Mortgages
The same home,
then and now.
The 5-year conventional mortgage rate is 6.09% (week of September 23, 2026); the Bank of Canada's policy rate is 2.25%. For a home that costs $500,000 today, the mortgage takes about 70 hours of work a month, against 73 hours for the same home in August 2016. Earlier prices follow the new-home price index; resale prices where you live may have risen faster or slower, so enter your own figures below.
Mortgage pressure
The same home, then and now
August 2026
| Month | Home price | 5-yr rate | Payment | Work hours | Share of pay |
|---|---|---|---|---|---|
| August 2026 (now) | $500,000 | 6.09% | $2,581 | 70 h | 42.9% |
| August 2021 | $490,033 | 4.79% | $2,296 | 75 h | 46.4% |
| August 2016 | $411,545 | 4.74% | $1,919 | 73 h | 45.2% |
Earlier prices follow Statistics Canada's New Housing Price Index (new homes, house and land). Rates are the Bank of Canada's 5-year conventional (posted) mortgage rate, averaged over the month; most borrowers negotiate a lower rate, so payments here are on the high side. Hours of work use the Canada average hourly wage of the same month; share of gross pay assumes 37.5 hours a week. Principal and interest only; excludes property tax, insurance and fees. Not financial advice.
Latest data: August 2026Sources
Source: Bank of Canada, series V80691335, V39079, V80691311; Statistics Canada, Table 18-10-0205-01, Table 14-10-0063-01Updated by CostWatch: September 27, 2026Calculated by CostWatch using Bank of Canada and Statistics Canada data.Adapted from Bank of Canada series V80691335, V39079, V80691311; Statistics Canada Table 18-10-0205-01, Table 14-10-0063-01, August 2026. Not endorsed by the Bank of Canada. This does not constitute an endorsement by Statistics Canada of this product.
Ten-year view
Interest rates since 2016
Monthly averages, percent
- 5-year posted mortgage
- 6.09%
- Prime rate
- 4.45%
- Policy rate
- 2.25%
- 5-year posted mortgage6.09%
- Prime rate4.45%
- Policy rate2.25%
Show the data as a table
| Month | 5-year posted mortgage | Prime rate | Policy rate |
|---|---|---|---|
| August 2016 | 4.74% | 2.70% | 0.50% |
| August 2017 | 4.84% | 2.95% | 0.75% |
| August 2018 | 5.34% | 3.70% | 1.50% |
| August 2019 | 5.19% | 3.95% | 1.75% |
| August 2020 | 4.83% | 2.45% | 0.25% |
| August 2021 | 4.79% | 2.45% | 0.25% |
| August 2022 | 6.14% | 4.70% | 2.50% |
| August 2023 | 6.80% | 7.20% | 5.00% |
| August 2024 | 6.69% | 6.70% | 4.50% |
| August 2025 | 6.09% | 4.95% | 2.75% |
| August 2026 | 6.09% | 4.45% | 2.25% |
Latest data: August 2026Sources
Source: Bank of Canada, series V80691335, V39079, V80691311Updated by CostWatch: September 27, 2026Adapted from Bank of Canada, Bank of Canada interest rates: policy rate, prime rate, 5-year conventional mortgage rate, August 2026. Not endorsed by the Bank of Canada.