13%+)
- Fees: Lender & broker fees are standard.
Outlook & Historical Context
Understanding where rates have been and where experts think they’re going provides crucial perspective for your long-term financial planning. While today’s rates feel high, history shows a much wider range.
Historical 5-Year Fixed Mortgage Rates by Decade
This chart illustrates the dramatic journey of Canadian mortgage rates, from the extreme highs of the 1980s to the record lows post-2008. It highlights the cyclical nature of rates and provides context for the current market environment.
