icon

Find the Best 7-Year Fixed Closed

Mortgage Rate

Compare the best rates from major banks, credit unions and brokers in Canada.

Rates by location
Find the best rates in your area by selecting your province
Home Value
The current purchase price or appraised value of your home
Rate type
The type of the mortgage you are looking for
Down payment
The portion of the purchase price you will be paying upfront
Current mortgage
The remaining amount on your current mortgage

What is a 7-year fixed closed mortgage rate?

The 7-year term is one of the longer mortgage terms available, and also one of the more unpopular. Only about 1% of Canadian borrowers choose this term.

One of the reasons is because it offers little additional rate protection vs. the 5-year fixed, yet it's priced notably higher.

Another strike against the 7-year term is that a minority of borrowers under 50 will remain in their home for more than seven years. This means the odds are high that a borrower will need to pay a penalty to break the mortgage early.

Prepayment penalties for fixed rates can be costly, particularly for clients of the country's big banks. That's because their penalties are calculated using their posted rates instead of actual rates.

For those who plan to stay put for the long-term and who value rate stability above all else, the 7-year fixed mortgage term could be a good candidate.

Some things to consider when picking a mortgage

  • Monthly expenses: Put together a budget so you know how much your mortgage costs will be. Budgeting will be easier if you go with a fixed mortgage since the interest rate will stay the same throughout your term. However, there are also many lenders that offer fixed-payment variable rate mortgages, which keep your monthly payment the same even if prime rate rises or falls.
  • Shop and compare rates: Just like shopping for any other big purchase, you want a product best suited to your needs, and ideally one with a competitive rate. Be sure to compare mortgage rates to stay informed of the going market rates and to help you find the product that's best for you.

Latest mortgage articles
Canada’s Average Mortgage Amount is Rising (Maybe Faster Than We Think)
Canada’s average mortgage size is growing at almost three times the rate of inflation.
How to Hold Onto Your Record-Low Mortgage Rate When Moving
Mortgage shoppers tend to focus squarely on securing the lowest rate possible, sometimes to the detriment other features. One feature that routinely gets overlooked is mortgage portability.
The 40-Year-Old (Homeowner) Virgin
Not even a global plague can stop Canadian home prices, much to the dismay of renters who want to be buyers.