When it comes to getting a great rate on a 5-year fixed mortgage in Ontario, timing is everything. Because rates can fluctuate from day to day, it’s important to know when to lock in your rate and sign on the dotted line to make sure you get the best deal possible. With a fixed interest rate, it’s more important than ever to get the timing right because whatever your rate is when you sign is what it will be for the duration of the five years of the loan.

History of 5-Year Fixed Mortgage Rates

Historically, a 5-year fixed mortgage rate has been the rate of choice when economists predict rates will rise. Buyers in Ontario try to lock their rates in when they’re low, giving themselves protection against market fluctuations. Locking at a low rate can be beneficial to ride out temporary changes in the market. Fixed rate mortgages have higher rates than variable rate mortgages because with a fixed rate mortgage the bank assumes most of the risk.

Current Rates

buying new house

The current rate for a 5-year fixed mortgage is 2.5% to 2.9%. There is some variation depending on the lender, but almost all are in this range. Buyers taking on a new mortgage, refinancing an existing mortgage, or renewing their mortgage are in a good position to choose a low-interest fixed rate and low monthly payments without worrying about what the market will do in the next five years.

Future of 5-Year Fixed Mortgage Rates

Unfortunately, there’s no way to know what the rates will do in the future. They could drop a little more, or they could go up. Fortunately, with rates as high as 2.9%, there’s not much difference with what the rates currently are and what they could potentially drop to. Locking in a mortgage rate right now is a good deal no matter how you look at it.

Most economists agree that the markets in Ontario are improving. This will lead to a rise in rates, so people locking in now for a 5-year fixed mortgage rate are getting a good deal. Even if the uncertainty remains, a rate in the mid to high 2-percents is an incredible value compared to what rates were just a few years ago.


With low rates on a fixed mortgage, it’s easy to overspend and buy a more expensive house than you can afford. Instead of looking at what the payments will be today, look at the worst-case scenario and plan for what you may be paying in 5 years when the term ends, and it’s time to renew your mortgage. Look at the low rates as a bonus, not a financial plan.