Question 1

What is the best mortgage rate in Canada right now?

Accepted Answer

The best insured 5-year fixed mortgage rate in Canada is currently around 4.04%, available through licensed mortgage brokers — typically 0.5–1.5% lower than bank posted rates. Variable rates start around 3.50%. The Bank of Canada held its overnight rate at 2.25% in April 2026. Use our rate comparison tool for today's most current figures — rates update daily.

Question 2

Fixed or Variable Mortgage — Which is Better in Canada Right Now?

Accepted Answer

With the Bank of Canada holding rates at 2.25%, variable rates are competitive starting around 3.50%. Fixed rates offer payment certainty starting around 4.04% for 5-year terms. The right choice depends on your risk tolerance, budget flexibility, and how long you plan to stay in the home. Our fixed vs variable guide breaks down the historical data in plain language.

Question 3

How Much Down Payment Do I Need for a Mortgage in Canada?

Accepted Answer

The minimum down payment in Canada is 5% on homes under $500,000, 10% on the portion between $500,000–$999,999, and 20% on homes $1,000,000 and above. Homes over $1.5M require 20% down and are not eligible for CMHC mortgage insurance. First-time buyers can use the FHSA (up to $40,000 tax-free) and RRSP Home Buyers Plan (up to $35,000) to fund their down payment.

Question 4

What is the Mortgage Stress Test in Canada and How Does It Work?

Accepted Answer

The federal mortgage stress test requires all lenders to qualify you at your contract rate plus 2%, or 5.25%, whichever is higher. So if your actual rate is 4.04%, you must prove you can afford payments at 6.04%. This applies to all federally regulated lenders in Canada and reduces how much you can borrow by approximately 20%.

Question 5

What is the First Home Savings Account (FHSA) and how does it work?

Accepted Answer

The FHSA lets first-time buyers save up to $40,000 lifetime ($8,000 per year) completely tax-free. Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying home purchase are tax-free like a TFSA. It can be combined with the RRSP Home Buyers Plan for a combined tax-free down payment savings of up to $75,000 per person.

Question 6

Should I Use a Mortgage Broker or Go Directly to My Bank in Canada?

Accepted Answer

Mortgage brokers typically access rates 0.1–0.5% lower than banks by shopping your application to multiple lenders who compete for your business. Their service is completely free — lenders pay the broker commission. Brokers also access lenders your bank doesn't, including monoline lenders and credit unions that often offer the best Canadian mortgage rates. For most Canadians, starting with a broker is the smarter first step.

Question 7

What closing costs should I budget for when buying a home in Canada?

Accepted Answer

Budget 1.5–4% of the purchase price for closing costs. The biggest variable is land transfer tax, which ranges from 0% (Alberta, Newfoundland) to 3%+ in Toronto which charges both provincial and municipal LTT. Other costs include legal fees ($1,500–$2,500), title insurance ($300–$500), home inspection ($400–$600), and property tax adjustments. First-time buyers in Ontario receive LTT rebates up to $4,000.

Question 8

When Should I Get a Mortgage Pre-Approval in Canada?

Accepted Answer

Start your mortgage pre-approval 90–120 days before you plan to make an offer. Pre-approval locks in today's rate for 90–120 days, gives you a firm budget, and signals to sellers you're a serious buyer. The process takes 24–48 hours with a broker and has no impact on your credit score when done correctly as a soft inquiry.

Rate Type	Best Rate	Monthly Payment*	Term
5-Year Fixed	4.89%	~$2,301/mo	5 Years
5-Year Variable	5.45%	~$2,430/mo	5 Years
3-Year Fixed	4.74%	~$2,268/mo	3 Years
2-Year Fixed	5.10%	~$2,349/mo	2 Years
HELOC	6.20%	~$2,067/mo (interest only)	Variable

Lender	Type	5-Yr Fixed	3-Yr Fixed	5-Yr Variable	Action
National Bank	Bank	4.43%	4.44%	4.49%	Get Quote →
CIBC	Bank	4.51%	4.51%	4.12%	Get Quote →
RBC Royal Bank	Bank	4.62%	4.43%	3.98%	Get Quote →
BMO	Bank	4.76%	4.67%	4.12%	Get Quote →
TD Bank	Bank	4.96%	4.72%	4.31%	Get Quote →
Scotiabank	Bank	6.09%	6.05%	4.90%	Get Quote →
TOPTop Broker 🏆	Broker	4.89%	4.74%	5.45%	Get My Rate →

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