🎯 What’s your buying power at these rates?
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Calculate my capacity →The Bank of Canada has released its March 2026 decision. Mortgage rates continue their downward trend, with the 5-year fixed around 3.69% and variable at ~3.35%. Here’s the complete analysis for the spring market.
🏦 Bank of Canada Announcement — March 2026
The BoC held its policy rate in March 2026, continuing the pause that began after successive cuts in 2024–2025. Inflation is stabilizing near the 2% target, and the economy shows signs of moderate recovery.
2.25%
Policy rate held
4.45%
Prime rate
-2.75%
Cumulative drop since 2023
💡 Did you know? The policy rate dropped from 5.00% to 2.25% in 18 months (mid-2024 to early 2026). The prime rate fell from 7.20% to 4.45% over the same period.
💰 Mortgage Rate Table — March 2026
Here are the current mortgage rates for March 2026 in Canada:
~3.69%
5-year fixed (best rate)
~3.35%
Variable (best rate)
4.45%
Prime rate
✅ Tip: in March 2026, the variable rate is once again lower than the fixed rate. This is a return to the historical norm that benefits borrowers willing to accept some risk.
📊 February vs March 2026 Comparison
Rates continued their slight decline between February and March 2026:
February 2026
5-yr fixed: 3.89 – 4.29%
Variable: 4.45 – 4.90%
Prime: 4.45%
✅ March 2026
5-yr fixed: ~3.69%
Variable: ~3.35%
Prime: 4.45%
💡 Key point: the bond market continued to decline, pulling fixed rates lower. Variable rates also dropped below fixed, restoring the historical norm.
Calculate your borrowing capacity with current rates
Calculate your borrowing capacity →🏠 Impact on Montreal Buyers and Sellers
Lower rates create a favourable environment for the Montreal spring market:
1. 💳 Higher buying power — A household earning $100K can borrow ~$500,000 at 3.69%, up from $485K in February
2. 🏠 More accessible properties — The entry threshold drops for condos and plexes
3. 📈 Sellers benefit — More qualified buyers means more competition on offers
4. 🔄 Favourable renewals — Those renewing in 2026 enjoy rates well below 2023 levels
🧮 Calculate your borrowing capacity with March rates
Borrowing capacity calculator →🔮 Spring 2026 Outlook
Several factors will determine the direction of rates this spring:
1. 📉 Cautious BoC — A possible 0.25% additional cut if the economy slows
2. 📊 Inflation under control — Near the 2% target, supportive of stable or lower rates
3. 🌍 US tariffs — Trade tensions could weigh on the Canadian economy
4. 🏠 Spring market — Seasonal demand increase could accelerate transactions
💡 Key takeaway: the 5-year fixed could drop below 3.50% by summer 2026. For buyers, now is the ideal time to get pre-qualified and target a property before the peak season.
Take advantage of low rates to calculate your capacity
Calculate your borrowing capacity for free with March 2026 rates.
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