If you are buying, renewing, or refinancing, the same three questions come up. Here is how to think about them, without anyone telling you there is one right answer.
A fixed rate gives you a known payment for the term, which many people value for budgeting and peace of mind. A variable rate moves with the Bank of Canada's policy rate, so it can fall when rates ease and rise when they climb. Fixed rates take their cue from bond yields; variable rates from the Bank of Canada. Neither is automatically better. The right fit depends on your cash-flow comfort, your timeline, and how you feel about uncertainty. Either way, the rate you are offered sits above the benchmark it tracks, because lenders add a spread on top, and that margin varies by lender, product, and your profile, which is where shopping the market earns its keep.
A large share of Canadian mortgages renew over the next couple of years, many of them into a different rate world than when they were taken out. The renewal offer your current lender sends is a starting point, not the only option. It is worth reviewing your balance, your remaining amortization, and what has changed in your life before you accept anything.
We will review your options across lenders and help you decide with the full picture. A licensed member of our team will follow up.
Start a conversationInformation here is general and educational. It is not financial, legal, or lending advice, and it is not an offer of financing. We are mortgage brokers. Your options depend on your situation, the property, and lender review. Any rates or benchmarks referenced are for illustrative purposes only and are subject to change without notice. All financing is subject to lender review, property review, and supporting documentation.