5-Year Fixed Mortgage Rates Canada: Live Big 5 Bank & Broker Rates
The 5-year fixed mortgage is Canada’s most common term, chosen by roughly 60% of borrowers in any given year. It locks your payment and interest rate for 60 months, shielding you from Bank of Canada rate changes but exposing you to Interest Rate Differential (IRD) penalties if you break the mortgage early. Below you’ll find live 5-year fixed rates from Canada’s Big 5 banks and major challenger lenders, alongside the 5-year Government of Canada bond yield that drives them.
Live Rates by LenderLast updated 2026-04-23
| Lender | 5-Year Fixed | 3-Year Fixed | 5-Year Variable |
|---|---|---|---|
Lender 1 | 4.09% | 4.19% | 3.49% |
Bank 1 | 4.29% | 4.39% | 3.65% |
Bank 4 | 4.29% | 4.49% | 3.95% |
Bank 3 | 4.49% | 4.24% | 4% |
Bank 5 | 4.51% | 4.29% | 4.53% |
Bank 2 | 4.59% | 4.74% | 4.09% |
Rates are posted or discounted offers sourced directly from each lender. Your actual rate depends on credit profile, down payment, property type, and whether the mortgage is insured.
How 5-Year Fixed Rates Are Set
A lender’s 5-year fixed rate is built on three inputs: the 5-year Government of Canada bond yield, the lender’s funding spread (typically 140–180 basis points above bond yield), and the borrower’s risk profile. When the 5-year bond yield moves, fixed rates typically follow within 2–8 weeks — but not one-for-one, because funding spreads widen when credit markets tighten.
Insured 5-year fixed rates (where CMHC, Sagen, or Canada Guaranty carries default risk) are typically 30–60 basis points lower than uninsured rates for the same borrower. This is why first-time buyers with under 20% down often see better pricing than move-up buyers with 20%+ down — the insurance transfers the risk.
The biggest cost risk on a 5-year fixed is the Interest Rate Differential (IRD) penalty for breaking early. Big 5 banks calculate IRD against posted rates (not your actual rate), which can produce penalties of $15,000–$30,000 on a $600,000 mortgage broken at year 2 or 3. Monoline lenders typically calculate IRD against your actual rate, with materially lower penalties.
At renewal, OSFI’s November 2024 straight-switch rule means you can move an uninsured 5-year fixed mortgage to a new lender without re-qualifying at the stress test rate, as long as your mortgage amount, amortization, and payment schedule are unchanged. This rule alone has made 5-year fixed renewals more competitive than they have been in a decade.
Frequently Asked Questions
What is the 'IRD' penalty risk for 5-year fixed borrowers?+
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.
Section Summary - Advice: If you plans to sell within 3 years, avoid a 5-year fixed term at all costs. - Strategy: Use 'Adjustable' variables (where payment changes) to avoid the 'Trigger Rate' trap.
Read full answer →How do fixed and variable rates compare?+
Choosing between a fixed or variable rate depends significantly on the economic outlook.
Here's a quick comparison:
Read full answer →How does the stress test differ for fixed vs. variable in 2026?+
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%. However, variable rates often have a higher 'Floor' in the advisor's math because of potential intra-term hikes.\n\nStress Test Comparison (2026)\n\n
Read full answer →Fixed vs. Variable Comparison Table+
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
Read full answer →Related Guides
5-Year Fixed Mortgage Rates
| Lender | 5-Yr Fixed |
|---|---|
Bank 3 | 4.79% |
Bank 5 | 4.82% |
Bank 1 | 4.84% |
Bank 4 | 4.84% |
Bank 2 | 4.89% |
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