* Cambrian will be closed on Monday, May 23 for Victoria Day. We will re-open on Tuesday, May 24.

What Mortgage Term is Right for Me?

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Cambrian Credit Union offers a variety of choices when it comes to your mortgage, making it easy for you to choose the term that is right for you.

Let’s take a deeper look into mortgage terms so you have all of the knowledge you need to make the decision that works best for you.

What is a mortgage term and what does that mean?

A mortgage term is the length of time the mortgage rate on your mortgage contract will be in effect.  Terms range from 6 months & 1-5 years. Each term has a fixed interest rate, meaning your rate will not change for the entire term length.

Not sure you want to lock into a term? Cambrian also offers variable rate mortgages that are open, meaning you can pay your mortgage in full or switch to a fixed rate mortgage at any time. There is no term for a variable rate mortgage and your interest rate is variable so the rate and your mortgage payment may fluctuate.

Short to Mid-Term Mortgages

Short to mid-term mortgages are typically 6 months to 3 years and have a lower interest rate than the longer-term mortgages.  This will help reduce your mortgage payment and the amount of interest you pay. However, a shorter-term mortgage you renew more frequently, which may mean renewing at a higher interest rate down the road.

You may consider a short to mid-term mortgage if you are thinking of selling your home or needing to access your home equity in the near future.

Long-Term Mortgages

Longer-term mortgages are typically for terms over 3 years. Cambrian offers 4 & 5 year terms. Given that your interest rate is guaranteed for a longer term, you are sheltered from potential rate increases for a longer period of time and your mortgage payment will not change for the entire term length. This provides you peace of mind and a better ability to plan your finances. Keep in mind that long-term mortgages do have a higher interest rate than short-term mortgages.

A longer-term mortgage is best for those who are not planning on selling their home in the near future or refinancing their mortgage.

Get pre-approved for a mortgage and lock down a rate