Overview
Canadian mortgage rates have seen steady declines through the first half of 2025, with both fixed and variable rates now at their lowest point in over two years. While 5-year fixed rates remain the most popular choice among homebuyers, variable rates are becoming increasingly competitive as the Bank of Canada continues its easing cycle.
Current Average Mortgage Rates (as of July 14, 2025)
| Mortgage Term | Average Rate (%) |
|---|
| 2-year fixed | 5.09 |
| 3-year fixed | 4.69 |
| 3-year variable | 5.50 |
| 4-year fixed | 5.22 |
| 5-year fixed | 4.58 |
| 5-year variable | ~4.00 - 4.58 |
- Lowest 5-year fixed insured rate: 3.84% available through select brokerages.
- Major banks typically offer 5-year fixed rates between 4.49% and 4.59% for standard purchases.
- Variable rates: Best offers are now near 4.00%, though big banks often post slightly higher.
Major Canadian Bank Offerings
| Bank | 3-Year Fixed | 5-Year Fixed | 5-Year Variable | Prime Rate |
|---|
| RBC | 4.44% | 4.49% | 4.55% (Prime - 0.40%) | 4.95% |
| CIBC | (Not listed) | (Not listed) | (Not listed) | 4.95% |
| TD | 6.09%* | (Not listed) | (Not listed) | (Not listed) |
| National | 6.05% | (Not listed) | (Not listed) | (Not listed) |
*Some rates may be posted and not reflect special offers; always confirm with the bank for the latest promotional rates.
Key Observations:
- Big Six banks typically offer posted rates higher than broker-discounted rates.
- Mortgage brokers can access rates below 4% for insured 5-year fixed terms.
- Pre-approvals can lock in today’s rates for up to 120 days, recommended due to market volatility.
Current Market Conditions
- Bond yields have retreated after a brief spike, softening fixed rates in recent weeks.
- Bank of Canada overnight rate stands at 2.75%, with the prime rate holding at 4.95%.
- Further rate cuts are expected in 2025, which could lower variable rates even more.
Recent Government Programs & Incentives
- 30-year amortization now available for all first-time buyers, not just those with insured mortgages.
- Insured mortgage purchase price limit increased to $1.5 million, improving access for buyers in expensive markets.
- First-time Home Buyer Incentive and other federal supports remain active.
Provincial Variations
- Quebec, Ontario, BC, Alberta: The rates listed above are averages and apply across these provinces, but some local lenders and credit unions may offer unique discounts or programs.
- Property transfer taxes, land transfer rebates, and first-time buyer grants vary by province; check provincial housing agency sites for details.
First-Time Homebuyer Programs
- Federal supports: Home Buyers’ Plan (HBP), First Home Savings Account (FHSA), and the enhanced First-Time Home Buyer Incentive.
- Provincial grants: Ontario’s Land Transfer Tax Refund, BC’s First-Time Home Buyers’ Program, and others.
Rate Comparison Table
| Source | 5-Year Fixed | 5-Year Variable | Notes |
|---|
| National Average | 4.58% | ~4.00 - 4.58% | Brokers may offer as low as 3.84% |
| RBC | 4.49% | 4.55% | Special offer, standard purchase |
| Best Broker Rates | 3.84% | 3.95% | For insured mortgages |
Next Steps & Recommendations
- Compare rates from multiple sources, including mortgage brokers, big banks, and credit unions.
- Get pre-approved to lock in a competitive rate for up to 120 days.
- Monitor the Bank of Canada’s upcoming rate decisions for potential variable rate reductions.
- Explore government programs for first-time buyers and those purchasing new construction to maximize affordability.
For personalized rate comparisons and access to the most competitive offers from top Canadian lenders, use theratefinder. The platform provides a sophisticated multi-step application process for residential, commercial, and construction loans, ensuring you get the best possible rate and terms. Start your application at theratefinder.ca/onboarding for a tailored mortgage solution.
Summary:
Mortgage rates are near two-year lows, with the average 5-year fixed at 4.58% and the best broker rates below 4%. Variable rates remain stable, with further decreases possible later this year. Take advantage of government programs and rate pre-approvals to secure the best deal for your situation.