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Compare Current 10-Year Fixed Mortgage Rates Across Canada

No matter where you are in Canada, we’re here to guide you to the best mortgage rates available. Quickly access the lowest 10-year fixed rates, helping you secure a stable and predictable payment schedule for the next 10 years.

Rates shown here are for insured mortgages from $700k to less than $925k. Some conditions apply.
For visualization purposes only. Get a clearer view with our Mortgage Payment Calculator.

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For Monday, May 20, 2024:

The national average 10-year fixed insurable mortgage rate in Canada is 7.17%, while nesto’s lowest 10-year mortgage rate is .

1 basis point is 1/100 of a percentage point, which is equal to 0.01%.

What is the best 10-year fixed mortgage rate in Canada?

The average insured 10-year fixed mortgage rate from big banks in Canada is 7.17%, while nesto’s best 10-year fixed mortgage rate in Canada is .

What is the lowest 10-year fixed mortgage rate in Canada?

The average insured 10-year fixed mortgage rate from big banks in Canada is 7.17%, while nesto’s lowest 10-year fixed mortgage rate in Canada is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

Find The Best 10-Year Fixed Mortgage Rates

Currently, 70% of Canadian homeowners choose a fixed rate. Fixed rates range from 1 to 10 years, though not every lender will offer each term. In Canada, fixed-rate options are offered for 1-year, 2-year, 3-year, 4-year, 5-year, 7-year, and 10-year terms.

Not every lender will be able to offer each term, as they want to stay competitive in the market. Lenders often have to balance offering more options or keeping their most popular option competitive.

A fixed-rate mortgage means you will have a fixed payment with a set amount going to principal and interest over the course of your term.  Your term is set for a set number of years for which you have locked your fixed rate. 

Once your term ends, you will need to renew your mortgage for a new term with a new rate. Your mortgage may have many terms, known as amortization. The new rate and term will depend on your personal circumstances and choices.

It’s important to understand that all borrowers must meet the Federal standard approval guidelines and have to be stress tested. Stress testing means qualifying on the greater of the Bank of Canada Benchmark Rate or the contract rate plus 2%, regardless of the actual rate or term on the mortgage contract. This stress test is in place to reduce the lender’s risk and ensure you can comfortably afford to pay back your mortgage should rates be higher at the time of your next renewal.

Benefits of Fixed-Rate Terms

A fixed-rate benefits budgeting and offers financial stability, given that mortgage payments always remain predictable throughout the term. Fixed rates tend usually be higher, but this is the premium to pay for the assurance of peace of mind.

While variable mortgages have proven to be more cost-effective over time than fixed mortgages, some people prefer the certainty of having the same payment throughout the mortgage term.

For first-time homebuyers (FTHB) who are getting used to all their new bills related to owning a home, it is recommended that they choose a fixed rate to provide some stability during the first term of their mortgage. By making their biggest monthly obligations (mortgage, condo/maintenance/strata fees and property taxes) static amounts, they can take the time to put together a financial plan and start to put aside some money towards building emergency savings.

Fixed-rate mortgages may also be a better option for homebuyers and homeowners looking for a reliable payment schedule to manage a tight budget or are generally more cautious about risk (of their payment increasing). Although fixed-rate mortgages generally have higher rates, they may still provide peace of mind for a young family with a large mortgage balance relative to their household income.

How are 10-year fixed mortgage rates determined?

Bond yields directly influence fixed-rate mortgages, meaning a 10-year fixed-rate mortgage will closely follow the movement of 10-year bond yields. 

Banks profit from investments like mortgages and Government of Canada bonds, but the two have significant differences. Bonds provide a no-risk opportunity for banks, guaranteeing at least a minimal profit while requiring no upfront cost. On the other hand, lending money for a mortgage carries a much higher risk for banks, involving costs for approval and setup, and there is no guaranteed profit. 

Banks calculate fixed mortgage rates based on the interest rates they receive from their bond investments, with an additional spread to cover the additional risk of lending money for a mortgage. 

The spread is the difference between your fixed mortgage rate and the bond price. The spread or markup between fixed mortgage rates and bond yields can vary, either widening or narrowing, depending on various economic factors. These factors include the banks’ assessment of future risks such as mortgage defaults, origination and servicing costs, as well as their profits. Their profit is limited to the supply and demand of money and, therefore, liquidity in the market. Chartered banks must raise their mortgage rates reasonably to remain competitive.

