Canadians have many choices when it comes to low mortgage rates. 10-year fixed rates, for example, can save Canadian homeowners a lot of money on a mortgage, and we are the best resource online for accessing the lowest 10-year fixed mortgage rates. Our selection of rates is second to none, making it quite convenient to apply for a loan using our tools. After you read the following 10-year fixed-rate mortgage guide, choose a rate on this page to apply for a 10-year fixed-rate mortgage.
The 10-Year Fixed Mortgage Rate Defined
A fixed interest rate never changes during its loan term. Therefore, a 10-year fixed mortgage rate is the unchanging rate of interest borrowers pay on a loan with a term of ten years.
Few Canadians will pay off their home loan in less than ten years, so loans are usually amortized over a longer period. As fixed-rate terms end during this amortization period, the loan must be renewed or refinanced. Canadians who choose 10-year terms throughout the entirety of their amortization period will pay three different interest rates over the life of a 30-year mortgage.
What Are the Pros and Cons of 10-Year Fixed Mortgage Rates
Having trouble deciding whether a 10-year fixed mortgage is right for you? These pros and cons of the product should help you determine whether said loan will fit your needs:
• Long-Term Predictability — Since the interest rate remains the same, your principal and interest payments never change during your 10-year fixed-rate term. • Protection Against Drastic Rate Fluctuation — Because your interest rate does not change over a 10-year period, you are protected from wide interest rate swings that may occur during your 10-year fixed-rate loan. • Low Rates — In comparison to most revolving lines of credit, the best 10-year fixed mortgage rates are much lower than rates typically charged on credit cards and other consumer loans. This makes a home equity line of credit or second mortgage with a 10-year fixed-rate term much less expensive than other credit options.
• High Refinancing Costs — Fixed interest rates may decrease during your 10-year loan term. Refinancing before the end of your loan term to take advantage of better rates can be quite expensive, and a 10-year loan term makes it much harder to refinance without paying extra costs because of the sheer length of the loan term. • Interest Rate Premium — Banks charge a premium to let homeowners guarantee their interest rate for ten years. You can often pay less in interest with fixed-rate terms that are shorter than ten years.
More Key Facts about 10-Year Fixed-Rate Mortgages
You may not have known that:
• Less than one-tenth of Canadian homeowners have a mortgage with a term that lasts longer than 5 years. • Virtually no Canadian homeowner under the age of 54 has a loan with a term of greater than ten years. • 10-year fixed mortgage rates tend to be, on average, 3 points higher than 1-year fixed mortgage rates. • Since 2006, the highest average 10-year fixed mortgage rate was just over 6 percent in November 2011. • Since 2006, the lowest average 10-year fixed mortgage rate was approximately 5 percent in November 2010. • Banks set their rates on 10-year fixed mortgages by taking 10-year government bond interest rates and adding points or fractions of points. This creates a rate spread, which represents how much more they can earn on a mortgage than on a bond.
Apply for a 10-Year Fixed Rate Mortgage
You are ready to take advantage of low current 10-year fixed mortgage rates. Choose one of the rates on this page to apply for a 10-year fixed-rate loan.
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