Best 25-year fixed mortgage rates
Can you get a 25 year fixed mortgage rate?
When would you use a 25-year mortgage term?
Who offers 25-year mortgage terms?
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
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Jamie David, Sr. Director of Marketing and Mortgages
There is a wide range of mortgage products available in Canada, and 25-year fixed-rate mortgages are excellent proof that the industry is ready to meet any need, no matter how niche. For most of us, 25-year mortgages are not going to be the best product for our needs, but for the right person, it might be just the ticket.
What is a 25-year fixed-rate mortgage?
A 25-year fixed-rate mortgage is what it says on the box: A mortgage with a fixed-rate for a period of 25 years. Fixed mortgage rates have the advantage of locking in a set monthly payment for your entire mortgage term (unlike variable rates, which can change month to month). A 25-year term is the longest available in Canada, but comes with much higher rates than a more traditional term length, like a 5-year mortgage. As a result, it is not an especially popular term - just 0.5% of all mortgage requests made on Ratehub.ca from January to September 2023 were for 25-year fixed-rate mortgages. Even if we look at the whole of 2022, that same figure is only 0.7%.
25-year terms vs. amortization
It's important not to be confused between 25-year terms and 25-year amortization periods. A 25-year term locks in a single rate for the entire 25-year term. A 25-year amortization, on the other hand, refers to the total life of your mortgage, which is more commonly comprised of several mortgage terms (for example, five 5-year terms back-to-back).
Alternatives to a 25-year fixed mortgage rate
If you're looking to lock in a low rate for a long period of time, or are trying to ensure steady mortgage payments for as long as possible, a 25-year fixed mortgage rate might seem attractive. However, the very high mortgage rate you'll be offered will very likely make it unviable.
A strong alternative to a 25-year fixed mortgage rate is a 10-year fixed mortgage rate. A 10-year term with a fixed rate offers many of the benefits of a 25-year term, but with a much lower mortgage rate.
Jamie David, Director of Marketing and Head of Mortgages
Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio