5-year fixed mortgage rates in Canada: Analysis and advice for homebuyers

Five-year fixed mortgage rates are a key reference for homebuyers and investors in Canada. As of October 14, 2024, these rates have undergone notable adjustments, influenced by various economic factors. This article examines the rates in effect on that date for the major Canadian banks, analyzes recent trends, and offers guidance to homebuyers.

5-year fixed mortgage rates as of October 14, 2024

As of October 14, 2024, the five-year fixed mortgage rates displayed by the major Canadian banks were as follows:

• Royal Bank of Canada (RBC): 6.09%
• Scotiabank: 6.09%
• Toronto-Dominion Bank (TD): 6.09%
• Bank of Montreal (BMO): 6.09%
• Canadian Imperial Bank of Commerce (CIBC): 6.09%
• National Bank of Canada: 6.09%

These rates are in line with data published by the Bank of Canada, which indicate a 5-year ordinary mortgage rate of 6.09% for the week ended October 8, 2024. (banqueducanada.ca)

Analysis of recent trends

In 2024, the Canadian mortgage market was marked by several rate adjustments, reflecting economic conditions and the Bank of Canada's decisions. For example, in March 2025, CIBC reduced its 5-year fixed rate to 3.99%, an initiative followed by other major banks. (canadianmortgagetrends.com)

These adjustments are often influenced by the yields on 5-year government bonds, which serve as a benchmark for fixed mortgage rates. A drop in bond yields can prompt banks to reduce their mortgage rates to stay competitive. However, factors such as inflation, unemployment, and monetary policy also play a crucial role in rate determination.

Tips for homebuyers

1. Monitor Bank of Canada announcements: Bank of Canada's decisions regarding the policy rate directly affect mortgage rates. For example, a cut in the policy rate in September 2025 led to a drop in the prime rate to 4.70%, providing relief to borrowers. (wowa.ca)

2. Shop around: The rates displayed by banks can vary. It is therefore essential to compare offers and negotiate to obtain the best rate possible.

3. Consider prepayment options: Some banks offer prepayment options, allowing you to reduce principal more quickly without penalties. For example, Scotiabank allows prepayment of up to 15% of the principal once a year. (wowa.ca)

4. Assess your financial capacity: Before taking out a mortgage, ensure your personal finances are in order and that you can manage monthly payments, even in the event of rate increases.

5. Consult a mortgage broker: A broker can help you navigate the market and find offers suited to your situation.

Conclusion

Five-year fixed mortgage rates in Canada are influenced by a multitude of economic and financial factors. By staying informed about market trends and adopting a proactive approach, homebuyers can make informed decisions and optimize their financing terms.