5-Year Fixed Mortgage Rates
Compare 5-year fixed mortgage rates 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 5-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 five-year fixed rates.
Average fixed mortgage rates in Canada
TERM | Conventional Mortgage Rates |
|---|---|
1-year fixed | 6.09% |
3-year fixed | 6.05% |
5-year fixed | 6.09% |
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 5-year fixed-rate mortgages
Pros
- Neither your mortgage rate nor payment will change for the length of your term.
- Five-year fixed rates have been the cheaper fixed-rate option since 2022.
- Fixed-rate mortgages are as set-it-and-forget-it as mortgage products come.
Cons
- Life happens. Not everyone stays in the same home for five years.
- Breaking a fixed-rate mortgage can trigger significant penalties.
- You won’t be able to take advantage of lower rates unless you break your mortgage.
Fixed mortgage rate news: June 2025
Things aren’t getting easier if you’re shopping for a fixed-rate mortgage. Fixed rates edged up in late May, and there’s reason to think they might climb even higher in June.
Government bond yields, which lenders use to set fixed mortgage rates, have risen sharply since the beginning of the month. When that happens, it’s generally a matter of time before lenders hike their fixed rates.
As of June 9, most lenders are offering three- and five-year fixed rates just above 4%, but some brokerages are still offering sub-4% rates. Depending on where bond yields go, it may not be long before all fixed rates in Canada start with a “4.”
Forecasting 5-year fixed mortgage rates
Based on recent movement in government bond yields, which typically determine fixed mortgage rates, lenders are in a position to increase their five-year fixed mortgage rates by mid-2025. Fixed rates will likely stay north of 4% until yields come back down.
Five-year fixed rates can be hard to predict with any accuracy over the long-term — even for analysts. It’s even harder for the average consumer to pinpoint when they’ll move, how much they’ll fluctuate, and how long they’ll stay at their new levels.
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.
5 ways to get the best 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.
Crunch the numbers with our mortgage calculators
Factors that affect 5-year fixed mortgage rates
The bond market
Here’s a simple way of thinking about it: when the yield on five-year government bonds rise or fall for a sustained period, five-year fixed mortgage rates eventually follow suit. The same goes for three-year bonds and three-year fixed mortgage rates.
Your financial situation
The bond market influences fixed mortgage products, but the actual five-year fixed mortgage 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.
5-year fixed mortgage rates vs. variable mortgage rates
5-year fixed mortgage rates | Variable mortgage rates | |
|---|---|---|
Cost | Historically, higher than variable rates. The opposite can be true during periods of high inflation. | Typically lower than fixed rates. High inflation has lead to periods when variable rates skyrocketed well past fixed rates. |
Prepayment penalty risk | 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 | 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. | Significant. Your rate will change every time your bank’s prime rate increases or decreases. |
Fixed mortgage rates: A 12-month snapshot
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?
Some mortgage brokerages are offering five-year fixed mortgage rates for around 3.8% as of May 2025.
Will five-year fixed mortgage rates go down in 2025?
Will five-year fixed mortgage rates go down in 2025?
Five-year fixed rates were expected to decline somewhat in 2025, but the U.S. tariff war has made accurate forecasting difficult. In late May, government bond yields in the U.S. and Canada started climbing, which means higher fixed mortgage rates are on the way. Fixed rates could remain elevated for the second half of 2025.
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Clay Jarvis
Clay Jarvis