The best 5-year fixed mortgage rates in Canada for 2022 can be found below. A five-year fixed-rate mortgage is a good option for those who want to lock in their interest rate and ensure that their payments don’t change for at least five years. A 5-year fixed rate mortgage allows you to predict your monthly payments over the next five years and gives you stability during an uncertain economic period.
After years of low-interest rates, Canada is entering a period of rising borrowing costs—meaning that mortgages and student loans will be more expensive. People who are about to take out the first mortgage or renew their existing one may want the security of knowing what their monthly payments will be for the life of their loan—this can make a fixed-rate mortgage seem favourable compared to an adjustable-rate one. In Canada, five-year fixed-rate mortgages are the most popular mortgage product. However, as with any financial product—even one you’re fond of—you should still be aware of its drawbacks to weigh those against the benefits.
Who chooses a fixed-rate mortgage?
Fixed-rate fixed-ratfixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratefixed-ratee gages are for those who want to lock in a reasonable rate for longer. Ifreasonablemore reasonably good, reasonably confident in the stability of your income, and don’t mind making more monthly payments than someone with a variable-rate mortgage would, this could be the right choice for you.
Those who want to pay off their mortgage faster should also consider fixed rates because they’ll pay less interest over time than other types of mortgages. Finally, people who don’t want to worry about interest rate increases may opt for fixed-rate mortgages; however, if that’s not an issue for them, then there are better options available at lower rates than what we’ve seen historically (such as our top pick).
The best 5-year fixed mortgage rates in Canada
No matter what you’re looking for in a mortgage, once you’ve narrowed down your options and know precisely how much to spend on a home loan, it’s time to start shopping around. But where do you start?
Many factors affect the overall price of your mortgage — including the type of property (single-family home or condo), its location, and even your income level. One factor that doesn’t come into play as much is whether or not you opt for variable or fixed rates.
While variable-rate mortgages tend to have lower monthly payments than fixed-rate ones, they also tend to be riskier because their interest rates change over time depending on economic conditions. If those rates increase dramatically during your loan term (five years), so will your monthly payments—and this could result in financial hardship if things don’t work out as expected.
2.70% from HSBC Bank Canada
HSBC Bank Canada has the lowest 5-year fixed mortgage rate in Canada at 2.70%. To get this low rate, you need to qualify for it with a credit score of 750+.
If you’re interested in getting the best 5-year fixed mortgage rate in Canada, HSBC Bank Canada is your best bet. It’s offering a 5-year fixed mortgage at 2.70% right now, and it has some pretty reasonable rates for other terms, too – check them out below:
2.79% from Scotiabank
This is the second-best 5-year fixed mortgage rate in Canada. It’s offered by Scotiabank, one of Canada’s largest banks. They have branches across the country and are headquartered in Toronto, Ontario.
Scotiabank is one of the largest banks in Canada, with over 3,000 branches across all provinces and territories, plus more than 30 million customers globally. They offer consumers a wide range of financial products at competitive rates, including mortgages, credit cards and banking services.
2.69% from B2B Bank
B2B Bank is a Canadian bank that offers a wide range of personal and business banking services. The bank currently offers a five-year fixed-rate mortgage at 2.69%.
Like all other banks on this list, B2B Bank’s mortgage interest rate is subject to change as the prime rate fluctuates.
2.79% from the National Bank of Canada
Bank of Canada is a good choice for those looking for the best 5-year fixed mortgage rate in Canada. The bank has a good reputation and is one of Canada’s most significant. They have many branches, ATMs, an excellent online banking platform and mobile apps (Android and iOS).
2.87% from TD Canada Trust
TD Canada Trust is the place to go if you’re looking for a super-low rate. Its 5-year fixed mortgage rates start at 2.87%.
If you want to avoid paying prepayment fees and mortgage insurance on your mortgage, TD Canada Trust might be the way to go—they don’t charge either of them!
2.89% from Meridian Credit Union
Meridian Credit Union has the second-best 5-year fixed mortgage rate in Canada. With a 25-year amortization and no additional fees, its 2.89% rate is slightly above average for a five-year fixed mortgage, but it’s still very competitive compared with its competitors.
In addition to its low down payment of 5%, Meridian Credit Union comes in at No. 2 on our list because it offers a discount for electronic transactions of 0.10%. Because many lenders now offer discounts for electronic transactions over paper cheques, this adds to their
Is a fixed-rate mortgage better?
If you’re unsure what interest rates will be in five years, you should probably go with a fixed-rate mortgage. If your current payment isn’t something that would be comfortable at that time or if you want to lock in now, then it’s also a good idea to choose fixed.
If you currently have a variable rate mortgage and want to lock in, this is an ideal time for making the switch!
The pros and cons of five-year fixed rate mortgages
Five-year fixed-rate mortgages are outstanding for people who want to lock in their mortgage rates. They’re also suitable for those who wish to avoid the stress of variable-rate mortgages, who want to reduce their monthly payments, or who don’t want to mess around with fluctuating rates.
But five-year fixed-rate mortgages have their drawbacks. If you think interest rates will be higher when your five-year term expires than when you signed up, a shorter time might better suit your needs. And suppose interest rates drop significantly over five years. In that case, you may wind up eroding more than necessary on your mortgage payment—which could mean tens or even hundreds of thousands of dollars over the life of your loan!
Summary of the best 5-year fixed mortgage rates in Canada for 2022
These are the best options in Canada if you’re looking for a 5-year fixed-rate mortgage.
5-year fixed rates are lower than variable rates because they don’t change during that initial period. They also allow you to lock in at a specific rate, reducing your risk of interest rate volatility and protecting yourself from potential monthly payment increases. A 5-year fixed-rate mortgage is ideal if you stay in your home long enough to pay off the loan through regular installments.
This article outlines the best 5-year fixed mortgage rates in Canada for 2022
If you’re considering a 5-year fixed mortgage rate in Canada, here are the best rates for 2022.
Best 5-Year Fixed Mortgage Rates In Canada For 2022
Amortization: 25 years or 30 years
Term: 10 years or 15 years
Finding the best 5-year fixed rates in Canada isn’t easy. But we’ve done the legwork to help you find the perfect mortgage for your needs. There are various options and features, but we hope this article gave you an idea of what types of mortgages might be available for your situation.