Mortgages

Comparison of 5-year fixed mortgage rates in Canada

Comparison of 5-year fixed mortgage rates in Canada

Homewise, a certified mortgage broker that works with lenders throughout Canada, provides the mortgage rates featured on this page.

These mortgage rates are updated daily and represent the most recent 5-year fixed mortgage alternatives from Homewise’s lending partners. The rates are obtained directly from Homewise’s loan partners and are updated daily to offer you with the most current possibilities.

What is a reasonable 5-year fixed mortgage rate?
The quick answer is that a good 5-year fixed mortgage rate is the lowest rate you can qualify for based on the amount you need to borrow and the loan features that best suit your financial situation.

The fuller solution to this issue needs some historical background. The average 5-year mortgage rate given by Canada’s main chartered banks, according to the Bank of Canada, was:

  • On October 19, 2022, the interest rate will be 6.49%.
  • On October 17, 2012, the rate was 5.24%.
  • On October 16, 2002, the unemployment rate was 6.7%.
  • On October 21, 1992, the interest rate was 9.25%.
  • On October 20, 1982, the unemployment rate was 16%.

Five-year fixed mortgage interest rates are largely predicted to rise further during 2022, posing difficulties for property purchasers into most of 2023.

Looking back over the last few decades, mortgage rates are still fairly low by historical standards. And, while 6.49% in 2022 may appear to be a high rate, it is still a “good” rate when compared to what Canadians were paying in the 1980s or 1990s.

In any case, a lender’s quoted mortgage rate is merely the beginning of the story. Your credit score and other personal financial factors will determine the actual mortgage rate you are offered.

Why should you compare 5-year fixed mortgage rates before applying?
A mortgage is the largest debt that the majority of Canadians will ever take out in their life. Maintaining affordable monthly mortgage payments is critical to live comfortably with such a huge debt. The interest rate paid to finance a house purchase, often known as the mortgage rate, has a significant influence on the entire cost of your loan.

Obtaining the lowest possible rate can save you money. However, rates should not be the sole deciding factor when comparing lenders; penalty fees, portability, and overall customer service are other important factors to consider.

Thorough research, knowing your mortgage goals, and evaluating choices side by side should help you locate a competitive rate with a mortgage company that meets your needs.

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