Best Fixed Mortgage Rates In Canada For 2024

We reviewed 100 mortgage lenders that do business both online and in-person throughout Canada. The lenders we reviewed represent some of the largest mortgage lenders by volume, which includes banks, credit unions and online lenders. Lenders that didn’t provide their mortgage rates or operate in fewer than four provinces or territories were not eligible for review.

Our rates were generated through publicly available posted rates on the lender’s website, but also through the following borrower profiles that we presented to the lender anonymously by phone or online:

Profile 1

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $790,000
• Down Payment: 20% ($158,000)
• Credit Score: 700-719
• Postal Code: N2L 1V6 (Waterloo, Ontario)

Profile 2

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $1,300,000
• Down Payment: 20% ($260,000)
• Credit Score: 700-719
• Postal Code: V6A 2W5 (Vancouver, British Columbia)

Profile 3

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $300,000 ($60,000)
• Down Payment: 20%
• Credit Score: 700-719
• Postal Code: S4P 3C8 (Regina, Saskatchewan)

Profile 4

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $440,000 ($88,000)
• Down Payment: 20%
• Credit Score: 700-719
• Postal Code: B3S 0J1 (Halifax, Nova Scotia)

Our scores out of five are based on the following factors:

• Rate – 75%
• Timeliness – 5%
• Prepayment privileges – 5%
• Penalty calculation type – 10%
• Availability of discount rates – 5%

Please do not take the rates posted here as gospel. They are intended to only offer a ballpark and sample of the rate a lender may offer for that particular mortgage term. That does not mean that you will qualify for the above rates or that they haven’t changed those rates since publication. Please consult a mortgage lender or broker to get the best rate possible for your particular property-buying circumstance and financial situation.

Fixed-rate mortgage rates are priced off of Government of Canada 5-year bond yields that fluctuate daily. Five-year fixed mortgage rates are typically 1.5% above the 5-year yield, though this spread can vary between 1% and 2%. This means if bond yields go up, fixed-rate mortgage rates also go up. Periods of high inflation (which occur when the CPI is above the Bank of Canada’s 2% target) cause bond yields to rise; conversely, when inflationary pressures cool, bond yields also come down. For example, in 1981 when the CPI averaged 12.5%, Canada experienced the highest inflation in 33 years. In September 1981, bond yields hit 18.78% and the 5-year fixed mortgage rate hit 21.75%.

As of May 28, 2024, the 5-year benchmark bond yield is currently at 3.747%, and the 52-week range is 3.134 % to 4.458%.

Variable-rate mortgages are affected by the Bank of Canada’s (BoC) monetary policy, namely interest rate hikes and cuts that occur eight times a year. The key interest rate is currently at 5%, where it has been since June 2023. The prime rate, or the rate the banks use to set the interest rates on their variable-rate products, is currently 7.2%. Variable rates will be quoted as plus or minus compared to the prime rate.

The Bank of Canada is expected to begin rate cuts later this year, perhaps as soon as June 2024.

Related: How Mortgage Rates And Interest Rates Work

In its most recent rate announcement on April 10, 2024, the Bank of Canada once again decided to hold its key interest rate at 5%, where it has been since July 2023. In his recent Opening Statement before the House of Commons Standing Committee on Finance, Governor Tiff Macklem shared three messages:

1) Monetary policy is working as CPI and core inflation have both eased in recent months and the Bank expects inflation to move closer to the 2% target later this year.
2) Economic growth is picking up and the Bank expects GDP to continue strengthening into 2025.
3) As the Bank considers how much longer to hold the key interest rate at 5%, “we’re looking for solid evidence that the recent further easing in underlying inflation will be sustained.”

However, Macklem noted that while price increases are slowing across most major categories, shelter cost inflation remains very high and is still the biggest contributor to overall inflation. Rising gasoline prices also create upward pressure.

Still, the BoC expects CPI inflation to ease below 2.5% in the second half of 2024 and reach the 2% target in 2025. Risks to this forecast include global tensions and political instability, a hot housing market in Canada, wage growth staying high relative to productivity, or, if global and/of national economic activity is weaker than expected. In May 2024, the U.S. Fed held the target rate unchanged at a 23-year high due to stubborn inflation.

“We don’t want to leave monetary policy this restrictive longer than we need to,” noted Macklem. “But if we lower our policy interest rate too early or cut too fast, we could jeopardize the progress we’ve made bringing inflation down.”

The next rate announcement is on June 5, 2024.

Related: The Bank of Canada Holds Key Interest Rate at 5%

A fixed-rate mortgage in Canada is a loan for purchasing a property where the interest rate remains constant throughout the term of the mortgage. This consistency means that your monthly mortgage payments are predictable, unaffected by the ebbs and flows of market interest rates.

When considering a mortgage for your home purchase or refinancing in Canada, it’s essential to weigh these pros and cons carefully to determine if a fixed-rate mortgage aligns with your personal financial situation and long-term financial goals.

Pros:

• Predictability: Stable monthly payments facilitate easier budgeting and financial planning.
• Protection against rate increases: Your rate stays the same even if the market rates rise, providing a shield against the uncertainty of interest rate fluctuations.
• Long-term planning: With consistent payments, it’s easier to plan for other long-term financial goals, like retirement or education savings.
• Attractive in a low-rate environment: If you lock in a mortgage when rates are historically low, you benefit from these low rates for the entire term of your mortgage.
• Appeal to risk-averse borrowers: For homeowners and prospective homebuyers who prefer not to gamble on future interest rate movements, fixed-rate mortgages offer a stress-free solution.

Cons:

• Potentially higher rates: Fixed-rate mortgages might start with a slightly higher rate than variable-rate mortgages, meaning you might pay more initially.
• Less flexibility: Opting out of a fixed-rate mortgage often incurs significant penalties, especially if you decide to refinance or sell your home before the term ends.
• Prepayment limitations: Fixed-rate mortgages often have stricter prepayment limitations compared to variable-rate mortgages, which can be a drawback if you come into a sum of money you wish to use to pay down your mortgage.
• Potential for overpayment: If the market rates decrease substantially, you may end up paying more in interest compared to what you would have with a variable-rate mortgage.

The bottom line? While fixed-rate mortgages offer stability and predictability, they may lack the flexibility and potential interest savings of variable-rate mortgages. It’s crucial to consider your financial stability, risk tolerance and the current economic environment when choosing the type of mortgage that’s right for you.

Related: Should I Choose a Fixed-Rate or Variable-Rate Mortgage?

When considering a fixed-rate mortgage, be aware of these fees:

• Arrangement fees are the costs charged by lenders for setting up the mortgage.
• Legal and valuation fees are the additional costs associated with the legal aspects of purchasing a home and appraising its value.
• Early Repayment Charges (ERCs): If you decide to pay off your mortgage early or switch to a different product before the end of your mortgage term, ERCs can be substantial.

Choosing the term of your fixed-rate mortgage is a balancing act between stability and flexibility:

• Shorter terms, like two or three years, often offer lower rates and more flexibility but require frequent renewals.
• Longer terms, such as five or 10 years, provide stability but at the cost of higher rates and less flexibility to respond to changing life circumstances or market conditions.

Ultimately, your decision should align with your long-term financial goals and risk tolerance.

Comparing fixed-rate mortgages involves evaluating not just the interest rates but also the associated fees, lender’s reputation and customer service quality. You should consider the total cost over the term of the loan, including arrangement fees, and assess the portability and flexibility of the mortgage, especially if you plan to move or refinance within the mortgage term.