Yukon Mortgage Rates
Yukon mortgage rate update: January 2026
After the Bank of Canada decided to hold its overnight rate at 2.25% on January 28, mortgage rates in the Yukon could be in for another month of stasis in February.
Variable mortgage rates, which are directly impacted by the BoC’s overnight rate, are expected to stay at their current levels until at least March 18, when the Bank will make its next rate decision.
But the overnight rate is expected to remain unchanged for much, if not all, of 2026, so variables might be as good as they’re going to get this year.
That’s not a terrible scenario if you’re shopping for a variable-rate mortgage. Some brokerages and online lenders are offering variables for as low as 3.4%.
Fixed mortgage rates are a little harder to predict, but should remain mostly unchanged in February. Government bond yields, which influence fixed mortgage rates, have been steadily declining since spiking in December, giving lenders less reason to hike their fixed rates.
It might take some serious economic turbulence for yields to fall and drag fixed rates down with them. Barring that unlikely scenario, fixed rates should stay around their current levels in the Yukon for the foreseeable future.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates aren’t expected to experience much change in 2026.
In December, the Bank of Canada said its overnight rate is at “about the right level” to fight inflation and support the economy, which should rule out any imminent rate cuts or increases.
So long as the Bank maintains its overnight rate, variable mortgage rates won’t budge. But if the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point.
Fixed rates
As of January 2026, it’s possible that fixed mortgage rates will increase in the short-term in response to elevated bond yields.
Long-term fixed-rate projections, however, are difficult to make with any accuracy. Bond yields, which lenders use to price their fixed rates, are determined by factors that are hard to predict, like the state of the economy and the expectations of individual investors.
Some institutions do their best, though. The British Columbia Real Estate Association, for example, expects fixed rates to remain at their current levels for most of 2026.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
Yukon home buyer resources
Yukon first-time home buyer programs
Yukon residents who are unable to get traditional financing can apply for the Yukon Home Ownership Loan Program when buying or building a primary home. You must have a down payment of at least 2.5%.
If approved, the program finances the loan, which you’ll repay at an interest rate equal to one percentage point below the prevailing average 5-year mortgage rate. Anyone — not just first-time buyers — may apply.
Yukon land transfer taxes
You'll pay a flat fee, which is based on your home's value, and an additional fee based on the change in value since your home was sold. The flat fee is:
- $50 for a home value of less than $100,000.
- $150 for home values between $100,000 and $500,000.
- $350 for home values between $500,000 and $3 million.
- $550 for home values between $3 million and $10 million.
- $750 for home values above $10 million.
Mortgage calculators to help you take the next step
Frequently asked questions
How do lenders determine mortgage rates?
How do lenders determine mortgage rates?
The mortgage rate you’re offered will be based on two primary factors; one based on the state of the economy and one based on your financial situation.
Economic factors
Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.
Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.
Your financial situation
Factors specific to you also affect the rates you’re offered. These include:
Your credit score.
Your income.
Your total debts.
The loan type you choose.
The amount you’re borrowing.
The term length and amortization period of your loan.
Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.
Will mortgage rates come down in 2026?
Will mortgage rates come down in 2026?
Not likely, and if they do, it won't be by much. The Bank of Canada isn't expected to lower its overnight rate for most of the year, which means variable mortgage rates could be stuck at their current levels. Fixed mortgage rates will likely continue hovering between 3.9% and 4.3% well into 2026.
How do you qualify for a lower mortgage rate?
How do you qualify for a lower mortgage rate?
While some factors that affect rates are beyond your control, there are things you can do to encourage lenders to offer you the best mortgage rates. For example, you can:
Improve your credit score. To start, pay down any outstanding debt and pay off every bill in full.
Increase your income. This isn’t always easy, but any additional income will improve your financial position.
Decrease your total debts. Lenders consider your total debt load when determining the details of your loan.
Consider all your options. See if adjusting the loan type, the term length or the amortization period of your loan could help.
What's a good mortgage rate in the Yukon right now?
What's a good mortgage rate in the Yukon right now?
As of January 2026, fixed rates south of 4% and variable rates below 3.9% would be considered a good deal in the Yukon.
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
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Clay Jarvis
Clay Jarvis