Find Today’s Lowest 6-Year Fixed-Rate Mortgages

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.

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.