Find Today’s Lowest 7-Year Fixed Rate Mortgage
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Find The Best 7-Year Fixed Mortgage Rates
As a whole, Canadians are fairly conservative when it comes to their finances. That’s why there’s little surprise that fixed rates are the most popular type of mortgage selected by Canadians. In fact, about 70% of all outstanding mortgages are fixed rates. The 5-year renewal option is the most popular, accounting for 60% of all mortgages.
But did you know that fixed rates are available in different terms ranging from 1 to 10 years? We compare all your choices in a single glance and then advise which term best suits your specific needs.
When you choose a ‘fixed’ rate, this means that your monthly payments will remain the same throughout your 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.
What is the lowest 7-year fixed mortgage rate on Tuesday, February 20, 2024?
The national average 7-year fixed insurable mortgage rate in Canada is
Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).
Benefits of Fixed-Rate Terms
Fixed mortgages are well suited to borrowers who are most comfortable with the convenience of knowing exactly what you have to pay towards your mortgage each month. A fixed mortgage rate makes a lot of sense to many borrowers as it guarantees your payments will remain the same until your mortgage term expires. Selecting a fixed rate is like taking out 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 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 7-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 7-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.
7-year terms are not very common among those who select a fixed rate. Choosing a 7-year fixed-rate mortgage often coincides with personal plans that make sense to align with the mortgage term.
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 specialists that exceed the industry status quo.
Unlike the industry norm, our agents are not commissioned but salaried employees. This means you’ll get 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 low rates using the fintech industry’s best-in-class and safest technology to provide a 100% digital online experience and process to reduce 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.