Dibz8-year fixed mortgage rates in Canada (2026): a rare term explained
8-year fixed mortgage rates in Canada: how this uncommon term is priced, what Bank of Canada data covers, why amortization matters and an example.
An 8-year fixed mortgage keeps your rate unchanged for eight years. It is one of the least common terms in Canada: only some lenders offer it, and there's no official 8-year rate. The Bank of Canada counts 8-year loans in its "5 years and over" average, which was 4.05% for new insured mortgages and 4.49% for uninsured ones in July 2026, a bucket likely dominated by 5-year terms.
Rather than guess at an 8-year average, this guide explains what an 8-year rate is built from, when the term can be useful, and how your amortization choice matters even more over eight years than over five.
What an 8-year fixed mortgage is
The term (eight years) is how long your rate and payment are fixed. The amortization (often 25 years, sometimes 30) is how long the loan would take to repay at that payment. After eight years you renew whatever balance remains. Over a term this long, you pay down a much larger share of the loan before facing a new rate than you would with a shorter term.
When an 8-year term can make sense
- You want one renewal to land at a particular time, for example after a planned career change or when a second income is expected to return.
- You expect a long stretch of stable life: same job, same home, same household, for close to a decade.
- You put a high price on certainty and accept paying a premium for it.
When it usually doesn't
- Any chance of selling within five years. Before year five, breaking a fixed mortgage typically costs the greater of three months' interest or the interest rate differential (IRD), and an IRD with years remaining can be large.
- Comparison shopping matters to you. With few lenders offering the term, there's less competition on price.
- You expect rates to drop. A long lock means you won't benefit.
How 8-year rates are priced
Lenders fund long fixed terms with long money. An 8-year rate is built from Government of Canada yields of roughly that length, plus a spread for credit risk, operations and the risk of a long commitment. We hold only the 5-year yield (3.60% on October 2, 2026). When longer yields are above shorter ones, which is the usual shape of the curve, an 8-year fixed tends to cost more than a 5-year from the same lender. Thin competition can widen that gap.
The chartered banks' posted 5-year rate was 6.09% on September 30, 2026; the Bank of Canada doesn't publish a posted 8-year rate.
Insured vs uninsured
With less than 20% down, your mortgage must be insured, and insured loans usually carry lower rates because the insurer absorbs the default risk. In the 5-year-and-over bucket, the July 2026 averages were 4.05% insured and 4.49% uninsured. An 8-year rate from a lender offering that term would usually sit above those averages, but we can't say by how much.
Penalties after year five, and renewal
Section 10 of the Interest Act gives individual borrowers a valuable exit: on a mortgage with a term longer than five years, once five years have passed you can repay it with no more than three months' interest as a penalty. For an 8-year term, that covers the final three years.
At the end of the term, federally regulated lenders must send a renewal statement at least 21 days ahead. A straight switch to another lender at renewal generally doesn't require passing the stress test again (since November 2024). For the original approval, you'll be qualified at the greater of your rate plus 2 points or 5.25%.
Amortization matters more over eight years
Over a long term, the amortization you pick shapes how much you owe at renewal. The 30-year option is available on insured mortgages only for first-time buyers and new builds, and on many uninsured mortgages.
Rate: July 2026 average on new uninsured fixed mortgages of 5 years and over (4.49%), used for illustration only. Dibz calculation, semi-annual compounding.
Source: Bank of Canada (free at bankofcanada.ca)
Show the numbers
| Value | |
|---|---|
| 25-year amortization ($3,870/mo) | $553,263 |
| 30-year amortization ($3,525/mo) | $592,953 |
Worked example: $700,000 at 4.49%
Using the July 2026 uninsured 5-year-and-over average as an illustration (an actual 8-year rate would likely be higher):
| 25-year amortization | 30-year amortization | |
|---|---|---|
| Monthly payment | $3,870 | $3,525 |
| Balance after 8 years | $553,263 | $592,953 |
| Interest paid over 8 years | $224,823 | $231,395 |
| Stress-test qualifying rate | 6.49% | 6.49% |
The 30-year schedule saves about $345 a month but leaves roughly $39,690 more to renew in year eight, and costs about $6,572 more in interest over the term. All figures use semi-annual compounding.
Try our mortgage calculator to compare amortizations with your own figures.
Related reading
Compare the 7-year, 9-year and 10-year fixed, or step back to the 5-year fixed. Lender pages: Scotiabank, Simplii Financial, Tangerine.
FAQ
What is the average 8-year fixed mortgage rate in Canada?
There's no official average. The Bank of Canada includes 8-year loans in its "5 years and over" bucket, which averaged 4.05% insured and 4.49% uninsured in July 2026. Individual 8-year rates are set by each lender and are usually above its 5-year rate.
Why don't more lenders offer 8-year mortgages?
Demand is small compared with 5-year terms, and long fixed commitments are harder and costlier for lenders to fund and hedge. Some lenders that offer 7- and 10-year terms skip 8 and 9 years entirely.
Can I get out of an 8-year mortgage early?
Yes, with a penalty. In the first five years it's usually the greater of three months' interest or the interest rate differential. After five years, individual borrowers pay at most three months' interest under section 10 of the Interest Act.
Does a longer term mean a longer amortization?
No. The term is how long the rate is fixed; the amortization is how long the loan would take to repay. An 8-year term can sit on a 25- or 30-year amortization.
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.
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