5-YEAR FIXED CLOSED MORTGAGE RATES

Compare top Canadian brokers & lenders to get lower 5-Year Fixed Closed Mortgage Rates

Rate
Payment
Pre-payment
Rate Hold
Rates Updated: Thursday, June 20, 2019 9:50AM
Mortgage Calculators
Try out our interactive mortgage calculators to explore different payment options, determine how much you can afford to borrow, compare refinancing options, calculate pre-payment penalties, explore the rent vs. buy decision, calculate land transfer taxes and much more.

Rates.ca Mortgages

The length of your mortgage term is very important. It can be costly to break your mortgage, especially when you’re with one of the big banks. You could face a five-figure mortgage penalty if mortgage rates happen to drop a lot when you first signed up.

However, according to survey information collected by the Canadian Association of Accredited Mortgage Professionals (CAAMP), The five-year fixed rate mortgage the most popular mortgage term, about two thirds of Canadians making that choice.

In fact, survey data from CAAMP indicates that fixed mortgages account for about 60 percent of all mortgages in Canada, while variable mortgages are chosen 30 percent of the time and a combination of fixed/variable mortgages selected by nearly 10 percent of mortgage customers.

Fixed-rate mortgages are available in many different terms most commonly in the 1-year to 10-year range, with the interest rate usually increasing the longer the term.

The stability of the interest rate across the 5-year term and ability to stick to a budget over those years are obviously things important in selecting a 5-year fixed closed mortgage. Also, those going for the 5-year term likely expect to be in the home or retain ownership for that period.

If that's not the case, and you want to break out the mortgage before the 5-year term, there may a substantial penalty issued by the lender. Opportunities to increase the regular payments and make yearly lump sum contributions up to a percentage limit have been added by most lenders in their 5-year fixed mortgage offers.

Those evaluating other mortgage options might examine the 5-year variable rate mortgage that contains an interest rate, which fluctuates with the Prime Rate set by the Bank of Canada. If the Prime Rate goes up, the variable rate will increase and result in more being paid towards the interest and less towards the principal (the opposite is also true). As you know, a fixed-rate mortgage will be unaffected by changes in the Bank of Canada rate for the entire term.

While the notion of interest rate decreases during the term of the variable mortgage makes some people take the risk, many flock to a fixed term mortgage where payments will not be impacted. The savings might be realized with the variable rate if rates decrease during the term, but the potential risk of rate increases remains too much for some mortgage customers.

Man driving with two hands on steering wheel

Man driving with two hands on steering wheel

Mortgage Guides
Thumbnail image of guide
Mortgage vs. HELOC
Thumbnail image of guide
Closing Costs
Thumbnail image of guide
Mortgage Payment Frequency
Thumbnail image of guide
Fixed Vs. Variable Mortgage Rates
Thumbnail image of guide
Mortgage Term
Thumbnail image of guide
Obtaining Or Renewing A Mortgage
Thumbnail image of guide
Open vs. Closed Mortgage
Thumbnail image of guide
Mortgage Renewal Facts
Thumbnail image of guide
Mortgage Approval Process
Thumbnail image of guide
First Time Home Buyers
Thumbnail image of guide
Land Transfer Tax
Thumbnail image of guide
Shop Before You Renew
Thumbnail image of guide
Renting Or Buying A House
Thumbnail image of guide
Mortgage Down Payment
Thumbnail image of guide
How To Buy a Mortgage in Canada
Thumbnail image of guide
Mortgage Refinancing
Thumbnail image of guide
Mortgage Default Insurance
Thumbnail image of guide
Mortgage Prepayment Options
Thumbnail image of guide
Mortgage Amortization
Stay On Top of Your Finances
Sign up to subscribe to our newsletter, receive alerts when rates change or schedule a reminder prior to the renewal of your insurance policy and/or mortgage
FAQ
Are there any fees associated with comparing rates on Rates.ca?
Comparing rates on Rates.ca is absolutely free! We get paid by the brokers and financial services companies we work with so our service always remains free for the consumer.
What products can I compare on Rates.ca?
Currently you can compare car insurance quotes, mortgage rates and credit card offers.
What provinces is Rates.ca available in?
Car insurance is currently only available to Ontario & Alberta residents. Mortgages and credit cards are available across Canada.
How will the information I provide on the site be used?
Any information that you provide on Rates.ca will only be transferred to the financial services provider who you've chosen to share it with in order to fulfil your request. We will not sell your information to any third parties without your consent.
Is Rates.ca a broker?
Rates.ca is not a broker and is not affiliated with any particular financial services company. This allows us to take an objective/un-biased position in helping you compare products on our site.
How does Rates.ca make money?
We get compensated by insurance and mortgage brokers for referrals we send to them and by credit card issuers for approved credit card applications originating from our site. We only send referrals to our partners when you indicate that you want to be contacted by them. We do not sell your information to third parties without your consent.
How do I change my email address?
If you're subscribed to one of our services you can change your email on the Subscriptions page. Every one of our emails also contains a link at the bottom to edit your subscription and change your email. Lastly, you can send an email to [email protected] to request the change.
Does it matter what browser I use to access Rates.ca?
Rates.ca is compatible across all browsers and devices. If you do however spot an issue using a particular browser/device please notify us by emailing [email protected]
How do I change my subscription preferences?
Simply click on "Edit Existing Subscriptions" at the top of the Subscriptions page. You will be promoted to enter your email and check your inbox for an email from us containing a link to edit your current subscriptions. Every Rates.ca email also contains this link at the bottom. You will be able to change your subscriptions as well as unsubscribe. You may also email [email protected] to request any changes to your subscriptions.
How do I contact Rates.ca?
You may contact us via email at [email protected] or call 1-844-726-0907.
Rates.ca, 360 Adelaide Street West, Suite 100, Toronto, ON M5V 1R7, Canada
© 2018 Rates.ca. All Rights Reserved.