Question 1

What is the Bank of Canada overnight rate in 2026?

Accepted Answer

As of April 2026, the Bank of Canada overnight rate is 2.25%. After nine consecutive cuts from the 5.0% peak in July 2023, the BoC has held at 2.25% since September 2025, pausing as it monitors inflation and global economic uncertainty.

Question 2

What is the prime rate in Canada in 2026?

Accepted Answer

The prime rate is 4.45% as of April 2026 — 2.20% above the BoC overnight rate. Variable mortgage rates are priced relative to prime (e.g., prime − 1.10% = 3.35%).

Question 3

What are the best mortgage rates in Canada right now?

Accepted Answer

As of April 9, 2026: best 5-year fixed is approximately 3.89%, best 3-year fixed is around 3.90%, and best 5-year variable is approximately 3.35% (prime − 1.10%). These are broker rates — bank rates are typically higher.

Question 4

Will Canadian mortgage rates go down further in 2026?

Accepted Answer

The BoC signalled in early 2026 that it is pausing its rate cut cycle. Further cuts appear unlikely near-term. Fixed rates, driven by bond yields, have actually risen slightly in early 2026 despite the overnight rate holding steady.

Question 5

Should I choose fixed or variable in 2026?

Accepted Answer

With variable rates at 3.35% and 5-year fixed at 3.89%, the spread is 0.54%. Variable rates offer lower starting payments but risk rising if the BoC reverses course. Fixed gives certainty. Given current uncertainty, the fixed premium is small and many Canadians are choosing fixed.

Canadian Mortgage Rate History

The rate cycle in context

Frequently asked questions

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