Choosing A Mortgage Term

There are several variables to consider when looking for a mortgage. One of them is selecting a mortgage term that’s right for you. The mortgage term is the length of time that the mortgage interest rate is fixed. Standard mortgage terms range from 1 -10 years. The choice is yours and depends on your particular financial situation, and whether you’re willing to take a bit of a risk, or you prefer security over potential savings.

In general the longer the term, the higher the rate.

Is a shorter mortgage term right for you?

  • Do you plan to move in the next year or two?
  • Do you estimate that rates will go up and want to protect yourself against a larger rate increase while taking advantage of the much lower interest rates on 1-3 year terms?

Is a longer mortgage term right for you?

  • Do you feel that rates are pretty good now and want to hold on to them as long as possible?
  • Do you prefer the security of knowing your payments and interest rate will be the same for a longer period of time?

SMP’s mortgage coordinators can provide you with the details you need to make a choice that works for you. Apply online at www.smpapplication.com.

This entry was posted in Best Rates, Mortgages Canada, Rates and tagged , , , , . Bookmark the permalink.

One Response to Choosing A Mortgage Term

  1. Sid says:

    Hey, thanks for this list on mortgages. I think a longer mortgage is always better
    ——–
    Sid

    Mortgages

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