March 22, 2026
Fixed Rates
| Term | Insured | Insurable | Uninsured |
|---|---|---|---|
| 1 Year | 5.29% | 5.54% | 5.74% |
| 2 Year | 4.44% | 4.64% | 4.79% |
| 3 Year | 4.09% | 4.24% | 4.39% |
| 5 Year ★ | 3.89% | 4.04% | 4.14% |
| 7 Year | 4.59% | 4.64% | 4.79% |
| 10 Year | 5.09% | 5.19% | 5.29% |
Variable Rates
| Term | Insured | Insurable | Uninsured |
|---|---|---|---|
| 5 Year Variable ★ | 3.95% | 4.30% | 4.50% |
| 3 Year Variable | 4.85% | 5.15% | 5.35% |
Rate Categories Explained
Insured (Lowest Rates)
Down payment under 20%. Mortgage default insurance required (CMHC, Sagen, or Canada Guaranty). Purchase under $1.5M. Because the lender's risk is insured, these are the lowest rates.
Insurable
Meets insured criteria but borrower chose 20%+ down. Lenders can portfolio-insure these at lower cost, so rates are mid-range.
Uninsured
Does not qualify for insurance: refinances, properties over $1.5M, 30-year amortizations. Lender bears full risk, so rates are slightly higher.
Rate Is Important — But It's Not Everything
Selecting a mortgage based on rate is like buying a car based on horsepower. It's important, but it's not the only thing to consider. Maybe if you have a family with three kids, that Ferrari isn't such a good choice!
The lowest rate doesn't always mean the lowest cost. Here are some of the factors that can matter just as much — or more — than the rate itself:
Prepayment privileges: Can you increase your payments? Make lump sums? Some lenders allow 20% annual prepayments, others only 10% — and some charge penalties for going over. If you plan to pay down your mortgage faster, this matters more than a 0.05% rate difference.
Penalty provisions: If you need to break your mortgage early — and life happens — the penalty can range from a few thousand dollars to tens of thousands, depending on the lender. Some lenders calculate penalties using posted rates (very expensive), while others use discount rates (much cheaper). This one factor alone can dwarf any rate savings.
Portability: If you sell and buy a new home, can you take your mortgage with you? Not all products allow this, and losing portability means paying a penalty and starting over.
Blend-and-extend: Can you renegotiate mid-term without penalty? Some lenders offer this, others don't.
Conversion options: If you're in a variable rate, can you lock into a fixed at any time? What rate will they offer?
Collateral vs. conventional charge: Some lenders register a collateral charge (which can make switching at renewal more expensive). This is common with the big banks and largely invisible until you try to leave.
Lender service quality: When you call with a question, do you get a person or a phone tree? When there's a problem at closing, does someone pick up the phone? We know which lenders deliver and which ones don't — and we factor that into every recommendation.
This is why working with an independent mortgage broker matters. Whether you're buying your first home, renewing your mortgage, or refinancing to consolidate debt, we compare the full picture. We compare the full picture — rate, terms, penalties, flexibility, and service — across dozens of lenders, and recommend the best overall package for your situation.
Fixed vs. Variable: An Honest Perspective
This is one of the most common questions we get, and we'll give you the same answer in person that we'll give you here: nobody knows where rates are going. Anyone who tells you with certainty that rates will rise or fall is guessing — and their guess is no better than yours.
Fixed Rate
Your rate and payment are locked in for the entire term — typically 3 to 5 years. No surprises. You know exactly what you'll pay every month regardless of what the Bank of Canada does.
Best for: People who sleep better with certainty. First-time buyers on tight budgets. Anyone who would be stressed by payment fluctuations.
The trade-off: Fixed rates are typically higher than variable at the start of the term. And if you need to break your mortgage early, the Interest Rate Differential (IRD) penalty on a fixed rate can be very expensive — sometimes tens of thousands of dollars.
Variable Rate
Your rate moves with the lender's prime rate, which follows the Bank of Canada's policy rate. When the BoC cuts rates, your cost drops. When they raise rates, your cost rises.
Best for: People with flexibility in their budget who can absorb payment changes. Those who want lower penalties if they need to break the mortgage early (typically just 3 months' interest).
The trade-off: Uncertainty. If rates rise significantly during your term, you could end up paying more than a fixed rate would have cost. Some people find the unpredictability stressful.
Understanding Rate Risk
There is risk with both a fixed rate and a variable rate. If you choose a variable rate, you are exposed to the risk of rates going up — your payments increase and you pay more interest. If you choose a fixed rate, you are exposed to the risk of rates going down — you're locked in above market and you miss the savings.
You cannot eliminate rate risk. All you can do is choose which risk you are more comfortable carrying. That's a personal decision, and there is no wrong answer. We lay out the scenarios and let you decide.
Our Honest Take
Over the decades, variable rates have statistically cost borrowers less than fixed rates more often than not. But statistics don't pay your mortgage — you do. The right product is the one you are comfortable with. If a variable rate would keep you up at night worrying about rate announcements, the peace of mind of a fixed rate is worth the premium. If you have budget flexibility and can tolerate some movement, a variable rate may save you money over time.
We don't push one product over the other. We lay out both scenarios with your actual numbers and let you decide. Some clients choose fixed. Some choose variable. Some split their mortgage between both. There's no wrong answer — only the answer that's right for you.
A Note on the Current Environment
As of early 2026, the Bank of Canada has held its policy rate steady at 2.25% after a series of cuts in 2024-2025. Fixed rates have been edging up due to rising bond yields. The spread between fixed and variable rates is narrower than it has been historically, which makes the decision less clear-cut than in periods where one option had an obvious advantage. This is precisely the environment where working with a broker — someone who sees these decisions daily — adds the most value.
Bank of Canada Rate Announcements
March 18, 2026 — Rate Hold at 2.25%
The Bank of Canada held its overnight rate at 2.25%. The Governing Council cited weaker near-term economic growth, soft labour market conditions, and elevated uncertainty from US trade policy and the Middle East conflict. CPI inflation eased to 1.8% in February. Core inflation measures are close to 2%. Rising global energy prices are expected to push up total inflation in the coming months. The Bank stated it will look through the war's immediate impact on inflation but will not allow higher energy prices to broaden into persistent inflation.
Next scheduled announcement: April 29, 2026
Previous Announcements
Rate History — 10 Year View
Canadian prime rate and Government of Canada 5-year benchmark bond yield, 2016–2026.
Sources: Bank of Canada. Brick = Prime rate (stepped). Gold = 5-year GoC bond yield.
Get Your Personalized Rate
Posted rates are a starting point. We often secure rates below what's shown here.
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