Mortgage rates today in Canada are showing a widening gap between fixed and variable borrowing costs, giving homebuyers and renewing borrowers different pricing depending on the term they choose.
As of the latest publicly listed market rates on Friday, September 25, the lowest insured five-year fixed offers were roughly 4.29% to 4.39%, while the lowest five-year variable offers ranged from about 3.25% to 3.45.
Those figures are advertised market offers rather than guaranteed rates for every borrower, and the final price can change according to the lender, down payment, credit profile, mortgage type and property details.
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Mortgage rates today in Canada
| Mortgage type | Indicative rate range | What is driving it |
|---|---|---|
| Three-year fixed insured | About 4.19% to 4.44% | Government bond yields and lender pricing |
| Five-year fixed insured | About 4.29% to 4.39% | Government bond yields and funding costs |
| Five-year variable insured | About 3.25% to 3.45% | Prime rate and the Bank of Canada policy rate |
| Three-year variable insured | About 3.60% | Prime rate and lender discount |
The range reflects rates published by Canadian mortgage-rate trackers for September 25, 2026, with the strongest offers generally applying to insured mortgages that meet specific approval conditions.
Borrowers should compare the annual percentage rate, lender fees, prepayment rules and penalty formula rather than looking only at the headline interest rate.
Why fixed mortgage rates have moved higher
Fixed mortgage rates have been under pressure because they are priced largely through bond-market funding costs rather than directly through the Bank of Canada’s overnight rate.
The five-year Government of Canada bond yield climbed sharply in September, reaching a reported 52-week high of 3.711% on September 14 before easing later in the week.
Several major lenders subsequently raised selected fixed mortgage rates, particularly on two-year through five-year terms.
That means a Bank of Canada rate hold does not automatically keep fixed mortgage pricing unchanged.
Fixed mortgage rates can rise or fall between central-bank announcements when bond investors change their expectations for inflation, government borrowing, energy prices or future interest rates.
Bank of Canada rate remains unchanged
The Bank of Canada held its target for the overnight rate at 2.25% on September 2, 2026.
The Bank Rate remained 2.50%, while the deposit rate was set at 2.20%.
The central bank said inflation had been hovering around 3% in recent months, with higher gasoline prices contributing to the increase.
It also pointed to elevated energy prices, Middle East tensions and new United States tariffs and Canadian counter-measures as risks to the inflation and economic outlook.
The next scheduled Bank of Canada interest-rate announcement is October 28, 2026.
Variable-rate mortgage holders will be watching that decision because their borrowing costs are generally linked to lender prime rates, which usually move when the central bank changes its policy rate.
What the current spread means for borrowers
A borrower with a $400,000 mortgage amortized over 25 years would face a calculated monthly principal-and-interest payment of about $2,198 at 4.39%.
The same mortgage would cost about $1,992 per month at 3.45%, before considering the possibility that a variable rate could change during the term.
The difference is approximately $207 per month, but the comparison is not a guarantee that the variable option will remain cheaper.
A variable mortgage can become more expensive if the Bank of Canada raises rates or if a lender changes its prime rate and the borrower’s discount remains fixed.
A fixed mortgage provides more payment certainty, but borrowers may pay a premium for that protection and could face higher penalties if they break the mortgage before the term ends, as outlined in CMHC guidance on mortgage term choices and interest-rate risk.
What renewing homeowners should check
Homeowners approaching renewal should begin reviewing options several months before the existing term expires.
Borrowers may be able to negotiate with their current lender, switch lenders, change the amortization period or choose a different fixed or variable term.
Extending amortization can reduce the monthly payment, but it generally increases the total interest paid over the life of the mortgage.
Borrowers should also check whether the new mortgage allows lump-sum payments, annual payment increases or accelerated weekly and biweekly payments.
Federal consumer guidance says posted rates may differ from discounted rates, and borrowers should ask lenders or brokers what rate reductions and product conditions are available.
Anyone considering a refinance should include legal, appraisal, discharge and lender fees in the comparison because a lower interest rate may not offset the cost of changing mortgages.
What happens next
Fixed mortgage pricing could remain volatile if bond yields continue responding to inflation, energy markets and trade uncertainty.
Variable rates are more likely to remain stable in the short term unless the Bank of Canada changes its policy rate or lenders adjust their prime-rate pricing.
For borrowers, the most useful rate is not necessarily the lowest advertised number but the offer that matches their down payment, risk tolerance, expected time in the home and ability to handle higher payments.
Frequently Asked Questions
What are mortgage rates today in Canada?
As of the latest publicly listed rates on September 25, 2026, insured five-year fixed offers were roughly 4.29% to 4.39%, while five-year variable offers were about 3.25% to 3.45%.
Why are fixed mortgage rates rising if the Bank of Canada held rates?
Fixed mortgage rates are influenced mainly by Government of Canada bond yields and lender funding costs, which can move independently of the overnight policy rate.
What is the Bank of Canada policy rate?
The Bank of Canada’s target for the overnight rate is 2.25% after its September 2, 2026 decision.
Are variable mortgages cheaper than fixed mortgages?
Variable offers are currently lower in many advertised comparisons, but the rate and payment can rise if the Bank of Canada or the lender’s prime rate increases.
When should I start preparing for mortgage renewal?
Many borrowers should begin comparing options several months before renewal so they have time to negotiate, switch lenders, review penalties and assess fixed versus variable terms.
Fact-Checked: Key rate information was checked against Bank of Canada, CMHC and federal consumer guidance, while the market snapshot was compared with current Canadian mortgage-rate trackers dated September 25, 2026.
Disclaimer: Mortgage offers change frequently and the rates shown are general market indications, not personalized financial advice or a guaranteed approval quote.