Canadian Mortgage Rate Report — June 29, 2026

As of now, the Bank of Canada’s overnight rate stands at 2.25%, with the prime rate at 4.45%. These rates are pivotal as they influence variable mortgage pricing. Currently, the best 5-year variable rate available through brokers is 3.3%, which is quite competitive compared to the fixed rate options.

For those considering fixed rates, the best 5-year fixed (broker insured) rate is 3.75%. This presents a compelling choice for borrowers who prefer stability in their payments, especially given the current economic climate. The spread of 0.45% between the fixed and variable rates suggests that locking in a fixed rate might be prudent for risk-averse borrowers.

Looking ahead, the next three months will be crucial. Although the yield on 5-year Government of Canada bonds is currently unavailable, it’s essential to monitor bond yields closely, as they often correlate with fixed mortgage rates. Additionally, keep an eye on the Consumer Price Index (CPI) and broader economic indicators, including trade and oil prices, as these can influence the Bank of Canada’s monetary policy.

For Canadians renewing a mortgage in 2026, consider starting the renewal process early. This allows you to explore various options and secure a favourable rate before potential increases.