5.00% is above market the current Canadian benchmark of 4.04%. Here is what that means in dollars and what to do before you sign.
The Bank of Canada reports the insured 5-year fixed mortgage average at approximately 4.04% and the uninsured 5-year fixed average at approximately 4.29%. The posted-rate ceiling — the starting point banks use before discounting — is approximately 5.99%.
A rate of 5.00% is above market those numbers. This rate is above the bank average but below the posted ceiling. It is above what negotiated borrowers typically pay. Before accepting this offer, compare it against a broker quote and the current benchmark.
This information is for general reference only and is not financial advice. Always verify current rates directly with your lender and the Bank of Canada.
| Mortgage balance | Annual difference | 5-year total |
|---|---|---|
| $300K | $1,923/yr more | $9,615 over 5 yrs |
| $400K | $2,564/yr more | $12,820 over 5 yrs |
| $500K | $3,205/yr more | $16,025 over 5 yrs |
| $600K | $3,846/yr more | $19,230 over 5 yrs |
| $700K | $4,487/yr more | $22,435 over 5 yrs |
| $800K | $5,128/yr more | $25,640 over 5 yrs |
The table above shows the estimated annual and 5-year dollar difference between a mortgage at 5.00% and the current benchmark of 4.04% on a 25-year amortization. These are estimated figures based on Canadian semi-annual compounding — the actual difference depends on your exact balance, amortization, and term length.
On a $500,000 mortgage, paying 5.00% instead of the benchmark adds approximately $3,205 per year in estimated interest costs. Over a 5-year term, that is approximately $16,024 in estimated additional cost compared to the benchmark. These figures are for informational purposes only.
Rates in the 5.00%–5.49% range are commonly seen in major bank renewal letters for existing customers. TD, RBC, BMO, Scotiabank, CIBC, and National Bank frequently send initial renewal offers in this range, though better rates are often available after negotiation.
The most reliable way to confirm whether your specific offer is competitive is to check it against the current benchmark using FairRate. The dollar-cost comparison takes your actual balance and term into account.
5.00% is above market the current Canadian benchmark. The BoC insured 5-year fixed average is approximately 4.04% and the bank average is approximately 4.29%. A rate of 5.00% is above the bank average, which means it may be worth negotiating before you sign. This is for informational purposes based on Bank of Canada data.
The Bank of Canada reports the insured 5-year fixed mortgage average at approximately 4.04% and the uninsured 5-year fixed average at approximately 4.29%. The posted-rate ceiling is approximately 5.99%. These figures are sourced from BoC Valet data at build time and updated regularly.
Start by obtaining the current Bank of Canada benchmark rate. Then request a competing quote from a mortgage broker or another lender. Call your lender's retention department (not the branch) and present the benchmark data and competing offer. Retention specialists have more pricing authority than branch advisors. Do not sign the renewal letter until you have compared the offer.