Montreal Mortgage Rates — August 2026

Q: What are mortgage rates in Montreal in August 2026?

As of August 13-14, 2026, public Quebec comparison tables showed lowest advertised insured pricing of about 4.09% on a 5-year fixed, about 3.94% on a 3-year fixed and about 3.40% on a 5-year variable. The same lender panels quoted the uninsured (20%+ down) 5-year fixed nearer 4.64% and a refinance 5-year fixed around 4.94%. Montreal draws on the same national and Quebec-specific lender panels as the rest of the province. These are advertised benchmarks, not offers or guarantees, and your own quote depends on your file.

Q: Why are Montreal fixed mortgage rates rising while variable rates stay flat?

Fixed mortgage rates are priced off Government of Canada bond yields plus a lender spread, while variable rates are a discount to lender prime, which only moves when the Bank of Canada changes its policy rate. Government of Canada bond yields moved back above roughly 3.3% in the week of August 10-14, 2026, which put upward pressure on fixed pricing, while the Bank of Canada's policy rate has been unchanged at 2.25% since October 2025 and prime has stayed at 4.45%. That combination is why fixed rates have been drifting higher and variable rates have been essentially flat.

Q: Which lenders offer the lowest mortgage rates in Quebec?

Quebec has an unusually competitive lender mix. Desjardins held roughly 36% of residential secured lending in the province as of Q1 2026, National Bank is headquartered in Montreal, and Montreal-based digital lender nesto competes directly on advertised pricing. Public Quebec tables in mid-August 2026 showed nesto and True North Mortgage at the low end of insured pricing near 4.09% to 4.14% on a 5-year fixed, with CIBC the most competitive of the Big Six around 4.59% fixed. Advertised leaders change weekly, and the lowest posted number is not always the best overall deal once prepayment terms and penalty calculations are compared.

Q: How much does a 1% rate difference change a Montreal mortgage payment?

On a mortgage balance of roughly $420,000 over a 25-year amortization, moving from about 4.09% to about 5.09% raises the monthly payment from roughly $2,230 to roughly $2,464 — about $234 more per month, or close to $14,000 over a five-year term. Montreal balances are typically smaller than in Toronto or Vancouver, so the dollar impact is smaller, but it still compounds. Run your own balance, rate and amortization through a mortgage payment calculator rather than relying on a rule of thumb.

Q: Is a variable rate cheaper than fixed in Montreal right now?

At the start of the term, generally yes. About 3.40% was the lowest advertised insured 5-year variable in Quebec in mid-August 2026 against roughly 4.09% for the lowest insured 5-year fixed — a gap of about 0.65 to 0.70 percentage points, or roughly $155 a month on a $420,000 balance. That gap is compensation for risk, not free money. Variable pricing is a discount to prime, which was 4.45%, so the payment or the interest portion moves if the Bank of Canada moves. This page does not recommend one structure over the other.

Q: When is the next Bank of Canada rate announcement?

September 2, 2026. The Bank of Canada held its target for the overnight rate at 2.25% on July 15, 2026, and has now held at that level for several consecutive decisions since the October 2025 cut. Prime at the major lenders has been 4.45% over the same period. The remaining 2026 announcement dates are September 2, October 28 and December 9. Market expectations are not forecasts or guarantees and change with new data.

Q: Does Quebec charge a land transfer tax on a home purchase?

Yes. Quebec municipalities levy a transfer duty, commonly called the welcome tax (taxe de bienvenue), calculated on the property value, and Montreal applies its own bracket schedule that is generally higher on more expensive properties. This is a closing cost, not a mortgage rate, but it affects how much cash you need at closing and therefore how much you can put down — which in turn can change which pricing tier you qualify for. Confirm the exact amount with your notary, since Quebec real estate transactions are closed by a notary rather than a lawyer.

Quick takeaway: As of August 13-14, 2026, public Quebec rate tables showed lowest advertised insured pricing near 4.09% on a 5-year fixed, 3.94% on a 3-year fixed and 3.40% on a 5-year variable, while the uninsured (20%+ down) 5-year fixed sat closer to 4.64% and a refinance near 4.94%. The Bank of Canada's overnight rate was 2.25%, prime 4.45%, and Government of Canada bond yields were back above 3.3%, keeping pressure on fixed pricing. Next rate decision: September 2, 2026.

4.09%Lowest advertised insured 5-year fixed in Quebec tables, August 13, 2026.

3.40%Lowest advertised insured 5-year variable over the same period.

4.64%Typical uninsured 5-year fixed (20%+ down) — the tier many Montreal buyers actually see.

