Canadian Mortgage Rate Report — July 6, 2026

As of now, the Bank of Canada’s overnight rate stands at 2.25%, which translates to a prime rate of 4.45%. This prime rate is crucial as it directly influences variable mortgage rates. Currently, the best 5-year variable mortgage rate available through brokers is 3.3%, making it an attractive option compared to fixed rates.

The best 5-year fixed mortgage rate, also broker-insured, is currently at 3.75%. This slight difference of 0.45% suggests that, for those comfortable with potential fluctuations, a variable rate could be the more cost-effective choice in the short term. However, borrowers should consider their risk tolerance and the potential for future rate hikes.

Looking ahead, the next three months will be pivotal. Keep an eye on the Government of Canada bond yields, which influence fixed rates, and the Consumer Price Index (CPI) data, as inflation trends can impact the Bank of Canada's monetary policy. Additionally, fluctuations in trade and oil prices may affect economic stability and interest rates.

For Canadians renewing their mortgages in 2026, one practical tip is to start shopping for rates early. This allows you to lock in a competitive rate and gives you time to assess your financial situation and options.