Compare the best 10-year fixed mortgage rates for free.

A 10-year fixed-rate mortgage is for homebuyers who are risk averse, budgeting for the long-term, want fixed mortgage payments, and are willing to pay a premium for that stability. You should consider a 10-year fixed rate mortgage if you prize stability above all else, and don’t foresee moving or changing your circumstances in any major way. Second homes, such as a cottage or investment property. However, it is possible to break a 10-year mortgage contract — after five years, the maximum penalty lenders are allowed to charge is three months’ worth of interest.

While fixed rates are popular, 10-year fixed rates are not — in general, longer terms aren’t as popular among Canadian homebuyers. While you might lose out on savings if interest rates go down, it’s hard to predict how much interest rates will fluctuate over a 10-year period. Because banks charge higher interest rates on longer terms, a 10-year fixed rate mortgage may not be the most financially prudent choice. However, the best mortgage term depends on your personal circumstances, and how much you value fixed mortgage payments.

First, it’s important to note that you’re going to pay a premium to lock in a mortgage rate for 10 years. Posted mortgage rates for 10-year fixed-rate mortgages are higher than short-term mortgages because the lender takes on more risk by allowing borrowers to lock down a particular rate — rates could rise. Second, a “good” mortgage rate depends on where interest rates are sitting in the marketplace. That’s why it’s important to get a personalized quote to see what you qualify for.

Fixed mortgage rates are influenced by the Government of Canada’s bond market. A government bond is a type of investment where the investor lends the government money for a set amount of time. During that period, the investor receives regular interest payments. When that time is up, the full value is repaid to the investor. Because bonds are the safest type of investment, banks and other lenders use bond yields to cover the cost of mortgages, which are much riskier from a lender’s standpoint. When bond yields go up, mortgage rates will also rise.

Since LowestRates.ca was founded, we’ve helped our users save $1 billion in interest and fees. When it comes to mortgage rates, even a decimal point or two can save you thousands of dollars in interest payments over the life of your mortgage. Most lenders don’t offer their best rates up front, but LowestRates.ca aggregates the best rates from banks and brokers across Canada and lets them compete for your business. Mortgage rates vary in different housing markets across Canada, so it’s best to get a personalized quote. Over a long period such as 10 years, even a few percentage points can make a big difference.