Compare the best 5-year fixed mortgage rates for free.

A 5-year fixed-rate mortgage is the most popular mortgage rate in Canada — and for good reason. It offers the perfect balance of great rate and desirable terms. A 5-year fixed rate should be considered by every borrower, since it’s provided by all mortgage lenders and, therefore, one of the easiest to compare to find the best rate. According to Mortgage Professionals Canada, 74% of all mortgages funded in 2020 were fixed-rate mortgages and the majority of those were five-year terms.

Because a 5-year fixed-rate is the most popular mortgage term in Canada, it’s also the most widely available. That makes it one of the most attractive for mortgage borrowers because there are so many offerings in the market. It’s one of the easiest mortgages to compare to try to get the best rate and, since it strikes a good balance between good rate and confidence-inspiring terms, it is one of the most desirable mortgages in Canada. While no term is necessarily the best term, there’s good reason 5-year fixed rates are the most popular mortgage types in Canada.

Getting a good mortgage rate depends on a number of factors. Lenders will look at a number of factors when determining the rate a borrower can qualify for. These include the borrower’s income and employment history, the size of your down payment, credit score, debt levels, and assets. Lenders offer their best rates to borrowers they consider the most creditworthy, which means borrowers that have a high credit score and good credit history, a good, stable source of income, and low debt levels. Since mortgage rates are constantly fluctuating, it’s important to compare your options to ensure you’re getting the best mortgage for your particular situation.

All fixed-rate mortgages in Canada are influenced by the government bond market. A bond is a type of investment offered by banks and lenders where the investor lends the government a set amount of money for a predetermined amount of time. In exchange, the government provides a set amount of interest for the investor that is earned over time. Once a bond’s term is up, the principal investment is returned to the investor. When bond yields go up, fixed rates go up and when bond yields go down, fixed rates go down. The reason for this is that since bonds are one of the safest types of investments, lenders use them to cover the cost of mortgages.

The mortgage term defines how long you’ll be locked into your mortgage contract. The contract stipulates how interest will be calculated and whether you will have any prepayment privileges. After the term ends, you will be able to renegotiate your mortgage contract (also called renewal). It takes many terms to pay off a mortgage in full.

LowestRates.ca has helped our users save $1 billion in interest and fees. Because mortgage amortization periods in Canada are long, typically ranging from 25 to 30 years, the amount of money you can save over the life of a mortgage is significant, even if you’re only saving a fraction of a percentage point during each of your mortgage terms.