As of mid-August 2026, the Bank of Canada policy rate sits at 2.25%, unchanged since October 2025 after six consecutive holds, the latest on July 15. The big banks' prime rate stands at 4.45%. On the mortgage side, the best insured 5-year fixed rates hover around 4.1%, while posted rates at the major banks sit near 4.9%: negotiation and your borrower profile make the difference. The 5-year variable is available from roughly 3.4%, about 60 to 70 basis points below a comparable fixed rate, a gap that explains the strong comeback of variable-rate mortgages among new borrowers this year. If your term renews within six months, remember most lenders will hold a rate for 90 to 120 days. The next Bank of Canada announcement lands on Tuesday, September 2, 2026 at 9:45 a.m.: this page will be updated the same day, in French and in English.
Policy rate at 2.25%: the long pause
The Bank of Canada has held its policy rate at 2.25% since its October 2025 cut: six consecutive announcements without a change, the latest on July 15, 2026. It is the longest stretch of stability in the cycle, and it gives the housing market a predictable floor.
The big banks' prime rate (RBC, TD, BMO, Scotiabank, CIBC, NBC) follows at 4.45%: it is the base for variable-rate mortgages and home equity lines of credit.
Mortgage rates in mid-August 2026
According to mid-August compilations (Ratehub, nesto):
- 5-year fixed: the best insured rates hover around 4.1%; posted rates at the major banks sit near 4.9%. Your actual range depends on your profile, down payment and whether the loan is insured.
- 5-year variable: from about 3.4% for the strongest insured files, around 4.2% conventional.
The 60-to-70-basis-point gap in favour of the variable is the real story of the summer. Our French guide taux fixe ou variable breaks down how to choose; the same logic applies in English with your broker.
Next announcement: September 2, 2026
The Bank of Canada announces its next decision on Tuesday, September 2, 2026 at 9:45 a.m. ET. A hold would extend the status quo; any move passes through to prime, variable rates and credit lines the same day. This page is updated after every announcement: come back, or ask us for the current picture.
If your term matures within the next 6 months, do not just absorb the announcement: most lenders will hold a rate for 90 to 120 days. Our renewal guide (FR) details the manoeuvre.
What these rates change for your project
Buyers: a fixed rate around 4.1% on a $500,000 loan means roughly $2,640 per month over 25 years; every 25-basis-point move shifts the payment by about $70 per month. A pre-approval locks your rate while you shop.
Sellers: ten months of stable rates have brought qualified buyers back to the market, which the second-quarter numbers confirm. A market with predictable rates is a market where accepted offers actually close.
Negotiating your rate: the 0.8-point gap is real
The spread between a big bank's posted rate and the best market rate often exceeds 0.8 percentage points for the same borrower. The levers: make lenders compete (mortgage broker or multiple quotes), tend to your credit score, and negotiate the loan's features, prepayment privileges and portability, not just the headline rate. Our team works with English-speaking clients across the South Shore and Montreal every week.
Your project deserves today's rate picture, not last month's.
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Frequently asked questions
What are current mortgage rates in Quebec?
As of mid-August 2026, the best insured 5-year fixed rates are around 4.1% (posted rates near 4.9% at the major banks) and 5-year variable rates start at about 3.4%, according to Ratehub and nesto compilations. The Bank of Canada policy rate is 2.25% and prime is 4.45%. These numbers move: the next Bank of Canada announcement is September 2, 2026.
When is the next Bank of Canada rate announcement?
Tuesday, September 2, 2026 at 9:45 a.m. Eastern. The policy rate has been at 2.25% since October 2025, with six consecutive holds. Any change passes through immediately to the banks' prime rate, and therefore to variable mortgages and home equity lines of credit.
Will mortgage rates go down in 2026?
Nobody knows for certain, and anyone claiming otherwise is guessing. What is factual: the policy rate has been on hold at 2.25% since October 2025, and the variable-fixed gap has widened to 60-70 basis points in favour of the variable, a sign that markets expect stability rather than hikes. Build your plan on your budget, not on a prediction.
Published on August 16, 2026 by the Loaa & Manseur team, #1 team at RE/MAX Platine in 2024 and 2025 · Tell us about your project