TD raises mortgage rates as Canada's Big Six banks reprice across October

Why it matters

TD raised several of its publicly advertised special mortgage rates Thursday: the 1-year fixed rate rose 20 basis points to 5.69%, the 2- and 3-year fixed rates each rose 10 basis points to 5.39% and 5.24% respectively, and the 5-year fixed rate increased 5 basis points to 5.39%. The 5-year variable and advertised hybrid rates each rose 5 basis points as well. Scotiabank increased its advertised 2-year fixed rate by 10 basis points to 5.24% on Wednesday, following recent increases of 5 to 20 basis points across select terms at BMO, CIBC, National Bank and RBC since early October — all of Canada's Big Six banks are now repricing.

The driver is elevated bond yields. The 5-year Government of Canada bond yield, the key benchmark for fixed mortgage pricing, hit a 52-week high of 3.729% in September, closed Wednesday at 3.575% and eased to about 3.479% early Thursday. The Bank of Canada's overnight policy rate is unchanged at 2.25%, with the next rate decision scheduled for October 28.

The timing is sensitive for households: about 1.15 million Canadian mortgages are set to renew in 2026 and another 940,000 in 2027, according to CMHC. The changes apply to rates advertised directly by the banks and do not reflect rates available through the mortgage broker channel.