What is today's best 5-year fixed rate?
| Term | Rate | Lender type | Shelf / note | Payment on $400,000 |
|---|---|---|---|---|
| 5-year fixed | 4.04% | Credit union | uninsured | $2,113/mo |
| 5-year fixed insured | 3.89% | Monoline | insured | $2,080/mo |
Payments on a $400,000 mortgage, 25-year amortization, fixed rates compounded semi-annually. Prime 4.45% (Bank of Canada policy rate 2.25%), October 7, 2026.
Is a 5-year fixed the right term?
Choose it for payment certainty. If you might sell or refinance within five years, check the penalty: fixed mortgages can charge an interest rate differential (IRD) that's much higher than three months' interest.
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5-year vs 3-year vs 10-year fixed
| Term | Rate (sample) | Best for |
|---|---|---|
| 3-year | 4.19% | Expecting rates to fall or a move within 3 years |
| 5-year | 4.04% | Payment certainty |
| 10-year | Varies | Long certainty; penalty limited to 3 months' interest after 5 years |
Frequently asked questions
Is a 5-year fixed better than variable?
It depends on rates over the term; see the fixed vs variable calculator.
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