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When you find the best quote, secure your rate by talking to a licensed broker or agent.
A 3-year fixed-rate mortgage is a great option for Canadians who want the stability of a fixed rate for a short period of time and the flexibility of being able to renew their mortgage sooner than the more common five-year term.
If you’re ready to compare 3-year fixed mortgage rates right now, choose one of the options above. If you’re renewing, refinancing, or are a first-time homebuyer in need of a new mortgage, LowestRates.ca can help you find the lowest rate on a three-year fixed mortgage.
Because we compare mortgage rates from the country’s top banks, brokers, and lenders, and we update those rates throughout the day, you’ll always see the most current 3-year fixed mortgage rates.
The first thing you should understand about a mortgage is the term. This is the length of time your mortgage contract and interest rate will be in effect. A 3-year fixed-rate mortgage is a mortgage that has a term of three years.
But remember — just because you have a 3-year fixed mortgage doesn’t mean you pay off your mortgage in three years. You’ll likely need many terms to pay off your mortgage. The total time that it takes to pay off your mortgage loan is called the amortization period. When your term comes to an end, you’ll have the option to renew the contract or renegotiate it, which may impact the length of your amortization period.
The second thing to understand about a mortgage is the type of interest rate you’re paying on it. That can be either fixed, where your interest rate remains the same for the term of your mortgage, or variable, where your interest rate fluctuates based on the behaviour of the Bank of Canada.
With a 3-year fixed mortgage rate, you’ll be charged the same interest rate for three years, no matter what happens in the markets. Keep in mind that fixed mortgage rates tend to be higher than variable mortgage rates.
When you sign a three-year fixed-rate mortgage, you enter a contract that’s valid for three years and you will have equal payments be put towards your interest and loan in the same capacity for the duration of your mortgage term.
Other helpful terms to know when it comes to 3-year fixed mortgages:
When you run a comparison on 3-year fixed mortgage rates on LowestRates.ca, you can specify whether you’d like to see rates for an open or closed mortgage. See what the major Canadian banks and leading mortgage brokerages offer on 3-year fixed mortgages by comparing rates today.
Interest rates are always changing. To compare today’s 3-year fixed mortgage rates from 75+ banks and brokers, choose whether you’re buying a home, renewing or refinancing and click the “Get Started” button at the top of the page — we update our rates throughout the day, every day.
Here’s a look at historical average mortgage rates from LowestRates.ca.
|Month||Our average fixed rate||Our average variable rate|
Are you after the cheapest 3-year fixed rate mortgage with no fees? Unfortunately, a 3-year fixed rate mortgage with no fees doesn’t exist. All mortgages come with fees, and we’ve outlined many of them below:
As we stated above, there’s no such thing as a 3-year fixed rate mortgage with no fees. It’s best to estimate these fees ahead of time so you’re not taken off guard when payment comes due. These are fees associated with the mortgage itself; there are several others associated with the homebuying process in general, including legal costs, property taxes, and land transfer taxes.
The good news? We can help you find the lowest 3 year fixed mortgage rates. All you have to do is use the LowestRates.ca mortgage quoter to find the best 3-year fixed mortgage rates in Canada.
You can secure the best rates on a 3-year fixed mortgage with a broker, or with a bank. Which one you choose is up to you.
If you go with a mortgage broker, chances are you’ll benefit from better rates than you would with a bank. That’s because brokers have access to a wide range of lenders, giving you more options. There are other plusses, too, including that brokers don’t have an allegiance to any particular lender, so you can feel confident that they’re trying to secure the best rate.
That said, there’s a chance you might not get access to every single lender out there, since some lenders don’t work with brokers.
While we can’t recommend one Canadian bank over the other for their 3-year fixed rate mortgage deals, we can give you some advice on how to look more attractive to potential lenders. To secure the best 3-year fixed rate mortgage offer, make sure:
If you check these boxes, you’ll have more options when it comes to mortgages. If you only check some of these boxes, you may still get a mortgage but it will likely be from a B lender, which offers slightly higher interest rates.
Compare rates now to find the best 3-year fixed mortgage rates in Canada that suit your needs.
About the Author
Lisa is an Editor and Writer for LowestRates.ca. Her work has appeared in Reader’s Digest, Toronto Life, Canadian Living and TVO. As a child, she diligently hoarded the $50 bills that fell out of her Christmas cards. Adult Lisa is working hard to resurrect those stockpiling tendencies.
This article has been updated from a previous version.*
When it comes to shopping for mortgages, most homebuyers in Canada tend to take a conservative approach.