Mortgage Rates Have Dropped Slightly: Updated Rate Sheet
Some Canadian mortgage rates have moved lower. The change may affect purchasing decisions, renewals, refinancing, and lender switches.
A lower rate can reduce interest costs. It does not automatically make every mortgage option suitable. Review the complete mortgage structure before selecting a product.
Current Rate Snapshot
The following rates are a current snapshot from the Glenn Bauman Mortgages lender panel:
Important rate disclaimer: Best available rates shown are from Glenn Bauman Mortgages lender panel and are subject to your qualification, lender approval, and change without notice. On approved credit (OAC). Your actual rate depends on your credit, down payment, property type, and other lender-specific criteria. Last updated August 29, 2026.
These rates are not guarantees. High-ratio mortgage rates may require mortgage default insurance and may not apply to refinances or conventional mortgages. Confirm the applicable mortgage category before comparing offers.
What a Small Rate Drop Can Change
A rate reduction can affect:
- Monthly payment amount.
- Total interest over the mortgage term.
- Amount of principal repaid.
- Renewal options.
- Qualification results.
- The cost of breaking an existing mortgage.
The effect depends on the mortgage balance, amortization, payment schedule, term, and product type. A rate difference of 0.25% does not produce the same dollar savings for every borrower.
Calculate the expected payment and interest cost using the actual mortgage balance and remaining amortization. Use the Financial Consumer Agency of Canada mortgage calculator for a general estimate.
If You Are Buying a Home
Do not select a mortgage based only on the lowest displayed rate.
Review the following before making an offer:
Confirm Qualification
Lenders review income, employment, debts, credit history, down payment, property type, and documentation. The rate shown in a general snapshot may not apply to your application.
Request a pre-approval or qualification review before relying on a payment estimate. A pre-approval is not final mortgage approval. The property, appraisal, documents, and lender conditions must still be reviewed.
Use the Financial Consumer Agency of Canada mortgage qualification information as a general reference.
Compare the Term
A shorter term may provide flexibility if your plans could change. A longer term may provide payment stability for a longer period.
Review:
- Expected time in the property.
- Possible relocation.
- Planned sale or refinance.
- Expected income changes.
- Potential family or employment changes.
- The next renewal date.
Select a term that matches the expected holding period and financial plan.
Review the Down Payment
The down payment affects:
- Mortgage insurance requirements.
- Available rates.
- Loan-to-value classification.
- Monthly payment.
- Cash remaining after closing.
- Qualification.
Do not use all available funds for the down payment without reviewing closing costs, emergency reserves, moving costs, and planned repairs.
If You Are Approaching Renewal
A renewal notice is not necessarily the final offer available to you.
Start reviewing options several months before maturity. Request:
- Your current mortgage balance.
- Remaining amortization.
- Current payment.
- Renewal date.
- Available renewal rates.
- Prepayment privileges.
- Penalty calculation.
- Portability provisions.
- Charge type.
- Administrative fees.
Compare your current lender’s offer with other eligible lenders. Compare equivalent products using the same term, amortization, payment frequency, and mortgage type.
Do not compare only the rate. A lower rate with limited prepayment privileges, higher penalties, or an unsuitable charge type may not provide the lowest overall cost.
Review the Financial Consumer Agency of Canada guidance on renewing a mortgage.
If You Are Considering Fixed or Variable
The rate snapshot includes fixed and variable-rate options. Each product has different payment and risk characteristics.
Fixed-Rate Mortgage
A fixed-rate mortgage normally provides a stable interest rate during the term. Payment stability can simplify budgeting.
Review:
- The fixed rate.
- The term length.
- The lender’s prepayment privileges.
- The penalty calculation.
- Portability.
- Early renewal rules.
- Blend-and-extend options.
Fixed mortgages can have significant penalties if broken before maturity. The penalty may be based on three months’ interest or an interest rate differential calculation, depending on the lender and mortgage contract.
Variable-Rate Mortgage
A variable-rate mortgage can change when the lender’s prime rate changes. Depending on the product, the payment may change or the amount applied to principal may change.
Review:
- The lender’s prime rate.
- The variable discount or premium.
- Payment adjustment rules.
- Trigger-rate provisions, where applicable.
- Conversion terms.
- Penalty rules.
- Your ability to manage higher payments.
Test the payment at the current rate and at higher rates. A variable option requires sufficient monthly cash flow for possible increases.
Do not select a variable mortgage based on a forecast. Rate forecasts are uncertain. Base the decision on affordability, time horizon, and risk capacity.
If You Are Considering Refinancing
A lower rate does not automatically justify breaking an existing mortgage.
First identify the purpose:
- Consolidate higher-interest debt.
- Fund renovations.
- Access home equity.
- Change the amortization.
- Improve cash flow.
- Finance an investment or other approved purpose.
Then calculate the complete cost:
- Existing mortgage penalty.
- Legal fees.
- Appraisal fees.
- Lender fees.
- Discharge fees.
- Registration costs.
- Potential insurance costs.
- Interest cost over the new term.
Compare the total cost with the expected interest savings and the financial benefit of the refinance.
Refinancing also requires qualification. The lender may review income, debts, credit, property value, and loan-to-value. The federal mortgage stress test may affect the amount available, even when the contract rate has decreased.
Avoid extending the amortization without reviewing the total interest cost. A longer amortization can reduce the payment while increasing interest over time.
Review the Financial Consumer Agency of Canada information on breaking a mortgage contract.
Review the Mortgage Features
Before accepting an offer, compare the following items line by line.
Prepayment Privileges
Confirm:
- Annual lump-sum percentage.
- Payment increase options.
- Frequency of lump-sum payments.
- Whether unused privileges carry forward.
- Restrictions on timing or source of funds.
Prepayment privileges can reduce interest and shorten the amortization.
Penalties
Ask for a written penalty calculation based on your mortgage balance and proposed break date. Do not rely on a general estimate.
Portability
A portable mortgage may allow the mortgage to move to another property, subject to lender approval and contract conditions. Confirm whether the mortgage can be transferred and whether additional funds can be blended.
Charge Type
Confirm whether the mortgage is registered as a standard charge or collateral charge. The charge type can affect future borrowing, switching costs, and discharge requirements.
Fees
Request a complete fee schedule. Include appraisal, legal, administration, discharge, registration, and lender-specific charges.
Future Plans
Review your expected plans for the full term:
- Will you sell?
- Will you move?
- Will you refinance?
- Will you make large payments?
- Will your income change?
- Will you require access to equity?
Select the mortgage structure that accommodates these conditions.
Recommended Next Steps
- Confirm your mortgage type and qualification category.
- Request fixed and variable quotes for the same term.
- Compare your current lender with alternative lenders.
- Calculate payment and total interest.
- Review penalties, fees, and prepayment privileges.
- Test variable payments at higher rates.
- Confirm portability and charge type.
- Review your expected plans before committing.
- Obtain lender approval before treating any rate as final.
- Request all material terms in writing.
Use the Bank of Canada key interest rate information for central-bank rate information. Bank of Canada policy rates do not determine the exact mortgage rate available to every borrower.
