Ottawa Mortgage Rates — August 2026

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

As of August 15, 2026, public national comparison tables showed lowest advertised insured pricing of about 4.04% on a 5-year fixed, about 3.94% on a 3-year fixed and about 3.35% 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%. Ottawa draws on the same national and Ontario credit-union 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 Ottawa 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 August 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 Ottawa?

Ottawa borrowers can shop the full national panel — the Big Six banks, monoline and digital lenders — plus Ontario's credit unions, which are unusually strong here. Meridian, Ontario's largest credit union, was advertising a 5-year fixed around 4.64% and a 5-year variable near 3.79% (prime minus 0.66) in August 2026, while Alterna and other Ontario credit unions compete on insured pricing. Public national tables in mid-August put the lowest advertised insured 5-year fixed near 4.04% and the lowest insured 5-year variable near 3.35%. 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 an Ottawa mortgage payment?

On a mortgage balance of roughly $683,000 (close to Ottawa's July 2026 average resale price) over a 25-year amortization, moving from about 4.04% to about 5.04% raises the monthly payment from roughly $3,608 to roughly $3,989 — about $381 more per month, or close to $23,000 over a five-year term. Ottawa balances are larger than the national median, so the dollar impact is meaningful. 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 Ottawa right now?

At the start of the term, generally yes. About 3.35% was the lowest advertised insured 5-year variable in August 2026 against roughly 4.04% for the lowest insured 5-year fixed — a gap of about 0.65 to 0.70 percentage points, or roughly $250 a month on a $683,000 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.

Quick takeaway: As of August 15, 2026, public national rate tables showed lowest advertised insured pricing near 4.04% on a 5-year fixed, 3.94% on a 3-year fixed and 3.35% 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.

4.04%Lowest advertised insured 5-year fixed in national tables, August 15, 2026.

3.35%Lowest advertised insured 5-year variable over the same period.

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

~$683,000Ottawa average resale price, July 2026 (OREB/CREA) — a larger-than-median balance.

Where Ottawa mortgage rates sit in August 2026

Mortgage pricing in Ottawa comes from the same lender universe as the rest of Canada — the big banks, credit unions, monoline and digital lenders. The table below summarizes lowest-in-market advertised rates by pricing tier as reported by public national comparison sites on August 15, 2026.

Term	Insured	Insurable	Uninsured (20%+ down)	Refinance
2-year fixed	~3.99%	~3.89%	~4.44%	—
3-year fixed	~3.94%	~3.94%	~4.64%	~4.74%
5-year fixed	~4.04%	~4.09%	~4.64%	~4.94%
5-year variable	~3.35%	~3.45%	~3.79%	~4.10%

Figures are rounded public benchmarks as of August 15, 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, or Ontario mortgage rates for provincial context.

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 Ottawa 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 August 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 4.04% 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 Ottawa

Ontario's credit unions are genuine local competition. Meridian, Ontario's largest credit union, was advertising a 5-year fixed around 4.64% and a 5-year variable near 3.79% (prime minus 0.66) in August 2026, and Alterna plus other Ontario credit unions compete on insured pricing. Two or three genuine quotes in Ottawa are usually easy to get — and lenders price differently for retention than for new business.
The public-service economy keeps renewal volume steady. Ottawa's large stable-employment base means a meaningful share of 2026 renewals come from borrowers who took 5-year fixed terms at pandemic-era lows. CMHC has flagged that the national renewal wave is straining some households, and Ontario arrears rose sharply year over year through 2026. A renewal letter is a real offer, but it is a first offer, and retention pricing is routinely above what the same lender quotes a new client that week.
You pay one land transfer tax, not two. Ottawa charges only the provincial Ontario land transfer tax. Unlike Toronto, Ottawa does not levy a municipal land transfer tax, so buyers here avoid the second tier Toronto pays. On a $683,000 Ottawa purchase the provincial tax is roughly $10,000 before any first-time home buyer rebate. 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.
Balance sizes are above the national median. With an average resale price near $683,000, a typical Ottawa mortgage balance is larger than in many cities, so every quarter-point of rate moves the monthly payment by more. That makes comparison shopping — not just chasing the headline rate — especially worthwhile.

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 Ottawa lenders would actually quote you

Advertised rates assume a best-case borrower. RateShop can put current Ottawa 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 Ottawa mortgage rates

What the rate gap costs in monthly dollars

Percentages are abstract; payments are not. On a $683,000 balance over a 25-year amortization, using Canadian semi-annual compounding:

Rate	Tier it roughly represents	Monthly payment
3.35%	Lowest insured 5-year variable	~$3,356
4.04%	Lowest insured 5-year fixed	~$3,608
4.64%	Uninsured 5-year fixed	~$3,834
5.04%	A full point above the insured fixed	~$3,989

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 $633 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 Ottawa

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, while Ratehub's analysis of fixed renewers put the increase closer to 24% on a representative balance. 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. 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 15, 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. Ontario land transfer tax and other closing costs are separate from your mortgage rate and should be confirmed with your lawyer or notary. 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 Ottawa in August 2026?

On August 15, 2026 public national tables showed lowest advertised insured pricing near 4.04% on a 5-year fixed, 3.94% on a 3-year fixed and 3.35% on a 5-year variable, with the uninsured 5-year fixed nearer 4.64% and a refinance around 4.94%. Ottawa uses the same national and Ontario credit-union lender panels. These are benchmarks, not offers. See current Canadian mortgage rates.

Why are Ottawa 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 August 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 Ottawa?

Ottawa borrowers can shop the full national panel plus Ontario's credit unions, which are strong here. Meridian was advertising a 5-year fixed around 4.64% and a 5-year variable near 3.79% (prime minus 0.66) in August 2026, while Alterna and other Ontario credit unions compete on insured pricing. Mid-August national tables put the lowest advertised insured 5-year fixed near 4.04% and the lowest insured 5-year variable near 3.35%. Leaders change weekly, and the lowest number is not automatically the best contract.

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

On a $683,000 balance over 25 years, about 4.04% versus about 5.04% is roughly $3,608 versus $3,989 a month — about $381 more, or close to $23,000 across a five-year term. Run your own figures in the mortgage payment calculator.

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

At the start of the term, generally yes — about 0.65 to 0.70 points cheaper in August 2026, roughly $250 a month on a $683,000 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 Ottawa charge a land transfer tax on a home purchase?

Ottawa charges only the provincial Ontario land transfer tax — unlike Toronto, it does not levy a municipal land transfer tax, so buyers pay a single tier. On a $683,000 purchase that is roughly $10,000 before any first-time home buyer rebate. It is a closing cost rather than a rate, but it affects your cash at closing and therefore your down payment and pricing tier.

Ottawa mortgage rates: August 2026