Find the Best Mortgage Rates In Canada
5-year fixed*
3.61%
5-year Varible*
3.87%
Canada's Big 6 Banks Mortgage Rates
Below are the current mortgage rates offered by Canada’s Big 6 banks as of February 11, 2025. Please note that these rates are subject to change and may vary based on individual circumstances.
| Bank | 5-Year Fixed | 5-Year Variable | 3-Year Fixed |
|---|---|---|---|
| RBC Royal Bank | 4.59% | 4.75% (Prime – 0.45%) | 4.64% |
| TD Bank | 4.74% | 4.84% (Prime – 0.36%) | 4.59% |
| Scotiabank | 4.69% | 4.50% (Prime – 0.70%) | 4.64% |
| BMO | 4.49% | 4.80% (Prime – 0.40%) | 4.30% |
| CIBC | 4.49% | 4.40% (Prime – 0.80%) | 4.79% |
| National Bank | 4.84% | 4.70% (Prime – 0.50%) | 4.89% |
| Bank | 5-Year Fixed | 5-Year Variable | 3-Year Fixed |
|---|---|---|---|
|
3.61% |
3.87% |
3.94% |
Understanding Mortgage Rates
When comparing mortgage rates, it’s important to consider both fixed and variable rates:
Fixed Rates: The interest rate remains constant for the term of the mortgage.
Variable Rates: The interest rate can fluctuate based on the bank’s prime rate. They are often expressed as “Prime +/- X%”. This is why most people complain when the Bank of Canada raises their rates.
Mortgage Rate Trends: Canada’s Housing Market Update for February 12, 2025
Are you navigating the complex world of Canadian mortgages? Whether you’re a first-time homebuyer or considering refinancing, staying informed about the latest mortgage rate trends is crucial in Canada’s ever-changing real estate market.
Fixed-Rate Mortgages: A Slight Dip
Good news for homebuyers! The average 5-year insured fixed mortgage rate has decreased to 4.87%, dropping 8 basis points from last week and 5 basis points from last month. This trend could mean significant savings over the life of your loan.
For those looking at shorter terms, the 3-year fixed-rate insured mortgage is now at 5.32%, showing a 9 basis point decrease both weekly and monthly. This option might be attractive if you’re expecting rates to drop further in the near future.
Variable-Rate Mortgages: Mixed Signals
The 5-year variable and adjustable mortgage rates have seen a slight uptick, rising 1 basis point to 4.87%. However, they’re still 21 basis points lower than a month ago, indicating an overall downward trend.
Meanwhile, 3-year variable and adjustable rates remain steady at 5.68%, unchanged from last week but down 25 basis points from last month. This stability might appeal to those comfortable with some rate fluctuation.
Understanding Basis Points
Remember, 1 basis point equals 0.01%. So, when you see a change of 8 basis points, that’s a 0.08% difference in your mortgage rate – which can add up to substantial savings over time!
What This Means for You
These rate changes can significantly impact your mortgage payments and long-term financial planning. Whether you’re a first-time homebuyer or looking to refinance, it’s crucial to stay informed and consider all your options.
For personalized advice and competitive rates, consider reaching out to Canada Home Ownership.
Stay tuned for more updates from trusted sources like the Bank of Canada and Canada Mortgage and Housing Corporation (CMHC). Their insights can help you make informed decisions in Canada’s ever-changing housing market.
Remember, the right mortgage can save you thousands over the years. Don’t hesitate to explore your options and find the best fit for your homeownership dreams!
Mortgage Industry Insights
On February 13th, the Bank of Canada (BoC) maintained Canada’s target overnight policy rate at 5%, keeping mortgage lender’s prime rates steady at 7.20%. Our mortgage rate forecast predicts that improving economic conditions into 2025 may prompt the Bank of Canada to lower rates to 4.50%. Read the Bank of Canada’s press release and our post-rate announcement insights. Bond futures markets are now pricing another 60% probability of no change and a 40% probability of a 25 basis point (0.25%) rate cut at the Bank of Canada’s policy rate announcement on April 10th. By the June 5th policy interest rate announcement, the likelihood of a rate cut will increase to a 70% chance of a 25 basis point (0.25%) cut.How do bonds affect mortgage rates?
How many Canadian mortgages are at risk of payment shock?
What is the Great Renewal?
Interest rates posted for selected products by the major chartered banks
Source: bankofcanada.ca
*Most Recent Prime Rate Shown
Here: bankofcanada.ca
Learn About Rates & Mortgages
Welcome to our Frequently-Asked Questions (FAQ) section, where we answer the most popular questions our Canada Home Ownership mortgage advisors receive daily, designed to help you make informed mortgage decisions whenever you need a new mortgage or renew/refinance an existing one.
