Is a Five-Year Fixed Mortgage Still the Right Fit?

For years, a five-year fixed mortgage was the familiar choice. You knew your rate, you knew your payment, and you could put it out of your mind for a while.

That certainty still matters. But more Canadians are considering whether a shorter fixed term or a variable rate might better suit their lives.

According to CMHC, in the first quarter of 2026, 35.5% of new uninsured mortgages were variable rate, while 49.5% had fixed terms shorter than five years. Together, that’s about 85% choosing something outside the traditional longer fixed term. CMHC

So, should you be doing the same?

Maybe. But what works for someone else isn’t necessarily what will feel comfortable for you.

Why flexibility matters

A shorter fixed term gives you a set rate and payment, with the opportunity to revisit your mortgage sooner. A variable rate can let you benefit if rates fall, but it also means being prepared if they rise.

How that affects your payment depends on the mortgage. With an adjustable-rate mortgage, your payment changes with the rate. With a fixed-payment variable mortgage, your payment may initially stay the same, while the amount going towards principal changes.

A five-year fixed can still be a good fit if knowing your payment for longer helps you feel settled. The important part is understanding what happens if your plans change before those five years are up.

If you’re weighing the two options, our guide to fixed vs. variable mortgages in Brantford walks through what to consider before deciding.

Start with your budget and your life

CMHC’s 2026 Mortgage Consumer Survey found that 35% of renewing borrowers faced higher mortgage payments, with an average increase of $375 per month. That’s a meaningful amount in a household budget. CMHC

Before choosing your next term, here are four questions we’d want to talk through with you.

1. What payment feels comfortable?

There’s a difference between a payment you can technically afford and one that leaves room to live.

If a few hundred dollars more each month would make things tight, payment predictability deserves real consideration.

2. What might change over the next few years?

Could you move, renovate, refinance your mortgage or access your home’s equity?

You don’t need to have everything figured out. But your mortgage should take your likely plans into account.

3. What comes with that rate?

The rate matters. So do the cost of breaking your mortgage early, your options for making extra payments, and whether you can take your mortgage with you if you move.

A lower rate can look appealing until a restriction gets in the way of something you need to do.

4. Would this still work if rates move differently than expected?

We wouldn’t choose a mortgage simply because we think rates will go down.

We’d look at what happens if they rise, stay put or fall, and help you understand how each option could affect your budget.

You don’t need to predict the future

You do need to understand your options and feel comfortable with the trade-offs.

That’s why you’ve got us - we start with three things: the payment that fits your life today, the increase your budget could handle, and how long you expect to keep the mortgage.

From there, we can compare a variable rate, a shorter fixed term and a five-year fixed with your circumstances in mind.

If your renewal is coming up, or you’re wondering whether your current mortgage still fits, we’re here to help. Explore our mortgage services in Brantford and Brant County, and reach out when you’re ready. We’ll talk through the numbers and your plans together, so you can make a decision you feel good about.