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There is not too much to know about fixed mortgage rates.  Fixed mortgages rates are just that, they are fixed and don’t move for the term you have selected.  You do not have to worry about these fluctuating for your term.  The overall benefit to these rates is knowing for the term selected that your rate, so therefor your payment will stay the same. 


Most lenders offer several different term options for you to choose from.  Fixed rate term options usually range from 6 months – 10 years and just about every option within.  The most commonly chosen term is 5 years. 


Lower fixed rate terms come in to play when you are paying out or breaking an existing mortgage.  If you start with a 5 year fixed mortgage and decide you want to pay it off after 2 years, your rate would be compared to the 3 year fixed rate to determine what type of penalty you would pay.  For example, if you had a current 5 year fixed rate of 2.99% and had 3 years remaining, your payout penalty could be compared to a lender 2.29% 3 year fixed rate (if available from the lender).  That would be a difference of 0.7% which would be multiplied by length remaining and balance. 


You should know that there are different qualifying criteria determined by the rate chosen.  For example for 5, 7 and 10 year terms you can qualify for the mortgage by using the selected rate.  For terms less than 5 years, so 1,2,3 and 4 year rates you have to qualify at the bank of Canada’s Benchmark rate as determined by them.  So if you selected say a 4 year fixed rate, then you would have to qualify at today’s benchmark rate of 4.64%.  It essentially becomes a little tougher to qualify for these.  If I had to guess as to why they do this, I would expect this day and age it is because they are anticipating higher rates down the road, and want to make sure that you can still qualify for a mortgage down the road if rates are higher.


For help in deciding what rate is best for you please contact me. 


For the latest rate info please go to my rates page found at;

Rates are constanly changing. Contact me to find the rate that is best for you.
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