3-year fixed mortgage rates in Canada.
Today’s best 3-year fixed rate in our network is 3.99% — about $2,943/month on a $700,000 home with 20% down. A 3-year fixed is the hedge term: certainty without locking in a five-year rate at the top of the cycle.
Who has the best 3-year fixed rate?
Alterna Savings, at 3.99%. The most popular shorter fixed term, and rising whenever cuts are expected.
Rates illustrative; your file (credit, income, LTV) sets your personalized rate. See the full live board →
What would my payment be?
About $2,943/month. On a $700,000 home with 20% down, the mortgage is $560,000. At today’s best 3-year fixed rate of 3.99% over a 25-year amortization, using Canadian semi-annual compounding, that’s the payment. That payment is locked for the full term.
| Term | Best rate | Est. monthly payment* |
|---|---|---|
| 5-Year Fixed | 4.14% | $2,988/mo |
| 5-Year VariableLowest | 3.00% | $2,650/mo |
| 3-Year Fixed | 3.99% | $2,943/mo |
| 3-Year Variable | 3.55% | $2,811/mo |
| 2-Year Fixed | 3.99% | $2,943/mo |
| 1-Year Fixed | 4.19% | $3,004/mo |
| 4-Year Fixed | 4.14% | $2,988/mo |
| 7-Year Fixed | 4.49% | $3,096/mo |
| 10-Year Fixed | 5.29% | $3,350/mo |
Is a 3-year fixed right for you?
Borrowers who want fixed-rate certainty but don't want to commit to five years when they expect rates to be lower at renewal. It's a popular middle path for renewers in a falling-rate environment and for anyone whose plans (a move, a growing family, a career change) sit roughly three years out.
What drives the rate, and what breaking it costs
What drives the rate. The 3-year fixed follows the 3-year Government of Canada bond. When markets price in rate cuts, the 3-year often sits below the 5-year fixed, letting you lock a payment now and re-shop sooner, closer to the bottom of the cycle.
Breaking it early. Like all fixed terms it uses the greater of three months' interest or IRD, but because the term is shorter the IRD window shrinks faster, so the penalty tends to be smaller than a 5-year fixed's by the back half of the term.
Canadian fixed rates compound semi-annually (not monthly like in the US), so the effective annual cost is slightly below the stated rate. The rate you’re offered is then set by your credit, your down payment / loan-to-value, whether the mortgage is insured, and the property. We compare 3-year fixed pricing across 100+ lenders on one application, then hold your best rate for 90-120 days. Run the numbers in our payment calculator and check the rate forecast.
Fixed or variable?
Fixed keeps your rate and payment the same for the term. Variable moves with prime and costs less to break (3 months’ interest). The 3-year fixed you’re comparing is a fixed-rate product.
Fixed vs variable vs adjustable: what's the difference?
| Feature | Fixed rate | Variable (VRM) | Adjustable (ARM) |
|---|---|---|---|
| Rate movement | Locked for the term | Moves with prime; payment stays flat | Moves with prime; payment adjusts too |
| Payment stability | 100% predictable | Payment fixed; amortization floats | Payment rises and falls with prime |
| Break penalty | Greater of IRD or 3 months interest | 3 months interest only | 3 months interest only |
| Rate follows | GoC 5-year bond yield | Bank of Canada overnight rate → prime | Bank of Canada overnight rate → prime |
| Best for | Budget certainty; holding full term | Expects rate cuts; may break early | Comfortable with payment swings |
Do insured mortgages get lower rates?
Yes. With under 20% down your mortgage is insured, and insured files routinely land 0.20–0.40% below conventional — more than any bank vs broker gap.
Insured vs conventional: rate tiers by down payment
| Tier | Down payment | Max purchase | Rate vs insured | Insurance cost |
|---|---|---|---|---|
| Insured (high-ratio) | 5–19.99% | $1.5M (Dec 2024+) | Lowest rates | 0.60–4.00% of mortgage + ON PST 8% |
| Insurable (low-ratio) | 20–34.99% | No cap | +0.05–0.15% | Optional; lender may insure back-end |
| Conventional (uninsured) | 35%+ | No cap | +0.20–0.40% | None |
A broker shops insured pricing first and captures the deeper discount when your file qualifies — the rate gap alone often eclipses the CMHC premium cost over the term. CMHC insurance explained →
What does it cost to break a 3-year fixed early?
