Find the best 5-year fixed mortgage rates in Canada

The rates displayed are personalized based on the details you enter. To compare insured and uninsured mortgage rates, simply adjust your down payment amount and the rates will automatically update. Down payments below 20% show insured (high-ratio) rates, while down payments of 20% or more show insurable and uninsured rates.

How to choose between a fixed or variable mortgage rate in Canada

The difference between fixed and variable mortgage rates is whether or not they will change over the term of your mortgage. Fixed rates will stay the same over the course of your mortgage term (usually 5 years), while variable rates will change alongside changes in your lender’s prime rate.

Fixed mortgage rates

Fixed mortgage rates are a historically popular option, with 5-year fixed mortgage rates accounting for 77% of all mortgage requests made on Ratehub.ca from January to December 2025. Moreover, according to the 2025 CMHC Mortgage Consumer Survey, 62% of all mortgages contracted in 2025 were fixed-rate mortgages. The benefit of a fixed mortgage is that you are protected against interest rate fluctuations, so your regular payments stay constant over the duration of your term, regardless of what happens in the market. A fixed rate mortgage is ideal for you if you have a low appetite for risk. You’ll know how much you’ll be paying monthly right from the outset and not have to monitor interest rates.

Variable mortgage rates

Variable mortgage rates typically start lower than fixed rates but can change over time as prime rates move. In 2021 and early 2022, variable rates were significantly cheaper than fixed rates, making them a popular choice. However, following 10 rate hikes between March 2022 and July 2023, variable rates rose above fixed rates. After nine rate cuts between June 2024 and October 2025, variable rates have fallen again, with the best 5-year variable option now around 3.35%. Despite being lower today, variable rates still carry more uncertainty, as payments or interest costs can change over the term.

Pros and cons of fixed vs. variable mortgage rates

Fixed vs variable mortgages, which is better now?

There’s no one-size-fits-all answer. While fixed rates remain more popular overall, interest in variable rates has begun to recover. According to the 2025 CMHC Mortgage Consumer Survey, 25% of mortgages contracted during 2025 were variable-rate mortgages (up from 23% in 2024). 

Variable mortgages come with some advantages worth considering:

• You can convert a variable rate to a fixed rate at any time without a penalty as long as you stay with your original mortgage lender.
• Breaking a variable rate mortgage is substantially less expensive than breaking a fixed rate mortgage. To estimate the cost of breaking your mortgage, our mortgage penalty calculator is a useful tool.
• According to York University Professor Moshe Milevsky’s landmark 2001 study, historically, over 90% of Canadians who have maintained a variable mortgage rate throughout their entire mortgage term have paid less in interest than those who have stuck to a fixed rate.

That said, variable rates can be more volatile, and since late 2022 they have often been higher than fixed rates. Choosing between fixed and variable ultimately comes down to your risk tolerance, cash-flow flexibility, and how comfortable you are with potential rate changes during your term.

How to select the term for your mortgage rate

Choosing between a short-term mortgage or a long-term mortgage can affect both your interest rate and how soon you'll need to renew. A shorter mortgage term gives you the opportunity to renegotiate your mortgage sooner, which can be beneficial if rates are lower when you renew. A longer term gives you greater rate and payment stability for a longer period, but you may not be able to take advantage of lower rates until your term ends.

Should I choose a 3-year or 5-year mortgage term?

A 3-year fixed mortgage may be a good choice if you want to renew sooner and believe mortgage rates could be lower in the next few years, while a 5-year fixed mortgage may be better if you value longer-term payment stability and want to protect yourself from the possibility of rates rising. 

As of August 2026, the lowest 3-year fixed mortgage rate available on Ratehub.ca is 3.94%, compared with 4.04% for the lowest 5-year fixed rate, meaning borrowers can currently access a slightly lower rate by choosing the shorter term. However, if rates fall over the next few years, a 3-year mortgage gives you the opportunity to renew at a potentially lower rate sooner. On the other hand, if rates rise, a 5-year fixed mortgage gives you two additional years of protection from higher borrowing costs. When choosing between them, consider not only today's rate but also how much certainty and flexibility you want over the next several years.

Canada housing & mortgage market update: July 2026

The housing market in Canada saw a rather quiet start to 2026, as buyers stayed on the sidelines. When looked at from a historical perspective, both fixed and variable mortgage rates are currently elevated. Anyone shopping for a mortgage rate in Canada today should be aware of the economic factors below.

What the Bank of Canada's July 15 announcement means for mortgage rates

On July 15, 2026, the Bank of Canada held its policy rate (i.e. target for overnight rate) at 2.25%, extending the current period of rate stability. The decision was widely expected and reflects the Bank's cautiously optimistic approach as Canada's economy shows signs of a rebound with inflation continuing to ease, while considering risks from ongoing geopolitical tensions and trade uncertainty. 

