Understanding Mortgage Terms

A mortgage term is the length of time your mortgage agreement and interest rate are fixed with your lender. Choosing the right term is important because it affects your monthly payments, flexibility, and how often you can renegotiate your mortgage. In Canada, common mortgage terms range from six months to ten years, with five-year terms being the most popular because they offer a balance of stability and flexibility. Shorter terms, like one to three years, can provide more flexibility if you plan to refinance or move soon, while longer terms lock in your rate for a longer period and can provide peace of mind against rate increases. As a mortgage professional, I can help you weigh your goals, budget, and market conditions to choose the term that fits your needs best, so you feel confident in your decision.