Question 1

What is the Bank of Canada overnight rate in 2026?

Accepted Answer

As of May 16, 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 May 16, 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 is the difference between insured and insurable mortgage rates?

Accepted Answer

Insured mortgages (under 20% down payment) get the lowest available rates because lenders have no default risk — CMHC covers it. Insurable mortgages (20%+ down, under $1.5M, 25yr amortization) can be pool-insured by lenders and typically get rates close to insured pricing. Conventional mortgages (over $1.5M or 30yr amortization) carry more lender risk and are priced 0.10–0.25% higher.

Question 4

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 offers lower starting payments but rate risk at renewal. Fixed provides certainty. Given the BoC is on hold and fixed-rate premium is small, many Canadians are choosing fixed.

Question 5

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 ticked upward slightly in early 2026 despite the overnight rate holding steady.

Question 6

Are broker rates better than bank rates?

Accepted Answer

Almost always, yes. The rates shown on this page are broker rates — the best available from monoline lenders and credit unions working through mortgage brokers. Major bank rates are typically 0.20–0.50% higher for the same product. A broker also has access to products and lenders that a single bank branch cannot offer.

Term	Insured	Insurable	Conventional
Variableprime − 1.10%	3.35%	3.35%	3.55%
1-year fixed	4.59%	4.59%	4.79%
3-year fixed	3.90%	3.90%	4.10%
5-year fixed	3.89%	3.89%	4.09%
10-year fixed	4.79%	4.79%	4.99%

Canadian Mortgage Rates Today

The rate cycle in context

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