Your mortgage term is one of the most important decisions you'll make—it determines how long your rate is locked in, when you'll need to renew, and how much flexibility you have. Here's how to choose the right term for your situation.
Understanding Mortgage Terms
First, let's clarify terminology:
- Term: The length of your mortgage contract (typically 1-10 years)
- Amortization: The total time to pay off your mortgage (typically 25-30 years)
Example: You might have a 5-year term within a 25-year amortization. At the end of 5 years, you renew for a new term.
Available Term Options in 2026
FAQ
Q: What term do most Canadians choose?
A: The 5-year fixed remains most popular (about 60% of borrowers), though 2-3 year terms have gained popularity in the current rate environment.
Consider Your Term Carefully
Get pre-approved and we'll help you choose the optimal term.
Get StartedQ: Should I match my term to my plans?
A: Yes! If you know you'll sell in 2 years, don't take a 5-year fixed (penalties). Consider a 2-year term or variable.
Q: Can I switch from variable to fixed mid-term?
A: Most variable mortgages allow conversion to fixed anytime without penalty. You'll get the current fixed rate for the remaining term.
Q: What if I'm unsure about my plans?
A: Variable rate offers most flexibility (3-month penalty). Alternatively, a shorter fixed term reduces penalty exposure.
Q: Are longer terms (7-10 years) worth it?
A: Rarely. The rate premium is significant, and penalties are enormous if you break early. Very few people stay in the same mortgage for 10 years.
What's Next
The right term depends on your personal situation, risk tolerance, and plans. Talk to our team for personalized term recommendations based on your specific circumstances.
Get Expert Term Advice
Our team will help you choose the optimal term length for your specific situation and goals.
