Closed Term Fixed Rate mortgage
If you want a simple mortgage with predictable payments and a low rate that’s guaranteed for 5 years, consider the Closed Term Fixed Rate mortgage.
You can borrow to purchase a home priced less than $1 million as long as you plan to live in it yourself.
Features and benefits
- Have as low as a 5% down payment*
- Enjoy predictable payments with a fixed interest rate
- Choose a weekly, bi-weekly, semi-monthly, or monthly payment schedule
- Choose to repay your mortgage faster:
- Prepay up to 20% of your original mortgage amount once a year
- Increase payments by up to 20% once a year
- Bring this mortgage with you if you move to another property within the 5-year term, with its current rate and conditions
*For a home purchased at $500,000 or less, the minimum down payment is 5%. For homes purchased between $500,000 and $1 million, the minimum down payment is 10% on the portion of the purchase price above $500,000.
Restrictions
- The property purchase price must be less than $1,000,000
- You must plan to live in the home
- If the home is sold within the 5-year term, the mortgage can be repaid in full with penalty
- This mortgage can't be transferred to another financial institution during the 5-year term
- This mortgage can't be combined with an existing mortgage to blend interest rates or extend the term
- The original mortgage amortization which is the number of years over which the repayment of your mortgage is calculated cannot be extended, or the outstanding mortgage balance increased
- You are not able to borrow against the equity in your home during the 5-year term
Comparison against Vancity’s Fixed Term Mortgages
When it comes to financing your home, it’s important to understand the differences between the types of mortgages available so you can feel confident about the one you choose. The table below shows an "at a glance" summary of the differences between the Closed Term mortgage and our Fixed Term mortgages.
| Closed Term Fixed Rate mortgage features | Fixed Term Fixed Rate mortgage features | Homeprime Fixed Term (Variable) Rate mortgage features | |
|---|---|---|---|
| Term length | 5 year term only | 6 months to 10 years | 5 year term only |
| Maximum property purchase price | Less than $1 million | No limit | No limit |
| Maximum mortgage amortization | Up to 300 months (25 years) | Up to 360 months (30 years) | Up to 360 months (30 years) |
| Lump sum payment | Once per mortgage year without pre-payment fees, borrowers can
|
Same as Closed Term Fixed Rate mortgage | Same as Closed Term Fixed Rate mortgage |
| Eligibility | Borrower must use the home as their primary residence | Borrower could purchase for revenue purposes or use the home as their primary residence | Borrower could purchase for revenue purposes or use the home as their primary residence |
| Able to use equity in your home | No | Yes | Yes |
Mortgage rates
View our current mortgage rates.
Mortgage glossary
These mortgage terms and definitions will help you to understand different lending terms you may encounter.
How to apply
You can book an appointment for a Vancity mortgage online, or over the phone by calling Member Services Centre at 604-877-7000 or toll free at 1-888-Vancity (826-2489).
You can also contact a Vancity mortgage specialist to discuss mortgage options, ask questions, and receive personalized mortgage advice. Our specialists will travel to meet you at your home, office, or any other convenient location. Find a mortgage specialist in your area.
