In Canada’s ever-evolving mortgage landscape, the 5-year fixed mortgage continues to be the preferred option for most homebuyers and homeowners. Whether you’re entering the market, renewing an existing term, or looking to refinance, the appeal of long-term payment stability and rate protection remains strong especially in 2025’s post-inflation climate.

So, where do today’s rates stand, and how can you find this space with confidence?

5-Year Fixed Rates: A Snapshot of July 2025

As of July 31, 2025, Canada’s national average for a 5-year fixed mortgage sits around 4.65%. However, the market tells a more nuanced story. Some insured, high-ratio mortgage rates have dipped as low as 3.89%, a compelling figure for qualified buyers. Elsewhere, top-tier brokers are offering rates from 3.99%, often lower than the 4.09% – 4.69% ranges promoted by major banks and digital lenders.

It’s important to remember that advertised rates are just the surface. The rate you actually secure depends on factors like credit history, down payment, property type, and income profile. Personalized quotes offer a clearer picture and often reveal savings not visible in rate tables alone.

Why Are Rates Holding Steady in Mid-2025?

The Bank of Canada’s July 2025 decision to hold its policy rate at 2.75% plays a central role in shaping today’s mortgage environment. After a wave of rate cuts in 2024 designed to ease inflation, the central bank has adopted a more cautious stance this year.

Yet fixed mortgage rates are more closely tied to bond yields, and those remain stubbornly high above the 3% mark driven by global economic volatility, persistent inflationary concerns, and long-term growth uncertainty. This keeps fixed mortgage rates elevated relative to the ultra-low levels seen earlier in the decade, though they remain below the spike experienced in 2022 and 2023.

Behind the scenes, rate competitiveness has intensified. Non-bank lenders, mortgage aggregators, and brokerages have been quietly pushing aggressive fixed-rate offers to win business, especially in urban centers like Toronto, Vancouver, and Calgary. Many of these deals don’t make headlines, but they represent real value particularly when paired with personalized advice and fast turnaround times.

Is a 5-Year Fixed Right for You in 2025?

In a market filled with noise and uncertainty, many Canadians still choose the 5-year fixed mortgage because it provides one key advantage: peace of mind. The ability to lock in a consistent payment amount for the next half-decade creates financial predictability, something that’s increasingly important in a world of volatile inflation, rising housing costs, and uncertain policy directions.

While variable-rate mortgages may eventually benefit from future rate cuts, many borrowers aren’t willing to gamble on timing. That’s where a well-structured fixed-rate mortgage, negotiated through a broker who understands the full lending ecosystem, can offer a powerful balance of security and savings.

And while traditional banks continue to promote posted rates with limited flexibility, savvy borrowers are looking elsewhere toward lenders and teams that understand the nuances of rate structures, prepayment options, and the hidden costs of refinancing.

Why It Pays to Look Beyond the Banks

There’s a growing awareness among Canadian borrowers that getting the best mortgage rate isn’t just about the headline number, it’s about how the mortgage is structured, how quickly you can get approved, and how well the product fits your long-term financial goals.

That’s where alternative mortgage professionals quietly outperform the major players. With access to a broader network of lenders, they can offer rates that compete aggressively with the banks, often with more flexible conditions and faster approval processes. For clients with unique financial situations such as entrepreneurs, gig workers, or those carrying debt these providers become a critical advantage.

In particular, some brokerages specialize in avoiding costly penalties during early exits or refinances. Their teams are often salaried, meaning they provide unbiased guidance, focused more on your goals than on commission targets. That level of transparency is increasingly rare and increasingly valuable.

Your Next Step: Let Cannect Help You Get Ahead

In 2025’s competitive housing and mortgage market, working with a mortgage expert who understands the entire lending, not just what one bank offers can make a significant difference. Whether you’re buying your first home, renewing your mortgage, or refinancing to access equity or lower your monthly costs, having the right team in your corner changes everything.

At Cannect, that’s what we do best. We bring transparency, speed, and top-tier rates to every client, every day. With digital tools, fast approvals, and advice that’s focused solely on your success not on a commission, we’ve helped thousands of Canadians make smarter mortgage decisions for more than two decades.

Ready to discover your best 5-year fixed mortgage rate?
Apply now with Cannect and see how much you could save today and over the next five years.