Real Estate

Choosing between 3 year and 5 year mortgage term

  • Last Updated:
  • Sep 18th, 2019 8:29 am
[OP]
Jr. Member
Feb 17, 2009
145 posts
17 upvotes

Choosing between 3 year and 5 year mortgage term

Hello,

Quick question about 3 year and 5 year terms for mortgages, are there differences in qualifications for 3 year vs 5 year? Say we've been approved for a 5 year, but I actually want a 3 year term, does our broker need to re-do all the paperwork required, will I have to be re-approved for a 3 year?

We're currently being offered to sign for a 5 year, but as it will be an investment property, I'm thinking a 3 year term might suit us better, especially since rates seem to be going down. Any suggestions appreciated!
2 replies
Deal Addict
Dec 27, 2007
3295 posts
930 upvotes
Edmonton
There was no difference in qualification when I signed up for my terms. And I just stick to 1 year terms all the time. In my opinion it's the best because at the end of term, you can dump as much or as little lump sum as you want without being limited or penalized (already do double-up payments every payment) and I find that the 1 year are usually lower % than the 5.....
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Deal Addict
Jan 15, 2017
3514 posts
2866 upvotes
No, you will not have to re-do all the paperwork. The broker will simply re-adjust the rate and term.

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