Canadian Mortgage Rate Report — June 1, 2026

The current landscape of Canadian mortgage rates remains stable as we approach the end of the year. 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 pricing, which is currently available at a competitive 3.3% for the best 5-year variable (broker insured) options.

In comparison, the best 5-year fixed rate is slightly higher at 3.75%. This difference of 0.45% suggests that borrowers may find value in locking in a fixed rate, especially given the uncertainty surrounding future interest rate decisions.

Looking ahead, the next three months will be crucial. While the 5-year Government of Canada bond yield data is currently unavailable, it’s essential to monitor this closely, as it typically impacts fixed mortgage rates. Additionally, keep an eye on the Consumer Price Index (CPI) and broader economic indicators, particularly in the context of trade and oil prices, as these factors can influence the Bank of Canada’s monetary policy.

For Canadians renewing a mortgage in 2026, a practical tip is to start evaluating your options early. This includes understanding your current mortgage terms and exploring the market for the best rates well in advance of your renewal date.