Bank of Canada Raises Policy Rate to 2.50%
Best 5-Year Fixed Mortgage Rates in Canada
Today’s Best 5-Year Fixed Rate. Last updated November 5, 2026
As of November 5, 2026, nesto’s lowest 5-year fixed insured mortgage rate in Canada is 4.59%. Canada’s Big 6 Banks currently average
No rates at the moment
*Insured loans. Other conditions apply. Rate in effect as of today (Thursday, November 5, 2026).
Compare Current 5-Year Fixed Mortgage Rates Across Canada
Wherever you are in Canada, you can compare today’s live 5-year fixed mortgage rates in minutes. The table below shows nesto’s current discounted rates for insured, insurable, and uninsured mortgages, pulled directly from our pricing engine and refreshed daily. Choose the rate type that matches your down payment and property price, then see how nesto compares to Canada’s Big 6 Banks.
These rates apply to insured mortgages between $700,000 and less than $1,375,000. Conditions apply. For a personalized payment estimate, use the nesto mortgage payment calculator.
nesto's lowest vs Big Bank insured mortgage rates
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For today, November 5, 2026, nesto’s 5-year fixed mortgage rate is 59 bps (0.59%) lower than the similar average at Canada’s Big 6 Banks. On a $500,000 mortgage over a 25-year amortization, with nesto, your monthly payment would be $2,792.44, saving you up to $167.03 on your monthly payment. That’s $10,021.80 in interest saved, plus an extra $4,146.14 paid toward principal over your term.
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5-Year Fixed Rate Options by Mortgage Type
nesto’s fixed rate pricing depends on whether your mortgage is insured, insurable (priced by loan-to-value bracket), or uninsured. The table below shows today’s best 5-year fixed rate for each profile, along with the stress test minimum qualifying rate (MQR) set by the Office of the Superintendent of Financial Institutions (OSFI).
| Mortgage Type | 5-Year Fixed Rate | Stress Test Qualifying Rate | Best For |
|---|---|---|---|
| Insured (down payment less than 20%) | 4.59% | 6.59% | First-time buyers and high-ratio purchases under $1.5M |
| Insurable, 0 to 65% LTV (down payment of 35% or more) | 4.59% | 6.59% | Home buyers with 35% or more down |
| Insurable, 65 to 70% LTV (down payment of 30% to 34.99%) | 4.74% | 6.74% | Buyers with 30% to 35% down |
| Insurable, 70 to 75% LTV (down payment of 25% to 29.99%) | 4.74% | 6.74% | Buyers with 25% to 30% down |
| Insurable, 75 to 80% LTV (down payment of 20% to 24.99%) | 4.79% | 6.79% | Buyers with 20% to 25% down |
| Uninsured | 5.00% | 7.00% | Refinances, $1.5M+ properties, 30-year amortizations |
Who Should Choose a 5-Year Fixed Mortgage in Canada?
A 5-year fixed mortgage suits buyers and renewers who want longer payment certainty. It works well for first-time buyers settling into homeownership, homeowners looking to refinance to lock in a long-term payment, and the more than 1 million Canadian households renewing in 2026 from sub-2% 5-year terms taken in 2020 and 2021.
The trade-off is flexibility. Breaking a 5-year fixed mid-term triggers a prepayment penalty calculated as the greater of three months’ interest or the interest rate differential (IRD). On a 5-year fixed, the IRD math can produce penalties well above the three-month interest charge that applies to a 5-year variable mortgage, which carries no IRD calculation. Match the term to how long you realistically expect to hold the mortgage, given your unique financial circumstances, not just the lowest rate.
What nesto’s Data Shows About the 5-Year Fixed Mortgage
Most nesto clients still choose a 5-year term, but fewer of them lock in a fixed rate. Of mortgages funded at nesto in 2026 between August 5 and October 23, more than 85% were on a 5-year term, and 34% to 43% carried a fixed rate.
