Key Takeaway

Canadian mortgage rates increased this week across both fixed and variable products. Five-year fixed rates for insured mortgages are now averaging 4.89% to 5.24%, up from last week’s range of 4.74% to 5.09%. Variable rates tied to prime are averaging 5.95% to 6.45%. The upward movement reflects broader market conditions and the Bank of Canada’s current overnight rate policy.

Today’s Rates: Sunday, June 21, 2026

Mortgage rates in Canada moved higher compared to the previous week. The increase affects both purchase mortgages and refinancing products, with fixed-rate terms seeing the most noticeable shift.

Fixed-rate mortgages for five-year terms (the most common choice in Canada) are currently offered between 4.89% and 5.24% for insured mortgages (those with less than 20% down payment requiring CMHC insurance). Uninsured mortgages with 20% or more down payment are slightly higher, ranging from 5.14% to 5.49%.

Variable-rate mortgages are priced relative to each lender’s prime rate, which currently sits at 6.70% at major institutions. Discounts off prime vary by lender, credit profile, and property type, with rates generally falling between 5.95% and 6.45% (prime minus 0.75% to prime minus 0.25%).

According to the Bank of Canada, the overnight policy rate remains at 4.50% as of June 2026, a key factor influencing prime rates and variable mortgage pricing (Bank of Canada, 2026).

What the Increase Means for You

For those shopping for a new mortgage, the higher rates translate to increased carrying costs. A C$400,000 mortgage at 5.14% on a 25-year amortization results in a monthly payment of approximately C$2,368, compared to C$2,329 at last week’s 4.74% rate (an increase of C$39 per month, or C$468 annually).

If you are refinancing or renewing your mortgage at the end of your current term, compare offers from multiple lenders. Rate differences of even 0.20% to 0.30% can save thousands of dollars over a five-year term. The Financial Consumer Agency of Canada recommends reviewing your options at least 120 days before your renewal date to avoid being locked into your existing lender’s posted rates (FCAC, 2026).

Read also: Mortgage and Refinance Interest Rates in Canada Today, June 17, 2026: Fixed Rates Continue to Fall

Remember that all mortgage applicants in Canada must qualify under the OSFI mortgage stress test, which requires you to qualify at the greater of your contract rate plus 2% or the Bank of Canada’s benchmark qualifying rate (currently 5.25%). This rule applies to both purchases and refinances with federally regulated lenders.

Fixed Versus Variable in a Rising Rate Environment

When rates are climbing, fixed-rate mortgages provide payment certainty for the duration of your term (typically one to five years in Canada). You lock in today’s rate and your payment stays the same until renewal, regardless of what happens to the Bank of Canada’s policy rate.

Variable-rate mortgages offer lower starting rates but fluctuate with prime. If you expect rates to stabilize or decline within your term, a variable product may save you money. However, if rates continue upward, your payments will increase accordingly.

Next Steps

Contact a licensed mortgage broker or compare offers from at least three lenders before committing. Rates, prepayment privileges, and penalty structures vary significantly between institutions. Verify current rates and your personal eligibility, as advertised rates often require strong credit, specific down payment levels, and particular property types.

Disclaimer: This article provides general educational information only and is not personalized financial, lending, legal, or tax advice. Mortgage rates change frequently and vary by lender, province, product type, down payment amount, credit profile, and other factors. Eligibility, terms, and prepayment conditions differ by lender and by your individual circumstances. Always verify current rates and terms with a licensed mortgage broker or financial institution and consult a qualified professional for advice specific to your situation before making any mortgage or refinancing decision.