Find Today’s Lowest 6-Year Fixed-Rate Mortgages
Your mortgage needs remain front and centre at nesto. You can always expect to receive the very best rate upfront because we compare all of the lenders’ rates across the board. Thanks to our advanced technology, we’re able to examine the entire market in seconds to find the most affordable mortgage while our commission-free experts provide you with unbiased support throughout the mortgage process.
Find The Best 6-Year Fixed Mortgage Rates
Fixed rates are the most popular type of mortgage selected by Canadians from coast to coast. In fact, recent statistics state that 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 all your choices in a single snapshot of the market and then advise which term best suits your unique needs.
When you select a ‘fixed’ rate, this means that there will be no fluctuation in your monthly payments – your rate will not change until your mortgage term expires. 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 5-year fixed 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
Fixed mortgages are well aligned with borrowers who are most comfortable with the convenience of knowing exactly what you have to pay towards your mortgage each month. A fixed-rate makes a lot of sense to conservative borrowers because a fixed term guarantees your payments will remain the same until your mortgage term expires. In essence, a fixed rate is like having an insurance policy in place that guarantees your rate will not rise over your selected term (1-10 years).
Fixed-rate mortgages are the option of choice for homebuyers and homeowners who are looking for a reliable payment schedule, manage a tight monthly budget, or are generally more risk-averse 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 6-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 6-Year Fixed-Rate Mortgage
While the 5-year fixed-rate option comes out on top in popularity for Canadians, that doesn’t mean it’s always the best choice for every homebuyer or homeowner. Your decision should be based on your risk tolerance as well as your ability to withstand increases in mortgage payments. This is where our expert support is even more invaluable.
6-year terms are not very common among those who select a fixed rate. Opting for a 6-year fixed-rate mortgage often coincides with personal plans that make this an ideal choice.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.