Variable rates held the majority through the late summer and early fall, at 57% to 61% of funded mortgages, while the Bank of Canada kept its policy rate at 2.25%. Those weeks came before the Bank’s October 28 increase, so they don’t yet show how clients responded to it.
Today’s National 5-Year Fixed Mortgage Rate Trends
For Thursday, November 5, 2026:
Canada’s average 5-year fixed conventional mortgage rate is
Note: one basis point is 1/100th of a percentage point, or 0.01%.
What is the average 5-year fixed conventional mortgage rate in Canada today?
As of November 5, 2026, Canada’s average 5-year fixed conventional mortgage rate is 5.39%. At the Big 6 Banks specifically (RBC, TD, BMO, Scotiabank, CIBC, and National Bank), the average discounted conventional mortgage rate on a 5-year fixed term is
What is the lowest 5-year fixed insured mortgage rate in Canada today?
Insured mortgage rates apply to high-ratio mortgages with a down payment of less than 20% on a property priced under $1.5 million. As of November 5, 2026, the lowest 5-year fixed insured mortgage rate available through nesto is 4.59%. Conventional rates apply when the down payment is 20% or more, or when the property exceeds $1.5 million in value.
Will 5-year fixed mortgage rates go down in Canada?
The 5-year fixed mortgage rate tracks the Government of Canada (GoC) 5-year bond yield plus a lender spread of 1% to 2%. It moves with bond yields rather than directly with the Bank of Canada. On October 28, 2026, the Bank of Canada raised its policy rate by 25 basis points to 2.50%, its first increase since July 2023. The Bank said, “There could be a need to increase the policy rate further, but given uncertainties, Governing Council agreed to proceed carefully.” It now expects inflation to rise to about 3.50% by the end of 2026, then to 2% by mid-2028. With that outlook, 5-year fixed rates would likely require a clear slowdown in inflation or growth. See nesto’s mortgage rate forecast for the latest view.
Is it better to choose a 5-year or a 3-year fixed-rate mortgage?
A 5-year fixed mortgage makes sense if you want maximum payment stability over the longest prime lending term, plan to hold the property for at least 4 to 5 years, are a first-time buyer settling in, or expect rates to drift higher rather than lower.
A 3-year fixed mortgage works better if you plan to sell within three years, expect rates to fall and want to renew sooner at a lower rate, or want less prepayment penalty exposure. Match the term to your timeline and risk tolerance, not just the lowest posted rate.
Mortgage Industry Insights: November 2026
Bank of Canada Rate Announcement
The Bank of Canada (BoC) raised its policy rate by 25 basis points to 2.50% at its October 28 announcement, its first increase since July 2023 after seven consecutive holds. Governing Council said it raised the rate “to reduce the risk that continuing high energy prices spread broadly to the prices of other goods and services.” In its October Monetary Policy Report, the Bank raised its inflation outlook: CPI inflation is expected to rise to about 3.5% by the end of the year, average 3% in 2027, a percentage point above its July projection, and come down to 2% in the middle of 2028. It also revised growth up to 1% in 2026 and 2% in 2027 and 2028.
The Bank left the door open to further increases: “There could be a need to increase the policy rate further, but given uncertainties, Governing Council agreed to proceed carefully.” Governor Tiff Macklem said Governing Council would take future decisions “one meeting at a time.” Bond markets put the odds of a 25-basis-point hike at the Bank’s December 9 announcement at 55%, against 45% for a hold. That decision comes without a new Monetary Policy Report, so the October jobs report on November 6 and the October inflation report on November 16 carry more weight. On inflation expectations, the Bank said, “near-term household and business inflation expectations have risen, while longer-term inflation expectations remain well anchored.” Markets imply 99% for a hike by January 27.
A Bank of Canada decision affects fixed and variable mortgages differently. If you hold a variable-rate mortgage (VRM) or an adjustable-rate mortgage (ARM), a rate change flows through directly, adjusting your principal-and-interest split (VRM) or your monthly payment itself (ARM), within days of your lender updating its prime rate. If you hold a fixed-rate mortgage, nothing changes until your term ends, since your rate and payment are locked for the full term. Either way, the next decision, on December 9, is the one to watch if you’re renewing or shopping for a new mortgage soon.
