How 4-Year Fixed Mortgages Work

As Mortgage Professionals Canada note, only 1 in 16 borrowers are likely to opt for 4-year mortgages. Here are positives and downsides you may want to take into account.


  • Although the rates of interest on 4-year mortgages are lower than 5-year mortgages, they are higher than 3-year mortgages.
  • Given that most Canadians are likely to break and refinance their loans in around 3 and half years, it makes sense to opt for a 4-year mortgage.
  • Students buying homes for their stay during their 4-year college term will find these loans beneficial.
  • Your new lender will likely pay your legal and appraisal fee when you move to a 4-year mortgage. However, this facility is not available in the case of a mortgage linked to a line of credit or collateral charge mortgage.


The lender will expect you to prove that you can honor payments based on the qualifying rate or criteria for a 5-year term. If you have less than 20% equity, you’ll demonstrate that you qualify according to the Bank of Canada’s benchmark 5-year rate.