Rate mechanics · as of Jul 29, 2026 · source Bank of Canada
What actually sets your fixed rate
Lenders don't price 5-year fixed mortgages off the Bank of Canada's policy rate. They price them off the Government of Canada 5-year bond yield, plus a margin. This page publishes both numbers and the margin between them, updated daily.
Today's spread
The gap is 85 basis points — what the lender keeps to cover funding costs, capital, and risk. When the bond yield moves, fixed rates follow within days. When the spread narrows, lenders are competing on margin rather than passing through a change in funding.
Why fixed and variable are moving apart
+18bps
GoC 5-year yield, past 12 months — the input to fixed rates
−50bps
Policy rate, past 12 months — the input to variable rates
These two inputs are not the same lever, and right now they are pointing in opposite directions. A borrower comparing fixed and variable today is choosing between two markets that disagree about where rates are going — which is exactly when the choice matters most.
GoC 5-year benchmark · 12 months
Benchmark series
| Series | Latest | 1w | 1m | 3m | 1y | BoC code |
|---|---|---|---|---|---|---|
| GoC 2-year benchmarkdrives short-term fixed | 2.85% | −5 | +11 | −9 | +9 | BD.CDN.2YR.DQ.YLD |
| GoC 5-year benchmarkdrives 5-year fixed mortgages | 3.19% | −3 | +18 | +1 | +18 | BD.CDN.5YR.DQ.YLD |
| GoC 10-year benchmarkdrives long-term fixed | 3.58% | −2 | +20 | +5 | +13 | BD.CDN.10YR.DQ.YLD |
| Target overnight ratedrives variable mortgages and HELOCs | 2.25% | ±0 | ±0 | ±0 | −50 | V39079 |
Changes shown in basis points. 100 bps = 1.00 percentage point.
How the pass-through works
A lender funding a 5-year fixed mortgage needs money for five years. The cheapest five-year money in Canada is the Government of Canada 5-year bond, so that yield sets the floor on what the mortgage can cost. Everything above it is margin.
This is why a Bank of Canada announcement can move variable rates the same afternoon and leave fixed rates untouched. The policy rate sets the overnight cost of money, which prime — and therefore variable mortgages and HELOCs — tracks directly. Fixed rates answer to the bond market, which prices expectations years out.
The practical consequence: if you want to know where fixed rates are heading, watch the 5-year yield, not the policy rate announcements. The bond market usually moves first, and lenders follow within days.
Methodology and sources
Benchmark yields and the policy rate come from the Bank of Canada Valet API, series shown in the table above. Values are the most recent published observation; bond markets do not publish on weekends or statutory holidays, so the “as of” date may trail today.
The spread is our best advertised 5-year fixed rate minus the GoC 5-year benchmark yield, in basis points. It is not a lender margin disclosure — it is the observable gap between a public benchmark and a public offer, and it varies by lender, term, insurance status and borrower profile.
Update frequency: this page refreshes hourly and reflects the latest published Bank of Canada observation.
Reproduce these figures yourself: Bank of Canada Valet API documentation.
See what this means for your rate
The spread above is the market. What you actually qualify for depends on your term, down payment and credit profile.