Ottawa mortgage rates: 5-year fixed vs variable

The 3.49% rate in Ottawa search snippets is the 5-year variable, priced off prime at 4.45% (prime minus 96 bp). It is not a 5-year fixed. The 5-year fixed on the same national sheet, as of 24 August 2026, is 4.14%. The 3-year fixed is 3.94%. The 5-year Government of Canada benchmark is 3.05%.

Those are the same products on Ottawa's rates page as on the national card. Ottawa does not get a special contract rate. What changes locally is Ontario land transfer tax — and the fact that Toronto's municipal tax does not apply here.

TL;DR

• 4.14% is the 5-year fixed. 3.49% is the 5-year variable. Mixing them in a search headline is how the wrong product gets bookmarked.
• On $500,000 over 25 years, Canadian semi-annual compounding: $2,668 at 4.14%, $2,614 at 3.94%, $2,494 at 3.49%.
• The qualifying-rate gap if you are inside the OSFI test is 6.14% on the fixed versus 5.49% on the variable. Stay or straight-switch and you never meet it — how the 2026 renewal stress-test rules attach.
• On a $675,000 Ottawa purchase, provincial LTT is $9,975. There is no Toronto MLTT on top.

3.49% is variable, not a cheaper 5-year fixed

Prime is 4.45%. The 5-year variable at 3.49% is a discount to that prime, not a fixed coupon. The payment can move when prime moves. The 5-year fixed at 4.14% is the number that holds for the term.

Search results that lead with 3.49% next to the words "Ottawa 5-year" are describing the variable card. If you need a payment that does not reprice with the Bank of Canada, you are looking at 4.14%, not 3.49%.

Ottawa's rate card is the national card

Federally regulated lenders post one insured/uninsured sheet. Ottawa vs the rest of Ontario is not a 15-basis-point local special. The Ottawa-specific line is closing tax: Ontario LTT on the purchase price, with no City of Toronto layer.

Gatineau is not an Ottawa closing. It is Quebec Welcome Tax and Civil Code hypothec mechanics — use the Montreal / Quebec rates notes if the property is on that side of the river.

$500,000 over 25 years at today's three coupons

All payments below use semi-annual compounding.

The variable saves $174/month versus the 5-year fixed on this file. That is the cash you are trading for payment path risk, not a secret cheaper fixed.

The widget opens on the 4.14% fixed. Switch the rate field to 3.49% to match the variable row. For a full amortization schedule, use the payment calculator.

If this file is stress-tested

Same-lender renewal and an uninsured straight switch (no extra money, no longer amortization) do not take the prescribed MQR. A refinance does. If you are inside the test: contract 4.14% qualifies at 6.14%; contract 3.49% qualifies at 5.49%. On $500,000 / 25 years that is $3,241 versus $3,049 of demonstrated payment — not what you write the cheque for. Run the file in the stress test calculator only if the transaction is a refinance or a new origination.

Ottawa LTT on a $675,000 purchase

Ontario's provincial tax on $675,000 is $9,975 (0.5% / 1% / 1.5% / 2% bands). Ottawa does not add Toronto's municipal LTT. First-time buyer rebate, if you qualify, still caps at $4,000 provincially. Work the brackets in the land transfer tax calculator — that is a text link, not a second widget on this page.

Frequently asked questions

Is 3.49% a 5-year fixed?

No. 3.49% is the 5-year variable on the 24 August 2026 sheet. The 5-year fixed is 4.14%.

Are Ottawa rates different from the rest of Ontario?

Not on the contract rate. The Ottawa difference is provincial LTT without Toronto's municipal layer, and Gatineau being a Quebec closing if you cross the river.

What rate am I stress-tested at if I take 4.14%?

Only if the deal is a new underwrite (purchase, refinance, extra money, longer amortization): greater of 4.14% + 2% or 5.25%, so 6.14%. Stay or straight-switch and the prescribed MQR does not apply.

Should I take the variable because the Bank of Canada is on hold?

A hold is the backdrop for why 3.49% is on the card. It is not a reason the payment will stay at $2,494. Variable still follows prime. Choose it if you can absorb a higher payment, not because the last decision was a hold.

What if I buy in Gatineau?

Quebec Welcome Tax and notary/hypothecs apply. Do not use Ontario LTT math on that file.