Markets have priced in a 67-per-cent chance of a 25-basis-point rate cut when the Bank of Canada meets on Sept. 17.

Five-year mortgage terms have offered some of the lowest fixed rates for much of 2025, but that is starting to change.

Ron Butler, founder of Butler Mortgage in Toronto, said many lenders are now offering promotional rates on three-year fixed terms at around 3.6 per cent. That compares to some of the cheapest five-year fixed rates being in the low 4-per-cent range.

Mr. Butler said the drop in three-year fixed terms is a result of the three-year Canada bond yield moving lower in recent weeks, while the Canada five-year bond has stayed relatively level.

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Daniel Vyner, a mortgage broker b

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