Fixed vs Variable Mortgage in Canada
A fixed rate stays the same for the term; a variable rate moves with the lender's prime rate. Here's how today's official rates compare.
Average new insured, 5 years+ fixed
4.12%
+0.07 pts since Jul 2026
Aug 2026 · Bank of Canada
Average new insured variable
3.74%
−0.01 pts since Jul 2026
Aug 2026 · Bank of Canada
5-year posted
6.19%
Nov 4, 2026 · Bank of Canada
Prime rate
4.70%
Nov 11, 2026 · Bank of Canada
Today's gap
The average new insured variable rate is 3.74% (Aug 2026), versus 4.12% for 5-year+ fixed, a difference of 0.38 percentage points.
Trade-offs
- Fixed: predictable payments; breaking the mortgage can cost more
- Variable: moves with prime; penalties to break are often lower
- Both are stress-tested at the higher of the rate plus 2 percentage points or 5.25%
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.