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Canadian Mortgage Rates: The Best 5-Year Rates for You In 2021

Fixed Mortgage

It has never been a better time to buy a house in Canada. With historically low mortgage rates, flexible terms, and a growing economy, many people are taking steps to become homeowners in Canada. However, a major purchase like this requires planning and forethought, and one important factor is the mortgage rate that you are able to obtain for your home.

What is a 5-year, fixed rate mortgage?

Don’t worry – a 5 year, fixed-rate mortgage doesn’t mean that you have to pay it all back within five years! The ‘5’ refers to the term of the mortgage – the length of time that you get to lock in your current mortgage rate. After this term, you must renew the mortgage at a rate available at the end of the term. The benefit of a fixed mortgage is that you are protected against interest rate fluctuations, so your regular payments stay constant over the duration of your term.

Fixed mortgage rates are popular with Canadians, with 74% of all mortgages in Canada being fixed rates in 2016 (Source: Statistics Canada).

Why is it important to look before you commit

Comparing mortgage rates in Canada is important because it can save you thousands of dollars in the long run. Mortgage rates vary across banks, credit unions, and other financial institutions, even for the same product. A small percentage difference in the mortgage rate can save you money, even over the course of a 5-year term mortgage. Whether you are getting a new mortgage or renewing an existing one, just inquiring about your options can pay off in the long run.

Additionally, the terms and conditions associated with mortgages can also vary, potentially with fees or discounts tied to these terms. Therefore, to find the mortgage that works best for your needs, you need to compare a few different options before making a decision.

Here are five providers of 5-year fixed-rate mortgages in Canada to help make your decision easier:

CanWise Financial

Canwise Financial collects rates from dozens of lenders to provide their customers with the best rates in the market. Their current rates for a 5-year fixed mortgage range 1.74-2.49%:

Equitable Bank

Equitable Bank is a community-focused bank that focuses on providing value and resources to its customers. You can find their current rates for a 5-year fixed mortgage here.


Motusbank is leading the charge in Canada’s digital banking revolution. They have many more options for mortgages (including a shared one with your friends!) and have a current introductory 5-year rate of 2.09%.


MCAP is an independent mortgage finance company. Not only does this allow the customer to make an informed, complete decision, but it also allows MCAP to consolidate and pass on any discounts they receive to the customer. You can see their current offerings here.

Once you’ve found the right type of mortgage depending on your financial goals, remember that you have options for the type of provider you can go with. Speak to multiple banks and companies to find the perfect one. Happy shopping!

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