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Today’s lowest 5-year fixed
mortgage rate in:

0.00%

5-Year Variable

Rates updated: February 20, 2025 at 2:32 PM

4.29%

5-Year Fixed

Rates updated: February 20, 2025 at 2:32 PM

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The best current mortgage rates in Canada

Check out today's best mortgage rates in Canada by type and term.

Rates are based on an average mortgage of $300,000
 Insured ?

The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.

80% LTV ?

The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

65% LTV ?

The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

Uninsured ?

The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.

Bank Rate ?

Bank Rate is the mortgage interest rate posted by the big banks in Canada.

 
1-year fixed rate
Insured
4.69%
80% LTV
4.19%
65% LTV
4.19%
Uninsured
5.49%
5.49%
 
2-year fixed rate
Insured
3.99%
80% LTV
3.89%
65% LTV
3.89%
Uninsured
4.7%
4.79%
 
3-year fixed rate
Insured
3.79%
80% LTV
3.79%
65% LTV
3.79%
Uninsured
4.09%
4.39%
 
4-year fixed rate
Insured
3.99%
80% LTV
3.99%
65% LTV
3.99%
Uninsured
4.44%
4.29%
 
5-year fixed rate
Insured
3.74%
80% LTV
3.89%
65% LTV
3.84%
Uninsured
3.84%
3.99%
 
7-year fixed rate
Insured
4.39%
80% LTV
3.99%
65% LTV
3.99%
Uninsured
5.15%
5%
 
10-year fixed rate
Insured
5.04%
80% LTV
4.34%
65% LTV
4.34%
Uninsured
5.25%
6.09%
 
3-year variable rate
Insured
4.15%
80% LTV
4.3%
65% LTV
4.3%
Uninsured
4.45%
6.35%
 
5-year variable rate
Insured
3.95%
80% LTV
3.95%
65% LTV
3.95%
Uninsured
4.05%
4.25%
 
HELOC rate
Insured
N/A
80% LTV
N/A
65% LTV
N/A
Uninsured
N/A
N/A
 
Stress test
Insured
5.25%
80% LTV
5.25%
65% LTV
5.25%
Uninsured
5.25%
N/A

What is a 5-year fixed mortgage?

A 5-year fixed mortgage has an interest rate that remains the same throughout the term of the mortgage, in this case 5-years. It does not increase or decrease with the change in overnight prime rate by the Bank of Canada. The interest rate and mortgage payments do not fluctuate until it's time for renewal or the borrower decides to refinance.

In the last two years, from 2022-2023, high inflation has led to rapidly increasing interest rates which has caused the cooling of housing markets across Canada and decelerated mortgage growth.

Mortgage borrowers are opting for shorter-term fixed-rate mortgages, with fixed-rate 5-year mortgages falling to less than 15% of new mortgages, and variable-rate mortgages dropping to less than 20% of new mortgages, according to a CMHC Residential Mortgage Industry Report.

How do 5-year fixed mortgages work in Canada?

Canadians entering the homebuying market and looking for mortgage financing will find they have many options available to them.

One of those, of course, is the 5-year fixed mortgage. Simply, this option allows you to lock in a fixed interest rate for a period of five years. By doing this, risk-averse people can sleep at night knowing their mortgage rates, and monthly payments, will remain constant for a specific period, even if interest rates rise (or fall for that matter).

Having a fixed rate for a specific amount of time allows you to budget and save accordingly for other aspects of your life. You have the peace of mind that your rates will not be at the mercy of inflation or Bank of Canada decisions.

5-year fixed mortgage rates are also very popular and considered a good middle ground choice for homebuyers. Because of their popularity, the 5-year fixed rates are often the most competitive, which is also appealing to consumers.

Fixed rates tend to be higher than variable rates because you are paying a bit more for budget security. Fixed rates are mainly influenced by Bank of Canada bond yields (which are also set for 5 years) and changes in the bond market — and are set by them accordingly.

When rates are low, some homebuyers will consider variable mortgage rates, but their link to the change in interest rates can make them volatile. Homebuyers might find their rates going up dramatically, as has been the case recently as inflation has risen. That is why when interest rates rise, people like to lock into a 5-year fixed rate to ensure stability of payments and budgeting.

5-year fixed-rate mortgages in Canada: What you need to know.

The mortgage type most favoured by Canadians is the 5-year fixed-rate mortgage. Five years is long enough to provide a sense of stability while also allowing room for Canadians who want to take advantage of shifting interest rates.

