Borrowers Benefit as Brokers Secure Unprecedented Low Mortgage Rates

Mortgage rates in Canada continued their downward trend on Sept. 18, 2025, with several lenders and brokers offering competitive options across both fixed and variable rate products. According to recent data from online forums and mortgage brokers, fixed-rate mortgages saw some of the most aggressive reductions, with 5-year fixed rates reaching as low as 4.94% through broker channels. This represents a marked improvement from earlier in the year, where fixed rates hovered closer to 5.14% or higher.

Variable-rate products also experienced favorable movement, with closed variable rates dropping to Prime minus 1% for a 5-year term, as noted by several borrowers who had secured these rates through mortgage brokers. Open variable options, while less common and typically associated with breakage penalties, reached as low as Prime minus 0.95% for 5-year terms. These figures highlight a shift in lender competitiveness, particularly among non-bank financial institutions such as Dundee Bank of Canada and Danby Bank, which offered some of the most attractive deals.

Broker involvement has continued to play a significant role in securing lower rates, especially for fixed-rate mortgages. The data suggests that using a mortgage broker can result in more favorable terms, as brokers often have access to a broader range of lenders and can negotiate better deals for borrowers. For example, one borrower reported receiving a 5-year fixed rate of 4.94% through a broker, which was significantly below the 5.14% offered directly by ING. Brokers also provided insight into factors influencing rate availability, such as property location, down payment size, and whether the mortgage is insured.

While many of the best rates are tied to specific conditions—such as property values under $1 million or owner-occupied homes—the overall trend indicates a growing willingness among lenders to accommodate borrowers with favorable terms. This has been particularly beneficial for those renewing or refinancing their mortgages, as well as for first-time homebuyers who are able to lock in lower rates for extended periods.

The decline in rates is also reflected in market practices. For instance, some lenders now offer competitive rates that cover appraisal and legal fees for transfers, though break fees on existing mortgages are typically not covered. Additionally, mono lenders—such as industrial alliances—appear to maintain a slight edge in offering the best interest rates, along with more favorable prepayment terms and portability options. These developments suggest that borrowers who engage with brokers and explore a variety of lenders are in a stronger position to secure favorable mortgage terms in the current market.