GDP and Jobs Update
Statistics Canada reported that real GDP was essentially unchanged in August, the second straight flat month, below its advance estimate of a 0.2% gain, with 9 of 20 industrial sectors growing. Its advance estimate points to a 0.1% decline in September, and the industry data suggest the economy expanded 0.3% in the third quarter, about 1.3% annualised. That is below the roughly 2% the Bank of Canada projected for the quarter, and the Bank expects growth to slow further in the fourth quarter as new US tariffs weigh on activity. Second-quarter growth stands at an annualised 3.3%, so Canada has not entered a technical recession. The labour market has cooled further: the Labour Force Survey showed employment down 68,000 in September, a second straight monthly decline following August’s 42,000 drop, while the unemployment rate edged up to 6.5% from 6.4%. Average hourly wages rose 2.3% from a year earlier, up from 2% in August. October jobs data arrive on November 6, and third-quarter GDP follows on November 30.
Real Estate Market Update
The Canadian Real Estate Association (CREA) reports that national home sales fell 2.3% month over month in September 2026 on a seasonally adjusted basis, after a four-month run of modest gains, with actual sales 7.7% below September 2025. New listings fell 1.8% from August, and the sales-to-new-listings ratio eased to 48.8% from 49.1%, in balanced territory but below its long-term average of 54.7%. The MLS Home Price Index edged down 0.4% from August and stood 3.4% below September 2025, while the national average home price was $666,538, down 1.6% from a year earlier. Just over 200,000 properties were listed for sale, up 1.8% from last year, equal to 4.9 months of inventory and in line with the long-term average. CREA’s chair, Garry Bhaura, said the latest jump in fixed mortgage rates makes the mortgage side harder for prospective buyers but should also mean more homes to choose from and more negotiating power. CMHC reported that housing starts rose 3% in September to a seasonally adjusted annual rate of 248,896 units, up from 242,223 in August. However, new housing starts in urban centres with 10,000 or more inhabitants were down 11% from a year earlier. The Bank of Canada expects housing to remain relatively weak, as affordability constraints, slow population growth and rising borrowing costs weigh on demand. CREA releases its October figures on November 17.
CPI Inflation Update
Inflation rose to 3.1% year-over-year in September from 3% in August. Gasoline prices were 27.8% higher than a year earlier, up from 22.8% in August, even with the switch to cheaper winter-blend fuel. Excluding gasoline, inflation eased to 2.2% from 2.4%, and the Bank’s core measures eased too, with the trimmed-mean rate at 1.8%, the median rate at 1.9% and the common rate at 2.4%. Smaller annual gains in travel tours and groceries held back the all-items rate: grocery prices rose 1.7%, the smallest annual gain since May 2024 and the second straight month below the all-items rate. Rent growth held at 2.8%, and the mortgage interest cost (MIC) index fell 0.2%. Heating oil and other fuels rose 57.8%, and the Atlantic provinces, where heating oil is more common, felt it most. In its October Monetary Policy Report, the Bank of Canada put September energy inflation at 19% and expects CPI inflation to rise to about 3.5% by the end of the year. October figures are released on November 16.
Historical 3-Year Fixed Mortgage Rates
The chart below shows the Bank of Canada’s historical 3-year fixed mortgage rates since 1980.
Learn About 5-Year Fixed Mortgage Rates
Here’s how 5-year fixed mortgages work in Canada, when they make sense, what to watch for in rate calculations, and how to think about prepayment penalty exposure. These answers cover the most common questions Canadians ask before locking into a 5-year fixed term.
What is a 5-year fixed mortgage rate?
A 5-year fixed mortgage rate is an interest rate locked for a 60-month term. Your interest rate and monthly mortgage payment stay the same for the entire term, regardless of changes in Government of Canada (GoC) bond yields, the Bank of Canada policy rate or broader market conditions. At the end of the 5-year term, you renew at the rates available then.
