Borrowers Outsmart Lenders to Secure Unprecedented Low Refinance Rates

As of September 18, 2025, Canadian mortgage refinancing rates remain highly competitive, with a variety of attractive offers from numerous lenders for both fixed and variable rate products. A closer look at the current market shows a wide range of choices, with mortgage brokers frequently assisting borrowers in obtaining the best available conditions. According to recent discussions on platforms like RedFlagDeals.com, some borrowers have managed to obtain 5-year fixed rates as low as 4.94%, which is significantly under the market average. Such favorable rates are typically offered to buyers of owner-occupied homes who have strong credit profiles and substantial equity or larger down payments.

Within the variable rate category, many lenders are providing appealing deals that feature discounts from the prime rate. For example, 5-year closed variable rates are being offered at Prime minus 1%. Borrowers drawn to these variable products often value flexibility, though they remain cautious about possible penalties for early repayment or switching lenders. Certain institutions, including Scotia Bank and Industrial Alliance Pacific, are highlighted for their closed variable rates at Prime minus 0.85 to 1.00, depending on both the lender and the applicant’s finances. There are also open variable rate choices, with select lenders providing up to Prime minus 0.95 and minimal prepayment penalties, making these options suitable for individuals who may relocate or refinance in the near term.

For those planning to refinance or transfer their mortgage, careful timing and early preparation are essential. Community mortgage professionals often advise reaching out to a broker 90 to 120 days prior to the renewal or closing date to secure optimal rates and avoid added costs. A successful refinancing process typically requires solid credit and adequate income to meet the new loan obligations. Moreover, competitive rates that cover costs such as appraisals and legal fees are generally more accessible for mortgage transfers, while penalties from breaking an existing mortgage are usually not included.

Given current trends, fixed-rate mortgages are especially appealing to borrowers who prefer guaranteed, stable payments over the long term, especially with the possibility of rising interest rates in the future. Conversely, variable-rate mortgages may offer cost savings if the prime rate holds steady or declines. It’s important for borrowers to carefully consider these factors in light of their financial objectives and risk appetite. At the time of this update, 5-year fixed rates can be found as low as 4.94%, and variable rates are available below 5.25% for both open and closed terms. Actual rates depend on factors such as creditworthiness, property value, and loan-to-value ratio, and are subject to change.