Select Page

Best 3-Year Fixed Mortgage Rates Ontario

3-year fixed-rate mortgages have constant interest rates for a period of 3 years. This is your mortgage term, the locked-in rate for three years. 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.

Filter Mortgage Rates

  • $
  • $
  • $





Advantages of 3-year fixed-rate mortgages in Ontario

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 Ontario

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.

 

Pros & Cons of getting a Private Mortgage & Loans

What Are Private Mortgage Loans? Private mortgage loans are granted by private lenders unlike banks or conventional financial institutions. These short term loans do not require homeowners to pay the mortgage principal. Simply put, you only have to make the interest...

read more

How much mortgage do I qualify for?

How much do I qualify for? If you’re ready to purchase a new home, one of the first things you want to find out is how much you’re qualified to borrow. Lenders have restrictions on the amount of money that a lender can borrow that is based on the borrower’s...

read more

Reasons to Consider Mortgage Refinancing

There are many reasons to consider mortgage refinancing to replacement your existing mortgage loan with another lender under different terms. A borrower in Canada may consider refinancing his or her loan for diverse reasons. If you’re not sure whether you should go...

read more

Shop before you Renew

        At mortgage renewal time, it is important to keep in mind that all financial institutions are about making a profit. Unfortunately, according to the Canada Mortgage and Housing Corporation (CMHC), between 60-70% of Canadians...

read more