Lenders compete for your mortgage business, so the spread between rates is inconsistent across all of them. Each lender determines its bottom line and may lower rates further if it has the flexibility. Chartered banks, which offer a range of investment products, lack the flexibility to offer lower rates. Therefore, a more profitable bond market with higher bond yields will usher in lower rates on your fixed mortgage. 

Lenders are quicker to raise their fixed mortgage rates and slower to lower them as bond yields fluctuate. That’s because they want to ensure their costs cover their risks during periods of volatility in the bond market.

How are 10-year bond prices determined?

Let’s use a hypothetical example of a 10-year bond with a 4% coupon rate to understand how bond prices are determined. When the overall market interest rate rises from 4% to 5%, newly issued 10-year bonds will have higher yields. A higher yield on newly issued 10-year bonds makes the existing 4% 10-year bonds less appealing, and their prices decrease. These lower-yielding 10-year bonds would need to be sold at a discounted price to entice investors.

If the market interest rate falls from 4% to 3%, the 4% coupon 10-year bond becomes more attractive compared to newly issued 10-year bonds. As a result, its price increases, and it would be sold at a premium. Buyers would need to offer a higher price to compensate sellers for giving up the opportunity for higher yields on their bonds.

The relationship between bond prices and yields is inverse: bond prices drop to attract buyers when yields go up. Conversely, when yields go down, bond prices rise to compensate sellers for giving up higher yields on their bonds.

What drives changes in 10-year fixed mortgage rates?

When bond yields rise, funding mortgages become more costly for lenders, so they will increase their advertised rates to make a profit. That’s why fixed mortgage rates are usually higher than current bond yields. 

The spread can be pushed up and down as the bond market changes in anticipation of policy, market sentiment, and economic factors. Factors such as inflation, employment and exports won’t change your rate if you’re already locked in, but they can affect current 10-year fixed rates.

While 10-year fixed rates are not typically popular, they offer some benefits. Choosing a longer term of 10 years could be beneficial if rates are at all-time lows, helping you lock in the rate for longer to save on interest-carrying costs.

A longer mortgage term, if timed precisely, in theory, could help you avoid the peak in a rate cycle. This, however, is attempting to time the market and can be risky and it is not generally recommended to choose a longer term for this reason.

Consumer Protections For Longer Fixed Mortgage Terms

The benefit of taking on a term longer than 5 years is that a lender can only charge you a penalty of 3 months’ interest after you surpass the 5th anniversary of your mortgage term (per the Interest Act). However, if you end your 10-year fixed mortgage term before your 5th anniversary, the lender can calculate your prepayment penalty charge as the greater of 3 months’ interest or the interest rate differential penalty.

This key piece of legislation protects you from outrageously hefty mortgage penalties if you need to break your mortgage early while offering you peace of mind with consistent and predictable monthly payments.

Learn About Rates & Mortgages

Welcome to our Frequently-Asked Questions (FAQ) section, where we answer the most popular questions our nesto mortgage advisors receive daily, designed to help you make informed mortgage decisions whenever you need a new mortgage or renew/refinance an existing one.

Are you interested in learning more about 10-year fixed-rate mortgages? Here are some of Canadians’ most commonly asked questions about this mortgage term in 2024.

What is a 10-year fixed mortgage rate?

A 10-year fixed mortgage rate is a static rate with a fixed payment for 10 years. A mortgage has a much longer timeframe known as the amortization period, which, if you consistently choose a 10-year term, will consist of 2 to 3 of these 10-year terms, totalling 25 to 30 years.

If you consistently choose a 10-year term, there would still be time remaining on a 25-year amortization. In this case, you could opt for 2 10-year terms and a final 5-year term to pay off the mortgage in full. You could also decide to make accelerated weekly or bi-weekly payments or prepayments and pay off the mortgage earlier than the scheduled amortization.

How are 10-year fixed rates set?

Lenders change their rates based on how expensive it is to find the capital to fund your mortgage. The main factor affecting how 10-year fixed rates are set is the 10-year bond yield market. 

Lenders use this to determine how much it will cost them to fund 10-year fixed-rate mortgages and will use the forecasted earnings they receive from government bonds to dictate how high or low they should set their rate. When you borrow at a 10-year fixed mortgage rate, your lender will add a spread to their bond yield based on the risks involved with your mortgage to determine the rate offered to you.

