Scotiabank Slashes Its 5-Year Fixed Mortgage Rate to 5.54% — Should Homebuyers Lock In Now?

What Happened?

Scotiabank has just lowered its 5-year fixed mortgage rate to 5.54%, making it one of the most competitive offerings among Canada’s major lenders this month.
The move comes amid falling bond yields and increasing competition among lenders — particularly as first-time buyers and switchers become more active heading into the late summer market.
This rate drop is particularly significant because other Big 6 banks are still holding their posted 5-year fixed rates in the 5.74% to 5.89% range.

What It Means for You

If you’re:

• Renewing a mortgage: This could be your chance to lock in at a lower rate before other banks adjust.
• Buying this summer: A 5.54% rate could make a noticeable difference in monthly affordability — especially in major markets like Toronto, Vancouver, and Calgary.
• Floating on variable: It may be time to reassess whether staying variable still makes sense as fixed rates get more attractive.

Broker Insight

“We’re seeing a rate war heating up. Scotiabank’s move could trigger a domino effect — especially among online lenders and credit unions who move faster than the Big 6,”
says Maya Singh, Senior Mortgage Broker in Ontario.

If you’re a newcomer, there’s an extra bonus to consider — Scotiabank is offering $600 back at closing. Want to run the numbers? Their new mortgage calculator makes it easier than ever.

Should You Lock In?

YES, if you want:

• Payment stability
• Insurance against future hikes
• Peace of mind in a volatile year

MAYBE WAIT, if:

• You believe BoC will cut rates by fall
• You’re comfortable with some risk
• You have time to shop around with brokers