Keep reading to learn more about how to qualify for the lowest rates on 5-year fixed mortgages.

If you’re ready to compare 5-year fixed mortgage rates right now, choose one of the options above. If you’re renewing, refinancing, or are a first-time homebuyer, LowestRates.ca can help you find a cheaper rate.

We compare mortgage rates from Canada’s preeminent banks and brokers. Our rates are updated throughout the day, so you know you’ll always see the most current 5-year fixed mortgage rates.

How comparing Canada mortgage quotes works. Hint: it’s free!

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When you find the best quote, secure your rate by talking to a licensed broker or agent.

Historical 5-year fixed mortgage rates in Canada

For borrowers, it is important to understand historical mortgage rates for gaining insights into the present rates and making well-informed decisions when purchasing real estate. Although mortgage rates may fluctuate due to economic and policy changes or inflation, recognizing their historical trends can help you determine the right time for you to buy a house or refinance a mortgage. 

Historically, mortgage rates have gone through significant fluctuations over the last four years due to economic changes and Bank of Canada's interest rate hikes. When comparing mortgage rates, it’s essential to consider other factors like home prices and inflation. When rates are low, it’s an opportune time to lock in a mortgage, while higher rates may warrant waiting or exploring other options.

Period

Source: Posted mortgage rates by Canada’s six major banks (RBC, TD, Scotiabank, BMO, CIBC and National Bank)

The pros and cons of a 5-year fixed mortgage in Canada

Let’s face it. You don’t love risk. Taking a mortgage is a big step, and you want to make sure you can sleep at night, knowing you can pay down your debt and do it securely. Here are some pros and cons to consider for taking out a 5-year fixed mortgage in Canada.

Pros of 5-year fixed mortgage rate

Here’s why you would consider a 5-year fixed mortgage rate:

Cons of 5-year fixed mortgage rate

Here are some of the reasons you may not want to consider a 5-year fixed mortgage rate:

Frequently asked questions about 5-year fixed mortgages

Answers to all your questions about 5-year fixed mortgages can be found here...

When should you consider a 5-year fixed-rate loan?

A 5-year fixed-rate mortgage is the most popular mortgage rate in Canada — and for good reason. It offers the perfect balance of great rate and desirable terms. A 5-year fixed rate should be considered by every borrower, since it’s provided by all mortgage lenders and, therefore, one of the easiest to compare to find the best rate. According to Mortgage Professionals Canada, 74% of all mortgages funded in 2020 were fixed-rate mortgages and the majority of those were five-year terms.

Are 5-year fixed-rate mortgages better than other mortgage terms?

This is a personal matter that depends on your budgetary needs/constraints and your tolerance for risk. Some homebuyers like the flexibility of a variable rate mortgage and prefer that advantage. Others like the stability of a set payment for a fixed amount of time. Talk to your lender about what suits your needs best.

What is a good 5-year fixed mortgage rate?

Getting a good rate is part of a multi-layered process. When you talk to lenders, they’ll want to know things like your income and employment history, the size of your down payment, credit score, debt levels, and assets. If you are a minimal risk and have good credit, you will probably be offered favourable rates by your lender. Since mortgage rates are constantly fluctuating, it’s important to compare your options to ensure you’re getting the best mortgage for your particular situation.

How is the 5-year fixed mortgage rate set?

All fixed-rate mortgages in Canada are influenced by the government bond market. A bond is a type of investment offered by banks and lenders where the investor lends the government a set amount of money for a predetermined amount of time. In exchange, the government provides a set amount of interest for the investor that is earned over time. Once a bond’s term is up, the principal investment is returned to the investor. When bond yields go up, fixed rates go up and when bond yields go down, fixed rates go down. The reason for this is that since bonds are one of the safest types of investments, lenders use them to cover the cost of mortgages.

How much can you save comparing 5-year fixed rates in Canada with LowestRates.ca?

LowestRates.ca has helped our users save $1 billion in interest and fees. Because mortgage amortization periods in Canada are long, typically ranging from 25 to 30 years, the amount of money you can save over the life of a mortgage is significant, even if you’re only saving a fraction of a percentage point during each of your mortgage terms.

Joel Kranc's picture

Joel Kranc

About the Author

Joel Kranc is an award-winning writer, author and journalist. Most of his experience lies within the institutional investment and financial services space. He also covers a variety of business topics for publications in North America and the UK.

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