Understanding Today's Best Mortgage Rates in Canada
Mortgage shopping can be confusing, especially if you're a first-time home buyer. There are a lot of different terms and options out there, and it can be tough to know where to start. This section will cover some of the most common questions and terms when shopping for a mortgage in Canada. By the end, you should better understand the process and related terms to help you find the best mortgage rate in Canada.
What is a mortgage?
A mortgage is a loan used to purchase a property. The property serves as collateral for the loan. In Canada, mortgages are typically amortized over 25-30 years, but the term (the length of your agreement with a specific lender) is usually shorter, often 5 years. Learn more about mortgage basics here.
What is a mortgage rate?
A mortgage rate is the interest rate you pay on your mortgage. It's expressed as a percentage and can be fixed (staying the same for the term of your mortgage) or variable (fluctuating with the prime rate). The rate you receive depends on various factors, including your credit score, down payment, and the type of property you're buying. Explore our guide on understanding mortgage rates for more information.
What are current mortgage rates?
Current mortgage rates vary depending on the type of mortgage (fixed or variable) and the term length. As of February 2025, 5-year fixed rates are ranging from 4.5% to 5.5%, while variable rates are typically 0.5% to 1% lower. However, rates can change daily, so it's best to check with Canada Home Ownership for the most current rates.
How often are Canada Home Ownership's mortgage rates updated?
At Canada Home Ownership, we update our advertised rates daily to ensure you always have access to the most current information. However, the actual rate you receive may differ based on your personal financial situation and the specific details of your mortgage application. Contact one of our advisors for a personalized rate quote.
How often do Canadian mortgage rates change?
Canadian mortgage rates can change frequently, sometimes even daily. Fixed rates are influenced by bond yields, which can fluctuate based on economic conditions. Variable rates are tied to the Bank of Canada's overnight rate, which is typically reviewed eight times per year. Stay informed about rate changes by subscribing to our mortgage rate updates newsletter.
Understanding Today’s Best Mortgage Rates in Canada: Your Ultimate FAQ Guide
Are you navigating the complex world of Canadian mortgages? Whether you’re a first-time homebuyer or looking to renew or refinance, understanding mortgage rates is crucial. Let’s dive into the most frequently asked questions our Canada Home Ownership mortgage advisors receive daily.
Demystifying Mortgage Shopping in Canada
Searching for the best mortgage rates in Canada can be overwhelming, especially for first-time homebuyers. With numerous terms, options, and lenders to consider, where do you begin? This comprehensive FAQ guide will break down the essentials, helping you make informed decisions about your mortgage.
Key Topics We’ll Cover:
- Types of mortgages available in Canada
- Factors affecting mortgage rates
- Fixed vs. variable rates: Which is right for you?
- How to qualify for the best mortgage rates
- The mortgage approval process
- Renewing and refinancing your mortgage
By the end of this guide, you’ll have a solid understanding of the Canadian mortgage landscape, empowering you to find the best mortgage rate for your unique situation.
Understanding Mortgage Terms and Options
Q: What types of mortgages are available in Canada?
A: Canada offers several mortgage types to suit different financial situations:
- Conventional mortgages
- High-ratio mortgages
- Fixed-rate mortgages
- Variable-rate mortgages
- Open mortgages
- Closed mortgages
Each type has its advantages and considerations. Our Canada Home Ownership advisors can help you determine which option best fits your needs.
Q: What factors influence mortgage rates in Canada?
A: Several factors affect mortgage rates, including:
- Bank of Canada’s overnight rate
- Economic conditions
- Inflation rates
- Your credit score
- Down payment amount
- Mortgage term and amortization period
Understanding these factors can help you anticipate rate changes and make informed decisions.
Q: How do I qualify for the best mortgage rates?
A: To secure the most competitive rates:
- Maintain a high credit score
- Save for a larger down payment
- Choose a shorter amortization period
- Compare offers from multiple lenders
- Consider working with a mortgage broker
Remember, the lowest rate isn’t always the best option. Consider the overall cost and terms of the mortgage.
Next Steps in Your Mortgage Journey
Armed with this knowledge, you’re better equipped to navigate the Canadian mortgage landscape. For personalized advice and access to competitive rates, reach out to our expert advisors at Canada Home Ownership.
Stay informed about the latest mortgage trends and rates by following updates from the Bank of Canada and the Canada Mortgage and Housing Corporation (CMHC).
