Insight

How Interest Rates Affect Housing

The policy rate is 2.50% (Nov 11, 2026), prime is 4.70%, the 5-year bond yield is 3.46% and the 5-year posted mortgage rate is 6.19%.

Updated 2026-11-12

Policy rate, prime, 5-year yield and 5-year posted rate (month-end, %, since 2016). Source: Bank of Canada.

Two channels

Variable mortgages and HELOCs follow prime, which follows the policy rate.
Fixed mortgages follow bond yields, which reflect markets' expectations for future rates.

Higher rates raise payments and the stress-test qualifying rate, which lowers the maximum mortgage at a given income.

Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.