Best 3-Year Fixed Mortgage Rates
In a 3-year fixed mortgage rate 3-Year is your mortgage term, the period for which your rate is locked in and wont change. It is different to the amortization period, which is the amount of time you can take to repay your mortgage. Your mortgage term is the point at which you can renew your mortgage rate.
Today's Lowest 3-Year Fixed Rate
- Updated: November 2, 2023
5.14%
3-Year Fixed
Lock in Or Inquire about this Rate
3-year fixed-rate mortgages in Ontario aren’t the most popular, but they make sense in certain circumstances. About 20% of Canadians have mortgage terms ranging between 2 and 4 years. This figure is slightly higher in the case of younger people. However, the most popular mortgages in the country (66%) have fixed rates. 3-year fixed-rate mortgages have constant interest rates for a period of 3 years.
Advantages of 3-year fixed-rate mortgages in Canada
Perhaps the biggest advantage of 3-year fixed-rate mortgages is that you know how much your mortgage payments will be. Also, you don’t have to worry about changes in interest rates. You can plan your budget, set mortgage payments aside, and forget about it. These mortgages are the lowest cost option if you want to lock in their interest rates for the long term. Buyers should also have no intention of refinancing the mortgage or increasing the payment before three years. In addition, longer-term fixed-rate mortgages cost borrowers more interest than short-term and variable-rate mortgages. Also, when buyers switch to 3-year fixed-rate mortgages, most lenders are willing to pay the appraisal and legal fee.
Disadvantages of 3-year fixed-rate mortgages in Canada
Perhaps the biggest disadvantage is that fixed-rate mortgages have much higher penalties for early termination. Major banks calculate penalties using the bank’s current rate, which can be quite harsh.
* Listing data is provided under copyright by the Toronto Regional Real Estate Board (TRREB). The information may only be used for informational purposes and must not be utilized in commercial activities or other improper uses, as it could cause legal issues. However, this data has been deemed reliable but not guaranteed accurate by TRREB nor Ratestead representatives because they do their best to ensure accuracy while relying on multiple sources without independent verification.
** Contains information licensed under the Open Government Licence – Ontario.
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