Overview
Canadian mortgage rates in July 2025 are showing modest signs of stabilization, with both fixed and variable rates slightly down or steady compared to earlier in the year. The Bank of Canada’s overnight rate remains at 2.75%, and the prime rate at major banks is 4.95%. Rate competition among lenders remains strong, so it’s an ideal time for borrowers to compare offers and secure pre-approvals.
Current Canadian Mortgage Rates (July 2025)
Here is a snapshot of current mortgage rates from major sources and banks:
| Term | Super Brokers | RBC | CIBC | TD (Prime) | National Bank |
|---|
| 6-Month Fixed | 5.99% | – | – | – | 9.98% (Open) |
| 1-Year Fixed | 5.09% | 5.49% | – | – | 6.09% (Closed) |
| 2-Year Fixed | 4.54% | 4.79% | – | – | 5.39% (Closed) |
| 3-Year Fixed | 4.24% | 4.44% | – | – | 6.05% (Closed) |
| 4-Year Fixed | 4.34% | 4.49% | – | – | 5.99% (Closed, promo) |
| 5-Year Fixed | 4.24% | 4.49% | – | – | 6.13% (Closed, promo) |
| 5-Year Variable | 4.30% | 4.55% (Prime - 0.40%) | – | 5.10% | – |
| Prime Rate | 4.95% - 5.10% | 4.95% | 4.95% | 5.10% | 4.95% |
- TD’s prime rate is slightly higher at 5.10% compared to other major banks at 4.95%.
- Variable rates tend to be tied to the bank’s prime rate, typically quoted as prime minus a discount.
Market Conditions and Trends
- Variable rates: Stable, with the Bank of Canada holding its overnight rate at 2.75% as of June 2025.
- Fixed rates: Tracking bond yields, with forecasts expecting little movement through 2025. Slight decreases are possible, but significant changes are not anticipated barring unexpected economic shifts.
- Rate outlook: Economists expect the overnight rate to either remain the same or drop modestly by the end of the year.
Canadian Government Programs and Incentives
- First-Time Home Buyer Incentive: Shared equity program to help with down payments.
- Home Buyers’ Plan (HBP): Allows withdrawal of up to $35,000 from an RRSP tax-free for a first home purchase.
- GST/HST New Housing Rebate: Partial rebate of the federal portion of sales tax on new homes.
- Provincial land transfer tax rebates: Offered in Ontario, BC, and PEI for first-time buyers.
Major Canadian Bank Offerings
RBC
- 5-Year Fixed Special: 4.49%
- 5-Year Variable Special: 4.55% (prime - 0.40%)
- Promotional offers: Up to $5,700 in value for eligible mortgage applications before August 31, 2025.
TD
- Prime Rate: 5.10%
- Offers a range of fixed and variable rate products, with personalized advice and pre-approval tools.
CIBC
- Provides competitive fixed and variable rate mortgages; rates updated regularly and tailored for new mortgages and various amortization periods.
National Bank
- Offers fixed and variable rates; current promotions available for select terms.
Provincial Variations in Regulations
- Mortgage qualification (“stress test”): Applies nationwide, but some provincial programs (e.g., land transfer tax rebates, first-time buyer grants) are specific to Ontario, BC, and PEI.
- Quebec: Different legal framework for property transactions.
- Property transfer taxes: Vary by province; check local incentives and rebates.
First-Time Homebuyer Programs
- Federal programs: HBP, First-Time Home Buyer Incentive.
- Provincial rebates: Ontario, BC, PEI offer land transfer tax rebates.
- Municipal programs: Some cities have additional grants or incentives for first-time buyers.
How to Get the Best Rate
- Compare mortgage rates: Use a comprehensive platform like theratefinder to compare rates from top Canadian lenders for residential, commercial, and construction loans.
- Get pre-approved: Lock in a rate for up to 120 days.
- Consider both posted and special offer rates: Special offers often provide substantial savings over posted rates.
- Understand the impact of the stress test: Qualify for a mortgage at the greater of your contract rate plus 2% or the Bank of Canada’s qualifying rate.
Actionable Next Steps
- Compare rates and offers: Start with a platform like theratefinder for a personalized, competitive mortgage solution. Begin your application at theratefinder.ca/onboarding.
- Review eligibility for federal and provincial incentives.
- Consult with a mortgage expert to optimize your rate and term based on your financial goals and location.
Summary:
Mortgage rates in Canada are stable to slightly lower in July 2025, with the prime rate at 4.95% (5.10% at TD) and 5-year fixed rates as low as 4.24% from select lenders. First-time buyers and those renewing should compare rates and leverage government programs for savings. For the best rates and expert guidance, use theratefinder to connect with top lenders and find the right mortgage for your needs.