Mortgage Rates in Quebec: How They’re Set and How to Get the Best One
Fixed rates mainly follow Government of Canada bond yields; variable rates follow the Bank of Canada’s policy rate. Your personal rate then depends on your down payment, credit, property type and lender. Comparing several lenders often makes the biggest difference: a few tenths of a percent add up to thousands of dollars over a term.
See our current indicative rates, updated regularly.
How are rates set?
Fixed rates. Lenders fund themselves on the markets. The 5-year fixed rate therefore closely follows the 5-year Government of Canada bond yield, plus the lender’s margin. When those yields rise, fixed rates rise a few days later, and vice versa.
Variable rates. They equal the lender’s prime rate, plus or minus a spread. Prime follows the Bank of Canada’s policy rate, announced 8 times a year. If the Bank cuts its rate by 0.25%, your variable rate drops by the same amount.
That’s why fixed and variable rates don’t always move in the same direction at the same time.
Posted rate or actual rate?
The posted rate at a branch is a starting point, rarely the rate you’ll pay. Your actual rate depends on your file and on negotiation. Also note: big banks often use their higher posted rate to calculate the penalty if you break a fixed-rate mortgage.
What affects your personal rate
| Factor | Effect on your rate |
|---|---|
| Insured mortgage (under 20% down) | Often the lowest rate, since the insurer covers the risk |
| Conventional mortgage (20% or more) | Slightly higher, with exceptions |
| Refinance | Usually higher than a purchase or switch |
| Amortization over 25 years | May add a small premium |
| Credit score | Below 680, the choice of lenders and rates narrows |
| Rental property or 5+ unit building | Higher rate, different rules |
| Self-employed income not fully declared | Alternative lenders, higher rate |
| Term chosen | Short and long terms are priced differently from the 5-year |
How much is a better rate worth?
On a $400,000 mortgage amortized over 25 years:
| Rate | Monthly payment | Interest paid over 5 years |
|---|---|---|
| 4.50% | $2,214 | about $84,000 |
| 4.25% | $2,159 | about $79,000 |
| 4.00% | $2,104 | about $74,500 |
A quarter point is worth about $55 a month and nearly $5,000 in interest over 5 years.
7 ways to get a better rate
- Compare several lenders. A broker does it with a single credit check.
- Polish your credit before applying: on-time payments and cards under 30% of their limits. See our article on improving your credit.
- Lock in a rate early. A pre-approval can hold a rate for 90 to 120 days; if rates drop, you get the lower one.
- Choose the right term, not just the lowest rate: a shorter term may suit you if you plan to sell.
- Compare like with like. Some very low rates come with restrictions: high penalties, no prepayments, no transfers.
- Negotiate at renewal. Don’t automatically sign your lender’s offer: since November 2024, you can switch lenders at renewal without re-taking the stress test, as long as the amount and amortization stay the same.
- Submit a complete file from the start: a clear file reassures the lender and speeds up approval.
The qualifying rate: don’t confuse the two
Even if your rate is 4%, the lender checks that you could afford payments at a higher rate: the greater of your rate plus 2% or 5.25%. This stress test determines how much you can borrow, not just your rate.
Frequently asked questions
Are rates the same everywhere in Quebec?
Rates don’t depend on the city but on your file and the lender. The gaps between lenders, however, are very real.
Why is an insured mortgage rate lower?
Because insurance (CMHC, Sagen or Canada Guaranty) protects the lender in case of default. You pay the premium, but often get a better rate.
When will rates go down?
No one knows for sure. Rather than predicting rates, choose a product your budget can handle in several scenarios.
Can I keep my rate if I move?
Often yes, through portability, if your mortgage allows it. It’s a feature to check before signing.
Get your personalized rate
I compare rates from over 30 lenders for your exact situation, terms included. Get your rate or read our fixed vs. variable guide.
Get my personalized rate
See ratesRelated articles
Fixed vs. Variable Mortgage Rate: How to Choose in 2026
Fixed or variable mortgage rate? Pros, risks, penalties and a worked example to help you choose the right option for your budget and plans.
TaxesQuebec Welcome Tax Refund: How to Claim Up to $5,875 in 2026
First-time buyer in Quebec? Get up to $5,875 of your welcome tax back. Eligibility, calculation and how to request the advance payment before December 1.
Self-employedSelf-Employed Mortgage in Quebec: Documents, Income and Lenders
Self-employed or incorporated in Quebec? Documents required, how your income is calculated, options if you declare little, and how to get your mortgage at the best rate.