Major Canadian banks are raising fixed mortgage rates one after another. This is due to increased funding costs for banks as bond yields remain at high levels.
- BMO raised its 3-year fixed rate by 0.201 TP3T points to 4.941 TP3T, and adjusted its standard 5-year fixed rate by the same amount to 5.141 TP3T. The high-ratio 5-year rate is 4.991 TP3T.
- Scotiabank also raised its 2-year fixed rate by 0.151 TP3T points to 5.141 TP3T, and earlier, RBC also implemented an increase of 0.10 to 0.201 TP3T points in the 1 to 5-year range.
- Since early September, all Big 6 banks have raised some fixed rates, with cumulative increases ranging from approximately 0.10 to 0.501 points depending on the product.
- The benchmark 5-year Canadian government bond yield was recorded at approximately 3.6241 TP3T as of noon on October 7.
Families facing mortgage renewal or a new loan are advised to compare broker channel rates as well as bank posted rates. The figures above are based on special rates advertised directly by banks.
Source: Canadian Mortgage Trends https://www.canadianmortgagetrends.com/mortgage-wire/2026/10/07/bmo-hikes-3-and-5-year-mortgage-rates-as-bond-yields-rise-again
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