Best 4-Year Fixed Mortgage Rates In Canada

Mortgage contracts are designed to last for a specific period. This is called a mortgage term.

The “term” is the time you contract to hold the loan with a specific lender. 

You can either renew your mortgage contract with the same lender or take your mortgage to a new lender through a process called mortgage refinance after the  4-year term agreement. 

This is not to be confused with amortization, which is how long you are expected to pay off the mortgage loan ultimately. The most common amortization periods in Canada are 25 years and 30 years. 

Let’s say your mortgage has a 4-year fixed-rate term, amortized over 25 years, with a monthly payment of $2,000 to $3,000. 

In Canada, a mortgage term can range from six months to 10 years. A 4-year fixed-rate mortgage implies that your mortgage contract with the lender will expire (or mature) after four years from the mortgage registration date.

Because your mortgage rate is fixed for the entire  4-year term, your monthly payment will not be affected by the rate changes in the market, and it will stay the same every pay period for the entire four years of the mortgage term.