Canadian mortgage and refinance rates reversed direction this week, climbing 15 to 25 basis points across most major lenders after three consecutive months of decline. The benchmark five-year fixed rate now sits at approximately 4.89 per cent at major banks, up from 4.69 per cent in early June, while variable rates have edged to prime minus 0.55 per cent (approximately 5.65 per cent as of June 23, 2026). The reversal follows stronger-than-expected employment data and persistent inflation pressure, which dampened near-term expectations for further Bank of Canada rate cuts.

What Drove the Reversal

The Bank of Canada held its policy interest rate steady at 4.25 per cent in its June 5 announcement, signalling a more cautious stance after two earlier cuts in March and April (Bank of Canada, 2026). Bond market yields climbed in response, with the five-year Government of Canada bond yield rising from 2.95 per cent to 3.15 per cent over the past two weeks. Lenders price fixed-rate mortgages primarily against these bond yields, so the bond market move translated directly into higher posted and discounted fixed rates.

Variable-rate mortgages, which track the Bank of Canada policy rate through the prime rate, saw smaller increases. Most variable products remain linked to prime (currently 6.20 per cent), and lenders adjusted discounts slightly narrower in response to the changed rate outlook.

Today’s Rates by Product Type

According to data compiled by Ratehub.ca, the average discounted five-year fixed rate among major lenders stands at 4.79 per cent as of June 23, 2026, compared to 4.59 per cent on June 2 (Ratehub, 2026). Three-year fixed rates average 4.69 per cent, and one-year fixed rates sit near 5.49 per cent, reflecting the inverted yield curve.

Variable-rate mortgages are offered at prime minus 0.55 per cent to prime minus 0.30 per cent depending on the lender, down payment size, and whether you choose an insured or uninsured mortgage. The effective variable rate for most qualified borrowers is approximately 5.65 per cent to 5.90 per cent.

Refinance rates typically run 10 to 20 basis points higher than purchase rates at the same lender, putting five-year fixed refinance rates near 4.99 per cent.

Read also: Mortgage and Refinance Interest Rates in Canada Today: Rates Higher Compared to Last Week

What This Means for Buyers and Renewals

If you are in the market to purchase or renew, you will face modestly higher borrowing costs than you would have two weeks ago. The OSFI mortgage stress test still requires you to qualify at the greater of your contract rate plus two percentage points or 5.25 per cent, so a 4.79 per cent five-year fixed means you must qualify at 6.79 per cent (FCAC, 2026). The rate increase may reduce your maximum borrowing capacity by approximately two to three per cent compared to early June.

For those with a mortgage term maturing in the next 90 days, lenders typically allow you to lock in a rate up to 120 days before your renewal date. If you already locked in a lower rate in May or early June, that rate hold remains valid. If you have not yet locked, current rates apply.

Fixed versus variable remains a personal decision. Variable-rate holders benefit if the Bank of Canada resumes cuts later in 2026, but fixed-rate products offer payment certainty for the full term.

Next Steps

Mortgage rates change frequently and vary by lender, property type, down payment, and your credit profile. The figures above reflect advertised rates as of June 23, 2026, and are general educational information only. Before committing to a mortgage or refinance, compare offers from at least three lenders or work with a licensed mortgage broker who can access multiple lender rate sheets on your behalf. Verify the rate, prepayment privileges, prepayment penalties (including the interest rate differential calculation method), and total borrowing costs for your specific situation.

Disclaimer: This article provides general educational information about Canadian mortgage and refinance rates and is not personalized financial, lending, legal, or tax advice, nor an offer or commitment to lend. Mortgage products, rates, qualification requirements, and costs vary by province, territory, lender, and your individual circumstances. Rates change daily. Consult a licensed mortgage broker, your financial institution, or the Financial Consumer Agency of Canada for advice tailored to your personal situation.