36%Desjardins' share of Quebec residential secured lending, Q1 2026 — competition worth using.

Where Montreal mortgage rates sit in August 2026

Mortgage pricing in Montreal comes from the same lender universe as the rest of Canada — the big banks, credit unions, monoline and digital lenders — plus a distinctly Quebec layer: the Desjardins caisse network, National Bank, Laurentian Bank and Montreal-headquartered nesto. The table below summarizes lowest-in-market advertised rates by pricing tier as reported by public Quebec comparison sites on August 13, 2026.

Term	Insured	Insurable	Uninsured (20%+ down)	Refinance
2-year fixed	~3.94%	—	—	—
3-year fixed	~3.94%	~4.14%	~4.64%	~4.74%
5-year fixed	~4.09%	~4.09%	~4.64%	~4.94%
5-year variable	~3.40%	~3.45%	~3.85%	~4.10%

Figures are rounded public benchmarks as of August 13-14, 2026 and change frequently. Lowest advertised insured rates typically assume a high-ratio, owner-occupied purchase under $1.5 million with strong credit and verified income. See current Canadian mortgage rates for updated national pricing.

Why fixed rates are creeping up and variable is standing still

These two rate types are wired to different machines, which is the single most useful thing to understand this month.

Variable rates are quoted as a discount to lender prime (4.45%), and prime moves only when the Bank of Canada moves its policy rate. The Bank has held at 2.25% at every decision since the October 2025 cut, so Montreal variable pricing has been effectively flat all year.
Fixed rates are priced off Government of Canada bond yields plus a lender spread. Yields moved back above roughly 3.3% in the week of August 10-14, 2026 — pushed by trade and geopolitical uncertainty — and several lenders responded by repricing fixed terms upward. Comparison sites publicly warned that the lowest insured 5-year fixed may not stay available if yields hold at these levels.
Insurance status is the hidden switch. The advertised 4.09% assumes an insured or insurable file. With 20%+ down, a property at or above the $1.5 million default-insurance cap, a rental, or a refinance, you are quoted the uninsured tier — roughly 4.64%, and closer to 4.94% on a refinance. That is a spread of more than half a point between the headline and many real quotes.

The practical implication: waiting for a Bank of Canada cut in order to get a cheaper fixed rate misreads the plumbing. Fixed pricing needs bond yields to fall first, and that can happen on a completely different schedule from the policy rate.

What is specific about borrowing in Montreal

Local competition is real leverage. Desjardins held about 36% of Quebec residential secured lending in Q1 2026 and offers products you see less often elsewhere, including hybrid mortgages, annual rate-reset terms and protected variable rates with an interest ceiling. National Bank, Laurentian and the caisse network compete beside national monolines. Two or three genuine quotes in Montreal are usually easy to get — and lenders price differently for retention than for new business.
Digital lenders headquartered here price sharply. nesto, based in Montreal, has repeatedly sat at or near the bottom of published Quebec insured pricing, and public tables in mid-August put it at roughly 4.09% on the insured 5-year fixed against about 4.59% for the most competitive Big Six offer. A lower advertised rate still needs to be checked against prepayment privileges, portability and how a break penalty would be calculated.
The welcome tax is a real closing cost. Quebec municipalities charge transfer duties — the taxe de bienvenue — on the property value, and Montreal's brackets rise on higher-value homes. It does not change your rate, but it changes the cash you need at closing, which can change how much you put down and therefore which pricing tier you land in.
Your closing goes through a notary. Quebec real estate transactions are closed by a notary rather than a lawyer, and Quebec lenders and brokers are supervised by the AMF. Timelines and document requirements can differ slightly from the rest of Canada, so build a little extra room into your rate hold.

Before comparing any two offers, confirm you are looking at the same insurance status, term, amortization, prepayment privileges and penalty method. Then run your real numbers through the mortgage payment calculator.

See what Montreal lenders would actually quote you

Advertised rates assume a best-case borrower. RateShop can put current Montreal purchase, switch, renewal and refinance options side by side using your real balance, property and timeline — so you are comparing offers, not table headlines.

Compare Montreal mortgage rates

What the rate gap costs in monthly dollars

Percentages are abstract; payments are not. On a $420,000 balance over a 25-year amortization, using Canadian semi-annual compounding:

Rate	Tier it roughly represents	Monthly payment
3.40%	Lowest insured 5-year variable	~$2,075
4.09%	Lowest insured 5-year fixed	~$2,230
4.64%	Uninsured 5-year fixed	~$2,357
5.09%	A full point above the insured fixed	~$2,464

Illustrative only, principal and interest, no default-insurance premium added, taxes and fees excluded. Your figures will differ.

