# Why are 3-year fixed rates dominating the 2026 market?

> Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/why-are-3-year-fixed-rates-dominating-the-2026-market

## Answer
### Data Summary

- 5-year Fixed: Highest stability, historical 'Safe' choice.
- 3-year Fixed: Best for those betting on a rate drop by 2028-2029.
- Variable: Best for high-net-worth borrowers who can absorb payment fluctuations.

## Related guide
- https://ratellow.com/guides/lock-in-fixed-vs-variable

## Sources
- Final Capital Adequacy Requirements Guideline (2026) - OSFI — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026