What are the mortgage rates in Quebec in May 2026?

In May 2026, the 5-year fixed rate sits around 3.69% and the variable rate around 2.70% (prime 4.45% minus 1.75%). The Bank of Canada policy rate is held at 2.25% since October 29, 2025.

Should I choose fixed or variable rate in May 2026?

With a ~0.99% spread in favor of variable (2.70% vs 3.69%), variable offers potential savings if the BoC holds or cuts on June 10, 2026. Fixed offers payment stability against uncertainties (Trump tariffs, Middle East).

What is the impact of a 0.25% cut on my monthly payment?

On a $450,000 mortgage amortized over 25 years, each 0.25% cut to the variable rate reduces the monthly payment by approximately $56, or $672 in annual savings. Over a 5-year term, that represents about $3,360.

Will the BoC cut rates on June 10, 2026?

Markets are divided. A new 0.25-point cut is not ruled out if CPI stays below the 2% target. However, trade uncertainties (Trump tariffs of 50% on steel/aluminum) and geopolitical tensions may keep the BoC in a cautious stance.

How do I lock in a good mortgage rate in May 2026?

Get a 120-day mortgage pre-approval through an independent mortgage broker. This guarantees the current fixed rate even if markets move. Compare at least 3 institutions and negotiate a discount from the posted rate.

Mortgage Rates May 2026: Fixed vs Variable Post-BoC

Following the Bank of Canada’s April 29, 2026 decision to hold the policy rate at 2.25% (4^th consecutive pause), mortgage rates enter a period of stability for May. The prime rate stays at 4.45%, placing the variable rate around 2.70%(prime − 1.75%). This is an ideal window to lock in financing before the next announcement on June 10, 2026.

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1. May 2026 Rates Snapshot

2.25%

BoC policy rate

2.70%

Average variable rate

3.69%

Average 5-year fixed

The prime rate at major Canadian banks remains stable at 4.45% after the April 29 decision. The spread between fixed (3.69%) and variable (2.70%) is currently ~0.99 points, in favor of variable.

2. Fixed vs Variable: Which to Choose?

Variable (2.70%) — offers maximum savings at current rates. Advantage if the BoC holds or cuts on June 10. Limited risk given CPI stability at 1.8% (below the 2% target) and moderate GDP growth expected (+1.2% in 2026 per BoC).

5-year fixed (3.69%) — offers the security of stable payments. Relevant against trade uncertainties (Trump 50% tariffs on steel/aluminum since June 2025 + 25% surtax on derived products) and geopolitical tensions. The premium over variable is approximately $222/month on a $450,000 mortgage.

3. Concrete Monthly Payment Impact

Reference mortgage: $450,000, 25-year amortization

Variable 2.70%: ~$2,064/month

Fixed 3.69%: ~$2,286/month

Spread: ~$222/month in favor of variable, or ~$2,664/year

Over a full 5-year term, the potential savings of variable amount to approximately $13,320if rates stay stable. An additional 0.25% cut would add ~$3,360 in savings over the term.

4. June 10, 2026 Outlook

The BoC’s next decision is expected on June 10, 2026. Three scenarios:

Scenario A (likely) — Hold at 2.25% (5^th pause). CPI below target, stability valued against trade uncertainties.

Scenario B — 0.25-point cut to 2.00%. If Trump tariffs weigh on growth.

Scenario C (unlikely) — Hike. Excluded barring major inflation shock.

For buyers and homeowners with renewals coming up, May 2026 remains an excellent time to act: rates are at their lowest since 2022 and a mortgage broker can negotiate 0.20 to 0.50% below the posted rate.

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