Homesource: Bank of Canada
The 5-year fixed mortgage rate in Canada is 6.84%. Mortgage rates in Canada have trended upwards in the past few years since the low rates seen in 2020. While the current 5-year fixed mortgage rate has decreased from the 2024 high of 7.04% it is still close the 20-year high of 7.54% -- posted mortgage rates from the 2008 housing market crash.
Here is a breakdown of the 5-year fixed mortgage rates in Canada. From the period of 2004-2024 the average overall mortgage rate is 5.62%. The lowest weekly mortgage rates for this period was 4.64% (-0.98% from the average). The highest weekly mortgage rates was 7.54% (+1.92 from the average). All data is based on the posted mortgage rates by the Bank of Canada. Posted mortgage rates are the rates that bank advertise to their customers.
How are fixed mortgage rates determined?
Fixed mortgage rates in Canada are tied to the 5-year bond yield established by the Government of Canada. These government-issued bonds are regarded as highly secure investments, and their yield serves as a reference point for 5-year mortgage rates offered by banks.