The Best 3-Year Fixed Mortgage Rates In Canada
Compare 3-year fixed mortgage rate offers from Canada's top bank and non-bank lenders.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.
The best 3-year fixed mortgage rates from Canada's Big 6 banks
Looking for a bank that isn't in the table above? Click the buttons below to see posted and discounted mortgage rates from Canada's big banks, including three-year fixed rates.
Average fixed mortgage rates in Canada
TERM | Conventional Mortgage Rates |
|---|---|
1-year fixed | 6.09% |
3-year fixed | 6.54% |
5-year fixed | 6.49% |
This table includes posted fixed mortgage rates for borrowers with down payments of 20% or more at Canada's chartered banks.
Posted rates can be thought of as publicly advertised, pre-discounted rates. If you get a mortgage from a big bank, your rate offer will be personalized and probably lower than what you see here.
Pros and cons of 3-year fixed mortgage rates
Pros
- Fixed costs. You’ll always know what your mortgage payments will be.
- Realistic time frame. Planning for three years is generally easier than planning for five or more.
- Easy to understand. Fixed-rate mortgages are as set-it-and-forget-it as mortgage products come.
Cons
- Can be expensive. Since 2022, three-year rates have been relatively high.
- Pre-payment fees. Breaking a fixed-rate mortgage can trigger significant penalties.
- No benefits if rates fall. You won’t be able to take advantage of lower rates unless you break your mortgage.
Fixed mortgage rate news: April 2025
If you’re a home buyer who's disappointed that the Bank of Canada didn’t help lower variable mortgage rates on April 16, 2025, know that fixed mortgage rates remain fairly approachable.
As of April 16, some brokerages were offering three-year fixed rates for around 3.7% and five-year fixed rates for about 3.75%. Those aren’t mind-blowingly low rates, but they might be as good as they’re going to get for the time being.
Government bond yields, which help determine lenders’ fixed mortgage rates, have been in the same general range since February. Without a significant, sustained dip in yields, lenders won’t have much reason to lower their fixed rates.
But that doesn’t mean they aren’t open to negotiation. With so many home buyers sitting on the sidelines, the mortgage market has been quiet this year, and lenders are hungry for business. Use the lack of demand to your advantage and negotiate hard for the best rate you can.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Here's what you need to know.
5 ways to get the best 3-year fixed mortgage rate
Improve your credit score 📈 Borrowers with a credit score of 680 or higher tend to get the best mortgage rates. Lower credit scores may mean working with an alternative lender that offers higher rates.
Tackle your debt 🏦 Paying off debt improves your credit score and increases cash flow. Debt payments, including your mortgage, should total less than 44% of your household income.
Boost your down payment 💰 Making a larger down payment and borrowing less reduces a lender's risk. They may reward you with a lower interest rate.
Compare multiple offers ⚖️ Don't limit yourself to one option when looking for a mortgage; get offers from a few lenders. A few minutes of your time could result in thousands in savings.
Negotiate 💪 Always ask lenders if they can improve on their rate offers. If this makes you feel uncomfortable, use a mortgage broker, who will negotiate for you.
3-year fixed vs. other mortgage rate types
3-year fixed mortgage rates | 5-year fixed mortgage rates | Variable mortgage rates | |
|---|---|---|---|
Cost comparison | Have been higher than 5-year fixed rates and lower than variable mortgage rates since 2022. | Historically, higher than variable rates but lower than 3-year fixed rates. | Typically lower than fixed rates. High inflation has lead to periods when variable rates skyrocketed well past fixed rates. |
Prepayment penalty risk | Lower than 5-year fixed rates, higher than variable rates. | High. The prepayment penalties can be large. The likelihood of breaking your mortgage rises the longer your term gets. | Relatively low. The maximum prepayment penalty is three months’ interest. |
Switchability | Can't be switched to a variable rate mid-term without triggering a pre-payment penalty. | Can’t be switched to a variable rate mid-term without triggering a pre-payment penalty. | A variable rate can be switched to a fixed rate for the remainder of the term without penalty. |
Exposure to rate fluctuations | None, but you'll renew relatively soon and may encounter higher rates when you do. | None during the term, but your rate may increase when you renew. | Significant. Your rate will change every time your bank’s prime rate increases or decreases. |
Best mortgage rates in Canada
Compare offers from Canada’s top mortgage lenders and brokers.
Factors that affect 3-year fixed mortgage rates
The bond market
Here’s a simple way of thinking about it: when the yield on three-year government bonds rise or fall for a sustained period, three-year fixed mortgage rates eventually follow suit. The same goes for five-year bonds and five-year fixed mortgage rates.
Your financial situation
The bond market influences fixed mortgage products, but the actual rate you’re offered depends on your financial situation, including your credit score, the size of your down payment and how much debt you're carrying.
Fixed mortgage rates: A 12-month snapshot
Frequently asked questions
Is a 3-year fixed mortgage rate a good idea?
Is a 3-year fixed mortgage rate a good idea?
Three-year fixed-rate mortgages can be a good idea in a few scenarios. If you think you might move before the end of a five-year mortgage term, opting for three years might save you from paying a pre-payment penalty. If rates fall during a three-year term, you’ll have a better chance of renewing at a lower rate than if you signed on for five-years.
What's a good 3-year fixed mortgage rate?
What's a good 3-year fixed mortgage rate?
As of April 2025, you can find three-year fixed rate offers for around 3.7% at some mortgage brokerages.
Will three-year fixed mortgage rates go down in 2025?
Will three-year fixed mortgage rates go down in 2025?
Three-year fixed mortgage rates don't get the same forecast treatment that five-year fixed rates do, but both generally follow the same trend lines. The minor downward movement predicted for five-year fixed rates in 2025 should be seen in three-year fixed rates, too.
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Clay Jarvis
Clay Jarvis
Clay Jarvis