Date: March 13, 2024

Three-Year or Five-Year Term?  The question of the day! or possibly the year! 

I don’t have your answer, but I do have some information that you may want to read when making the decision between a three-year and five-year term, of course, there is always a one or two-year term as well, however for today, I will be focusing on the three and five-year term as they seem to be more popular. 

First, let’s look back to about a year ago when five-year fixed rates were in the low 6% range, and there was much uncertainty about where rates would go over the next few years. The same mortgage product today hovers in the 4.99% range.

Sometimes, it’s about timing, and there is nothing we can do if your mortgage is up for renewal at a time when the rates happen to be higher. Or is there?

No one knows where we are headed in terms of variable or fixed rates; however, most can agree that the trend is downwards, and that suggests that we are still at the peak of rates. 

When deciding on what to do with your upcoming mortgage renewal (all 901,000,000,000 of you), I invite you to consider a few options;

  • If you are thinking fixed, then a shorter term, such as three years may suit you best. This will give time to time and allow you to sit with this mortgage for three years and hopefully come out on the other end. You do need to know that the three-year term is often a higher rate than the five-year fixed term. If qualifying is an issue, then this may not work. This is where we come in to work on strategy with you.
  • If you are open to a variable term, there is much argument for the fact that now is the time to take a variable rate and ride the rate wave down. This is a great option, but you have to be comfortable with the unpredictability of it. You could be at the current prime (7.2%), a little longer than expected. Of course, remember that a variable rate is usually prime – %. For example, today, that could be prime -.95% = 6.25%. For those of you focused on payment, this may not help you as the payment on a variable will be higher than the payment on a three or five-year term. 
  • If you are unsure of which term and option best suits you, then let’s talk about it, and I can guarantee you that most of the time (these days), we are more focused on payment than we are on rate. Life is expensive, and your mortgage is a term (a short window in the life of your mortgage), so let’s review your options and see what works best. 

It has NEVER been more important to connect with us. 

If you know me, then you know I’m not saying this to drum up business but to help you secure your financial mortgage future. If the right move is to stay put with the current lender, I will give you that advice. Your financial future is important to me; your success is my success. 

If your mortgage is up for renewal in the next 12 months, let’s review your options and create a plan. 

Click here to book a time. 

Talk soon, 


Mortgages can be complicated; we are here to help you make “cents” of it.

We focus on Mortgage Solutions, Period!

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