Dibz5-year fixed mortgage rates in Canada (2026): posted vs actual
5-year fixed mortgage rates in Canada with Bank of Canada data: bond yields, posted vs actual rates, insured pricing, IRD penalties, renewal and payments.
The 5-year fixed is Canada's default mortgage: your rate and payment are locked for five years. On September 30, 2026 the chartered banks' posted 5-year rate was 6.09%, while the Bank of Canada's latest figures show new fixed mortgages of 5 years and over averaging 4.05% insured and 4.49% uninsured in July 2026. The gap between those numbers, and what drives them, is most of what you need to know.
What a 5-year fixed mortgage is
For five years your interest rate doesn't change, no matter what the Bank of Canada or the bond market does. Your amortization (commonly 25 years, up to 30 for first-time buyers and new builds with insured mortgages, or for uninsured loans) keeps counting down underneath. At the end of year five you renew the remaining balance at the rates available then.
Who it suits, and who it doesn't
It tends to suit:
- First-time buyers and anyone on a tight budget who needs a payment that can't move.
- Borrowers who expect to stay in the home, and with the lender, for the full five years.
- People who would lose sleep over a variable rate.
It tends to fit less well:
- Anyone likely to sell, move or refinance in the next few years. A 5-year fixed can carry some of the largest penalties in the market when broken early, because of the IRD formula (more on that below).
- Borrowers who expect rates to fall noticeably and are comfortable carrying that risk with a variable or a shorter term.
How 5-year fixed rates are set
Lenders fund 5-year fixed mortgages with money borrowed for about five years, so the main driver is the 5-year Government of Canada bond yield. They add a spread for credit risk, funding costs, operations and profit. The Bank of Canada's policy rate matters indirectly: it shapes expectations, which shape bond yields.
- New uninsured, fixed 5+ yrs
- New insured, fixed 5+ yrs
- 5-year bond yield
Bond series BD.CDN.5YR.DQ.YLD (last daily value of each month). New-loan averages are the Bank of Canada's monthly average rates on residential mortgages advanced (series V122667776–V122667786), published about two months behind. The bond yield was 3.60% on October 2, 2026.
Source: Bank of Canada (free at bankofcanada.ca)
Show the numbers
| New uninsured, fixed 5+ yrs | New insured, fixed 5+ yrs | 5-year bond yield | |
|---|---|---|---|
| Sep 2024 | 4.9% | 4.5% | 2.7% |
| Oct 2024 | 4.8% | 4.4% | 3% |
| Nov 2024 | 4.7% | 4.3% | 2.9% |
| Dec 2024 | 4.6% | 4.2% | 3% |
| Jan 2025 | 4.6% | 4.3% | 2.7% |
| Feb 2025 | 4.6% | 4.3% | 2.6% |
| Mar 2025 | 4.5% | 4.1% | 2.6% |
| Apr 2025 | 4.3% | 4% | 2.7% |
| May 2025 | 4.2% | 3.9% | 2.8% |
| Jun 2025 | 4.3% | 3.9% | 2.8% |
| Jul 2025 | 4.3% | 4% | 3% |
| Aug 2025 | 4.3% | 4% | 2.9% |
| Sep 2025 | 4.4% | 4.1% | 2.7% |
| Oct 2025 | 4.4% | 4% | 2.7% |
| Nov 2025 | 4.3% | 3.9% | 2.7% |
| Dec 2025 | 4.3% | 4% | 3% |
| Jan 2026 | 4.3% | 3.9% | 2.9% |
| Feb 2026 | 4.3% | 3.9% | 2.7% |
| Mar 2026 | 4.2% | 4% | 3.1% |
| Apr 2026 | 4.2% | 4% | 3.2% |
| May 2026 | 4.3% | 4% | 3.1% |
| Jun 2026 | 4.4% | 4% | 3% |
| Jul 2026 | 4.5% | 4.1% | 3.3% |
The pattern is clear in 2026. The 5-year yield climbed from 2.67% at the end of February to 3.27% at the end of July (and 3.69% by the end of September). Over roughly the same months, the uninsured 5-year-and-over average rose from 4.17% in April to 4.49% in July. In July 2026 the uninsured average sat about 1.2 points above the yield and the insured average about 0.8 points above it.
Posted vs discounted 5-year rates
The posted 5-year rate is a list price that rarely changes: 6.49% from mid-September 2024 to early May 2025, and 6.09% since mid-May 2025. Very few borrowers pay it. In July 2026 it was about 2 points above the insured average and 1.6 points above the uninsured one.
The posted rate still matters for two reasons:
- Penalties. Many big banks calculate the interest rate differential using the posted rate minus the discount you received. That can make the penalty much larger than you'd expect.
- History. It is the longest-running series we hold, back to 2006, which makes it a useful gauge of where rates have been.
Chartered banks' posted 5-year conventional mortgage rate (series V80691335). Posted rates are list prices; most borrowers pay less.
