3-year fixed mortgage rates

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3-year fixed rates at a glance


This table was last updated on Apr 29, 2024 using data available on each respective institution’s website.

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Unlocking the Best 3-Year Fixed Mortgage Rates for Homebuyers

What is a 3-Year Fixed Mortgage?

Navigating through the intricate world of mortgages can be a daunting task, especially when the market is as volatile as it has been in recent times. In Canada, a particular type of mortgage has garnered attention due to its peculiar nature and the financial stability it offers to borrowers amidst economic uncertainties - the 3-year fixed mortgage rate. This type of mortgage rate has its own set of advantages, challenges, and specific audience, which we will explore in this section.

In the realm of mortgages, a 3-year fixed rate implies that the borrower is locked into a rate that will not fluctuate for a period of three years, regardless of the economic climate or variations in the Bank of Canada rate. This shields against potential rate hikes, ensuring that monthly payments remain constant, thereby aiding homeowners in maintaining a consistent budget without fearing unexpected spikes in their payment obligations.

Current Landscape of 3-Year Fixed Mortgage Rates

Navigating through the mortgage landscape, especially amidst economic fluctuations, requires a keen understanding of the prevailing rates and the factors influencing them. The 3-year fixed mortgage rate, a pivotal aspect of this landscape, has its own story to tell, shaped by various economic and policy-driven elements.

A Snapshot of Today’s 3-Year Fixed Rates

As we delve into the current scenario, the average 3-year fixed mortgage rate in Canada is pegged at 6.79%. This rate, while providing a snapshot, is the outcome of a myriad of factors, including economic indicators, policy decisions by the Bank of Canada, and global economic conditions, all of which intertwine to shape the rate available to borrowers.

A Glimpse Backward

Historical data provides valuable insights into the trajectory and volatility of the 3-year fixed mortgage rate. Over the past two decades, rates have experienced both highs and lows, influenced by economic events such as the 2008 financial crisis and more recent global events. This historical context is crucial, providing borrowers a lens to view current rates and anticipate potential future shifts.

A Backdrop to Mortgage Decisions

Navigating through 2022 and into the initial months of 2023, the financial landscape was notably shaped by the Bank of Canada's strategic moves to counteract the surging inflation rates. A substantial elevation by 4.25% in the target for the overnight rate was witnessed, catapulting it from a mere 0.25% at the onset of 2022 to a striking 4.50% in the present day. This not only propelled variable mortgage rates to soaring heights but also nudged fixed mortgage rates upward, as inflation triggered a swift ascent in bond yields.

What Does This Mean for You?

The current rate implies that borrowers opting for a 3-year fixed mortgage rate will lock in this rate for the duration of the term. It shields against potential rate hikes, ensuring consistency in monthly mortgage payments. However, it also means that should rates decrease, borrowers are locked into the higher rate until the end of the term.

Historical 3-Year Fixed Mortgage Rates

Navigating through the historical lens of 3-year fixed mortgage rates provides a fascinating insight into the ebb and flow of the financial landscape over the years. This journey, while influenced by various economic, political, and global events, paints a picture of the volatility and trends that have shaped the mortgage market.

A Rollercoaster of Rates

Historically, 3-year fixed mortgage rates have experienced a rollercoaster of highs and lows, reflecting the dynamic nature of the economic environment. For instance, the early 2000s witnessed relatively high rates, gradually descending in the following years, reaching historical lows in the past decade.

Influencing Factors

  • Economic Indicators: Metrics such as inflation, GDP growth, and unemployment rates have historically played a pivotal role in shaping the 3-year fixed mortgage rates.
  • Global Events: Events such as the 2008 financial crisis and recent global occurrences have left their imprint on the historical trends of 3-year fixed mortgage rates, influencing their trajectory.
  • Policy Decisions: The Bank of Canada’s policy decisions, particularly pertaining to the key interest rate, have historically impacted the 3-year fixed mortgage rates, steering them in various directions over the years.

Why Consider a 3-Year Fixed Mortgage?

Navigating through the mortgage terrain involves making pivotal decisions, one of which revolves around the term of your fixed-rate mortgage. The choice between a 3-year and a 5-year fixed mortgage rate, each with its unique offerings and implications, often leaves borrowers in a quandary. Let’s delve into the nuances of these two mortgage types, drawing insights from the current mortgage landscape.

The 3-Year Fixed Mortgage: A Closer Look


  • Balanced Approach to Rate Protection: Offering a middle ground, the 3-year fixed rate provides a compromise between enjoying lower rates and securing protection against potential rate hikes for a reasonable duration.
  • Minimized Breakage Penalty Risks: Most borrowers tend to break their 5-year mortgages around the 3.8-year mark on average, opting for a 3-year term reduces the likelihood of incurring mortgage breakage penalties.
  • Refinancing Flexibility: After the 36-month term, borrowers can refinance their mortgage, switch lenders, or negotiate for better deals without limitations or penalties.


  • Limited Shield Against Rate Increases: While providing some level of protection, the 3-year term may expose borrowers to the risk of renewing at a higher rate, especially when compared to longer fixed-term options.
  • Potentially Higher Breakage Penalties: Fixed-rate mortgages, including the 3-year fixed, can come with substantial penalties for early termination, often involving a choice between three months’ interest or the Interest Rate Differential (IRD), which can translate to significant amounts.
  • Increased Renewal Endeavours: Opting for a 3-year term means engaging in the renewal process more frequently, which involves additional paperwork, rate research, and renegotiation efforts, especially if the current lender is not offering competitive rates upon renewal.

Strategic Considerations: 3-Year or 5-Year Fixed Rate?

  • Anticipating Future Rates: With experts postulating a potential decline in mortgage rates in the forthcoming years, 2024 and 2025, the 3-year fixed rate emerges as a strategic choice for those seeking to re-enter the market sooner.
  • Balancing Stability and Flexibility: While the 5-year fixed rate offers extended stability, the 3-year fixed rate provides a balanced blend of stability and the flexibility to reassess and modify your mortgage strategy in a shorter timeframe.
  • Aligning with Personal Circumstances: Your circumstances, plans, and financial health are pivotal in determining whether a 3-year or 5-year fixed rate is optimal for your scenario.

Choosing the Optimal Mortgage Rate for Financial Savings

Embarking on a mortgage journey is a significant financial decision, and choosing the optimal rate is paramount to ensuring long-term financial savings and stability. The choice between various mortgage rates, whether it be a 3-year fixed rate or another term, should be meticulously crafted, aligning with both your current financial health and future aspirations. 

At Pine, we understand the intricacies and the personal nature of this decision. Our dedicated team of mortgage specialists is committed to guiding you through this pivotal journey, ensuring that your mortgage strategy is not only tailored to your unique circumstances but also optimized for financial savings and security. As we conclude this exploration into the world of 3-year fixed mortgage rates, we invite you to connect with us at Pine, where your financial aspirations transform into strategic, personalized mortgage solutions. Together, let’s navigate through your mortgage journey, crafting a path seamlessly aligned with your financial landscape and future goals.

Mortgage Statement

Calculation results and mortgage rates shown are approximations and dependent on the data you have provided. They are for illustration purposes only and are not intended to provide financial advice. Pine does not make any representations or warranties with respect to the calculation results. Rates quoted are not considered as rate guarantees. Pine may offer different rates when you apply for your mortgage if any of the provided details differ, if rates have changed. In some instances, rates may also vary based on your credit or payment history. Additional terms and conditions may apply.

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