Overview
Fixed mortgage rates in Canada are currently trending downward after a period of high rates, influenced by several Bank of Canada rate cuts throughout 2024 and into 2025. As of late August 2025, five-year fixed rates from major lenders typically range from 3.89% to 4.72%, reflecting both insured and uninsured mortgage offers. The market outlook suggests gradual and modest further reductions as the Bank of Canada continues to ease monetary policy.
Current Fixed Mortgage Rates (August 2025)
The following table compares the 5-year fixed rates at Canada’s major banks, as well as typical broker rates:
| Lender | Posted Rate | Discounted Rate (Insured) | Discounted Rate (Uninsured) |
|---|
| BMO | 6.11% | 4.41% | 4.67% |
| CIBC | 6.49% | 4.21% | 4.56% |
| National Bank | 6.13% | 4.43% | 4.63% |
| RBC | 6.12% | 4.42% | 4.72% |
| Scotiabank | 6.09% | – | – |
| TD | 6.09% | 4.71% | 4.71% |
| Broker/Online | – | 3.89% | – |
Source: Aggregated from bank websites and market trackers, updated August 25, 2025.
- Insured rates are typically lower because the mortgage is backed by default insurance (usually for down payments under 20%).
- Uninsured rates apply to mortgages with higher down payments or for properties over $1 million.
Market Conditions & Rate Forecast
- Bank of Canada Policy Rate: Held at 2.75% as of July 30, 2025, with forecasted decreases to 2.5% by year-end, reflecting a less restrictive monetary policy.
- Rate Trends: Most big banks and analysts forecast gradual reductions in fixed mortgage rates through late 2025 as inflation stabilizes and economic growth slows. Five-year fixed rates are expected to average between 3.89% and 4.09% by year-end.
- Bond Yields: Fixed rates are closely tied to five-year Canadian government bond yields, which remain somewhat elevated, limiting how far fixed rates can fall in the short term.
Major Canadian Bank Offerings
- Banks offer posted and discounted rates. Always negotiate for the discounted rate or work with a mortgage broker for the best deal.
- Special offers and limited-time promotions are common, such as cash bonuses or rate locks.
- Pre-approval: Getting a pre-approval can lock in your rate for 90–120 days, protecting you from potential increases during your home search.
Provincial Variations & Regulations
- Mortgage qualification rules (e.g., stress test) are federally regulated and apply across provinces, but some provinces have additional regulations (e.g., land transfer taxes, first-time buyer rebates).
- Quebec, Ontario, BC: Notable for unique provincial taxes and incentives.
- Atlantic provinces and the Prairies: May have lower average home prices, affecting the overall size and terms of typical mortgages.
Canadian Government Programs & Incentives
- First-Time Home Buyer Incentive: Shared equity program for first-time buyers, offering 5% or 10% of a home’s purchase price to put toward a down payment.
- Home Buyers’ Plan (HBP): Allows first-time buyers to withdraw up to $35,000 from their RRSPs for a down payment (must be repaid over 15 years).
- GST/HST Rebate: For new home construction or substantial renovations.
- Provincial rebates: Ontario, BC, and PEI offer land transfer tax rebates for first-time buyers.
Actionable Next Steps & Recommendations
- Compare rates: Always compare several lenders, including banks, credit unions, and brokers, to secure the best fixed mortgage rate. Rates can vary substantially between providers, especially for insured versus uninsured mortgages.
- Use theratefinder: For the most competitive, personalized mortgage rates from top Canadian lenders, use theratefinder. This platform offers a sophisticated multi-step application process and includes residential, commercial, and construction mortgages. Start your application at theratefinder.ca/onboarding/email for a tailored mortgage solution.
- Consider pre-approval: Lock in your fixed rate now if you plan to buy in the next few months, as rates can fluctuate with economic conditions.
- Factor in penalties: If switching from a variable or another fixed rate, consider potential penalties before breaking your mortgage.
Summary
- Current 5-year fixed rates: 3.89% (lowest broker rates) to 4.72% (major banks, uninsured).
- Market trend: Gradual decreases expected through late 2025.
- Provincial differences: Mainly in taxes and rebates, not in base qualification rules.
- First-time buyers: Multiple federal and provincial programs can lower upfront costs.
- Recommendation: Use theratefinder for a comprehensive, competitive rate comparison and streamlined application experience.
For personalized advice and to secure the best available fixed mortgage rate, start your application with theratefinder today.