Do fewer lenders offer 4-year fixed mortgages?

Yes. The 3-year and 5-year fixed dominate Canadian demand, so fewer lenders actively promote 4-year terms and advertised availability is thinner. That can mean less comparison shopping data and sometimes less competitive pricing, though monoline and credit union lenders do offer them. Availability changes without notice.

How much will my monthly payment be at about 4.09% over 25 years?

Payment depends on balance, rate and amortization. As an illustration only, a $400,000 mortgage amortized over 25 years at about 4.09% works out to roughly $2,140 per month before property tax, insurance or other costs. Run your own numbers through a mortgage payment calculator rather than relying on examples.

When is the next Bank of Canada rate announcement?

September 2, 2026. The Bank of Canada held its target for the overnight rate at 2.25% on July 15, 2026, its sixth consecutive hold, and prime at major banks has been 4.45% since October 2025. Note that fixed rates follow Government of Canada bond yields rather than the policy rate, and the 5-year benchmark yield rose to about 3.35% by August 20, 2026. Market expectations are not forecasts or guarantees.

4-Year Fixed Mortgage Rates Canada — August 2026

Q: What are 4-year fixed mortgage rates in Canada in August 2026?

As of late August 2026, public Canadian comparison tables showed the best advertised 4-year fixed rate around 4.09%, with some sources listing lower insured pricing near 3.94% depending on lender and insurance status. Advertised lowest rates typically assume an insured or insurable, owner-occupied purchase with strong credit — many borrowers are quoted above these benchmarks. These are public benchmarks, not offers or guarantees.

Q: Is a 4-year fixed cheaper than a 5-year fixed right now?

In late August 2026 they were pricing at roughly the same level — about 4.09% on both terms at one major comparison site, with the lowest 5-year fixed advertised around 3.94% elsewhere. When a shorter term does not come with a lower rate, most of its value is in flexibility rather than savings.

Q: Why would someone pick a 4-year fixed instead of a 3-year or 5-year?

The 4-year fixed splits the difference between the two most popular terms: one more year of payment certainty than a 3-year, and renewal arriving a year sooner than a 5-year. It can suit borrowers who want to shorten their exposure to today's fixed pricing without re-shopping every couple of years. The right term depends on individual plans and risk tolerance.

Quick takeaway: As of August 23–26, 2026, one major public comparison table showed the best advertised 4-year fixed at about 4.09%, while the lowest advertised 5-year fixed sat near 3.94% and the 3-year near 3.89%. The Bank of Canada's overnight rate was 2.25%, prime 4.45%, and the 5-year Government of Canada benchmark yield had climbed to about 3.35% by August 20. Next rate decision: September 2, 2026. Lowest advertised figures assume strong, typically insured files — your quote may differ.

~4.09%Best advertised 4-year fixed at a major comparison site, August 23–26, 2026.

~3.94%Lowest advertised 5-year fixed for comparison (WOWA, Aug 21).

2.25%Bank of Canada overnight target, unchanged since late 2025.

Sept 2Next Bank of Canada rate announcement date.

Where 4-year fixed rates sit in August 2026

Mortgage rates vary by lender, province, insurance status and file strength. The table below summarizes advertised pricing reported by two major public comparison sites in late August 2026, with the 4-year shown alongside neighbouring terms.

Term	Best market rate (Ratehub, Aug 23)	Lowest advertised (WOWA, Aug 21)
1-year fixed	~4.59%	—
2-year fixed	~3.89%	~3.94%
3-year fixed	~3.94%	~3.89%
4-year fixed	~4.09%	—
5-year fixed	~4.09%	~3.94%
5-year variable	—	~3.35%

Figures are rounded public benchmarks collected August 21–26, 2026 and change frequently, sometimes daily. Not every source publishes a 4-year column, which itself reflects thin demand for the term. Lowest advertised rates usually assume an insured or insurable, owner-occupied purchase with strong credit and verified income. Conventional/uninsured pricing, rentals, refinances and weaker files are typically quoted higher. See current Canadian mortgage rates for today's snapshot.

What drives the 4-year fixed rate

Like all fixed terms, the 4-year fixed is priced off Government of Canada bond yields of similar duration plus a lender spread and any embedded insurance pricing — not directly off the Bank of Canada policy rate. Two things mattered most in August 2026:

Bond yields drifted up. Bank of Canada data show the 5-year benchmark yield climbing from about 3.28% on August 14 to roughly 3.35% by August 20, with the 3-year around 3.04%–3.11%. A 4-year term prices off the yield curve between those points, so rising intermediate yields feed directly into its pricing.
Inflation re-accelerated. Canada's headline inflation rose to 3.0% in July from 2.8% in June, driven mainly by gasoline and travel costs, while core measures stayed closer to 2.2%. That mix gives the Bank less room to ease and supports the case for intermediate yields staying elevated.

The policy rate matters mainly for variable rates, which are quoted as a discount to lender prime (4.45%). Six consecutive holds have left variable pricing flat since late 2025.

