A 3-year fixed mortgage sits between the short 2-year and the popular 5-year term — a middle ground that balances rate certainty with flexibility. This guide explains how it works and who it suits.
A 3-year fixed mortgage locks your interest rate for three years. Your payment stays the same for the term, then you renew at the rates available then. It's a popular compromise: more stability than a 2-year, more flexibility than a 5-year.
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A 3-year term tends to fit buyers who want certainty but don't want to commit for five years. Consider a 3-year fixed mortgage if you:
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Pros: a solid stretch of payment certainty, a shorter commitment than a 5-year, and the chance to renew before a long term locks you in — useful if you think rates may fall.
Cons: you renew sooner than with a 5-year, so you face the rate environment again in three years, and the rate may differ from shorter or longer terms. Compare a 2-year or 5-year fixed to see what fits.
Fixed mortgage rates are priced off bond yields and lender competition, then adjusted for your profile. Your down payment, credit, income, the property and whether the mortgage is insured all influence the rate you're offered, and bond markets move daily.
Compare the full cost — rate, fees and penalty terms — not just the headline rate. Deciding between fixed and variable? See our guide to fixed vs. variable mortgage rates, or explore fixed mortgages.
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The questions Canadian buyers ask most.
It's a popular middle ground — more stability than a 2-year and more flexibility than a 5-year. It suits buyers who want certainty without a long commitment.
A 3-year lets you renew sooner if rates fall; a 5-year locks in stability for longer. The right choice depends on your plans and the rate outlook.
After three years you renew at the rates available then, or switch lenders, so you reassess sooner than with a longer term.
It varies with the rate environment. Compare current 2-, 3- and 5-year quotes rather than assuming one is always cheaper.
It depends on your comfort with payment changes. See our guide to fixed vs. variable rates.
Your down payment, credit, income, the property and whether the mortgage is insured, plus the bond market when you lock in.
Explore fixed and variable mortgages and find the term that fits your plans.
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