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Canada Mortgage Bond Rates

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Last updated

Canada Mortgage Bond Rates

Last updated:

5-Year CMB

2.98%

-0.020%

As of Feb 26, 2026

10-Year CMB

3.55%

-0.010%

As of Feb 26, 2026

Source: The Financials · Updated daily (Mon–Fri)

Multi-Family Investors

Get the Lowest Spread Above CMB for Multi-Family Properties

Book a call with our team for live, up-to-date multi-family rates and access to Canada's top CMHC-insured lenders — we'll help you secure the tightest spread above the bond yield.

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Historical Bond Yields

Data from Bank of Canada Valet API · GoC benchmark bond yields updated daily on business days

CMHC MLI Select Approved Lenders

Peakhill CapitalCMLS FinancialCanada ICIEquitable BankNational Bank of CanadaMCAPCBRE CapitalDesjardinsSun LifePeoples TrustKingSett MortgageFirm CapitalHarbour Mortgage

How It Works

How CMB Rates Affect Your Mortgage

Canada Mortgage Bonds are the backbone of fixed-rate mortgage funding in Canada. Understanding how they work gives you a strategic advantage when timing your rate lock.

What Are Canada Mortgage Bonds?

Canada Mortgage Bonds (CMBs) are issued by the Canada Housing Trust and guaranteed by CMHC. They are the primary vehicle through which Canadian lenders fund fixed-rate mortgages.

When you take out a fixed-rate mortgage, your lender typically sells that mortgage into a pool that gets securitized as a CMB. The yield investors demand on these bonds directly determines what rate lenders can offer you.

Because CMBs carry a government guarantee, their yields trade very close to Government of Canada benchmark bond yields — which is why we track GoC bonds as the most accurate proxy for CMB pricing.

How It Works

1

Lender originates your mortgage

You take out a 5-year fixed rate mortgage

2

Mortgage gets pooled and insured

CMHC insures the mortgage pool

3

Canada Housing Trust issues CMBs

Bonds sold to investors fund the mortgages

4

CMB yield sets your rate

Your rate = bond yield + lender spread

The Mortgage Rate Spread

Your fixed mortgage rate is the sum of two components: the bond yield and the lender's spread. The spread covers the lender's operating costs, credit risk, and profit margin.

1.00%

Tight spread — competitive market, strong borrower profile

1.50%

Typical spread — standard market conditions

2.00%+

Wide spread — tighter credit, higher risk profile

5-Year vs 10-Year CMB Rates

5Y

5-Year Bond Yield

Most popular term in Canada

  • Drives 5-year fixed mortgage rates
  • Most liquid CMB maturity
  • Best balance of rate certainty and flexibility
10Y

10-Year Bond Yield

Long-term rate benchmark

  • Influences 7- and 10-year fixed rates
  • Typically higher yield than 5-year
  • Maximum rate certainty for long-term holds

Expertise

Why Tracking CMB Rates Matters

Time Your Rate Lock

See the direction bond yields are trending before committing to a fixed rate.

Negotiate Better Rates

Know the benchmark so you can evaluate if your lender's spread is competitive.

Forecast Rate Changes

Bond yields move before posted mortgage rates change — get ahead of the curve.

Fixed vs Variable Decision

Compare bond yield trends against the Bank of Canada rate to inform your term choice.

Portfolio Planning

Plan refinances and new acquisitions around yield cycles for optimal financing costs.

Investor Education

Understand the mechanics behind mortgage pricing to make informed investment decisions.

Related Resources

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Fixed and variable rate mortgages

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FAQ

Understanding CMB Rates

Everything you need to know about Canada Mortgage Bond yields and how they impact your financing.

Understanding CMB Rates

Canada Mortgage Bonds are debt securities issued by the Canada Housing Trust (CHT) and guaranteed by CMHC (Canada Mortgage & Housing Corporation). Lenders sell pools of insured mortgages to CHT, which finances the purchase by issuing CMBs to investors. This system provides lenders with a low-cost, stable source of mortgage funding — and the yields on CMBs directly influence the fixed mortgage rates offered to borrowers.
Fixed mortgage rates in Canada are priced as a spread above the Government of Canada bond yield for the matching term. When the 5-year GoC bond yield rises, 5-year fixed mortgage rates typically follow. The CMB yield trades very close to the GoC benchmark because of the government guarantee, so tracking GoC bond yields gives you a reliable read on where fixed mortgage rates are heading.
The 5-year CMB rate tracks the 5-year GoC benchmark bond yield and is the primary driver of 5-year fixed mortgage rates — the most popular term in Canada. The 10-year CMB rate tracks the 10-year GoC benchmark yield and influences longer-term fixed mortgage products. The 10-year yield is typically higher than the 5-year because investors demand a premium for lending money over a longer period.
Bond yields move in response to economic conditions, Bank of Canada interest rate decisions, inflation expectations, and global market forces. When investors expect higher inflation or stronger economic growth, yields tend to rise. When there is economic uncertainty or a flight to safety, yields tend to fall. The Bank of Canada's overnight rate directly impacts short-term rates, while longer-term yields are driven more by market expectations.

Rates & Your Mortgage

Our CMB rate cards are updated automatically every business day (Monday–Friday) using a syndicated feed from The Financials. The historical bond yield chart below is sourced from the Bank of Canada and loads the latest data each time you visit.
Bond yields give you a directional signal, but your actual mortgage rate depends on the lender's spread, your qualification profile, property type, and the rate hold period. If you see yields trending upward and want to secure a rate, contact us for a free strategy call — we can help you get a rate hold before yields move higher.
The mortgage rate spread is the difference between the bond yield and the actual mortgage rate your lender offers. For example, if the 5-year GoC bond yield is 3.00% and your offered fixed rate is 4.50%, the spread is 1.50%. Spreads vary by lender, property type, loan-to-value ratio, and market competition. During stable markets, spreads are typically 1.00%–2.00% above the benchmark bond yield.
Bond yields primarily drive fixed rates. Variable rates are tied to the Bank of Canada's overnight rate instead. If bond yields are rising (signaling expected rate increases), locking in a fixed rate may make sense. If yields are falling or flat, a variable rate might save you money. The right choice depends on your risk tolerance, investment timeline, and cash flow requirements — book a strategy call to discuss your specific situation.

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