When it comes to mortgage rates, 3-year fixed rates are some of the lowest in Canada. This is the best site for information on Canadian 3-year fixed mortgage rates, as our information and selection of the best interest rates make it simple for you to decide whether a 3-year fixed-rate mortgage is right for you. Read on to find out everything you need to know about these mortgages, and click on the rate of your choice to apply for a 3-year fixed-rate mortgage.

What is a 3-Year Fixed Mortgage Rate?

As the name suggests, a 3-year fixed mortgage rate is the rate of interest you pay on fixed mortgage rates that have a term of three years. Because it is a fixed rate, it never changes during the loan term.

For most Canadians, their loan’s rate term is far shorter than its amortization period, which may last as long as thirty years. This is especially true of 3-year fixed mortgage terms, since most people cannot pay back their principal in full in three years or less. Consequently, many people have several different 3-year fixed mortgage rates over the life of their mortgage. When one term ends, the loan is refinanced or renewed into a new fixed-rate or variable-rate term until the principal is paid back in full.

3-Year Fixed Mortgage Rate Pros and Cons

As with other current Canadian mortgage rates, there are several factors pro and con that can help people determine whether a 3-year fixed mortgage rate is right for them:

PROS

• Consistency — There is never any guessing about what your principal and interest will be during the term of your 3-year fixed mortgage. The rate never changes, so your principal and interest payments do not change either.
• Flexibility — Fixed rates can fluctuate widely from year to year, which means that they might decrease after you sign for your loan. The short 3-year loan term does not force you into a loan for too long, freeing you up to refinance more frequently if rates go down.
• Clarity — A fixed-rate mortgage is the easiest mortgage option to understand.

CONS

• Rate Hikes — Fixed interest rates can go up during your loan term. A short loan term is more likely to force you to renew at higher rates whereas a longer loan term keeps your loan at a guaranteed low rate even when market rates fluctuate.
• Higher Rates — Current 3-Year Fixed Mortgage Rates are often higher than 3-year variable rates.

Some More Interesting Facts about 3-Year Fixed Mortgages

There are other things that few people know about 3-year fixed mortgages:

• One-fifth of Canadian mortgage holders have a fixed mortgage term that is longer than one year but less than five years.
• The younger the homeowner, the more likely it is that he or she will have a fixed-rate loan with a term of 2–4 years.
• Historically, shorter terms save Canadians more in interest over the amortization of their loan because longer terms charge a slightly higher interest premium.
• From 2000–2011, 3-year fixed mortgage rates have ranged from a high of 9 percent to a low of 4 percent.

Get Your Best 3-Year Fixed Rate

As you can see, we have listed the best 3-year fixed mortgage rates in Canada. Click any of them to apply for a mortgage from a top Canadian lender.

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