Fixed Rate

A fixed-rate mortgage is one where the interest rate is “fixed” meaning, it doesn’t change during the mortgage term. In Canada, the average mortgage term is five years, but it can be longer or shorter.

Homebuyers will often opt for a fixed-rate mortgage if they think interest rates are going to increase. Locking in at a fixed rate means your payments won’t change.

There is a trade off with a fixed-rate mortgage; the interest rates are generally a little higher than other types of mortgages. But you also get stability, knowing how much you pay each month, and how much goes to the principle and is going to interest.