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Find the best 2-year fixed mortgage rate

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Best 2-year fixed mortgage rates

As of:

RateProviderPayment

Big 6 Bank

$2,479

Scotiabank

$2,561

Bank of Montreal

$2,566

Canwise

A Ratehub Company

$2,573

Canadian Lender

$2,573

TD Bank

$2,616

2-year fixed mortgage rates: FAQ

What are 2-year fixed mortgage rates?


Is it possible to get a 2-year mortgage?


Is a 2-year fixed-rate mortgage worth it?


Can I change my 2-year fixed mortgage to a 5-year?


See today's best mortgage rates

Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.

4.84%

Best fixed rate in Canada

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Guide to 2-year fixed mortgage rates

A 2-year fixed mortgage will have a constant rate of interest over a term of two years. The term should not be confused with the amortization period, which is the length of time it takes to pay off your mortgage. The term, rather, is the period you are committed to the contractual provisions and mortgage rate with your lender.

2-year terms are not popular in Canada, representing a tiny portion of all mortgages. However, they can be a very useful mortgage rate type if you're looking for a little more flexibility. In the wake of multiple interest rate hikes by the Bank of Canada over the course of 2022 and into early 2023, short-term fixed rates have become more appealing to consumers than they typically are.

2-year fixed mortgage rates: Quick facts

  • Mortgage rate is fixed over a 2-year term
  • A total of 3.02% of all mortgage requests made on Ratehub.ca from January - December 2023 were for 2-year fixed mortgages, compared to 2% for the whole of 2022. 
  • Nearly 13% of all mortgage requests made on Ratehub.ca in 2023 were for short-term fixed mortgages with terms of 4 years or less, compared to just under 6% for the whole of 2022. 
  • 2-year fixed mortgage rates follow 2-year government bond yields

 

Why choose a 2-year fixed-rate mortgage

While 2-year fixed-rate mortgages represent a relatively tiny percentage of fixed-rate mortgages in Canada, they have been growing in popularity over the past year or so. This is in large part because many homeowners and home buyers have grown increasingly wary of variable mortgage rates in light of the historic eight successive rate hikes carried out by the Bank of Canada between March 2, 2022 and January 25, 2023. Moreover, we are currently in a situation where the best 2-year fixed mortgage rates are actually lower than variable rates, though this is fairly unusual.

It’s important to think about not just today’s rate environment, but also your own personal circumstances when considering a 2-year fixed-rate mortgage. Do you plan on moving soon? Do you expect to change jobs? What else do you have on your horizon that might affect what mortgage product is best for you?

If you are looking for short-term stability with enhanced flexibility, then a 2-year fixed-rate mortgage could be a great option. If you believe that rates are likely to come down in the next year or two, as many financial experts do, and you’re willing to take a risk based on your belief, again a 2-year fixed-rate mortgage just might be right for you. If you’re feeling unsure about whether this is the right choice, you can always speak to a mortgage broker, who can provide you with expert, personalized advice at no cost.

2-year fixed mortgage rates vs. other term lengths (interactive graph)

Historical 2-year fixed mortgage rates

It’s always a good idea to have a look at how the rates for different mortgage terms have changed over the years, as it can give you an understanding of what terms generally attract the best rates. You’ll see in the chart below that 2-year fixed mortgage rates have not always been cheaper than variable rates, the way they are today; in fact, for much of the last four years, they were substantially more expensive. That said, in today’s elevated rate environment, 2-year fixed mortgage rates are quite competitive (see the rate table above for the best rates on the market). 

In the chart below, you can compare 2-year fixed mortgage rates against the rates for other types and terms to see how they have changed over the last few years.

Jamie David, Director of Marketing and Head of Mortgages

Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio

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