Find the best 25-year fixed mortgage rate

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.