Best 3-Year Fixed Mortgage Rates in Canada
Updated April 29, 2026.
Short-term fixed sweet spot
The 3-year fixed has become a popular alternative to the traditional 5-year fixed in environments where short-term rates sit below long-term rates. It offers a meaningful chunk of payment certainty without locking in for the full half-decade.
Who picks it. Borrowers who want fixed-rate certainty but expect rates to fall over the next few years and don’t want to be locked in when that happens. Also: people planning a move, a refinance, or a property sale within roughly three years.
What drives the rate. Government of Canada 3-year bond yields, plus the lender’s spread. When the yield curve is inverted (short rates above long rates), the 3-year fixed can be priced higher than the 5-year. When the curve is normal-shaped, the 3-year is cheaper than the 5-year.
When it’s the right choice. When you want to revisit your rate sooner than five years, typically because you expect lower rates ahead and want to renew into them. When the yield curve makes the 3-year cheaper than the 5-year (it sometimes is). When your life plans have meaningful uncertainty in the 3–4 year horizon.
When to consider alternatives. If you’d prefer maximum payment stability and you don’t want to renegotiate again until 2030+, the 5-year fixed avoids one renewal cycle. If you expect rate cuts and are comfortable with payment fluctuation, variable can capture them faster.
How to read the table. Posted rate is the public list rate; discounted is what brokers typically deliver for well-qualified borrowers. The discount on 3-year fixed is usually similar to the 5-year (often 0.50–1.00% off posted). Always confirm the IRD penalty terms before signing. 3-year fixed penalties tend to be smaller than 5-year, but they still exist.
Rates shown are updated daily and are not an offer of credit. Actual rates require lender approval and may differ. Discounted rates are the bank's own published special-offer rates; a mortgage broker can often secure a lower rate than what's shown. See our methodology.
| Rank | Lender | Posted | Discounted | |
|---|---|---|---|---|
| 1 | RBC Royal Bank | | 4.44% | Visit lender → |
| 2 | Tangerine | | 4.44% | Visit lender → |
| 3 | Alterna Savings | | 4.49% | Visit lender → |
| 4 | Coast Capital Savings | | 4.49% | Visit lender → |
| 5 | National Bank of Canada | | 4.54% | Visit lender → |
| 6 | Vancity | | 4.59% | Visit lender → |
| 7 | BMO Bank of Montreal | | 4.64% | Visit lender → |
| 8 | CIBC | | 4.64% | Visit lender → |
| 9 | Meridian Credit Union | | 4.69% | Visit lender → |
| 10 | Servus Credit Union | | 4.69% | Visit lender → |
| 11 | ATB Financial | | 4.69% | Visit lender → |
| 12 | TD Bank | | 4.79% | Visit lender → |
| 13 | Desjardins | | 4.79% | Visit lender → |
| 14 | Scotiabank | | — | Visit lender → |
Common questions
Why are 5-year rates often higher than 3-year today?
An inverted yield curve. Short-term Government of Canada bond yields are above long-term yields, which the bond market interprets as signaling rate cuts ahead. Lenders price fixed mortgages off these yields plus a margin.
Is 3-year the new default?
Increasingly common, but not the default. The 5-year fixed remains the most popular term in Canada because it aligns with bank promotion cycles and renewal patterns. The 3-year has gained share recently because of pricing inversions.
What's the IRD penalty difference vs 5-year?
3-year IRD penalties are typically smaller in absolute dollars but the calculation method is similar. Always read the lender's prepayment-and-portability terms before signing; IRD math varies by lender.