Mortgage term
Term
Definition
Your term is the length of time your rate, payment, and lender are locked in — most commonly 5 years in Canada. At the end of the term, your mortgage matures and you renew, switch lenders, or pay it off. Amortization is different (see amortization).
The most common Canadian terms are 1, 2, 3, 4, 5, 7, and 10 years, with 5-year fixed the historical default. Shorter terms carry the flexibility to re-shop rates sooner; longer terms lock in payment certainty for longer.
At term end, your lender must send a renewal offer at least 21 days before maturity (federally regulated lenders). You can accept, negotiate, or switch — with no penalty.