Canadian Mortgage Rate Report — May 18, 2026

The current landscape of Canadian mortgage rates remains relatively stable, with the Bank of Canada maintaining the overnight rate at 2.25% and the prime rate sitting at 4.45%. These rates directly influence variable mortgage pricing, which is currently available at a competitive 3.3% for the best 5-year variable product (broker insured).

In contrast, the best 5-year fixed rate is slightly higher at 3.75%. This 0.45% difference indicates that borrowers may find variable rates more appealing in the short term, especially if they anticipate continued stability in interest rates.

Looking ahead, the next three months will be crucial for mortgage holders. While we currently lack the latest data on the 5-year Government of Canada bond yield and the Consumer Price Index (CPI), these indicators will be essential in assessing future rate movements. Additionally, trade and oil market dynamics could influence inflation and, subsequently, the Bank of Canada’s decisions.

For Canadians renewing their mortgages in 2026, it’s advisable to keep a close eye on economic indicators and consider locking in rates early if forecasts suggest upward pressure on rates. This proactive approach could save you money in the long run.