In 2025, the Canadian housing market is once again shaped by interest rate policies and economic uncertainty. The Bank of Canada continues to balance inflation control with economic growth, and mortgage borrowers are watching closely.
For homebuyers and those refinancing, comparing the current mortgage rates in Canada is essential. The difference between posted bank rates and the lowest broker rates can save tens of thousands of dollars over the life of a mortgage.
Current Mortgage Rates in Canada: CIBC, RBC, and Market Leaders
The following table compares the most recent posted rates at two of Canada’s largest banks — CIBC and RBC — with the best available market rates from Ratehub.ca (as of September 2025).
| Term & Type | CIBC Posted Rate (APR) | RBC Posted Rate (APR) | Best Rates on Ratehub.ca* |
|---|---|---|---|
| 1-year fixed (closed) | ~5.24% | ~7.04% | ~4.99% |
| 2-year fixed (closed) | ~5.49% | ~6.69% | ~4.79% |
| 3-year fixed (closed) | ~6.64% | ~6.49% | ~4.54% |
| 4-year fixed (closed) | ~6.19% | ~6.39% | ~4.64% |
| 5-year fixed (closed) | ~6.49% | ~6.34% | ~3.94% |
| 5-year variable (closed) | ~4.95% | ~6.05% | ~3.95% |
| Prime rate (Canada) | 4.95% | 4.95% | — |
*Ratehub best rates reflect brokered or insured offers, which may not be accessible to every borrower.
How Bank of Canada Policy Will Shape Mortgage Rates in 2025
The Bank of Canada (BoC) is the key driver of short-term interest rates. Its overnight lending rate directly impacts the prime rate, which determines variable mortgage costs.
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Fixed mortgage rates: These are tied to Government of Canada bond yields, especially the 5-year bond. If inflation continues to ease, yields could trend lower, bringing down fixed mortgage rates.
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Variable mortgage rates: With the prime rate currently at 4.95%, borrowers choosing variable products are betting on the BoC lowering rates in late 2025 or early 2026.
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Outlook: Many economists expect at least one or two rate cuts in 2025, which would make variable mortgages increasingly attractive compared to higher fixed terms.
Fixed vs Variable Mortgages – Which Is Better in 2025?
Choosing between fixed and variable mortgages depends on risk tolerance, financial goals, and expectations for interest rates.
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Fixed mortgages
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Provide payment stability and predictability.
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Recommended for buyers who want certainty in budgeting.
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Currently higher at posted banks (above 6%) but available around 3.9–4.6% through brokers.
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Variable mortgages
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Move in line with the prime rate.
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Attractive if you expect future rate cuts.
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Available around 3.95% with some brokered offers, though posted bank variable rates remain much higher.
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Best strategy for 2025: Many experts suggest shorter fixed terms (1–3 years) or variable mortgages for those comfortable with some risk, while conservative borrowers may prefer locking into discounted 5-year fixed rates for peace of mind.
FAQ: Current Mortgage Rates in Canada
1. What are the current mortgage rates in Canada?
Posted rates at big banks like CIBC and RBC are generally above 6% for fixed mortgages. However, the best brokered 5-year fixed rates are closer to 3.94%, while the best 5-year variable rates are around 3.95%.
2. Why are posted bank rates higher than broker rates?
Banks list higher “posted” rates but often discount them for qualified borrowers. Brokers and comparison sites negotiate lower rates with lenders, making them more competitive.
3. How does the Bank of Canada affect mortgage rates?
The BoC sets the overnight lending rate, influencing the prime rate used for variable mortgages. Fixed mortgage rates follow government bond yields.
4. Is it better to get a fixed or variable mortgage in 2025?
Fixed mortgages provide stability, while variables may benefit from expected rate cuts in 2025. The right choice depends on your financial situation and risk tolerance.
5. What is the current prime rate in Canada?
The prime rate in Canada is 4.95%, used as the base for most variable mortgages and lines of credit.
6. Can I negotiate my mortgage rate with CIBC or RBC?
Yes. Most borrowers do not pay posted rates. Negotiation or working with a broker can secure significant discounts.
7. How long should I lock in a mortgage rate for?
In 2025, many experts recommend shorter fixed terms (1–3 years) to wait out possible BoC cuts, but conservative buyers may prefer a longer fixed term.
8. Where can I find the best mortgage rates in Canada?
Comparison platforms like Ratehub.ca list the lowest available market rates, while major banks like CIBC and RBC publish posted rates that are often negotiable.
Final Word
The current mortgage rates in Canada show a wide gap between posted bank rates and market offers. In 2025, with potential Bank of Canada rate cuts, variable mortgages are worth considering. But stability-seekers can still find attractive fixed terms if they negotiate or shop through brokers.
Smart borrowers in 2025 will compare multiple lenders — including CIBC, RBC, and brokered offers — before making a decision that could shape their financial future for years to come.