5-year fixed mortgage rate history
Key Takeaways
- Posted rates are higher than the discounted rates most borrowers actually receive.
- 5-year fixed rates peaked in the early 1980s when mortgage rates reached double digits.
- Rates fell to historic lows during the pandemic, before rising sharply in 2022–2023.
- Today’s fixed rates remain elevated compared to pandemic lows available between 2021 - 2022, but below the extreme highs of the 1980s.
Why historical 5-year fixed rates matter for borrowers
Historical 5-year fixed mortgage rates can help Canadians better understand how borrowing costs change over time and how today’s mortgage rates compare to past market conditions.
Looking at mortgage rate history can also help borrowers understand how inflation and economic conditions affect fixed mortgage rates and set realistic expectations for future mortgage rate movements. While past mortgage rates can provide helpful context, future fixed mortgage rates can still change quickly based on Government of Canada bond yields, inflation, and broader economic conditions.
Historical posted 5-year fixed mortgage rates in Canada
The 5-year fixed mortgage rate is the most popular rate in Canada, accounting for nearly 50% of all outstanding mortgages, according to Statistics Canada. See how five-year fixed mortgage rates have changed over time.
Posted 5-year fixed mortgage rates are one of the longest-running mortgage rate benchmarks in Canada, with historical Bank of Canada data dating back to 1973. These rates represent the advertised mortgage rates offered by Canada’s major banks before discounts or negotiation. Because posted rates have been consistently tracked over time, they are commonly used to measure long-term mortgage rate trends and compare different economic periods in Canadian history.
Historical discounted 5-year fixed mortgage rates in Canada
While posted rates are useful for understanding mortgage rate history, they don’t always reflect the actual rate borrowers receive. In practice, many Canadians qualify for discounted mortgage rates below the posted benchmark through mortgage brokers, lender promotions, or negotiated pricing.
To source discounted rates, Ratehub.ca has combined our proprietary data, supplemented with discounted brokerage data from 2006 to 2010.
How do historical 5-year fixed rates compare to today’s rates?
Over the past several decades, 5-year fixed mortgage rates in Canada have moved through periods of high inflation, economic recessions, ultra-low interest rates, and rapid rate hikes. While today’s fixed mortgage rates remain elevated compared to pandemic-era lows, they are still well below the historic highs seen in the early 1980s.
| Period | What was happening |
| 1970s–1980s | High inflation, oil shocks, and aggressive interest rate hikes pushed mortgage rates into the double digits |
| 1990s | Inflation eased, and the Bank of Canada adopted inflation targeting, helping lower borrowing costs |
| 2000s–2010s | Lower inflation and accommodative monetary policy kept fixed mortgage rates comparatively stable |
| 2020–2021 | Pandemic-era emergency rate cuts and low bond yields drove mortgage rates to record lows |
| 2022–2024 | Surging inflation and rapid Bank of Canada rate hikes caused fixed mortgage rates to rise quickly |
| 2025–Present | Rate cuts, easing inflation, and shifting bond yields have helped stabilize fixed mortgage rates |
What is the 5-year fixed mortgage rate today in Canada?
As of May 2026, the average posted 5-year fixed mortgage rate at Canada’s major banks is around 6.09%, according to the Bank of Canada. However, most borrowers don’t actually pay the posted rate. Instead, many qualify for discounted mortgage rates that are significantly lower. Currently, the best discounted 5-year fixed mortgage rates in Canada are closer to 4.09%, depending on factors like your down payment, credit score, mortgage type, and whether you’re purchasing, renewing, or refinancing.
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What influences 5-year fixed mortgage rates over time?
Unlike variable mortgage rates, which are closely tied to the Bank of Canada’s overnight rate, 5-year fixed mortgage rates are primarily influenced by Government of Canada bond yields, especially the 5-year government bond yield. Fixed mortgage rates typically rise when 5-year bond yields increase and fall when bond yields decline.
Several economic factors can influence how fixed mortgage rates move over time:
- Inflation expectations: Higher inflation can push bond yields and fixed mortgage rates higher, as lenders demand higher returns to offset rising prices.
- Bank of Canada policy decisions: While the Bank of Canada does not directly set fixed mortgage rates, rate hikes and cuts can influence bond markets and broader borrowing costs.
- Economic growth and employment: Strong economic data can lead to expectations of higher interest rates, which may put upward pressure on fixed mortgage rates.
- Global economic uncertainty: During periods of market uncertainty or recession concerns, investors often move into government bonds, which can lower bond yields and fixed mortgage rates.
- Lender competition and funding costs: Mortgage lenders may raise or lower fixed rates based on competitive pricing strategies and changes in their own borrowing costs.