The 5-year fixed mortgage is Canada's most popular term — five years of locked-in rate and steady payments. This guide explains how it works, who it suits, and how to weigh it against shorter terms.
A 5-year fixed mortgage locks your interest rate for five years — the longest of the common fixed terms. Your payment never changes for the term, which is why it's the default choice for many Canadians who want stability and simple budgeting.
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The longest common fixed term fits buyers who prize stability. Consider a 5-year fixed mortgage if you:
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Pros: maximum payment certainty, no rate worries for five years, the simplest budgeting, and protection if rates climb during the term.
Cons: you're locked in longest, so you can't easily benefit if rates fall, and breaking a 5-year early usually carries a larger penalty than a shorter term. If you might move or refinance sooner, compare a 2-year or 3-year fixed.
Fixed mortgage rates are priced off bond yields and lender competition, then adjusted for your profile. Your down payment, credit, income, the property and whether the mortgage is insured all shape the rate you're offered, and bond markets move daily.
Compare the full cost — rate, fees and penalty terms — not just the headline rate, and weigh the value of five years of certainty. Still torn between locking in and going variable? See our guide to fixed vs. variable mortgage rates, or explore fixed mortgages.
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The questions Canadian buyers ask most.
It offers the most payment certainty of the common terms and the simplest budgeting — the same payment for five years — which suits buyers who want stability.
It's better for stability, but you can't easily benefit if rates fall and the break penalty is usually larger. A shorter term offers more flexibility.
Often an interest-rate-differential calculation, which can be significant. If there's a chance you'll move or refinance early, factor that in.
Fixed gives five years of certainty; variable can cost less if rates fall but rises if they climb. See our guide to fixed vs. variable rates.
Most mortgages allow prepayments up to a yearly limit without penalty. Check your specific terms, as they vary by lender.
Your down payment, credit, income, the property and whether the mortgage is insured, plus the bond market when you lock in.
Explore fixed and variable mortgages and find the term that fits your plans.
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