What are the benefits of a 5-year fixed mortgage?
A 5-year fixed mortgage gives you the longest stretch of payment stability available in Canada, excluding 7- and 10-year fixed rates, which are typically priced much higher. With 5 years of payment predictability, it reduces exposure to rate volatility, simplifies budgeting and is the default choice for first-time buyers who prioritize certainty over flexibility. The 5-year term is also the most common choice at nesto, used by more than 85% of recently funded mortgages.
What are the disadvantages of a 5-year fixed mortgage?
The main trade-off is flexibility. Breaking a 5-year fixed mid-term triggers a prepayment penalty calculated as the greater of three months’ interest or the interest rate differential (IRD). On a 5-year term, the IRD can be much higher than the three-month minimum, especially if you break the mortgage with several years left. A variable mortgage, by contrast, has no IRD calculation: if you break it, only three months’ interest applies. A 5-year fixed rate also locks you out of falling rates. If rates drop meaningfully during your term, you do not benefit until your mortgage matures and you can renew without a prepayment penalty.
How is a 5-year fixed mortgage rate calculated in Canada?
Canadian lenders set 5-year fixed mortgage rates by adding a 1% to 2% spread to the Government of Canada (GoC) 5-year bond yield. The 5-year bond yield moves daily in response to inflation expectations, Bank of Canada policy signals, federal fiscal updates, and broader domestic and US market conditions. When the 5-year bond yield rises, 5-year fixed rates usually move up immediately; when yields fall, fixed rates follow with a lag of a few weeks.
How can I apply for a 5-year fixed mortgage with nesto?
To apply, answer a few questions through nesto’s online application, then book a call to discuss your financial circumstances with a nesto mortgage expert. We’ll review your income, down payment, credit, and property details to confirm which 5-year fixed rate best suits your unique needs, then send your mortgage commitment with the rate locked for up to 150 days while you finalize your purchase or renewal.
How to Find the Best 5-Year Fixed Mortgage Rates in Canada
Finding the best 5-year fixed mortgage rate in Canada means shopping multiple lenders, understanding what drives the rate you are offered, and locking in a monthly payment you can live with for the full 60-month term. A mortgage broker can compare rates from across the market in a single application, saving you the time of approaching lenders one by one.
Should I complete a pre-approval or a pre-qualification?
Both a mortgage pre-approval and a pre-qualification estimate how much you can borrow based on your income, debts, down payment, and savings. Some lenders attach a 60- to 180-day rate hold to a pre-approval, often at a premium, while a pre-qualification includes none. At nesto, we offer pre-qualification, and pre-qualification does not include a rate hold like a pre-approval. We price live, and your best rate locks once you have an accepted offer to purchase or an approved switch or transfer at renewal.
What is a mortgage rate hold?
A mortgage rate hold locks in your interest rate for a set period, usually 60 to 180 days, while you shop for a property or finalize a renewal. If rates rise during the hold window, your held rate doesn’t change. At nesto, we hold rates for up to 150 days on 5-year fixed and 5-year variable mortgages, and up to 120 days on other terms. The hold applies once you have an accepted offer to purchase or an approved switch or transfer at renewal. Some lenders charge a small rate premium in exchange for the hold.
Factors That Influence Your 5-Year Fixed Mortgage Rate in Canada
Government of Canada (GoC) 5-year bond yields set the benchmark for 5-year fixed mortgage pricing across Canadian lenders. But several borrower-specific factors influence the rate you actually receive, including your credit score, down payment, income stability, loan-to-value (LTV) ratio, and how you plan to use the property.
Mortgage Term
Your mortgage term is how long your current mortgage contract is in effect. Terms in Canada range from 6 months to 10 years, and the 5-year term is by far the most popular. The term is just one of the inputs lenders use when pricing your rate.
