Best 2-year fixed mortgage rates
As of: September 10, 2025 11:47 a.m.
Term
Fixed
Variable
2-yr
2-yr
Frequently asked questions
What is the best mortgage rate in Canada right now?
As of September 11, 2025, the best high-ratio, 5-year fixed mortgage rate in Canada is 3.94% and the best high-ratio, 5-year variable mortgage rate is 3.95%. These rates are available across much of the country, including in Ontario, Quebec, British Columbia and Alberta.
Will interest rates in Canada continue to go down in 2025?
After a series of seven rate cuts between June 2024 and March 2025, totalling a 225-basis-point drop, the Bank of Canada has now held its benchmark rate at 2.75% for three consecutive announcements. This pause reflects ongoing economic uncertainty tied to U.S. import tariffs, as well as persistent inflation, with June’s core inflation rising above 3%.
As a result, the prime rate remains at 4.95%, meaning variable-rate mortgage holders and borrowers with prime-linked lines of credit will not see any immediate change to their rates.
Fixed mortgage rates, which are based on bond yields rather than the BoC’s policy rate, remain elevated. As the Government of Canada’s 5-year bond yield is currently above 3%, lenders have increased the rates. The lowest five-year fixed insured mortgage rate is now 3.89%.
Looking ahead, further rate cuts are possible later in 2025. However, the BoC has signalled it will proceed cautiously, closely watching inflation trends, trade developments, and signs of economic cooling before making its next move.
See today’s best mortgage rates
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
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2-year fixed mortgage rates: Quick facts
- Mortgage rate is fixed over a 2-year term
- A total of 3.02% of all mortgage requests made on Ratehub.ca from January – December 2023 were for 2-year fixed mortgages, compared to 2% for the whole of 2022.
- Nearly 13% of all mortgage requests made on Ratehub.ca in 2023 were for short-term fixed mortgages with terms of 4 years or less, compared to just under 6% for the whole of 2022.
- 2-year fixed mortgage rates follow 2-year government bond yields
Why choose a 2-year fixed-rate mortgage
While 2-year fixed-rate mortgages represent a relatively tiny percentage of fixed-rate mortgages in Canada, they have been growing in popularity over the past year or so. This is in large part because many homeowners and home buyers have grown increasingly wary of variable mortgage rates in light of the historic eight successive rate hikes carried out by the Bank of Canada between March 2, 2022 and January 25, 2023. Moreover, we are currently in a situation where the best 2-year fixed mortgage rates are actually lower than variable rates, though this is fairly unusual.
It’s important to think about not just today’s rate environment, but also your own personal circumstances when considering a 2-year fixed-rate mortgage. Do you plan on moving soon? Do you expect to change jobs? What else do you have on your horizon that might affect what mortgage product is best for you?
If you are looking for short-term stability with enhanced flexibility, then a 2-year fixed-rate mortgage could be a great option. If you believe that rates are likely to come down in the next year or two, as many financial experts do, and you’re willing to take a risk based on your belief, again a 2-year fixed-rate mortgage just might be right for you. If you’re feeling unsure about whether this is the right choice, you can always speak to a mortgage broker, who can provide you with expert, personalized advice at no cost.
2-year fixed mortgage rates vs. other term lengths (interactive graph)
Historical 2-year fixed mortgage rates
It’s always a good idea to have a look at how the rates for different mortgage terms have changed over the years, as it can give you an understanding of what terms generally attract the best rates. You’ll see in the chart below that 2-year fixed mortgage rates have not always been cheaper than variable rates, the way they are today; in fact, for much of the last four years, they were substantially more expensive. That said, in today’s elevated rate environment, 2-year fixed mortgage rates are quite competitive (see the rate table above for the best rates on the market).
In the chart below, you can compare 2-year fixed mortgage rates against the rates for other types and terms to see how they have changed over the last few years.
2019
2020
2021
202
2023
5-year fixed
2.29%
1.39%
1.39%
1.39%
4.29%
5-year fixed
2.29%
1.39%
1.39%
1.39%
4.29%
5-year fixed
2.29%
1.39%
1.39%
1.39%
4.29%
5-year fixed
2.29%
1.39%
1.39%
1.39%
4.29%
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Is it worth working with a mortgage broker?
First, what exactly is a mortgage broker? Independent mortgage brokers are licensed mortgage specialists who have access to multiple lenders and mortgage rates. They essentially negotiate the lowest rate for you, and because they acquire high quantities of mortgage products, mortgage brokers can pass volume discounts directly to you. There are advantages to getting a mortgage directly from a lender as well as getting a mortgage through a broker, but there are differences between going with a bank vs. a mortgage broker. While going directly to your current bank lets you consolidate your financial products, using a broker allows you to shop around quickly and easily, at no cost to you.
Luckily, you don’t need to choose one or the other. You can speak to multiple banks and use a mortgage broker if you want to. Ratehub.ca is a great place to start, as we compare the best mortgage rates in Canada from multiple lenders. Once you’ve compared your options, we can put you in contact with your chosen provider.
