What is the best mortgage rate in March 2026?

In March 2026, the best 5-year fixed rate is around 3.69% and the best variable rate is around 3.35%. These rates are typically offered by mortgage brokers and online lenders.

When will the Bank of Canada lower rates?

The Bank of Canada held its policy rate in March 2026. Analysts anticipate a possible further cut in spring or summer 2026, depending on inflation trends and economic conditions.

Should I choose fixed or variable in March 2026?

In March 2026, the variable rate (~3.35%) is lower than the fixed rate (~3.69%), a return to the historical norm. Variable is advantageous if you can tolerate payment fluctuations; otherwise fixed offers stability.

How does the policy rate affect mortgages?

The policy rate directly influences variable rates through the prime rate. It indirectly affects fixed rates via the bond market. A policy rate cut generally reduces variable mortgage payments.

How can I get the best mortgage rate?

To get the best rate: compare at least 3-4 lenders, work with a mortgage broker, maintain a good credit score (680+), offer at least 20% down payment, and negotiate the posted rate.

Mortgage Rates March 2026 Canada | Bank of Canada Update

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The Bank of Canada has released its March 2026 decision. Mortgage rates continue their downward trend, with the 5-year fixed around 3.69% and variable at ~3.35%. Here’s the complete analysis for the spring market.

🏦 Bank of Canada Announcement — March 2026

The BoC held its policy rate in March 2026, continuing the pause that began after successive cuts in 2024–2025. Inflation is stabilizing near the 2% target, and the economy shows signs of moderate recovery.

2.25%

Policy rate held

4.45%

Prime rate

-2.75%

Cumulative drop since 2023

💡 Did you know? The policy rate dropped from 5.00% to 2.25% in 18 months (mid-2024 to early 2026). The prime rate fell from 7.20% to 4.45% over the same period.

💰 Mortgage Rate Table — March 2026

Here are the current mortgage rates for March 2026 in Canada:

~3.69%

5-year fixed (best rate)

~3.35%

Variable (best rate)

4.45%

Prime rate

✅ Tip: in March 2026, the variable rate is once again lower than the fixed rate. This is a return to the historical norm that benefits borrowers willing to accept some risk.

📊 February vs March 2026 Comparison

Rates continued their slight decline between February and March 2026:

February 2026

5-yr fixed: 3.89 – 4.29%

Variable: 4.45 – 4.90%

Prime: 4.45%

✅ March 2026

5-yr fixed: ~3.69%

Variable: ~3.35%

Prime: 4.45%

💡 Key point: the bond market continued to decline, pulling fixed rates lower. Variable rates also dropped below fixed, restoring the historical norm.

🏠 Impact on Montreal Buyers and Sellers

Lower rates create a favourable environment for the Montreal spring market:

1. 💳 Higher buying power — A household earning $100K can borrow ~$500,000 at 3.69%, up from $485K in February

2. 🏠 More accessible properties — The entry threshold drops for condos and plexes

3. 📈 Sellers benefit — More qualified buyers means more competition on offers

4. 🔄 Favourable renewals — Those renewing in 2026 enjoy rates well below 2023 levels

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🔮 Spring 2026 Outlook

Several factors will determine the direction of rates this spring:

1. 📉 Cautious BoC — A possible 0.25% additional cut if the economy slows

2. 📊 Inflation under control — Near the 2% target, supportive of stable or lower rates

3. 🌍 US tariffs — Trade tensions could weigh on the Canadian economy

4. 🏠 Spring market — Seasonal demand increase could accelerate transactions

💡 Key takeaway: the 5-year fixed could drop below 3.50% by summer 2026. For buyers, now is the ideal time to get pre-qualified and target a property before the peak season.

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Mortgage Rates March 2026: Bank of Canada Update