Mortgage rates are continuing to trend in a more buyer-friendly direction as we move into early 2026. As of February 8, insured 5-year fixed rates are sitting around 3.94%, with 3-year fixed options even lower at approximately 3.84%. Variable rates remain competitive as well, currently ranging from Prime – 0.75% (insured) to Prime – 0.55% (conventional), depending on qualification.

For buyers with larger down payments (conventional financing), 5-year fixed rates are around 4.29%, while insurable options are slightly higher near 4.54%. Overall, we’re seeing meaningful improvement compared to the higher-rate environment many buyers were navigating over the past couple of years.

The current prime rate sits at 4.45%, set by the Bank of Canada, with the next rate announcement scheduled for March 18, 2026. Many economists anticipate continued stability or gradual easing through the year, which could create additional opportunities for buyers who have been waiting on the sidelines.

What this means for buyers

• Purchasing power has improved compared to 2024–2025.

• Shorter-term fixed rates (like 3-year) are becoming increasingly attractive.

• Variable rates may appeal to buyers comfortable with some flexibility if future cuts occur.

If you’ve been thinking about buying in 2026, this rate environment is opening doors that were previously closed and even small rate changes can have a big impact on affordability.