Current Mortgage Rates in Canada
Today's mortgage rates in Canada provided by top lenders and brokers.8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
Which Big Six bank has the best current mortgage rates?
Canada’s biggest banks tend to offer similar mortgage rates, so determining which offer is best for you should include looking at other details, like prepayment privileges and portability.
Click on a bank’s name to see a full list of its current mortgage rates, including posted and discounted mortgage rates.
Current mortgage rate update: April 16, 2025
On April 16, 2025, the Bank of Canada announced that it would be holding its overnight rate at 2.75%. It was the Bank’s first rate hold after a series of seven consecutive cuts dating back to June 2024.
This isn’t spectacular news for home buyers, as variable mortgage rates will stay at their current levels until at least June 4, when the Bank makes its next rate decision. The lowest variable rates available are currently around 4%.
Fortunately, fixed mortgage rates remain fairly approachable.
As of April 16, some brokerages were offering three-year fixed rates for around 3.7% and five-year fixed rates for about 3.75%. Those aren’t mind-blowingly low rates, but they might be as good as they’re going to get for the time being.
Government bond yields, which help determine lenders’ fixed mortgage rates, have been in the same general range since February. Without a significant, sustained dip in yields, lenders won’t have much reason to lower their fixed rates.
While rates may not improve in the coming weeks, home buyers have a few things working in their favour. Housing stock is piling up, which should take some pressure off of home prices, and Donald Trump’s tariff war may not be the extinction-level event many had feared.
If you have job security, it’s actually not a bad time to be looking for a home.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Here's what you need to know.Mortgage rate trends to watch in 2025
Will fixed mortgage rates decrease in 2025?
The mortgage experts NerdWallet spoke to toward the end of 2024 don’t expect fixed mortgage rates to decline significantly in 2025. But fixed rates can be hard to predict over the long term.
It all depends on how investors treat the government bond market. If they go on a buying spree and bond yields fall, fixed mortgage rates should, too. This scenario might require a little economic upheaval to come to fruition, and there’s no shortage of that on the horizon.
Will variable mortgage rates fall in 2025?
Yes. How much further they’ll fall depends on the overnight rate.
The BoC cut the overnight rate steadily from June to December, and doesn’t have much room before exceeding its “neutral rate.” That’s the range where the overnight rate is neither throttling or encouraging economic activity.
The neutral rate is 2.25% to 3.25%. The overnight rate is 3.25%. Variable rates could drop another 100 basis points this year.
How does prime rate affect current mortgage rates?
Bank | Current prime rate |
|---|---|
BMO | 4.95% |
CIBC | 4.95% |
National Bank | 4.95% |
Scotiabank | 4.95% |
RBC | 4.95% |
TD | 4.95% |
A lender’s prime rate is typically used to set its current variable mortgage rates. That’s why you’ll often see banks’ variable mortgage rates described as “prime minus X%” when you visit their rates pages.
The prime rate at all Big Six banks is currently identical. That’s because each bank bases its prime rate on the Bank of Canada’s overnight lending rate. When the overnight rate rises or falls, so does prime.
It’s worth noting, however, that TD is unique among Canadian banks in that they have their own prime mortgage rate, which is currently 5.1%.
Make yourself familiar with a bank’s posted and discounted rates to put yourself into a stronger negotiating position. No matter how well you prepare yourself, however, know that the rate you’re offered will ultimately depend on your financial situation.
Current mortgage rates and the stress test
In addition to affecting the cost of your home loan, current mortgage rates also impact how much mortgage you can qualify for by influencing the mortgage stress test.
If you’re applying for a mortgage at a federally regulated financial institution, the stress test requires you to qualify at either 5.25% or the rate being offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, your finances would have to support the same loan at 7% for you to qualify.
If that’s not the case, your lender will reduce the amount you’re offered until you can pass the stress test at the qualifying rate.
Do these 3 things for a better mortgage rate
Boost your credit score
A credit score of 680 or higher will help you get approved for a mortgage at most Canadian lenders. With a longer list of lenders willing to work with you, you’ll have more offers to choose from — and a better shot at being offered the best mortgage rate.
Before applying for a mortgage, check your credit score. If there are some financial habits you can tweak to improve your credit score, get tweaking.
If your credit score is below 680, you should still be able to apply for a mortgage with a B lender.
Pay down debt
If you’re carrying debt from a credit card, personal loan or line of credit, lenders may question your ability to afford a mortgage payment. Any risk they see could give them a reason to offer you a higher rate.
Negotiate
Don’t accept the first rate offer you’re presented with.
Negotiating is a must during the mortgage process. Even if your lender isn’t willing to decimate its rate offer for you, getting a little shaved off your rate can make a significant difference.
Here’s a quick example using a mortgage of $400,000.
At 5% interest, your monthly mortgage payment would be $2,326.
At 4.8% interest, your monthly mortgage payment would be $2,281.
In this case, a few minutes negotiating a slightly lower rate could save you about $50 every month.
Frequently asked questions
When will mortgage rates be lower?
When will mortgage rates be lower?
Fixed mortgage rates aren’t expected to dip much further in the second quarter of 2025, though the tariff war with the United States makes fixed rates hard to predict. Variable mortgage rates will continue decreasing each time the Bank of Canada lowers its overnight rate. The Bank followed seven consecutive cuts with a rate hold on April 16, 2025.
Is 5% a good mortgage rate?
Is 5% a good mortgage rate?
As of April 16, 2025, 5% would be significantly higher than many banks’ and brokerages’ three-year fixed mortgage rates, five-year fixed mortgage rates and variable mortgage rates.
Broker vs. bank: Who offers the best current mortgage rates?
Broker vs. bank: Who offers the best current mortgage rates?
When getting a mortgage, you can go directly to a lender, like a bank, or work with a mortgage broker.
Generally speaking, a mortgage broker should offer you a wider array of options. Unlike a bank’s mortgage advisors, brokers aren’t tied to a single financial institution. They can field offers from multiple lender partners, which might include B lenders and private lenders, in addition to some Big Six banks.
Part of a mortgage broker’s job is to negotiate a better rate for you. They only earn a commission when a mortgage is finalized, so it’s in their best interest to negotiate a mortgage yo
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