Overview
Fixed mortgage rates in Canada remain a popular choice for homebuyers and those renewing, offering stability and predictable payments. As of mid-July 2025, rates have declined from their 2023 highs, but ongoing volatility in bond yields and global trade conditions are keeping rates from dropping significantly further. The five-year fixed rate is the most commonly chosen term.
Current Fixed Mortgage Rates in Canada
National Averages and Market Conditions
- Lowest advertised 5-year fixed rates: Starting around 3.84% (for insured mortgages).
- Major bank posted 5-year fixed rates: Typically 4.44% to 4.59%.
- Three-year fixed rates: Around 4.44% at major banks.
- Shorter or longer terms: Generally higher than 5-year rates.
- Prime rate (affects variable rates): 4.95% at all Big Six banks.
Current Fixed Mortgage Rates – Comparative Table
| Bank/Lender | 3-Year Fixed | 5-Year Fixed (Special) | 5-Year Fixed (Posted) |
|---|
| RBC | 4.44% | 4.49% | 4.49% |
| CIBC | Not listed | Not listed | Not listed |
| National Bank | 4.44% | 4.49% | 4.49% |
| Ratehub (Lowest) | ~3.84% | ~3.84% | N/A |
| BMO, TD, Scotia | Not listed | Not listed | Not listed |
Note: These are sample rates for purchase/switch offers with 25-year amortizations, as of July 2025. Actual rates vary by borrower profile, property type, and location.
Market Trends and Outlook
- Bond yields drive fixed mortgage rates. Despite several Bank of Canada rate cuts in 2024–2025, fixed rates have not declined as much as variable rates due to persistent bond market volatility and global trade tensions, especially U.S. tariffs.
- Economists forecast little movement in fixed rates for the remainder of 2025, barring major global economic shifts.
- Variable rates are now slightly higher than the best fixed rates, making fixed terms attractive for risk-averse borrowers.
Major Bank Offerings
- Major banks (RBC, CIBC, National Bank, TD, BMO, Scotiabank) offer a range of fixed-rate mortgages, usually at higher posted rates than mortgage brokers or online rate comparison sites.
- Special offers are often available for new purchases or switches; these can be 0.5–0.75% lower than posted rates.
- Some banks, such as RBC, are currently providing cash-back incentives (up to $5,700 with an eligible mortgage until August 31, 2025).
Provincial Variations
- Regulations and incentives can differ by province.
- Land transfer taxes, closing costs, and some first-time homebuyer programs are specific to provinces (e.g., Ontario, BC, Quebec).
- Eligibility for government programs (see below) is typically set federally but may have additional provincial top-ups.
Government Programs and Incentives
- First-Time Home Buyer Incentive: Shared equity program with the federal government.
- Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free for a down payment.
- GST/HST new housing rebate: Partial refund of federal/provincial sales tax for new homes.
- Provincial incentives: Some provinces (e.g., Ontario, BC) offer land transfer tax rebates for first-time buyers.
First-Time Homebuyer Programs
- National Programs: RRSP Home Buyers’ Plan, First-Time Home Buyer Incentive, GST/HST Rebates.
- Provincial Programs:
- Ontario: First-Time Home Buyer Land Transfer Tax Refund
- British Columbia: First Time Home Buyers' Program (property transfer tax exemption)
- Quebec: Home Ownership Program (financial assistance for new homebuyers in certain municipalities)
Actionable Next Steps and Recommendations
- Compare rates from multiple sources: Brokerages and rate comparison platforms often offer lower rates than bank branches.
- Get pre-approved to lock in a rate, especially as fixed rates could shift with market volatility.
- Evaluate term length: The 5-year fixed is usually the best balance of rate and stability, but shorter or longer terms may suit specific needs.
- Access incentives: Ensure you take advantage of all federal and provincial programs, especially as a first-time homebuyer.
- For a personalized mortgage rate and to compare offers from top Canadian lenders, start your application with theratefinder. The platform provides a multi-step process to match you with competitive rates for residential, commercial, and construction loans. Begin at theratefinder.ca/onboarding for tailored solutions.
Summary
Five-year fixed mortgage rates in Canada are currently as low as 3.84% for insured borrowers, with major banks posting rates around 4.44%–4.59%. Rates are stable but could move depending on bond yields and global economic factors. Take advantage of government and provincial programs for first-time buyers, and compare offers across banks and brokerages for the best deal. Use theratefinder to streamline your search and secure the most competitive mortgage for your needs.