Bank of Canada Benchmark Rate
6.09%
5-Year Conventional Mortgage Rate
Last Updated: 2026-04-08
Source: Bank of Canada
About These Rates
The rates shown below are 5-year fixed mortgage rates from Canada's major banks. These are posted rates and actual rates offered to borrowers may be lower. Your rate depends on your credit score, down payment, income, and relationship with the lender.
Big 5 Banks - 5-Year Fixed Rates
CIBC
Canadian Imperial Bank of Commerce
5.34%
5-Year Fixed
Visit CIBC →
Rates last updated: 2025-01-15
Understanding Mortgage Rates
Posted Rates vs. Actual Rates
The rates shown above are posted rates - the advertised rates banks publish. However, most borrowers receive discounted rates that are lower than posted rates. Discounts typically range from 0.5% to 2% depending on:
- Your credit score (higher is better)
- Your down payment amount (20%+ is ideal)
- Your relationship with the bank
- Current market competition
- Whether you use a mortgage broker
Types of Mortgage Rates
Fixed Rate
Your rate stays the same for the entire term (typically 1-5 years). Provides payment stability and protection against rate increases.
Variable Rate
Your rate fluctuates with the lender's prime rate. Usually starts lower than fixed rates but can increase or decrease during your term.
Hybrid/Combination
Split your mortgage between fixed and variable rates. Helps balance stability with potential savings from variable rates.
What Affects Your Mortgage Rate?
Key Factors
- Credit Score: 680+ for best rates, 600+ minimum for most lenders
- Down Payment: 20%+ avoids insurance and gets better rates
- Income & Employment: Stable, documented income preferred
- Property Type: Primary residence gets better rates than investment properties
- Amortization: Shorter amortization (15-20 years) may get lower rates
- Term Length: 5-year terms typically offer best value
- Mortgage Type: Insured mortgages sometimes have lower rates
How to Get the Best Rate
1
Shop Around
Don't accept the first offer. Compare rates from multiple banks and use a mortgage broker to access more lenders.
2
Improve Your Credit Score
Pay bills on time, reduce credit card balances, and fix any errors on your credit report before applying.
3
Increase Your Down Payment
Putting down 20% or more eliminates mortgage insurance and often qualifies you for better rates.
4
Negotiate
Banks rarely offer their best rate upfront. Ask for a discount and be willing to walk away if they won't negotiate.
5
Consider Rate Holds
Get a rate hold (90-120 days) to lock in your rate while house hunting. If rates drop, you get the lower rate.
6
Bundle Services
Some banks offer better rates if you transfer your banking, credit cards, or investments to them.
Fixed vs. Variable: Which is Better?
| Factor |
Fixed Rate |
Variable Rate |
| Payment Stability |
Payments never change |
Payments can increase or decrease |
| Starting Rate |
Usually higher |
Usually lower |
| Interest Savings |
Historically pays more interest |
Historically pays less interest |
| Risk Level |
Low risk |
Higher risk |
| Best For |
Budget-conscious, risk-averse |
Risk-tolerant, flexible budget |
| Prepayment Penalty |
Higher (3 months interest or IRD) |
Lower (3 months interest) |
Rate Trends and Predictions
Mortgage rates are influenced by several factors:
- Bank of Canada Policy Rate: The overnight rate directly impacts variable rates and indirectly affects fixed rates
- Bond Yields: Fixed mortgage rates track 5-year Government of Canada bond yields
- Economic Conditions: Inflation, employment, GDP growth all affect rate decisions
- Global Markets: International economic conditions influence Canadian rates
- Competition: Lender competition can drive rates lower
Important Note on Rate Predictions
No one can accurately predict future mortgage rates. Economists and financial institutions provide forecasts, but these are often wrong. Don't try to time the market - focus on getting a rate you're comfortable with based on your financial situation and risk tolerance.
Other Lenders to Consider
Beyond the Big 5 banks, consider these options:
- Credit Unions: Often offer competitive rates and more flexible terms (e.g., Meridian, Coast Capital, Vancity)
- Alternative Banks: Tangerine, Simplii, EQ Bank, Manulife Bank
- Mortgage Finance Companies: First National, MCAP, RMG Mortgages
- Online Lenders: nesto, THINK Financial, Pine
- Mortgage Brokers: Access to 20+ lenders through one application
Ready to Calculate Your Mortgage?
Use our free calculators to estimate your payments and see how different rates affect your affordability.
Payment Calculator
Pro Tips for Rate Shopping
- Get pre-approved before house hunting to know your budget
- Multiple credit inquiries within 45 days count as one for credit score purposes
- Don't just focus on rate - consider prepayment privileges, portability, and penalties
- Rates can be negotiated even after initial approval
- Consider working with a mortgage broker at no cost to you
- Read the fine print - some low rates come with restrictions
Frequently Asked Questions
Why are posted rates higher than what people actually pay?
+
Banks use posted rates as their starting point for negotiations. They rarely expect borrowers to accept posted rates. Discounts of 0.5% to 2% are standard, especially if you have good credit, a substantial down payment, or work with a mortgage broker who can leverage competition between lenders.
How often do mortgage rates change?
+
Fixed rates can change daily based on bond market movements. Variable rates change when lenders adjust their prime rate, typically in response to Bank of Canada policy rate changes (announced 8 times per year). However, lenders don't always pass on the full rate change immediately.
Should I lock in a rate now or wait?
+
Trying to time mortgage rates is difficult and often backfires. If you've found a rate you're comfortable with that fits your budget, consider locking it in. Most lenders offer 90-120 day rate holds, and if rates drop during that period, you'll typically get the lower rate anyway.
What's a good mortgage rate in Canada right now?
+
A "good" rate depends on current market conditions. Generally, if you're getting 0.5-1% below the posted rate for a 5-year fixed, you're doing well. Top-tier borrowers with excellent credit and 20%+ down can often negotiate 1-2% below posted rates. Check multiple lenders and use a broker to ensure you're getting competitive pricing.
Can I negotiate my mortgage rate?
+
Absolutely! Mortgage rates are almost always negotiable. Banks have flexibility to offer discounts, especially if you have strong credit, a good down payment, or competing offers from other lenders. Don't be afraid to ask for a better rate or walk away if they won't negotiate - often they'll come back with a better offer.
Rates are for informational purposes only and subject to change. Always verify current rates directly with lenders.