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The Bank of Canada's posted 5-year conventional mortgage rate sat at 6.09% through most of the past year, while the average rate borrowers actually paid ran 1.7 to 2 points lower — a gap that still drives stress-test math and IRD penalties at the big banks.
gap between the posted and average actual 5-year fixed mortgage rate in May 2026
— Canada's big banks posted 6.09% on 5-year fixed mortgages while new uninsured borrowers actually paid an average of 4.34%.
Bank of Canada; Statistics Canada, Table 10-10-0006-01
The spread narrowed through the fall of 2025, then widened back out even as the posted rate itself never moved.
Monthly gap, in percentage points, between the Bank of Canada's posted 5-year conventional mortgage rate and the average interest rate on funds advanced for new uninsured fixed-rate mortgages with terms of five years or more at chartered banks. Source: Bank of Canada, series V80691335; Statistics Canada, Table 10-10-0006-01.
The posted rate hasn't moved in a year: the Bank of Canada's posted 5-year conventional mortgage rate held at 6.09% every month from June 2025 through May 2026, even as the rate borrowers actually paid fluctuated.
The average borrower pays well below posted: the average contract rate on new uninsured 5-year+ fixed mortgages was 4.34% in May 2026, versus 3.97% for insured 5-year+ fixed mortgages the same month — both far under the 6.09% posted rate.
The gap narrowed through 2025, then widened again: the spread shrank from 1.95 points in May 2025 to a low of 1.69 points in October 2025, before widening back to between 1.75 and 1.91 points over the following months.
Posted rates still matter for two things: stress-test qualifying math and IRD prepayment penalties at the big banks are calculated off the posted rate, not the rate a client actually pays — a gap brokers should walk clients through explicitly.
| Month | Posted rate | Average actual rate | Spread |
|---|---|---|---|
| May 2025 | 6.19% | 4.24% | 1.95 pts |
| Jun 2025 | 6.09% | 4.25% | 1.84 pts |
| Jul 2025 | 6.09% | 4.27% | 1.82 pts |
| Aug 2025 | 6.09% | 4.31% | 1.78 pts |
| Sep 2025 | 6.09% | 4.37% | 1.72 pts |
| Oct 2025 | 6.09% | 4.40% | 1.69 pts |
| Nov 2025 | 6.09% | 4.26% | 1.83 pts |
| Dec 2025 | 6.09% | 4.31% | 1.78 pts |
| Jan 2026 | 6.09% | 4.33% | 1.76 pts |
| Feb 2026 | 6.09% | 4.31% | 1.78 pts |
| Mar 2026 | 6.09% | 4.22% | 1.87 pts |
| Apr 2026 | 6.09% | 4.18% | 1.91 pts |
| May 2026 | 6.09% | 4.34% | 1.75 pts |
Posted rate is the Bank of Canada's conventional 5-year mortgage rate (series V80691335); average actual rate is the interest rate on funds advanced for new uninsured 5-year+ fixed mortgages at chartered banks (Statistics Canada, Table 10-10-0006-01). Spread shown in percentage points.
posted 5-year conventional mortgage rate at Canadian chartered banks, unchanged since June 2025
BoC
average rate actually charged on new uninsured 5-year+ fixed mortgages, May 2026
StatCan
average rate charged on new insured 5-year+ fixed mortgages, May 2026
StatCan
narrowest posted-vs-actual gap recorded in the past year, October 2025
BoC/StatCan
Clients see the posted rate on a bank's website and assume it's what they'll pay — it isn't, and the gap runs nearly two full percentage points. That confusion matters most at renewal time, when a big bank calculates the interest rate differential penalty off the posted rate rather than the client's actual contract rate, and at qualification, where posted-rate math still shapes stress-test conversations.
Last updated August 2, 2026. Each figure carries its source; projections are labelled. Page reviewed on every major source release. Information only — not advice.
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