4-year vs 3-year vs 5-year fixed

In late August 2026 the 4-year was not winning on price: the shortest competitive terms were cheaper (~3.89%–3.94% on the 3-year) and the 5-year matched it (~3.94%–4.09%). When a term is not the cheapest on the board, choosing it is usually about structure:

Certainty horizon. A 4-year fixed locks your payment into roughly mid-2030 — one more year of certainty than a 3-year, without committing all the way to 2031 like a 5-year.
Re-shop timing. Renewing in 2030 rather than 2031 means facing the market one year sooner. If rates fall, that is an opportunity; if they rise, it is a cost.
Penalty exposure. Breaking any closed fixed mortgage early triggers a prepayment charge, often an interest rate differential calculated using your contract rate versus current rates. A shorter lock generally means somewhat less exposure to a deep IRD than a 5-year.
Lender availability. Fewer lenders promote 4-year terms, so advertised comparisons are thinner and negotiating leverage can vary. Always compare the full offer — prepayment privileges, penalty calculation, porting rules — not just the headline rate.
Variable alternative. The lowest advertised 5-year variable (~3.35%) started meaningfully below any fixed term but moves with prime and market pricing implied rising odds of a hike by late 2026 or early 2027. Nothing here recommends one structure over another — stress-test whichever payment you would actually carry.

Run side-by-side scenarios in the mortgage payment calculator, and compare the trade-offs in more depth on our fixed vs variable guide.

If you are considering a 4-year fixed at renewal or purchase

Whether you are renewing out of a 2020–2021 low-rate term or buying this fall, the same checklist applies:

Compare the whole offer, not just the rate. Prepayment privileges, penalty calculation, standard charges, porting rules and blend-and-extend options differ meaningfully between lenders.
Confirm your insurance tier. Insured, insurable and uninsured pricing can differ materially; a $750,000 purchase with 15% down prices differently than the same home with 20% down.
Start early. Most lenders will hold a rate for 90 to 120 days before maturity. Renewal letters are first offers, not final ones — lenders routinely price retention differently than acquisition.
Switching at maturity is penalty-free. Because the term ends, moving lenders at renewal avoids a prepayment charge. Details and timing guidance are on the mortgage renewal rates page.

See what a 4-year fixed would cost you

Advertised lowest rates assume a near-perfect file — and 4-year availability varies by lender. RateShop can put current 3-year, 4-year, 5-year and variable offers from dozens of lenders side by side using your actual balance, down payment or equity, insurance status and timeline — so you compare real offers, not table headlines.

Compare 4-year fixed mortgage rates

Illustration: payment at ~4.09% over 25 years

For scale only — this is arithmetic, not advice or a quote:

Mortgage balance	Approx. monthly payment (25-yr am, ~4.09%)
$300,000	~$1,605
$400,000	~$2,140
$500,000	~$2,675
$600,000	~$3,210

Payments shown exclude property tax, heating, insurance and any other costs lenders include in affordability math. Use the mortgage payment calculator with your own figures.

Rate disclaimer

All rates, yields, inflation and market figures on this page are general educational information gathered from public sources on or about August 21–26, 2026 and may be out of date, incomplete or superseded without notice. RateShop does not guarantee any rate, approval or product availability. Actual mortgage rates depend on lender criteria, credit profile, verified income, property type and value, mortgage purpose, down payment or equity, insurance status, amortization and documentation. Payment examples are illustrative arithmetic, not offers. Market-implied rate expectations are not forecasts and frequently prove wrong. This page does not provide personalized mortgage, legal, tax or financial advice. Speak with a licensed mortgage professional about your own situation.

Frequently asked questions

What are 4-year fixed mortgage rates in Canada in August 2026?

As of late August 2026, one major comparison table showed the best advertised 4-year fixed around 4.09%. Those benchmarks assume strong, typically insured files — many borrowers are quoted higher depending on insurance status, property type and overall file. See current Canadian mortgage rates.

Is a 4-year fixed cheaper than a 5-year fixed right now?

No — in late August 2026 they were pricing at roughly the same level, about 3.94%–4.09% depending on the source and insurance tier. When the extra year of a 5-year comes free, the 4-year mainly appeals for its earlier renewal date, not for savings.

Why would someone pick a 4-year fixed instead of a 3-year or 5-year?

It splits the difference: one more year of payment certainty than a 3-year, renewal a year sooner than a 5-year. It can fit borrowers shortening their exposure to today's fixed pricing without re-shopping every few years. The right term depends on your plans and risk tolerance.

What happens when my 4-year fixed term ends?

You can renew with your lender or switch penalty-free, since the term has matured. Your new rate reflects the market at that time, roughly four years from signing. No one can guarantee where rates will be then — that uncertainty is the trade-off for the shorter lock-in. Plan ahead with our renewal rate resources.

How much would my payment be at about 4.09% over 25 years?

A $400,000 balance amortized over 25 years at roughly 4.09% works out to approximately $2,140 per month before taxes and other housing costs. Illustration only — calculate your own in the mortgage payment calculator.

When is the next Bank of Canada announcement?

September 2, 2026. The Bank last held at 2.25% on July 15, 2026, its sixth consecutive hold, with prime at 4.45%. Remember that fixed rates track bond yields — the 5-year benchmark was about 3.35% on August 20, 2026 — not the overnight rate itself.

4-year fixed mortgage rates in Canada: August 2026