A mortgage term is the length of time you are committed to a mortgage rate, lender and conditions set out by that lender.
A mortgage term can vary in length, from 6 months to 10 years, with the most popular term in Canada being 5 years.
How to Choose a Mortgage Term
Choosing the right mortgage term depends on your financial situation, your short-term and long-term goals, and your tolerance for risk.
A longer term can help you lock in a good interest rate for a lengthier period of time, whereas a shorter term can give you more flexibility but offers less protection should interest rates rise in the near future.
One thing to keep in mind is that the mortgage term you choose will directly affect your interest rate. Historically, shorter terms have lower interest rate.
The longer term, the more protected you are from interest rate fluctuations, and there is a premium you must pay your lender for that.