Find Today’s Lowest 10-Year Fixed Rate Mortgage

Find The Best 10-Year Fixed Mortgage Rates

When comparing Canadian mortgage habits, fixed rates are the most popular type of mortgage nationally. In total, about 70% of all outstanding mortgages are fixed rates. The 5-year renewal option is the most popular, accounting for 60% of all mortgages. Fixed rates are, however, available in different terms ranging from 1 to 10 years. We compare them all in a single glance and then advise which term best suits your specific needs.

When you select a ‘fixed’ rate, you’re ensuring that your monthly payments remain the same over the entire mortgage term. The ‘term’ refers to the duration of your current rate, whereas your ‘amortization’ is the length of time it will take for you to become mortgage-free.

It’s important to understand that all borrowers must meet the standards of approval for the Bank of Canada’s benchmark qualifying rate, even if you choose a mortgage with a lower interest rate and shorter term. This benchmark is in place to both reduce the lender’s risk as well as ensure you can comfortably afford to pay back your mortgage.

Benefits of Fixed-Rate Terms

In most cases, borrowers who want to know exactly what you have to pay towards your mortgage each month are attracted to fixed rates. Fixed rates are seen as a favourable option because having a fixed term in place means your mortgage payments will not change until your term expires. Selecting a fixed rate is like purchasing an insurance policy that guarantees your rate will not rise over your chosen term (1-10 years).

Fixed-rate mortgages are most popular among homebuyers and homeowners who are looking for a reliable payment schedule, manage a tight monthly budget, or are generally more conservative when it comes to finances. For instance, young families with large mortgages relative to their income may be better off opting for the peace of mind that a fixed rate provides.

Consumer Protections For Longer Fixed Mortgage Terms

The benefit of taking on a term longer than 5 years is that a lender can only charge you a penalty of 3 months’ interest after you surpass the 5th anniversary of your mortgage term (per the Interest Act). However, if you end your 10-year fixed mortgage term before your 5th anniversary, the lender can calculate your prepayment penalty charge as the greater of 3 months’ interest or the interest rate differential penalty.

This key piece of legislation protects you from outrageously hefty mortgage penalties in the event you need to break your mortgage early while still offering you peace of mind with consistent and predictable monthly payments.

Popularity of the 10-Year Fixed-Rate Mortgage

The 5-year fixed-rate option is the clear term winner when it comes to fixed mortgages across Canada. But your decision should be based on more than popularity – taking into consideration your risk tolerance as well as your ability to withstand increases in mortgage payments. This is where our expert support is even more invaluable.

10-year terms tend to become more popular when rates are expected to continue rising over the long term following an extended period of historically low rates. The hesitation for many in selecting a 10-year term, however, is that a decade is a long time to be locked into something. There’s no guarantee, after all, that you won’t want to move or even need to relocate over a 10-year period because life happens.

How nesto works

At nesto, all of our commission-free mortgage experts hold concurrent professional designations from one or more provinces. Our clients will receive the best advice and care when they speak with experts exceeding the industry status quo.

Unlike the industry norm, our agents are not commissioned but salaried employees. Our honest and transparent advice guarantees free, unbiased advice on the most suitable mortgage solution for your unique needs.  Our advisors are measured on the satisfaction and quality of advice they provide to their clients.

nesto is working hard to change how the mortgage industry functions. We start with honest and transparent advice, followed by our best rates upfront.  We can offer you these best rates by using technology by providing a virtual and 100% online process to reduce our overhead costs.

By working remotely across Canada, all our mortgage experts and staff spend less time commuting to work and more time with their friends and family. This makes for more dedicated employees and contributes to our success with happy and satisfied clients.

nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.

Reach out to our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.