Will Canadian Mortgage Rates Stay Stable in 2026?

The Bank of Canada policy rate is currently 2.25%, with most forecasts expecting interest rates to remain largely stable through 2026.

Canada’s prime rate sits near 4.45% while inflation is about 2.3%, suggesting borrowing costs may stay steady rather than fall sharply.

By the end of 2026, about 33% of Canadian mortgage holders are expected to face higher payments when renewing their mortgages.

Borrowers renewing 5-year fixed mortgages may see average payment increases around 20%, reflecting the shift from ultra-low pandemic-era rates.