Mortgage Rates in Quebec in June 2026: Impact of the Iran War on Financial Markets and Interest Rates

03 Jun 2026

The real estate landscape in Quebec is experiencing notable shifts as of June 2026, influenced by global events, particularly the ongoing conflict in Iran. This article provides a comprehensive analysis tailored for real estate professionals, covering the current state of mortgage rates in Quebec, the broader impact of the Iran war on global financial markets, its direct consequences on Canadian and Quebec mortgage rates, and the outlook for buyers and homeowners.

Current State of Mortgage Rates in Quebec

As of June 1, 2026, mortgage rates in Quebec have seen a significant increase compared to previous months. The Bank of Canada (BoC) policy rate stands at 4.45%, with the prime rate at 4.45%. The average conventional mortgage rates available to borrowers with a down payment of 20% or more are as follows:

2-year fixed conventional mortgage rate: 4.82%
3-year fixed conventional mortgage rate: 4.85%
3-year variable conventional mortgage rate: 5.00%
4-year fixed conventional mortgage rate: 5.36%
5-year fixed conventional mortgage rate: 4.90%
5-year variable conventional mortgage rate: 4.15%
7-year fixed conventional mortgage rate: 5.76%
10-year fixed conventional mortgage rate: 6.78%

These rates reflect a notable increase from April 2026, where the 5-year fixed rate was approximately 3.69% and the 5-year variable rate around 3.35% ([courticonnect.ca](https://courticonnect.ca/en/blog/mortgage-rates-april-2026?utm_source=openai)). This upward trend is primarily attributed to global economic factors, including the Iran war.

Analysis of the Iran War and Its Impact on Global Financial Markets

The conflict in Iran has had profound effects on global financial markets, primarily through disruptions in oil supply. The closure of the Strait of Hormuz, a critical chokepoint for global oil transportation, has led to a significant reduction in oil exports from the region. This disruption has caused oil prices to surge, with crude prices rising over 40% since the onset of the conflict ([financialexpress.com](https://www.financialexpress.com/market/global-markets/how-the-iran-war-is-repricing-global-assets-oil-dollar-inflation-rates-and-gold-all-react/4184817/lite/?utm_source=openai)).

China's response to the conflict has also influenced global oil markets. Despite the disruptions, China has strategically reduced its oil imports, mitigating potential price surges ([axios.com](https://www.axios.com/2026/05/29/china-oil-iran-war?utm_source=openai)). However, this strategy raises concerns about the sustainability of China's low import levels and the potential for future market volatility.

Direct Consequences on Canadian and Quebec Mortgage Rates

The global economic instability stemming from the Iran war has directly impacted Canadian and Quebec mortgage rates. The Bank of Canada has maintained a cautious approach, keeping the policy rate at 4.45% to manage inflationary pressures. However, the surge in global oil prices has contributed to rising inflation, prompting lenders to adjust mortgage rates accordingly.

As a result, Quebec borrowers are facing higher mortgage rates, with the 5-year fixed rate increasing to 4.90% and the 5-year variable rate to 4.15% as of June 1, 2026 ([nesto.ca](https://www.nesto.ca/mortgage-rates/location/quebec/?utm_source=openai)). These adjustments reflect lenders' responses to the broader economic challenges posed by the conflict in Iran.

Outlook for Buyers and Homeowners

For prospective buyers, the current mortgage rate environment presents challenges. Higher borrowing costs may affect affordability and purchasing decisions. It's advisable for buyers to assess their financial situations carefully and consider locking in current rates to mitigate potential future increases.

Homeowners with existing mortgages may face higher costs upon renewal, especially if they have variable-rate loans. It's prudent for homeowners to explore refinancing options and consult with mortgage advisors to navigate the evolving market conditions effectively.

In conclusion, the Iran war has introduced significant volatility into global financial markets, with direct repercussions for Quebec's mortgage rates. Real estate professionals should stay informed about these developments to provide clients with accurate guidance and support in making informed decisions during this dynamic period.

Sources

By staying informed and proactive, real estate professionals can better navigate the challenges and opportunities presented by the current economic climate.

The information in this article is for general purposes only and may not reflect current laws or regulations. Verify any details with a qualified professional before making decisions. Some portions may have been created with AI assistance and should be confirmed for accuracy.

Written by Maly Charbonneau

Mortgage broker