Analysis of the 5-year fixed mortgage rates of the major Canadian banks in 2025.

Analysis of 5-year fixed mortgage rates by Canada's major banks in 2025

Introduction

In October 2025, the Canadian mortgage market presents five-year fixed rates that vary by financial institution. This article examines the current rates offered by the country's major banks, analyzes the factors influencing their evolution, and offers advice to real estate buyers for the year 2024.

Comparison of 5-year fixed mortgage rates

Here is an overview of the five-year fixed rates offered by Canada's major banks in October 2025:

Bank	5-year fixed rate
RBC	4.40%
TD	4.84%
Scotiabank	6.49%
BMO	4.59%
CIBC	4.59%
National Bank	4.70%

Source: Le Meilleur Taux Hypothécaire

It is important to note that these rates can vary depending on various factors, including the borrower's profile and market conditions.

Factors influencing mortgage rate movements

Several elements determine fluctuations in mortgage rates in Canada:

1. Bank of Canada monetary policies:

2. In March 2025, the Bank of Canada reduced its policy rate to 2.75%, marking the latest in a series of cuts that began the previous year. This decrease aims to stimulate the economy by making credit more accessible. Source: Scotiabank

3. Government bond yields:

4. Fixed mortgage rates are closely tied to government bond yields. A decline in these yields, observed in early 2025, led several banks to reduce their fixed rates. Source: Canadian Mortgage Trends

5. Global economic conditions:

6. Trade tensions, notably with the United States, and fluctuations in commodity prices influence the Canadian economy, indirectly impacting mortgage rates. Source: La Financière

7. Inflation and the labor market:

8. A persistent inflation or a high unemployment rate may prompt banks to adjust their rates to offset economic risks.

Advice for real estate buyers in 2024

To navigate the mortgage market effectively in 2024, consider the following recommendations:

1. Compare offers:

2. Rates vary significantly between institutions. For example, in 2025, RBC offers a rate of 4.40%, while Scotiabank shows 6.49%. A careful comparison can yield substantial savings. Source: Le Meilleur Taux Hypothécaire

3. Assess your financial capacity:

4. Make sure mortgage payments fit your budget, taking into account potential rate increases at renewal.

5. Consider the term length:

6. A 5-year term provides payment stability, but shorter terms may offer more favorable rates. Evaluate options based on your financial goals.

7. Watch economic trends:

8. Stay informed about Bank of Canada decisions and economic indicators to anticipate rate movements.

9. Consult a mortgage broker:

10. A professional can help you navigate offerings and negotiate favorable terms suited to your situation.

Conclusion

The Canadian mortgage market in 2025 presents opportunities for savvy buyers. By understanding the factors influencing rates and adopting a proactive approach, it is possible to secure favorable financing for your real estate project. Stay informed, compare offers, and consult experts to make informed decisions.