- The Bank of Canada tracks the typical posted 5-year rate at the chartered banks: 6.19% on 2026-10-28 (series V80691335).
- Banks advertise special or discounted rates below posted; your final offer can be lower again after negotiation.
- The gap between posted and your rate (your discount) is used in the big banks’ IRD penalty.
- Each bank profile on this site lists that bank’s rates exactly as its page showed them, with the date.
Where posted rates come from
Each bank sets and publishes its posted rates. The Bank of Canada publishes a weekly “conventional mortgage” series that reflects the chartered banks’ typical posted rates. On 2026-10-28 it showed 5.49% for 1-year, 6.05% for 3-year and 6.19% for 5-year terms.
Posted rates move slowly. The prime rate, which drives variable mortgages, was 4.45% in the weekly series on 2026-10-28. The Bank of Canada raised its policy rate to 2.50% effective 2026-10-29, after the weekly prime observation, so check each bank’s current prime.
5-year postedPrimePolicy rate
Why few people pay the posted rate
Banks compete through advertised specials, rate holds, cash-back offers and discretionary discounts. A broker quote or a competing bank’s offer is often enough to get a discount. Insured mortgages (less than 20% down) often price lower than uninsured ones because the default risk sits with the insurer.
To judge any quote, compare it with current data on IsThisAGoodRate.ca, which scores a rate against dated Bank of Canada benchmarks.
Why the posted rate still matters: your penalty
If you break a closed fixed mortgage, RBC, TD, Scotiabank and CIBC all describe an interest rate differential (IRD) that compares your rate with a posted rate for a term close to the time remaining, adjusted for the discount you received. A big discount on day one can therefore mean a big penalty later. FCAC’s own example uses a posted rate for the remaining term.
Worked example: you signed at 4.69% when the posted 5-year was 6.49% (a 1.80% discount). Thirty months later the posted 3-year (the closest term) is 5.79%. The comparison rate is 5.79% − 1.80% = 3.99%, so the IRD on $420,000 is 420,000 × 0.70% × 30/12 = $7,350, compared with 3 months’ interest of $4,924.50. Try it in the penalty estimator.
Rules change. Every figure on this page links to the official source and shows when we checked it. If something looks out of date, tell us and we will re-check.
Frequently asked questions
Is the Bank of Canada posted rate the same as my bank’s?
It is a typical figure across the chartered banks. Your bank’s own posted rate can differ; it is on the bank’s rates page and in your mortgage documents.
Why is the posted 5-year so far above advertised rates?
Banks rarely lend at posted rates, so the posted rate works as a reference price. Because it is used in IRD penalty calculations and was used for the old stress test, it has stayed well above the rates most borrowers actually get.
Sources
- Valet API: posted conventional mortgage rates (V80691333–35), prime (V80691311), policy rate (V39079) — Bank of Canada, checked Oct 31, 2026
- Policy interest rate — Bank of Canada, checked Oct 31, 2026
- Reduce or avoid prepayment penalties — FCAC, checked Oct 31, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.