Best 2 Year Fixed Mortgage Rates Ontario

On this page we review 20 of the best 2 year fixed mortgage rates Ontario, and weigh the pros and cons of this term to see if it may be right for you.

Private: Template 2 Year Fixed

As of December 3, 2024

As of December 3, 2024

2 yr Fixed

Lender
Insured

Insured mortgage rates are typically for less than 20% down payment and are insured against default through the CMHC or comparable default insurer. This involves a one time insurance premium built into the mortgage principal. Maximums: 25 YR amortization, $999,999 purchase price. No refinances.
Insurable

Insurable mortgages follow similar criteria as insured mortgages, but because these are 20%+ down payment/equity, there is no default insurance premium or additional cost built into the mortgage. Available for purchase and renewal, but not refinance/ equity takeout.
Uninsured

Uninsured mortgages are available for purchases of $1,000,000+ and refinance/equity take out transactions. Additional flexibility of uninsured mortgages includes optional 30 year amortization and more flexible borrowing limits.
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  • Altrua Financial Mortgage Rates

    Altrua scans its database of 100+ for the best rates, then negotiates these rates even lower!

    4.89%

    25 YR AM max.

    Payment: $18,94/mo

    4.89%

    25 YR AM max.

    Payment: $18,94/mo

    4.89%

    Payment: $18,94/mo

  • TD

    5.82%

    Payment: $18,94/mo

    5.82%

    Payment: $18,94/mo

    5.82%

    Payment: $18,94/mo

  • BMO

    6.99%

    Payment: $18,94/mo

    6.99%

    Payment: $18,94/mo

    6.99%

    Payment: $18,94/mo

  • CIBC

    5.59%

    Payment: $18,94/mo

    5.59%

    Payment: $18,94/mo

    6.59%

    Payment: $18,94/mo

  • RBC

    5.54%

    Payment: $18,94/mo

    5.54%

    Payment: $18,94/mo

    5.64%

    Payment: $18,94/mo

  • Scotia

    5.49%

    Payment: $18,94/mo

    5.74%

    Payment: $18,94/mo

    5.74%

    Payment: $18,94/mo

  • National Bank

    5.54%

    Payment: $18,94/mo

    -

    Payment: -

    5.54%

    Payment: $18,94/mo

  • Manulife

    6.29%

    Payment: $18,94/mo

    6.29%

    Payment: $18,94/mo

    6.29%

    Payment: $18,94/mo

  • Desjardins

    5.69%

    Payment: $18,94/mo

    5.69%

    Payment: $18,94/mo

    5.69%

    Payment: $18,94/mo

  • Laurentian Bank

    6.84%

    Payment: $18,94/mo

    6.84%

    Payment: $18,94/mo

    6.84%

    Payment: $18,94/mo

  • First Ontario

    5.34%

    Payment: $18,94/mo

    5.34%

    Payment: $18,94/mo

    5.34%

    Payment: $18,94/mo

  • Alterna

    -

    Payment: -

    6.09%

    Payment: $18,94/mo

    6.24%

    Payment: $18,94/mo

  • DUCA

    6.39%

    Payment: $18,94/mo

    6.39%

    Payment: $18,94/mo

    6.39%

    Payment: $18,94/mo

  • MCAP

    7.14%

    Payment: $18,94/mo

    7.29%

    Payment: $18,94/mo

    7.39%

    Payment: $18,94/mo

  • First National

    5.92%

    Payment: $18,94/mo

    5.92%

    Payment: $18,94/mo

    5.92%

    Payment: $18,94/mo

  • ICICI

    6.29%

    Payment: $18,94/mo

    6.29%

    Payment: $18,94/mo

    6.29%

    Payment: $18,94/mo

  • CMLS

    -

    Payment: -

    -

    Payment: -

    -

    Payment: -

2-Year Fixed Mortgage Rate Pros

  • Will mature/renew in 2 years when there is a reasonable interest rate forecast that mortgage rates will be lower.
  • Can provide upside protection from variable mortgage rates within 2 years incase there is a surprise jump in interest rates during this time frame.
  • Offers additional time for inflation and mortgage interest rates to drop vs. a 1 year fixed or variable rate strategy.

Two Year Fixed Mortgage Rate Cons

  • The rate is notably higher than a 3 year fixed rate, and especially a 5 year fixed rate.
  • There is a potential for rates to remain higher for longer, that even in 2 years inflation and rates may not have dropped much lower.
  • Conversely, mortgage rates could drop much sooner than 2 years and there would be higher interest paid than a variable rate or 1 year fixed rate.

Is a two year fixed mortgage rate enough time to allow mortgage rates to drop?

The two year fixed mortgage rate will allow for a consistent rate for the next two years, at a rate that is generally comparable to todays variable mortgage rate. Its a good rate if you’re concerned about potential up side to the variable, if for example inflation makes a come back. While at the same time allows for a renewal in 2 years, at a time when rates may be potentially lower. The two year rate is also good if looking to move in approximately 2 years and you want to avoid a penalty.

Is there any risk of a two year fixed rate?

With any decision, there can be trade-offs. In the case of the two year fixed rate, the rate is higher than a five year fixed rate. So if rates did stay higher for longer, or for example, rates dropped and then went back up just in time for the two-year renewal. Then, you would have paid a higher rate, possibly for no reason.

This kind of situation runs counter to the market consensus. However, there is a chance that it could happen, and this is the main risk of a two-year fixed rate.