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.

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.