What are the differences between fixed and variable rates?

With a variable mortgage, the interest rate will fluctuate depending on benchmark rates, whereas a fixed rate remains the same throughout the mortgage term. A fixed-rate benefits budgeting and offers financial stability, given that mortgage payments always remain the same. 

Deciding on a variable or fixed rate is a question of personal choice and risk appetite. We would recommend speaking with a mortgage professional to assess any material risks that may pose a concern for you over the term of your mortgage. 

While variable mortgages have proven to be more cost-effective over time than fixed mortgages, some people prefer the certainty of having the same payment throughout the mortgage term.

Is it a good idea to refinance a 10-year fixed mortgage?

Refinancing out of a 10-year fixed rate can be extremely costly if done within the first 5 years of the term, as most lenders will charge the interest rate differential. After the 5th year, the cost will decrease significantly to 3 months’ interest.

The answer will depend on your current circumstances and overall savings. Refinancing your mortgage is a great way to access the equity in your home, consolidate debt, or find a better rate. 

Most homeowners refinance for the above reasons or to find a better rate. If your current lender does not offer the option to renew (early without penalty), then refinancing may be the only way to get the results you’re looking for. 

You’ll have to consult a mortgage expert to do a cost analysis.  On one side, you will have to compare the interest costs on the new rate with the new or current lender, plus penalty, appraisal/discharge fees at the current lender; on the other side, you will have to work out the interest carrying costs to bring your mortgage to term.

Refinance rates are always higher than renewal rates, so you must make sure it makes sense for your situation.  There may be times, such as right now, when it may make sense to refinance your variable rate mortgage (VRM) as it is getting closer to its trigger rate before your prime rate rises any further.

Why compare 10-year fixed rates with nesto?

At nesto, we want to make finding the right mortgage quicker and easier. We show you the best 10-year fixed-rate mortgages, saving you time, money, and energy. On top of this, our mortgage experts are licensed professionals who can help you determine the most suitable solution for your unique needs. Not only are you getting the best market rates available, but you’re also getting total support, guidance, and the expertise to make the best decision.

If I see a 10-year fixed mortgage rate I like, how do I lock it?

A mortgage rate hold allows you to lock in a rate once you are qualified. Then, the lender will issue you a commitment to hold a fixed rate for your mortgage. Depending on the rate offered, lenders will hold your rate for a set time—say 60 to 180 days. Most lenders will add a premium to the rate to hold it longer.

If you’ve already found a 10-year fixed mortgage that you like, the next thing to do is consult a mortgage expert to see if this fixed rate applies to you. At nesto, we make it easy; we show you the best rates upfront, and you chat with a mortgage expert who will guide you by understanding your situation before qualifying you for that rate.  

The mortgage advisor will guide you while considering your needs and goals. They will also explain all the restrictions, features, and benefits and discuss the cost analysis to see if locking into a new rate and term makes sense for your current financial situation. They will be able to provide you with tailored advice for your unique needs.

Your Unique Circumstances

The rate and term you pick will depend on your current circumstances and future expectations. Ultimately, you will have to discuss your financial situation and details to complete a cost analysis with a mortgage expert at nesto.  

The mortgage expert will guide your choices to develop a solution that makes the best sense for you. As the value of any mortgage depends on the client who takes it, it is very important to have an in-depth conversation with a mortgage expert to understand that your choice suits your needs.

How nesto works

At nesto, all of our commission-free mortgage experts hold concurrent professional designations from one or more provinces. Our clients will receive the best advice and care when they speak with specialists that exceed the industry status quo. 

Unlike the industry norm, our agents are not commissioned but salaried employees. This means you’ll get free, unbiased advice on the most suitable mortgage solution for your unique needs. Our advisors are measured on the satisfaction and quality of advice they provide to their clients. 

nesto is working hard to change how the mortgage industry functions. We start with honest and transparent advice, followed by our best rates upfront. We can offer you these low rates using the fintech industry’s best-in-class and safest technology to provide a 100% digital online experience and process to reduce overhead costs.

By working remotely across Canada, all our mortgage experts and staff spend less time commuting to work and more time with their friends and family. This makes for more dedicated employees and contributes to our success with happy and satisfied clients.

nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.

Reach out to our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.