# Ottawa Mortgage Rates 2026: 5-Year Fixed 4.14% vs 3.49% Variable > As of 24 August 2026, Ottawa's best 5-year fixed is 4.14%. The 3.49% figure in search is the 5-year variable, not a fixed rate. Category: Mortgage Pricing & Competition Author: Ratellow Research Team Published: 2026-08-29T20:00:00.000Z Source: https://ratellow.com/blog/ottawa-5-year-fixed-vs-variable-2026 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](/mortgages/rates/ottawa) 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](/blog/stress-test-at-renewal-2026-rules). - 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](/guides/land-transfer-tax-explained) 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](/mortgages/rates/montreal) 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. | Product (24 Aug 2026) | Rate | Monthly P&I | |---|---|---| | 5-year fixed | **4.14%** | **$2,668** | | 3-year fixed | **3.94%** | **$2,614** | | 5-year variable | **3.49%** | **$2,494** | 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](/mortgages/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](/mortgages/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](/mortgages/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. ## Sources - Ottawa mortgage rates — https://ratellow.com/mortgages/rates/ottawa - Selected Canadian bond yields — https://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/ - Minimum qualifying rate for uninsured mortgages — https://www.osfi-bsif.gc.ca/en/supervision/financial-institutions/banks/minimum-qualifying-rate-uninsured-mortgages - Land transfer tax — https://www.ontario.ca/document/land-transfer-tax