Hey everyone, Mike here and welcome to another episode of #heysumaraisteve. Steve what question do you have for us today?
Hey Mike, today’s question is: what is a mortgage term?
Great questions Steve.
A mortgage term is how long certain details about your mortgage are applicable for. For instance, a term will determine how long you’ll be locked into a fixed-rate or variable rate.
Terms are most commonly five years in Canada, though they can range from six months to 10 years. Deciding how long of a term you want will depend on several factors. For instance, you may temporarily want a fixed-rate because you’re concerned interest rates are going up, but believe they’ll start going down in a few years time. In that case, a shorter two-year term will make sense for you.
Different term lengths will come with different interest rates and to find out the best option for you head over to PlanWithMike and let’s have a chat.
Steve: thanks Mike.