Canadian mortgage rates, September 2026: 5-year fixed rises 0.35 pts
By Bailong · Published · 2 min read
In shortIn September 2026, lenders sharply increased posted rates for longer-term fixed mortgages, with the median 5-year fixed rate rising by 0.35 points to 4.89%. Conversely, 5-year variable rates saw a modest decline of 0.10 points, ending the month at a median of 3.70% according to RateWatch's daily records.
The 5-year fixed median rate rose to 4.89%, with 13 of 15 lenders increasing their rates in September.
Variable 5-year rates moved in the opposite direction, dropping 0.10 points to a median of 3.70%.
Meridian Credit Union held the lowest posted rates for 3-year fixed, 5-year fixed, and 5-year variable terms.
Short-term 1-year fixed rates saw a slight decrease of 0.09 points to a median of 5.44%.
Median posted rates, last 180 days
Median of the posted rates of the named lenders RateWatch records (Ontario), by day. Gaps are days with no record. Data as of 2026-09-30.
5-year fixed posted rate by lender, 2026-09-30
Each lender’s posted 5-year fixed rate on the day, lowest first; the six big banks are in colour, other lenders in grey. Posted rates are advertised rates; the rate a borrower is offered is often lower.
Posted rates by term, 2026-09-30
Term
Median
Lowest
Big banks (median)
Change since 2026-08-31 (points)
1-year fixed
5.44%
4.64% (Scotiabank)
5.19%
-0.09
2-year fixed
4.99%
4.29% (Scotiabank)
4.84%
+0.13
3-year fixed
4.79%
4.34% (Meridian Credit Union)
4.74%
+0.30
5-year fixed
4.89%
4.49% (Meridian Credit Union)
4.84%
+0.35
5-year variable
3.70%
3.44% (Meridian Credit Union)
3.97%
-0.10
5-year fixed, lender by lender
Lender
Posted rate (2026-09-30)
Change since 2026-08-31 (points)
Meridian Credit Union
4.49%
+0.35
Scotiabank
4.59%
+0.30
Alterna Savings
4.69%
+0.35
RBC Royal Bank
4.74%
-0.15
CIBC
4.79%
+0.20
Tangerine
4.84%
+0.35
Canwise
4.89%
+0.35
Equitable Bank
4.89%
+0.35
National Bank
4.89%
+0.20
CMLS Financial
4.89%
+0.35
BMO
4.99%
+0.48
TD Bank
4.99%
+0.50
First National
4.99%
+0.35
MCAP
5.09%
+0.35
ICICI Bank Canada
5.99%
+0.00
Fixed rates climb as lenders adjust
According to RateWatch's daily record of Ontario posted rates, September 2026 was defined by a significant upward shift in fixed-rate mortgage pricing. The median 5-year fixed rate across 15 lenders reached 4.89% by September 30, marking a 0.35-point increase from August 31. This movement was widespread: 14 out of 15 lenders changed their 5-year fixed posted rates during the month, and 13 of those changes were increases.
While the 5-year term saw the steepest climb, shorter fixed terms also moved higher. The 3-year fixed median rose by 0.30 points to 4.79%, and the 2-year fixed median increased by 0.13 points to 4.99%. These posted rates represent the prices advertised by institutions rather than negotiated offers. The data does not show the final rates a borrower might receive, which are often lower and depend on individual financial circumstances.
Variable rates and short-term trends
While fixed terms trended upward, variable rates and very short-term fixed rates showed slight declines. The median 5-year variable rate decreased by 0.10 points to 3.70%. This leaves a notable gap between variable and fixed pricing, as the Bank of Canada prime rate stood at 4.45% as of September 30, 2026.
The 1-year fixed term also saw a minor decrease of 0.09 points, ending the month with a median of 5.44%. Despite this dip, the 1-year term remains the most expensive median option among the categories tracked in RateWatch's catalogue. Meanwhile, the minimum qualifying rate—often referred to as the stress-test rate—remained at 5.25% as of the end of the month.
Lender competition and big bank positioning
The data reveals a divide between the "Big Six" banks and other market participants. For the 5-year fixed term, the big banks held a median of 4.84%, slightly below the overall market median of 4.89%. However, for variable rates, the big banks were more expensive, with a median of 3.97% compared to the market-wide median of 3.70%.
Specific lenders led the market for lowest posted rates. Meridian Credit Union offered the lowest rates for the 3-year fixed (4.34%), 5-year fixed (4.49%), and 5-year variable (3.44%) terms. Scotiabank held the lowest posted rates for the shortest terms, at 4.64% for 1-year fixed and 4.29% for 2-year fixed. At the higher end of the spectrum, ICICI Bank Canada maintained a 5-year fixed rate of 5.99%, showing no change throughout September.
MethodologyRateWatch records the posted mortgage rates that Canadian banks, credit unions and other lenders publish, once a day, for Ontario. Each figure is the median (or lowest) across the named lenders recorded that day; comparison-site averages are left out. "Big banks" are RBC, TD, Scotiabank, BMO, CIBC and National Bank. Posted rates are advertised rates, not offers: the rate a borrower is approved for depends on their situation and is often lower. The prime rate is the Bank of Canada's. This report is information, not financial advice.
Sources: Posted rates published by each lender, recorded daily by RateWatch; Bank of Canada (prime rate).
Cite this reportYou are welcome to use these figures and charts with a link to this page.Bailong, "Canadian mortgage rates, September 2026: 5-year fixed rises 0.35 pts", RateWatch, 2026-10-20. https://bailong.fyi/ratewatch/reports/canadian-mortgage-rates-2026-09/