Source: Bank of Canada (free at bankofcanada.ca)
Show the numbers
| Month | Posted 5-year fixed |
|---|---|
| Dec 2006 | 6.45% |
| Dec 2007 | 7.54% |
| Dec 2008 | 6.75% |
| Dec 2009 | 5.49% |
| Dec 2010 | 5.19% |
| Dec 2011 | 5.29% |
| Dec 2012 | 5.24% |
| Dec 2013 | 5.34% |
| Dec 2014 | 4.79% |
| Dec 2015 | 4.64% |
| Dec 2016 | 4.64% |
| Dec 2017 | 4.99% |
| Dec 2018 | 5.34% |
| Dec 2019 | 5.19% |
| Dec 2020 | 4.79% |
| Dec 2021 | 4.79% |
| Dec 2022 | 6.49% |
| Dec 2023 | 7.04% |
| Dec 2024 | 6.49% |
| Dec 2025 | 6.09% |
| Oct 2026 | 6.19% |
Over that period, the posted 5-year rate peaked at 7.54% in 2007–08, fell to 4.64% in 2015–17, sat at 4.79% from August 2020 to April 2022, then climbed to 7.04% in October 2023 before easing to today's 6.09%.
Insured vs uninsured 5-year pricing
Insured mortgages (less than 20% down, purchase price under $1.5 million) averaged 4.05% in July 2026; uninsured ones 4.49%. The insurer bears the default risk and insured loans can be funded through government-backed securities, so lenders can price them more sharply. A buyer with 20% or more down skips the insurance premium but usually pays a higher rate, so it's the total cost that matters.
Penalties, prepayment and renewal
Breaking a 5-year fixed early usually costs the greater of three months' interest or the IRD. The IRD is roughly the difference between your rate and the rate the lender could charge today for the time remaining, applied to your balance for those remaining months. If rates have fallen since you signed and you have years left, the IRD can be several times larger than three months' interest. Prepayment privileges (often a percentage of the original balance each year) and portability can reduce the risk.
At renewal, federally regulated lenders must send your renewal statement at least 21 days before maturity, and you can switch lenders. Since November 2024, a straight switch without new borrowing generally doesn't require passing the stress test again. For new mortgages, the qualifying rate is the greater of your contract rate plus 2 points or 5.25%: 6.05% on a 4.05% loan.
Worked example: $500,000 over 25 years
| Rate | Monthly payment | Interest over 5 years | Balance at renewal |
|---|---|---|---|
| 4.05% (average new insured, 5+ years) | $2,644 | $94,268 | $435,648 |
| 4.49% (average new uninsured, 5+ years) | $2,765 | $104,784 | $438,909 |
| 6.09% (posted 5-year) | $3,226 | $143,301 | $449,752 |
The payment you'd be qualified at is $3,214 (6.05%) for the insured case and $3,346 (6.49%) for the uninsured one. What happens at renewal depends on rates five years from now:
Dibz calculation from a $500,000 mortgage at 4.05% (the July 2026 average new insured 5-year-and-over rate), 25-year amortization, monthly payments, semi-annual compounding. Renewal rates are illustrations, not forecasts.
Source: Bank of Canada (free at bankofcanada.ca)
Show the numbers
| Value | |
|---|---|
| 3.05% | $2,423 |
| 3.55% | $2,532 |
| 4.05% (same) | $2,644 |
| 4.55% | $2,758 |
| 5.05% | $2,875 |
| 5.55% | $2,994 |
| 6.05% | $3,115 |
Try our mortgage calculator to test a renewal at your own rate.
Related reading
Compare the 5-year variable, the shorter 3-year and 4-year fixed, or longer terms such as the 7-year and 10-year fixed. Lender pages: RBC, TD, BMO, CIBC, Scotiabank, National Bank, Simplii Financial, Tangerine, Laurentian Bank.
FAQ
What is the average 5-year fixed mortgage rate in Canada?
In July 2026, the latest month published, new fixed mortgages of 5 years and over averaged 4.05% insured and 4.49% uninsured, according to the Bank of Canada. The banks' posted 5-year rate was 6.09% on September 30, 2026.
What moves 5-year fixed mortgage rates?
Mainly the 5-year Government of Canada bond yield, plus a lender spread. The yield was 3.60% on October 2, 2026, up from 2.67% at the end of February 2026, and new-loan averages rose over the same period.
Why is the posted 5-year rate so much higher than what people pay?
It is a reference price that banks change rarely, and almost everyone receives a discount. Many lenders still use it in their interest rate differential penalty formula.
How big is the penalty for breaking a 5-year fixed mortgage?
It is the greater of three months' interest or the interest rate differential. Early in the term, if rates have fallen, the IRD can be many thousands of dollars more than three months' interest. Lenders provide a written penalty estimate on request, which is the figure that counts.
Will my payment go up when I renew?
It depends on rates at renewal. On a $500,000 loan at 4.05%, the balance after five years is about $435,648; renewing it over the remaining 20 years would cost $2,644 a month at the same rate, $2,875 at 5.05% and $2,423 at 3.05%.
Rates shown are Bank of Canada averages, not offers. Talk to a licensed mortgage professional before choosing a term.
Dibz is a home search app for the Greater Toronto Area, built on the live TRREB MLS® feed. We write these guides from what we see in the market every day and check every rule and number against official sources, listed at the end of each article. Charts marked "Dibz analysis" are calculated from active MLS® listings on the date shown.
Keep reading
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10-year fixed mortgage rates in Canada (2026): the long lock
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2-year fixed mortgage rates in Canada (2026): what to know
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