The greater of an IRD (interest rate differential) or 3 months' interest. Monoline lenders usually work out the IRD far more cheaply than big banks.
How the penalty is calculated
3 months interest
Balance × rate ÷ 12 × 3. On a $500,000 mortgage at 5.00%, that’s ~$6,250. Often lower than IRD — lenders charge whichever is greater.
IRD (Interest Rate Differential)
(Your rate − posted comparison rate) × remaining balance × remaining months ÷ 12. Big-bank IRDs use a high posted rate as comparator, inflating the penalty significantly vs monolines.
Monoline vs big bank
Monolines (broker-channel) calculate IRD against contract discount rates — penalty is typically 50–70% lower than an equivalent big-bank fixed. A key reason brokers route fixed-rate files to monolines.
Why get your 3-year fixed rate through a broker?
Because 100+ lenders compete for your file instead of one. We can help you save money.
100+ lenders compete, not one
A bank shows you one 3-year fixed rate sheet. We put your file in front of 100+ lenders — banks, monolines and credit unions.
Broker pricing
The rate we get is typically 15-30 bps below a bank's posted rate. Only a brokerage can reach it.
Locked by design
You give up two years of locked certainty to keep the option of renewing into a lower rate sooner.
Your rate held 90-120 days
A pre-approval locks your 3-year fixed rate while you shop, and many lenders honour a drop before closing.
Both options modelled
We model fixed and variable on your numbers before you commit. No credit pull to start.
Bring us a written offer from a big bank. We’ll try to beat it. If we can’t, we pay you $500. Conditions apply. See the conditions
Whatever your situation
First home, renewal, refinance, self-employed or bruised credit: there’s a 3-year fixed path for your file.
First-time buyers
5% down with FHSA + RRSP HBP optimization.
Refinancing
Tap your home equity for renovations, debt consolidation, or investing.
Renewing
Don't auto-renew. Compare your bank's offer against the market.
Self-employed
Business-for-self files priced right — A-lender, alt-A and private.
Bruised credit
B-lender and private paths now, with a mapped exit to A-pricing.
New to Canada
Newcomer programs at the big banks; international credit accepted.
Best 3-year fixed rates — FAQ
What is the best 3-year fixed mortgage rate in Canada right now?
The best 3-year fixed rate in our 100+ lender network is approximately 3.99% as of Oct 24, 2026 — about $2,943/month on a $700,000 home with 20% down over 25 years. Your personalized rate depends on your file — income, credit, loan-to-value, and property type. We shop every lender on one application to find your lowest.
Should I choose a 3-year fixed rate?
Borrowers who want fixed-rate certainty but don't want to commit to five years when they expect rates to be lower at renewal. It's a popular middle path for renewers in a falling-rate environment and for anyone whose plans (a move, a growing family, a career change) sit roughly three years out. You give up two years of locked certainty to keep the option of renewing into a lower rate sooner.
What drives 3-year fixed rates?
The 3-year fixed follows the 3-year Government of Canada bond. When markets price in rate cuts, the 3-year often sits below the 5-year fixed, letting you lock a payment now and re-shop sooner, closer to the bottom of the cycle.
How much does it cost to break a 3-year fixed mortgage?
Like all fixed terms it uses the greater of three months' interest or IRD, but because the term is shorter the IRD window shrinks faster, so the penalty tends to be smaller than a 5-year fixed's by the back half of the term.
Can I lock this rate before I buy?
Yes. Most lenders offer a 90-120 day rate hold on a pre-approval, so a rising market can't catch you, and many honour a lower rate if they drop. Start a pre-approval (no bureau pull to begin) and we'll hold your best 3-year fixed rate.
Lock your best 3-year fixed rate.
Free, no credit pull to begin. We shop 100+ lenders and hold your rate while you shop for the home.