For additional resources, check out:
- OSFI Guideline B-20 for mortgage underwriting practices
- First-Time Home Buyers’ Tax Credit
- Stress Test for Mortgage Qualification
- Financial Literacy Resources
Remember, finding the right mortgage is about more than just rates – it’s about securing your financial future and making your homeownership dreams a reality.
Learn About Rates & Mortgages
Welcome to our Frequently-Asked Questions (FAQ) section, where we answer the most popular questions our Canada Home Ownership mortgage advisors receive daily, designed to help you make informed mortgage decisions whenever you need a new mortgage or renew/refinance an existing one.
Are you a first-time buyer?
Understanding Today's Best Mortgage Rates in Canada
Mortgage shopping can be confusing, especially if you're a first-time home buyer. There are a lot of different terms and options out there, and it can be tough to know where to start. This section will cover some of the most common questions and terms when shopping for a mortgage in Canada. By the end, you should better understand the process and related terms to help you find the best mortgage rate in Canada.
What is a mortgage?
A mortgage is a loan used to purchase a property. The property serves as collateral for the loan. In Canada, mortgages are typically amortized over 25-30 years, but the term (the length of your agreement with a specific lender) is usually shorter, often 5 years. Learn more about mortgage basics here.
What is a mortgage rate?
A mortgage rate is the interest rate you pay on your mortgage. It's expressed as a percentage and can be fixed (staying the same for the term of your mortgage) or variable (fluctuating with the prime rate). The rate you receive depends on various factors, including your credit score, down payment, and the type of property you're buying. Explore our guide on understanding mortgage rates for more information.
What are current mortgage rates?
Current mortgage rates vary depending on the type of mortgage (fixed or variable) and the term length. As of February 2025, 5-year fixed rates are ranging from 4.5% to 5.5%, while variable rates are typically 0.5% to 1% lower. However, rates can change daily, so it's best to check with Canada Home Ownership for the most current rates.
How often are Canada Home Ownership's mortgage rates updated?
At Canada Home Ownership, we update our advertised rates daily to ensure you always have access to the most current information. However, the actual rate you receive may differ based on your personal financial situation and the specific details of your mortgage application. Contact one of our advisors for a personalized rate quote.
How often do Canadian mortgage rates change?
Canadian mortgage rates can change frequently, sometimes even daily. Fixed rates are influenced by bond yields, which can fluctuate based on economic conditions. Variable rates are tied to the Bank of Canada's overnight rate, which is typically reviewed eight times per year. Stay informed about rate changes by subscribing to our mortgage rate updates newsletter.
Are you a first-time buyer?
What Factors Affect My Mortgage Rate in Canada?
Understanding the factors that influence your mortgage rate is crucial for making informed decisions about homeownership in Canada. This comprehensive guide will explore the key elements that lenders consider when determining your mortgage rate.
1. Credit Score and History
Your credit score is a crucial factor in determining your mortgage rate. A higher credit score typically results in better rates. Here's a general breakdown:
- Excellent (741-900): Best rates available
- Good (690-740): Competitive rates
- Fair (660-689): Higher rates
- Poor (300-659): May struggle to qualify for traditional mortgages
Tips to Improve Your Credit Score:
- Pay bills on time
- Keep credit utilization low (under 30% of available credit)
- Maintain a mix of credit types
- Limit new credit applications
- Regularly check your credit report for errors
2. Income and Employment Stability
Lenders assess your income stability and employment history to ensure you can make mortgage payments. They typically require:
- T4 slips for the past two years
- Notice of Assessment for the past two years
- Recent pay stubs
- Employment letter confirming your position and salary
For self-employed individuals, additional documentation may be required:
- Business financial statements
- Business license
- GST/HST returns
- Personal and business tax returns for the past two years
3. Down Payment and Loan-to-Value Ratio
The size of your down payment affects your loan-to-value (LTV) ratio, which influences your mortgage rate:
- 5-19.99% down payment: Requires mortgage default insurance
- 20-34.99% down payment: No insurance required, but may still affect rates
- 35%+ down payment: Often results in the best rates
Minimum Down Payment in Canada:
- 5% for homes $500,000 or less
- 5% for the first $500,000, and 10% for the portion above $500,000
- 20% for homes $1 million or more
Conclusion
Understanding these factors can help you secure the best possible mortgage rate. Remember to:
- Improve your credit score
- Save for a larger down payment
- Compare offers from multiple lenders
- Consider working with a mortgage broker
- Stay informed about current market conditions
For personalized advice tailored to your unique circumstances, consult with a licensed mortgage professional or financial advisor.