5-Year Fixed Mortgage Rates in Canada as of October 14, 2025

5-year fixed mortgage rates in Canada as of October 14, 2025

Introduction

For Canadian homebuyers, it is essential to stay informed about current mortgage rates to make informed financial decisions. This article presents the 5-year fixed rates offered by major Canadian banks as of October 14, 2025, highlights the importance of comparing offers, and explains the factors that influence these rates.

5-year fixed mortgage rates by bank

Here is an overview of the 5-year fixed rates offered by the major Canadian banks:

• Royal Bank of Canada (RBC) : 4.59% (rbcroyalbank.com)
• Toronto-Dominion Bank (TD) : 4.59% (soumissionsprethypothecaire.ca)
• Scotiabank : 5.40% (soumissionsprethypothecaire.ca)
• Bank of Montreal (BMO) : 4.64% (soumissionsprethypothecaire.ca)
• Canadian Imperial Bank of Commerce (CIBC) : 4.54% (soumissionsprethypothecaire.ca)
• National Bank of Canada : 4.49% (soumissionsprethypothecaire.ca)

Note: The rates cited are subject to change and may vary based on market conditions and borrower profiles.

Importance of comparing offers

Comparing mortgage rates is crucial for several reasons:

1. Potential savings: A spread of a few basis points can amount to thousands of dollars in savings over the life of the loan.

2. Loan terms: Beyond the rate, the associated terms (prepayment penalties, accelerated repayment options, etc.) can influence the total cost of the mortgage.

3. Alignment with needs: Each borrower has specific needs. Comparing helps find an offer that fits their financial situation and objectives.

Factors influencing mortgage rates

Several elements determine fixed mortgage rates in Canada:

1. Bond yields: Fixed rates are generally tied to yields on government bonds of comparable duration. An increase in bond yields often leads to higher fixed mortgage rates. (nesto.ca)

2. Monetary policy: Bank of Canada's decisions regarding the policy rate indirectly influence mortgage rates. An increase in the policy rate can prompt banks to raise their rates.

3. Inflation: High inflation can push rates higher, as lenders seek to compensate for loss of purchasing power in the future.

4. Bank competition: Banks adjust their rates based on competition to attract or retain customers.

5. Borrower profile: Credit history, debt-to-income ratio, and down payment influence the rate offered to a specific borrower.

Conclusion

Five-year fixed mortgage rates vary by financial institution and are influenced by a range of economic factors. It is therefore essential for Canadian homebuyers to compare available offers and understand the factors that determine these rates in order to make an informed choice that fits their financial situation.

Note: The information provided is based on data available as of October 14, 2025 and is subject to change. It is recommended to consult directly with the financial institutions to obtain the most up-to-date rates.