The place to bring it down (if you need to) would be on your pre amp and/or your interface. Once the signal is into Cubase you're just playing with zeroes and ones, not the true level.
There's no one way to do gain staging, particularly when you can't measure
absolute level every step of the way. The best you can do is make sure you level are all in a similar "good" range throughout the chain. The main thing to avoid is having one fader or pot up high and the next one down low to compensate (or vice versa of course). If everything is set to something like the same level--and you end up with the levels you want--then you're probably okay.
As for what level to aim for, if your PEAKS are at -5dB(FS), you never exceed that no matter how loud you go, and there's no sign of analogue clipping in your pre amp/interface part of the chain, then I wouldn't worry too much.
There are two or three reasons to keep your level relatively low. First, you need enough headroom--at every stage in your system, not just once it gets into Cubase--to make sure you never get to clipping. If your peaks truly never exceed -5dB(FS) then you've achieved this, though maybe with not quite enough leeway when things get really hot.
Second, when you add tracks together in a mix the levels are cumulative. If everything is up highish, then you just have to turn things down to avoid clipping when
the tracks are mixed together. (I'll ignore Floating Point systems here for brevity.) It's not a big deal to turn things down a bit though--so long as you're not having problems, then don't worry.
Third, and a bit more in the realms of "maybe", if you add
effects with a few plug ins that try to act like analogue outboard gear or if you actually use analogue outboard gear, then it's possible for high levels in the digital domain to cause clipping...but, in my experience, this is rare. Most plug ins and D to A converters are set to pass levels of 0dB(FS) because that's how most mixes end up in these days of loudness wars.
(As a brief background, 0dB(VU) is generally regarded as being equivalent to -18dB(FS). In the analogue
world you'd tend to work with your signal averaging around the 0dB(VU) mark and peaks going to, say, +8 or even +12 dB(VU) depending on the headroom in your recording chain. A bit of maths will tell you that +8dB(VU) is roughly equivalent to -10dB(FS) in the digital domain--but this is a guideline not a hard and fast rule.)
So, after several paragraphs of waffle, if you want to knock 5dB off your levels, do it at the pre amp/interface stage. However, if you're happy with your recordings now, I wouldn't worry about it.