The spread between the insured variable and a full point above the insured fixed is roughly $390 a month on this balance. That is the size of the prize for comparing properly — and the size of the risk if a variable rate drifts up. A more durable exercise than predicting rates: price your payment at the fixed quote, then at a variable rate 0.50% and 1.00% higher, and choose the structure whose worst case you can comfortably carry.

If you are renewing in Montreal

Renewals make up a large share of 2026 volume, and CMHC has flagged that the current renewal wave is straining some borrowers as mortgages written at pandemic-era rates come due. Major bank economists, including TD Economics, have estimated average renewal payment increases in the neighbourhood of 6% nationally. A renewal letter is a genuine offer, but it is a first offer, and retention pricing is routinely above what the same lender quotes a new client that week.

Start comparing four to six months before maturity — most lenders will hold a rate for 90 to 120 days, and several Quebec lenders offer among the longer holds in the market. Switching lenders at maturity avoids a prepayment penalty because the term has ended. On a straight switch with no new money and no extended amortization, insured borrowers have been able to move at renewal without re-applying the minimum qualifying rate since federal guidance changed in late 2024; uninsured switches may still be requalified depending on lender policy, so confirm before applying. Current pricing and a renewal walkthrough are on the mortgage renewal rates page.

Rate disclaimer

All rates, yields and market figures on this page are general educational information gathered from public sources on or about August 13-14, 2026 and may be out of date, incomplete or superseded without notice. RateShop does not guarantee any rate, approval or product availability. Actual mortgage rates depend on lender criteria, credit profile, verified income, property type and value, mortgage purpose, down payment or equity, insurance status, amortization and documentation. Payment examples are illustrative calculations, not quotes. Market-implied rate expectations are not forecasts and frequently prove wrong. Quebec transfer duties, notary fees and other closing costs are separate from your mortgage rate and should be confirmed locally. This page does not provide personalized mortgage, legal, tax or financial advice. Speak with a licensed mortgage professional about your own situation.

Frequently asked questions

What are mortgage rates in Montreal in August 2026?

On August 13-14, 2026 public Quebec tables showed lowest advertised insured pricing near 4.09% on a 5-year fixed, 3.94% on a 3-year fixed and 3.40% on a 5-year variable, with the uninsured 5-year fixed nearer 4.64% and a refinance around 4.94%. Montreal uses the same national and Quebec-specific lender panels. These are benchmarks, not offers. See current Canadian mortgage rates.

Why are Montreal fixed mortgage rates rising while variable rates stay flat?

Fixed rates follow Government of Canada bond yields plus a lender spread; variable rates are a discount to prime, which moves only with the Bank of Canada. Yields moved back above roughly 3.3% in the week of August 10-14, 2026, pushing fixed pricing up, while the policy rate has been 2.25% and prime 4.45% since October 2025.

Which lenders offer the lowest mortgage rates in Quebec?

Quebec's mix is unusually competitive: Desjardins held about 36% of provincial residential secured lending in Q1 2026, National Bank is Montreal-headquartered, and Montreal-based nesto prices aggressively. Mid-August tables put nesto and True North near the low end of insured 5-year pricing (about 4.09%-4.14%), with CIBC the most competitive Big Six fixed offer near 4.59%. Leaders change weekly, and the lowest number is not automatically the best contract.

How much does a 1% rate difference change a Montreal mortgage payment?

On a $420,000 balance over 25 years, about 4.09% versus about 5.09% is roughly $2,230 versus $2,464 a month — about $234 more, or close to $14,000 across a five-year term. Run your own figures in the mortgage payment calculator.

Is a variable rate cheaper than fixed in Montreal right now?

At the start of the term, generally yes — about 0.65 to 0.70 points cheaper in mid-August 2026, roughly $155 a month on a $420,000 balance. That gap is compensation for risk. Variable is a discount to prime (4.45%), so it moves when the Bank of Canada moves. This is not a recommendation either way.

When is the next Bank of Canada rate announcement?

September 2, 2026, followed by October 28 and December 9. The Bank held at 2.25% on July 15, 2026, and prime has been 4.45% since the October 2025 cut. Expectations are not guarantees.

Does Quebec charge a land transfer tax on a home purchase?

Yes — municipal transfer duties, known as the welcome tax (taxe de bienvenue), calculated on property value, with Montreal applying its own bracket schedule. It is a closing cost rather than a rate, but it affects your cash at closing and therefore your down payment and pricing tier. Confirm the amount with your notary.

Montreal mortgage rates: August 2026