5-Year Variable Mortgage Rates
Number of Years
Fixed or Variable
| Lender | Rate | Weekly Change | Monthly Payment |
|---|---|---|---|
Citadel Mortgages | 1.50% 5-YEAR VARIABLE | No change | $1,900 |
 MtgAlliance | 1.70% 5-YEAR VARIABLE | No change | $1,945 |
 Equitable | 1.70% 5-YEAR VARIABLE | No change | $1,945 |
 Peoples Bank | 1.75% 5-YEAR VARIABLE | No change | $1,956 |
 Simplii Financial | 1.77% 5-YEAR VARIABLE | 0.02% | $1,961 |
 motusbank | 1.80% 5-YEAR VARIABLE | No change | $1,967 |
 Canada Life | 1.88% 5-YEAR VARIABLE | No change | $1,986 |
 TD | 1.97% 5-YEAR VARIABLE | No change | $2,006 |
 Tangerine | 2.05% 5-YEAR VARIABLE | No change | $2,025 |
 BMO | 2.07% 5-YEAR VARIABLE | No change | $2,030 |
 RBC | 2.10% 5-YEAR VARIABLE | No change | $2,037 |
 Desjardins | 2.10% 5-YEAR VARIABLE | No change | $2,037 |
 Investors Group | 2.20% 5-YEAR VARIABLE | No change | $2,060 |
 CIBC | 2.45% 5-YEAR VARIABLE | No change | $2,119 |
 National | 2.45% 5-YEAR VARIABLE | No change | $2,119 |
 Coast Capital | 2.45% 5-YEAR VARIABLE | 0.75% | $2,119 |
 CMLS | 2.95% 5-YEAR VARIABLE | No change | $2,240 |
 Alterna Savings | 2.95% 5-YEAR VARIABLE | 1.00% | $2,240 |
 DUCA | 3.25% 5-YEAR VARIABLE | 0.30% | $2,315 |
 Scotiabank | 5.75% 5-YEAR VARIABLE | 3.10% | $2,988 |
Notes
- Weekly rate changes based on data from November 23rd 2020.
- These rates are for Prime customers. To qualify, you generally need a good credit score and a steady job.
- The following rates may not be valid for uninsured mortgages.
| Bank or Lender | Annual Prepayment Limit | Frequency (per year) |
|---|---|---|
| RBC | 10% | Once |
| TD | 15% | Once |
| Scotiabank | Varies, up to 20% | Once |
| CIBC | Varies, up to 20% | Once |
| BMO | 20% (10% for BMO Smart Fixed Mortgages) | Once |
 HSBC | 20% | Once |
| Equitable Bank | 15% - 20% | Once |
| Peoples Bank | 20% | Once |
 First National | 15% | Once |
| motusbank | 20% | Once |
| Tangerine | 25% | Multiple |
| Simplii | Varies, up to 20% | Multiple |
 MCAP | Varies, up to 20% | Multiple |
 Laurentian | 15% | Once |
| National Bank | 10% | Multiple |
| Desjardins | 15% | Multiple |
| CMLS | 20% | Multiple |
| DUCA | 20% | Once |
 Manulife | 20% | Multiple |
| Coast Capital | 20% (or 30% for “You’re the Boss” Mortgage) | Once (or multiple for “You’re the Boss” Mortgage) |
| Alterna Savings | 20% | Once |
Did You Know That Your Downpayment Can Impact Your Mortgage Rate?
The majority of Canadians save at least 20% down when they buy their home. However, did you know that a 20% downpayment usually leads to the highest mortgage rate?
Insured mortgages with a downpayment of less than 20% usually have the lowest mortgage rates. These mortgages, also called high-ratio mortgages, are usually insured by the CMHC or a private mortgage insurer. Lenders are protected by the insurance and due to the lower risk are willing to offer lower rates. However, you will have to pay CMHC insurance premiums, which can cost more than your potential interest savings.
Mortgages with a downpayment of more than 35% also tend to have lower mortgage rates compared to a 20% downpayment. The larger downpayment gives a bigger loss buffer for the lender which lets them offer a lower mortgage rate.
Home Equity Line of Credit Rates
Top Real Estate Agents in
Top Real Estate Agents in
Canada's Top Mortgage: the 5-Year Fixed
In Canada, out of the $1.1 trillion CAD in outstanding residential mortgages in May 2020, the 5-year fixed rate mortgage takes the crown with over $570 billion, or almost 50%, of all mortgages in Canada. There are more 5-year fixed rate mortgages than all variable rate mortgages combined. The 5-year fixed rate mortgage is so popular that the CMHC uses the Bank of Canada's 5-Year Benchmark Posted Rate for its mortgage stress test.
Comparison of Fixed-Rate Mortgages in Canada
Mortgage Prepayment Penalties
Fixed Rate Mortgage Penalty Interest Rate
For fixed-rate mortgages, lenders usually use the greater of three months of interest or an interest rate differential (IRD). Each lender has their own IRD calculation. The interest rate that they use for their IRD is usually based on either their current advertised mortgage rates or their posted rates, which can often be much higher.
| Advertised Rate IRD | Posted Rate IRD | RBC TD Scotiabank CIBC BMO HSBC Peoples Bank motusbank Simplii Laurentian Desjardins CMLS Coast Capital Equitable Bank* | Tangerine Manulife Alterna Savings First National MCAP DUCA |
|---|
Variable Rate Mortgage Penalty Interest Rate
Most lenders determine the mortgage break penalty for a variable rate mortgage by calculating three months of interest. The interest rate that they use can depend from lender to lender, but is usually either your current mortgage interest rate or the lender's prime rate.
| Based On Your Mortgage Rate | Based On the Lender's Prime Rate | RBC TD Scotiabank BMO HSBC Equitable Bank First National motusbank Tangerine MCAP National Bank Desjardins CMLS DUCA Manulife Coast Capital Alterna Savings Laurentian* | CIBC Peoples Bank Simplii Laurentian |
|---|
While we try our best to get you the best rates, we cannot guarantee that they are always accurate. WOWA assumes no liability for the accuracy of the information presented, and will not be held responsible for any damages resulting from its use.