Mortgage Update: May 2026

The Bank of Canada held its policy rate at 2.25% on April 29, marking the fourth consecutive pause. Most major lenders are keeping their prime rate steady at 4.45% as a result. For borrowers, that means no immediate changes to variable rate payments, and a relatively stable environment heading into the spring market.

Current best available rates in Canada:

• 5-year fixed (insured): around 4.04%
• 3-year fixed (insured): around 4.69%
• 5-year variable (insured): around 3.30% to 3.35%

Variable rates are currently sitting meaningfully below fixed rates, which is worth noting if you have flexibility and appetite for some rate risk.

The picture is more complicated beneath the surface. Inflation climbed to 2.4% in March and is expected to push closer to 3% in the coming months, largely driven by rising global oil prices following conflict in the Middle East and disruptions to energy supply. While the Bank of Canada has signalled it views this as temporary, some forecasters are now pricing in the possibility of a rate hike later in 2026 rather than further cuts.

Fixed rates are also facing quiet upward pressure as Government of Canada bond yields trend higher. Nothing dramatic, but worth keeping an eye on if you are in the market or approaching renewal.

For buyers in Greater Victoria, the current environment offers a reasonable window of stability. Rates are not at their lowest, but they are far more manageable than they were at the peak of the tightening cycle, and inventory is up, giving you more to choose from. If you are renewing in the next six to twelve months, it may be worth speaking with a mortgage professional sooner rather than later to understand your options before the rate picture shifts.