Conventional mortgage rates are the interest rates available on mortgages with a loan-to-value ratio of 80% or less. They are not a separate type of interest rate. A conventional mortgage can have a fixed or variable rate, and the rate available depends on the lender, term, mortgage features and borrower. As of September 16, 2026, the Bank of Canada’s typical posted conventional mortgage rates at the six major chartered banks were 5.49% for a 1-year term, 6.05% for a 3-year term and 6.09% for a 5-year term. These are posted rates, not necessarily the rates borrowers actually receive.
- Current Conventional Mortgage Rates in Canada
- What Makes a Mortgage Rate “Conventional”?
- Posted Rates and Actual Conventional Mortgage Rates Are Different
- Why Can Conventional Mortgage Rates Differ Between Borrowers?
- Are Conventional Mortgage Rates Higher Than Insured Mortgage Rates?
- Does a Bigger Down Payment Guarantee a Lower Conventional Mortgage Rate?
- How Should You Compare Conventional Mortgage Rates?
- Questions About Conventional Mortgage Rates in Canada
Current Conventional Mortgage Rates in Canada
The latest weekly conventional mortgage rate data available from the Bank of Canada shows:
| Conventional mortgage term | Typical posted rate on September 16, 2026 |
|---|---|
| 1-year | 5.49% |
| 3-year | 6.05% |
| 5-year | 6.09% |
These figures represent the most typical posted rates among Canada’s six largest chartered banks. They should be treated as a market reference rather than a quote for a particular borrower.
A lender may offer a discounted rate below its posted rate, while another mortgage may be priced differently because of its term or features. For a broader look beyond conventional financing, current mortgage rates in Canada can be compared across mortgage types.
What Makes a Mortgage Rate “Conventional”?
The word “conventional” describes the mortgage, not the way interest is calculated. A conventional mortgage generally has an LTV of no more than 80%, which commonly results from putting at least 20% down when buying a home.
That distinction is covered more fully in what a conventional mortgage is in Canada. Once the mortgage falls within that category, it can still be structured with different interest-rate and term options.
A conventional mortgage can therefore have a 1-year fixed rate, a 5-year fixed rate or a variable rate. There is no single “conventional mortgage rate” that applies to every conventional borrower.
Posted Rates and Actual Conventional Mortgage Rates Are Different
The posted rates in the table above are useful for tracking the market, but they do not show what every borrower is actually paying.
The difference is visible in the Bank of Canada’s separate data on interest rates charged on new mortgages. The latest available monthly figures are for June 2026. New uninsured residential mortgages advanced by chartered banks had an average rate of 4.32% across all terms and rate types. New uninsured mortgages with fixed terms of five years or longer averaged 4.35%.
Those figures are not directly interchangeable with the September posted conventional rates. They cover a different period and measure rates on mortgages actually advanced rather than advertised posted rates. They do, however, demonstrate why a posted rate should not be assumed to be the rate a borrower will receive.
When comparing offers, the relevant number is the rate the lender is prepared to put into your mortgage contract.
Why Can Conventional Mortgage Rates Differ Between Borrowers?
Two borrowers seeking conventional mortgages at the same time can receive different offers. Lenders price mortgages according to their own funding costs, products and lending criteria.
The mortgage itself also matters. A 3-year fixed mortgage does not have to carry the same rate as a 5-year fixed mortgage, and a variable mortgage is priced differently from a fixed mortgage.
For variable-rate products, prime rate becomes particularly important. The Bank of Canada explains that each financial institution establishes its own prime rate based on its funding costs, which are influenced by the central bank’s target for the overnight rate. Its Canadian interest-rate methodology also explains how the conventional mortgage and prime-rate series are compiled.
Other mortgage features can affect pricing as well. A rate that appears cheaper should therefore be compared with the term, prepayment privileges, penalties and other conditions attached to the mortgage rather than viewed in isolation.
Are Conventional Mortgage Rates Higher Than Insured Mortgage Rates?
They can be, but there is no rule that a conventional mortgage must always have a higher rate.
Mortgage default insurance reduces the lender’s exposure if the borrower defaults. CMHC notes that its insurance helps approved lenders provide insured financing at rates comparable to those generally available to borrowers making larger down payments. Its current mortgage insurance premium information also shows that insurance itself carries a cost.
Bank of Canada data illustrates the rate difference that can occur. In June 2026, newly advanced insured residential mortgages at chartered banks averaged 4.22%, compared with 4.32% for uninsured mortgages. For fixed mortgages with terms of five years or longer, the averages were 4.01% insured and 4.35% uninsured.
Those are market averages, not guaranteed pricing for an individual borrower. An insured mortgage may receive a lower interest rate while also carrying an insurance premium. That is why the distinction between conventional and insured mortgages matters when comparing total borrowing costs.
Does a Bigger Down Payment Guarantee a Lower Conventional Mortgage Rate?
Putting more than 20% down reduces the mortgage amount and lowers the LTV, but it does not create a simple rule where every additional percentage point of down payment produces a lower interest rate.
For example, borrowers putting 20% and 30% down may both have conventional mortgages, yet their lenders can price those mortgages differently for reasons unrelated to the size of the down payment.
The more immediate financial effect of increasing the down payment is that you borrow less. The amount required to reach conventional status is explained in conventional mortgage down-payment requirements in Canada.
How Should You Compare Conventional Mortgage Rates?
Start with comparable products. A 5-year fixed closed mortgage should be compared with other mortgages offering a similar term and structure rather than with a fundamentally different product simply because its headline rate is lower.
Then examine what comes with the rate. Prepayment privileges, penalties for breaking the mortgage, portability and restrictions can affect the value of the contract long after the mortgage begins.
Posted rates are useful for understanding where the market stands. The rate that ultimately matters, however, is the contractual rate available to you together with the conditions attached to it.
Questions About Conventional Mortgage Rates in Canada
Are conventional mortgage rates fixed or variable?
They can be either. “Conventional” describes the mortgage’s LTV classification rather than whether its interest rate is fixed or variable.
Do all Canadian banks offer the same conventional mortgage rate?
No. Financial institutions set their own mortgage rates, so offers can differ between lenders even for similar mortgage terms.
Can conventional mortgage rates change before closing?
They can change while you are shopping unless your lender has provided a rate hold that remains valid and you satisfy its conditions.
Are posted conventional mortgage rates the rates most borrowers pay?
Not necessarily. Posted rates are published reference rates. Lenders may offer discounted or negotiated rates, so the actual contractual rate can be lower than the lender’s posted rate.
