Canadian Mortgage Rate Report — May 25, 2026

As of now, the Bank of Canada’s overnight rate stands at 2.25%, with the prime rate at 4.45%. This prime rate directly influences variable mortgage rates, which currently start at 3.3% for the best 5-year variable options available through broker-insured products. In contrast, the best 5-year fixed rates are slightly higher at 3.75%.

When considering fixed versus variable mortgages, the choice largely depends on individual risk tolerance. Fixed rates provide stability against potential rate hikes, while variable rates, currently lower, can be more appealing in a declining or stable rate environment.

Looking ahead, the next three months will be crucial for mortgage borrowers. While the 5-year Government of Canada bond yield data is currently unavailable, keeping an eye on inflation trends and the Consumer Price Index (CPI) will be essential. Additionally, global trade dynamics and oil prices could impact the Bank of Canada’s monetary policy, especially with the next rate decision scheduled for June 10, 2026.

For Canadians renewing a mortgage in 2026, it’s wise to start evaluating your options early. Locking in rates well ahead of your renewal date can provide a buffer against potential increases in the prime rate.