What Is A Good Mortgage Rate In Canada Right Now?

As of late October 2026, a good 5-year fixed rate in Canada is one near the lowest advertised, about 4.34-4.59%, and a rate near the big-bank specials of 4.84-4.90% is the high end of ordinary. A good 3-year fixed sits near 4.44%. A good variable is a discount to the new 4.70% prime, not a number on its own.

That answer has a catch built into it. "Good" is a comparison, and the comparison changes with the product, the mortgage insurance status, and whether the offer is a new loan or a renewal letter. A rate that looks excellent on a 5-year fixed would be mediocre on a 3-year. This page lays out the bands, shows why quotes as far apart as 4.39% and 4.89% turned up on the board within a week, and lists what else belongs in the judgment besides the number.

The Rate Bands By Product After October 28

The Bank of Canada raised the overnight rate to 2.50% on October 28, 2026. RBC, TD, BMO, Scotiabank and CIBC moved prime from 4.45% to 4.70%, effective October 29. Fixed rates were already climbing: aggregators reported banks adding about 5-20 basis points across various terms during October. The table below uses aggregator figures read as "advertised around October 28," plus the big-bank specials and the posted rate. None of it is a quote.

The "posted" rate is a different animal. The Bank of Canada series for the conventional 5-year posted rate at the chartered banks stood at 6.19% in late October, up from 6.09% earlier in the month. Nobody borrowing at a bank pays that. It matters for one reason: some lenders calculate the penalty for breaking a fixed mortgage from the posted rate, which is covered below.

One adjustment on variables. The lowest insured 5-year variable of about 3.41% was prime minus roughly 1.04 against the old 4.45% prime. If the discount holds, that is about 3.66% against 4.70%. Most variable rows on the rate board carry the same caveat, because they were written before the hike. The discount stays and the rate moves 0.25.

Why Quotes Run From 4.39% To 4.89%

Both numbers are on the board in late October: a Scotiabank 2-year early renewal at 4.39% and a TD 3-year renewal letter at 4.89%. At 4.39% versus 4.89% on $500,000 over 25 years, the payments are $2,736.87 and $2,876.79. That is $139.92 a month, or about $1,679 a year, on the same balance. Several things produce the gap, and they stack.

First, the channel. A renewal letter from your own lender is built to be accepted. The TD row on the board, a 3-year fixed renewal offer at 4.89% posted on October 28, sat next to RBC and BMO 3-year rows at 4.44% from the same thread. A letter is a starting point, not a market price. Second, insurance status. Insured and insurable files have access to the lowest rates, because the insurer carries the default risk. Uninsured files, the ones with 20% or more down or a purchase over the insured cap, are priced from a higher shelf: roughly 4.5-5.14% advertised, against about 4.34-4.59% for insured.

Third, the lender type. Monolines, which lend through brokers, and credit unions often publish rates under the big banks' specials; the B2B sheet below is one example. Fourth, timing. A rate sheet dated October 21 is already old in a month when banks moved up. The B2B rows on the board, 4.54% for 5 years and 4.34% for 3 years, against bank specials of 4.84% and up, are marked as the October 21 sheet in that thread. Fifth, the file itself: credit score, property type, rental income, self-employment, and whether the lender is also taking your accounts.

What Each Band Costs On $500,000

Using the Canadian semi-annual compounding formula from the payment formula guide, a $500,000 balance amortized over 25 years costs:

The distance from the bottom row to the TD special is $296.95 a month. Most borrowers will not land at either end, but the table shows what a few tenths of a point do. It is also why the gap calculator on the homepage exists, and why a renewal letter deserves a second price before it is signed. If the letter in your hand sits in the 4.7-4.9% zone, a broker can be asked what a 5-year and a 3-year would price at today.

What Makes A Rate Good Beyond The Number

A low rate with the wrong contract can cost more than a higher rate with a better one. Five clauses decide most of it.

Penalty method. Fixed mortgages carry the greater of three months' interest or the interest rate differential. Big banks often calculate the IRD using a posted rate minus your original discount, which tends to produce larger penalties than the discounted-rate method used by many monolines and credit unions. The contract and the lender's disclosure set the method. On a $200,000 balance at 6%, three months' interest is $3,000, per the Financial Consumer Agency of Canada's example. An IRD can be larger.

Prepayment rights. Annual lump sums and payment increases, expressed as a percentage of the original balance, vary by lender. Ask for the exact percentages.

Portability. If a move is plausible inside the term, ask whether the rate can port to a new property and what happens to the penalty if you need a bigger loan.

Rate hold. Many lenders hold a rate for 90-120 days, some longer. A hold on a good rate in a rising month is worth something. See how pre-approval holds work.

Cash back. A cash-back mortgage pays a lump sum at closing, and the contract usually lets the lender claw part of it back if you leave early. Compare it on total cost, not on the rate line alone.

Is Your Number Good? Read The Specific Posts

If you already have a rate in front of you, one of these pages sets that exact number against the board. Each stays on one figure.

• Is 3.75% good? A variable rate, and what the 4.70% prime does to it.
• Is 3.99% good? Below every fixed rate advertised around October 28, so the question is what the catch is.
• Is 4.25% good? Under the lowest advertised 5-year fixed. Who gets it.
• Is 4.43% a good 3-year fixed? Just under the lowest advertised 3-year.
• Is 4.5% good? Inside the lowest advertised 5-year range, with a payment table against 4.39% and 4.84%.
• Is 4.84% a good renewal offer? The big-bank special level, and when a letter should be questioned.
• Is prime minus 1 a good variable rate? The variable discount most often asked about.

Fixed Or Variable: The Band Is Not The Choice

A good variable rate and a good fixed rate are not the same offer at two prices. The variable payment moves when prime moves, or the amortization does if the payment is fixed. The Bank of Canada said on October 28 that a further increase may be needed. BMO expects another 25 basis points in January 2027, according to the Financial Post. CIBC sees likely one more hike and not above 2.75%, per Reuters. Desjardins also expects one more. These are the banks' views, not the site's, and none is a schedule. The next decision is December 9. The fixed or variable guide works through the payment gap.

Ask For The Bands Priced On Your File

Bands tell you where the market sits. They cannot tell you where your credit, down payment and property land inside it. The useful request is specific: a 3-year fixed, a 5-year fixed and a 5-year variable, each priced as insured or uninsured as your file requires, with the penalty method and prepayment terms written down, and a rate hold if the numbers are good. Request cheaper rates and a licensed mortgage broker can price those side by side.

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