Borrowers gain advantages as brokers obtain historically low mortgage rates

On September 18, 2025, mortgage rates across Canada continued to fall, with various lenders and brokers presenting attractive choices for both fixed and variable rate mortgages. Recent insights from online forums and industry brokers indicate that fixed-rate mortgages experienced some of the sharpest cuts, with 5-year fixed rates dropping to as low as 4.94% when arranged through brokers. This marks a substantial improvement from rates earlier in the year, which were generally around 5.14% or higher.

Variable-rate mortgages also saw positive changes, as closed variable rates on 5-year terms fell to Prime minus 1%, according to multiple borrowers who worked with brokers. Open variable rate products, though less widespread and often subject to penalties for early termination, reached as low as Prime minus 0.95% for 5-year terms. These numbers reflect increasing competition among lenders, especially non-bank institutions like Dundee Bank of Canada and Danby Bank, which stood out for their attractive offers.

Mortgage brokers continue to play a crucial part in helping clients secure better rates, particularly for fixed-rate products. Findings suggest that borrowers who utilize broker services are able to access more competitive deals, as brokers have connections with a wide array of lenders and can negotiate improved terms. For instance, a borrower shared that they obtained a 5-year fixed rate of 4.94% via a broker, significantly lower than the 5.14% rate quoted directly by ING. Brokers have also explained that factors such as a property's location, the size of the down payment, and whether the loan is insured can affect available rates.

The most attractive rates are often subject to conditions—such as being limited to properties under $1 million or requiring owner occupancy—but the overall direction points to lenders increasingly offering better terms to borrowers. This environment has benefited those looking to renew or refinance their mortgages, as well as first-time buyers who can secure lower rates for longer periods.

These lower rates are also influencing industry practices. Some lenders now provide rates that include coverage for appraisal and legal fees on mortgage transfers, though costs for breaking an existing mortgage are usually not included. Mono lenders, like certain industrial alliances, still have a slight advantage by providing the lowest interest rates alongside more generous prepayment and portability options. Altogether, these trends suggest that borrowers who work with brokers and consider different lenders have a greater chance of obtaining favorable mortgage conditions in today’s marketplace.