Mortgage Type
Mortgage types include adjustable, variable, fixed, open, closed and home equity line of credit (HELOC) products held under a collateral charge. Open mortgages carry higher rates than closed mortgages because you can pay them off at any time without a prepayment penalty. Fixed rates follow bond yields plus a 1% to 2% spread; variable rates move with the lender’s prime rate, which tracks the Bank of Canada policy rate.
Down payment
Your down payment sets your loan-to-value ratio and determines whether you need mortgage default insurance. Insured and insurable mortgages typically carry lower interest rates because the insurance reduces the lender’s risk of borrower default. Uninsured mortgages (with 20% or more down on properties over $1.5M, or on any refinance) usually carry higher rates to account for that risk.
Qualifying Ratios
To qualify for a 5-year fixed mortgage, lenders calculate your gross debt service (GDS) and total debt service (TDS) ratios against your gross income. The standard CMHC-insured ceilings are 39% GDS and 44% TDS. Your qualifying payment is set by the mortgage stress test at the higher of your contract rate plus 2% or 5.25%. In the current rate environment, the contract rate plus 2% is binding; the 5.25% floor applies only when your contract rate falls below 3.25%.
Property Use
Owner-occupied primary residences qualify for the lowest rates. Rental and investment properties carry higher rates to reflect the added risk. A primary residence with a single, legally registered secondary suite is still treated as owner-occupied for rate purposes.
Transaction Type
Purchases, renewals, refinances, ports and conversions are each priced differently. Refinances are treated as uninsured transactions and carry higher rates than renewals. Porting transfers your existing rate and balance to a new property; if you need to borrow more, lenders apply a blended rate. Converting from variable to fixed mid-term typically uses the lender’s posted (undiscounted) fixed rate at the time of the conversion.
Amortization
Your amortization is the total time to pay off the mortgage in full, typically 25 or 30 years. Amortization does not directly change your interest rate, but a shorter amortization means higher monthly payments and less total interest paid over the life of the loan. A longer amortization means lower monthly payments and more total interest over time.
Credit Score
The best 5-year fixed rates go to borrowers with excellent credit scores, typically above 720. Lower scores generally push borrowers toward alternative lenders with higher rates and stricter conditions. Your credit report shows payment history, debt levels and credit mix, which lenders use alongside income and down payment to price your personal rate.
Proof of Income
To access prime lending and the best 5-year fixed rates, you need to verify income through income documents such as pay stubs, employment letters or T4s for salaried borrowers. Self-employed and incorporated borrowers usually need Notices of Assessment (NOAs), T1 Generals, business registration documents, and three months of business and personal bank statements.
Historical 5-Year Fixed Mortgage Rates
5-year fixed mortgage rates in Canada have moved across an enormous range over the past seven decades, from sub-2% lows during the 2020 to 2021 pandemic period to highs above 20% during the inflation crisis of the early 1980s. The chart below shows the annualized average of Canadian residential 5-year fixed mortgage rates from 1951 to 2023, drawn from CMHC records.
Historical Annualized Average of the Canadian Residential 5-Year Fixed Mortgage Rates from 1951 to 2023
Source: CMHC Records
How Much Do Lenders Make on Their 5-Year Fixed Mortgages?
This chart compares the spread between Government of Canada 5-year bond yields and the corresponding 5-year fixed mortgage rate, showing where nesto’s insured rate sits versus the Big 6 Bank average. The data tracks from March 2022, the start of the 2022 to 2023 rate tightening cycle, through today
Why Choose nesto
At nesto, our commission-free mortgage experts are salaried and regulated, with most licensed in multiple provinces. They are evaluated on client satisfaction and the quality of their advice, and they help you compare mortgage options and understand rates and qualification requirements. Once you’re ready to move forward, they work with you on a mortgage strategy that fits your situation.
nesto pairs expert advice with a 100% digital, transparent and seamless process, and a dedicated mortgage professional supports you throughout your purchase, renewal or refinance.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our knowledgeable mortgage experts to find your best mortgage rate in Canada.