5-Year Fixed Mortgage Rates in Canada
Learn all you need to know about 5-year fixed rates — or skip right to the rates currently offered by bank and non-bank lenders.
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Current 5-year fixed mortgage rates in Canada
5-year fixed mortgage rates from a mortgage broker
5-year fixed mortgage rates from Canada's Big 6 banks
Posted rate | Discounted rate | |
|---|---|---|
6.11% | 4.51% (insured) 4.66% (uninsured) | |
6.49% | 4.21% (insured) 4.56% (uninsured) | |
6.09% | 4.43% (insured) 4.58% (uninsured) | |
6.12% | 4.32% (insured) 4.62% (uninsured) | |
6.09% | -- | |
6.09% | 4.711% (insured) 4.711% (uninsured) |
All discounted rates are annual percentage rates (APR), which include additional fees.
5-year fixed mortgage rate news: January 2026
If you’re shopping for a five-year fixed mortgage rate in January, you may want to get a move on.
Five-year government bond yields, which lenders use to price their five-year fixed mortgage rates, have been cruising at elevated levels since the second week of December. They moderated somewhat during the holiday season but shot up again before the end of the year.
When bond yields increase over a sustained period of time, it’s not unusual for lenders to respond by hiking their fixed rates.
We haven’t seen rates increase much over the past few weeks, but it wouldn’t be surprising to see five-year fixed rates inch up by five or 10 basis points in the coming weeks. If a potential rate increase is something you’d like to avoid, consider getting pre-approved for a mortgage to lock in at today’s rates.
As of January 2026, some mortgage brokerages are offering five-year fixed rates for as low as 3.79%.
5-year fixed mortgage rate forecast
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.
Next step: Crunch the numbers with our mortgage calculators
5-year fixed mortgage rates: A detailed breakdown
Why it's Canada's favourite mortgage rate
According to the Bank of Canada, about 40% of mortgages in Canada are fixed-rate loans with five-year terms, making them the most common option among the country's mortgage holders.
In the higher-rate, post-COVID era, more home buyers and renewing homeowners have gravitated toward shorter fixed-rate terms than in the past, but the five-year fixed is still the Canadian standard.
Why that is comes down to its strongest selling point: predictability. Because the rate is set for the duration of the term, you'll know exactly what your mortgage payment will be for five years. That stability can make household budgeting and financial planning a lot easier than if you chose a variable rate, which has the potential to increase.
Five-year fixed rates have historically been more expensive than variables and even three-year fixed rates, so Canadians seem willing to pay a premium for several years of predictability.
What about the risks?
Fixed-rate mortgages might be predictable; life, not so much. A lot can happen in five years that could require you to sell your home or refinance your mortgage. Doing either before your mortgage term expires will trigger prepayment penalties.
At the very least, you'll be charged three months' interest. But you might pay much more. It depends on the size of your mortgage and the lender who provided it. Each lender has its own formula for calculating prepayment penalties, and they can knock a gaping hole in your finances.
No matter what mortgage you choose, have your mortgage advisor or mortgage broker walk you through some example scenarios so you can see how much breaking a mortgage might cost you at different points during the term.
If you're reasonably sure you won't stay in your home for the full term, and the prepayment penalties scare you, a five-year fixed might not be for you.
5-year fixed vs. 3-year fixed | 5-year fixed vs. variable | |
|---|---|---|
Cost | Historically, 5-year fixed rates have been the less more expensive option, but not since the pandemic. | Variable rates have historically been lower than fixed rates, though variables have been the more volatile option since COVID. |
Prepayment penalty risk | About the same. The real risk with pre-payment penalties is the size of your mortgage, not the term you choose. | A 5-year fixed will generally be riskier. With variables, the maximum prepayment penalty tops out at three months’ interest |
Switchability | A fixed rate can’t be switched to a variable rate mid-term without breaking the mortgage. | A variable rate can be switched to a fixed rate for the remainder of the term without penalty. |
Exposure to rate fluctuations | None. Your rate won’t change for the length of your term. | Significantly higher with variable rates, which change every time your bank’s prime rate increases or decreases. |
Pros and cons of 5-year fixed-rate mortgages
Pros:
Predictability. You'll know what your mortgage payment will be for the entirety of the term.
Less to think about — for longer. You'll have an easy to understand mortgage that won't have to be renewed for half a decade.
Cons:
No ability to switch. You can't switch rate types if variable rates become attractive.
Pre-payment penalties. Breaking a fixed-rate mortgage of any length can trigger significant penalties.
How 5-year fixed mortgage rates are determined
The bond market
Here’s a simple way of thinking about it: when the yield on five-year government bonds rises or falls for a sustained period, five-year fixed mortgage rates eventually follow suit. You can track five-year bond yields by visiting the Bank of Canada website.
Your financial situation
The bond market influences five-year fixed rates, 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.
A lender or brokerage might advertise a five-year fixed rate for 4%, but that doesn’t mean everyone will qualify for it.
How to get a lower 5-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.
Frequently asked questions
Is getting a 5-year fixed mortgage a good idea?
Is getting a 5-year fixed mortgage a good idea?
A five-year fixed-rate mortgage is generally best for someone who prioritizes predictability, and who doesn’t expect their life or livelihood to change for several years. That’s because breaking a five-year fixed-rate mortgage can trigger steep prepayment penalties.
What's a good five-year fixed mortgage rate?
What's a good five-year fixed mortgage rate?
As of January 2026, five-year fixed mortgage rates are hovering around 3.8% at many brokerages. Score a lower rate on a mortgage that aligns with your needs and you've likely found a good deal.
Will five-year fixed mortgage rates go down in 2026?
Will five-year fixed mortgage rates go down in 2026?
Five-year fixed rates aren't expected to decline in the first quarter of 2026. Bond yields, which lenders use to price their fixed rates, rose sharply in December 2025, so there's a risk that fixed rates edge up in early 2026.
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
Clay Jarvis