• For homeowners with variable-rate mortgages, today's announcement means no changes to borrowing costs. Since the Bank's policy rate remains unchanged, lenders' prime rates also stay at 4.45%, leaving variable mortgage rates, associated monthly payments, and interest costs unchanged. 
• Fixed mortgage rates are influenced by bond yields, not the Bank of Canada's overnight rate. Although today's rate hold was largely priced into financial markets, Government of Canada bond yields have risen in recent days due to renewed geopolitical tensions, prompting many lenders to increase their fixed mortgage rates. While the lowest insured five-year fixed mortgage rate remains available at 3.94% (exclusively at Ratehub), most lenders have already moved their pricing back above the 4% mark. 
• For homebuyers and homeowners approaching renewal, today's announcement reinforces that waiting may not lead to meaningfully lower borrowing costs. 
• The Bank indicated that Canada's housing market is beginning to stabilize. CREA has lowered its 2026 home sales forecast again. At the same time, home price declines have slowed and fixed mortgage rates are facing upward pressure. Together, these factors suggest affordability is unlikely to improve significantly over the remainder of 2026.
• Beyond mortgages, the Bank's decision also leaves borrowing costs unchanged for other variable-rate financial products, including lines of credit, personal loans, and home equity lines of credit (HELOCs).

Choosing between open and closed mortgages

Open and closed mortgages differ mainly in how flexible they are when it comes to paying off your mortgage early: closed mortgages offer lower rates with limits on early repayment, while open mortgages allow you to pay off the full balance at any time, usually in exchange for higher rates. The most common type of open mortgage is the Home Equity Line of Credit (HELOC). 

How to get the best mortgage rate in Canada

The lowest mortgage rates in Canada are typically available to borrowers with strong credit, stable income and a mortgage that meets a lender’s lowest-risk pricing criteria.

1. Improve your credit score: A credit score of 680 or higher is typically required to qualify for the best mortgage rates in Canada. Before applying for a mortgage, check your credit report for errors, make payments on time and avoid taking on new debt. A stronger credit profile can give you access to more lenders and more competitive mortgage offers.
2. Pay down your existing debt: Lenders consider your existing debt payments when determining how much mortgage you can afford. Paying down credit cards, lines of credit and other loans can improve your debt-service ratios, strengthen your mortgage application and potentially give you access to more competitive lenders and rates.
3. Choose your down payment carefully: Your down payment can affect the mortgage rate you're offered. Mortgages with less than 20% down generally require mortgage default insurance, which reduces the lender's risk and often results in lower interest rates. If you're putting 20% or more down, increasing your down payment can still reduce the amount you need to borrow and may help you qualify for better pricing depending on the lender and mortgage.
4. Consider a shorter amortization period: Your amortization period can affect the mortgage rate you’re offered. While a longer amortization can lower your monthly payments, it may come with a slightly higher mortgage rate and will increase the total interest you pay over the life of your mortgage. If you can comfortably afford the higher payments, choosing a shorter amortization may help you access a more competitive rate, reducing your overall borrowing costs.
5. Compare mortgage rates from multiple lenders: Mortgage rates can vary between banks, credit unions and other mortgage lenders, even for borrowers with the same financial profile. Comparing the best mortgage rates at major banks with rates from other lenders can help you determine whether your bank is offering you a competitive rate.
6. Negotiate your mortgage rate: The first mortgage rate you're offered isn't necessarily the lowest rate available. If you've received a better offer elsewhere, ask your lender whether they can match or beat it. You can also work with a mortgage broker who can compare lenders and negotiate on your behalf.

How the stress test impacts mortgage qualification

In Canada, most borrowers must pass the mortgage stress test when applying for a new mortgage. This means you need to qualify at the higher of 5.25% or your contract rate plus 2%, to show you could still afford your payments if interest rates rise. For example, if your lender offers you a mortgage rate of 5%, you’ll need to prove you could afford to make your payments at 7% in order to pass the test and qualify for your mortgage loan.

All mortgage borrowers must be stress tested, with two exceptions:

• Borrowers who are renewing their mortgage term at their original lender often are not re-stress tested.
  
• Borrowers with high-ratio, insured mortgages switching to another lender at renewal may not be stress tested, as long as the original terms of their loan and amortization do not change.

Historical Canadian mortgage rates

Looking at historical mortgage rates helps put today’s rates into context and shows how different mortgage types tend to behave over time. Canada saw record-low rates in 2020 and 2021, when the lowest five-year fixed mortgage rate fell to 1.39% and the lowest five-year variable rate dropped to 0.85% as policymakers responded to the pandemic. As inflation surged in 2022 and 2023, interest rates rose sharply, before easing again through 2024 and 2025. As of early 2026, mortgage rates remain well above pandemic lows but are significantly lower than their recent peaks.

Here are some of the lowest Canada mortgage rates of the year for different types of mortgages over the past five years.

Source: Ratehub Historical Rate Chart

Pros and cons of working with a mortgage broker

Working with a mortgage broker can be worth it if you want to compare rates from multiple lenders in one place. Brokers have access to a wide range of banks, credit unions, and lenders, which can make it easier to see competitive rates you might not find by going to a single bank. However, working directly with your bank can still make sense if you value convenience or already have a strong relationship. Many borrowers choose to compare options first and then decide whether a broker or a bank offers the best fit for their situation.

Pros:

• Compare mortgage rates from multiple lenders with one application
• Access lenders and mortgage products you may not find on your own
• Mortgage brokers negotiate with lenders on your behalf
• Their services are typically free for most standard residential mortgages, as they're paid by the lender
• They can help if you're self-employed, have unique financing needs, or don't qualify with a traditional bank

Cons:

• Not every lender works with mortgage brokers, so some bank-exclusive products may not be available
• The quality of advice and service can vary depending on the broker's experience, so make sure you use a qualified mortgage broker from a licensed brokerage