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Rate Hold
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Renewing My Mortgage
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Amortization
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Refinancing My Property
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Looking for Heloc
$
Province
Lender:
Tangerine
Tangerine
Rate:
1.89%
Rate Type:
3-year Fixed
Monthly Installment
$2072
Lender:
Duca
Duca
Rate:
1.79%
Rate Type:
3-year Fixed
Monthly Installment
$2048
Lender:
TD Canada Trust
TD Canada Trust
Rate:
2.14%
Rate Type:
3-year Fixed
Monthly Installment
$2132
Lender:
Meridian Credit Union
Meridian Credit Union
Rate:
2.19%
Rate Type:
3-year Fixed
Monthly Installment
$2144
Lender:
RBC
RBC
Rate:
2.28%
Rate Type:
3-year Fixed
Monthly Installment
$2166
Lender:
Equitable Bank
Equitable Bank
Rate:
3.19%
Rate Type:
3-year Fixed
Monthly Installment
$2396
Lender:
HSBC
HSBC
Rate:
3.29%
Rate Type:
3-year Fixed
Monthly Installment
$2423
Lender:
National Bank
National Bank
Rate:
3.45%
Rate Type:
3-year Fixed
Monthly Installment
$2465
Lender:
Laurentian Bank
Laurentian Bank
Rate:
3.45%
Rate Type:
3-year Fixed
Monthly Installment
$2465
Lender:
CIBC
CIBC
Rate:
3.49%
Rate Type:
3-year Fixed
Monthly Installment
$2475
Lender:
Scotiabank
Scotiabank
Rate:
3.49%
Rate Type:
3-year Fixed
Monthly Installment
$2475
Lender:
Motusbank
Motusbank
Rate:
3.49%
Rate Type:
3-year Fixed
Monthly Installment
$2475
Lender:
BMO
BMO
Rate:
3.49%
Rate Type:
3-year Fixed
Monthly Installment
$2475
Lender:
Simplii Financial
Simplii Financial
Rate:
3.64%
Rate Type:
3-year Fixed
Monthly Installment
$2515

Compare 3-Year Fixed Mortgage Rates

Mortgage rates are ever-evolving and for many homeowners, choosing the type of mortgage that suits their financial situation best is all but impossible. In these instances, it can be best to select a 3-year fixed mortgage rate, which allows the homeowner to take time to watch the market and take more time to determine their best course of action.

In most cases, 3-year fixed mortgage rates are normally lower than 5-year fixed rates but it's important to keep in mind that the risk of signing on for a shorter term is considerably higher as it's impossible to determine what interest rates might look like a year from signing a mortgage.

Mortgage Stats in Canada

  • As of 2019, 74% of Canadian mortgages are fixed-rate
  • 11% of Canadians hold mortgages with amortization periods in excess of 25 years
  • As of 2019, one in 427 mortgages were in arrears
  • 63% of Canadians own their own homes
  • The average interest rate in Canada in 2019 was 3.14%

Source:

Statistics Canada
Bank of Canada

What Drives Changes in 3-Year Fixed Mortgage Rates?

In Canada, lenders secure fixed mortgages with Government of Canada bonds and as such, the yields from these bonds are the biggest factor in determining fixed mortgage rates. Bond yields are primarily affected by economic growth and inflation across the country.

Pros Of a 3-Year Fixed Mortgage

  • 3-year fixed mortgages are more flexible
  • At the end of the term, homeowners can change providers without penalty if they're unhappy
  • Rates may decrease after three years and mortgage payments may lessen

Downsides of a 3-Year Fixed Mortgage

  • Interest rates may increase after three years
  • Interest rates may be higher than variable mortgage rates

How Much Can You Save Comparing 3-Year Fixed Rates

3-year fixed mortgage rates vary by several points depending on the lender and that's why it's so important to take time to compare rates and shop around. Working with a mortgage broker is often the best way to do this, as brokers have access to a variety of rates from different lenders across the country. By finding a lender with a lower rate, you may be able to save thousands of dollars on the purchase of your home.


The Difference Between Fixed and Variable Rate Mortgages

The biggest difference between a fixed-rate mortgage and a variable-rate mortgage is the monthly payment you'll make on your mortgage. While a fixed-rate mortgage means that your interest and monthly or bi-weekly mortgage payments stay the same for the duration of your mortgage term, variable-rate mortgages change over time. Payments may change every few months to reflect current Bank of Canada interest rates. With a variable rate mortgage, interest rates are lower than fixed mortgage rates; however, in the event that rates increase drastically due to changes in the economy, homeowners may find themselves eventually paying more than they would have if they'd locked in their rate on a fixed term.


What is a Rate Hold?

Rate holds can be applied to variable or adjustable-rate mortgages for a short period of time. Using rate holds, homeowners can lock-in their mortgage rate temporarily to avoid an increase in their mortgage payments. Typically, rate holds can be applied for a period of 30 to 60 days; however, some lenders may allow rate holds of up to 120 days.


Why Compare 3-Year Fixed Mortgage Rates with My Rate Compass?

My Rate Compass is an impartial, unbiased hub of information with current, up-to-date mortgage rates from brokers and major banks across Canada. To find reliable information about mortgages, including accurate posted rates, use My Rate Compass to research your options before selecting a mortgage lender.

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