A 5-year fixed mortgage keeps the same rate for five years, and the rate you get depends on the lender and what you negotiate. This page shows where posted 5-year rates stand, what chartered banks charged on the fixed mortgages they funded, why the posted rate still matters after you sign, and how to compare offers. “Best” here means the lowest rate on a mortgage whose prepayment, penalty and portability terms fit your plans. It’s part of the mortgage rates hub; for general shopping steps see how to get the best mortgage rate, and for the variable alternative see variable rate mortgages.
Posted 5-year rate and what borrowers paid
The Bank of Canada’s weekly posted rates are “the most typical of those offered by the six major chartered banks” (Bank of Canada). As of September 30, 2026:
| Term | Posted rate |
|---|---|
| 1-year | 5.49% |
| 3-year | 6.05% |
| 5-year | 6.09% |
Source: Bank of Canada, conventional mortgage rates, series V80691333, V80691334 and V80691335. A posted rate is not the rate a lender offers you; confirm offers with a lender or broker.
The Financial Consumer Agency of Canada (FCAC) explains that a posted rate is “the rate lenders advertise for their products” and that “A discounted rate is lower than the lender’s posted rates.” On term length it says: “Lenders typically offer higher interest rates when the term length is longer. It’s not always the case.”
For what borrowers paid, the Bank of Canada reports the average rate on the mortgage funds chartered banks advanced each month, which counts new loans, renewals and refinancing. In July 2026, fixed-rate mortgages with terms of 5 years and over averaged 4.05% when insured and 4.49% when uninsured (series V122667780 and V122667786). These averages cover the mortgage funds the chartered banks advanced in the month, so they’re a benchmark, not a quote. Insured mortgages are the ones with mortgage loan insurance: With less than 20% down you need mortgage loan insurance. Insured vs uninsured mortgages explains the difference, and insurable vs uninsurable the category in between.
How a 5-year fixed rate works
FCAC: “Fixed interest rates stay the same for your entire term. They are usually higher than variable interest rates.” Your payment stays the same for the five years. At the end of the term you renew at the rates on offer then, since “Every time you renew your mortgage term, you renegotiate your mortgage interest rate.” When you first qualify, the lender also checks that you could afford a higher qualifying rate under the mortgage stress test, whatever rate you’re offered (for an insured mortgage at any lender, and for an uninsured one at a federally regulated lender).
What moves fixed rates, including Government of Canada bond yields, is covered in how mortgage rates are determined. Fixed or variable as a product choice is covered in fixed vs variable mortgages, and the 5-year term against shorter ones in 5-year vs 3-year mortgage.
Why the posted rate still matters after you sign
Breaking a closed mortgage, paying it off early or prepaying more than your privileges allow usually costs the higher of 3 months' interest and the interest rate differential (IRD) on a fixed rate, and typically 3 months' interest on a variable rate; your mortgage contract sets the exact method and comparison rate, and a federally regulated lender must tell you how it calculates the penalty. For the interest rate differential (IRD), FCAC explains how the second rate can be set: The IRD is the difference between the interest left on your term at your contract rate (or the posted rate when you signed) and the interest at a second rate: the lender's current posted rate for a similar term, or that posted rate minus the discount you were originally given. So a lender’s posted rates, and the discount you were given from them, can change what breaking a 5-year fixed costs. How mortgage penalties are calculated compares each big bank’s stated method, and the mortgage penalty calculator estimates one.
How to compare 5-year fixed offers
Ask each lender or broker for the same term, amortization and down payment, then compare these side by side. The FCAC quotes come from its guides to choosing a mortgage and preapproval.
| What to compare | Why it matters | What to ask |
|---|---|---|
| Rate and discount | “You may be able to negotiate a lower rate with your lender.” | The rate, and the posted rate it’s discounted from |
| Rate hold | A preapproval can hold an interest rate for 60 to 130 days, depending on the lender. | How long the rate is held and whether you get a lower rate if rates fall (rate holds) |
| Prepayment privileges | “These privileges vary from lender to lender.” | How much you can prepay each year without a penalty |
| Penalty method | The IRD comparison rate can be a posted rate | Which rates the IRD uses and whether your discount is subtracted |
| Portability | “Check with your lender to see if your mortgage is eligible for porting.” | Whether you can move the mortgage to a new home, and any restrictions |
| Assumability | “The assumable option is typically available on most fixed-rate mortgages.” | Whether a buyer could take over the mortgage, and any fee |
| Cash back | “Usually, if you use the cash back feature, your interest rate is higher.” | The rate with and without cash back, and when it must be repaid |
| Open or closed | “Open mortgages typically have higher interest rates than closed mortgage with similar terms.” | Whether a closed term’s privileges cover the prepayments you expect |
Questions to ask when shopping for a mortgage has a longer list, and big bank vs monoline lender compares lender types.
What a rate difference costs over a 5-year term
The rates below are hypothetical, chosen to show the effect of a gap between two quotes; they aren’t current offers. Payments are computed with interest compounded semi-annually over a 25-year amortization; your contract states how your lender compounds.
Example: a $400,000 mortgage at 4.50% or 4.80% for a 5-year term.
| Over the 5-year term | At 4.50% | At 4.80% | Difference |
|---|---|---|---|
| Monthly payment | $2,214 | $2,281 | $67 |
| Interest paid in 5 years | $84,026 | $89,767 | $5,741 |
| Balance left at renewal | $351,186 | $352,907 | $1,721 |
Interest paid is the 60 payments minus the principal repaid (the loan less the balance left). The higher rate costs more each month and also leaves a larger balance to renew.
To run your own numbers, use the mortgage calculator. Buying down your mortgage rate covers paying up front for a lower rate.
Fixed or variable
FCAC’s guide to interest says a fixed rate may suit you if you want to keep your payments the same over the term, know in advance how much principal you’ll pay by the end of the term, or keep your rate the same because you think market rates will go up. A variable rate is priced from the lender’s prime rate; variable rate mortgages shows how to compare those offers.
Sources
The figures and rules on this page come from these sources, last checked against them between September 29, 2026 and October 2, 2026. How we check facts.
- Bank of Canada: Data table
- Bank of Canada: Data table
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Data table
- Bank of Canada: Mortgage rates, fixed 5 years and over: uninsured residential mortgages, funds advanced (data series)
- Bank of Canada: Mortgage rates, fixed 5 years and over: insured residential mortgages, funds advanced (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Mortgage rates, fixed 5 years and over: insured residential mortgages, funds advanced (data series)
- Bank of Canada: Mortgage rates, fixed 5 years and over: uninsured residential mortgages, funds advanced (data series)
- Bank of Canada: Data table
- Financial Consumer Agency of Canada: How much you need for a down payment
- Financial Consumer Agency of Canada: Breaking your mortgage contract
- Financial Consumer Agency of Canada: Mortgage fees: Prepayment penalties
- Financial Consumer Agency of Canada: Getting preapproved for a mortgage
- RBC: Variable Rate Mortgage | RBC Royal Bank of Canada