Fixed or variable is one of the bigger calls you will make on a mortgage, and there is no answer that is right for everyone. It comes down to how you handle uncertainty, your budget, and your plans, not a prediction about where rates will go. Here is how to weigh it.
Your rate and payment stay the same for the term. It is predictable and easy to budget. The trade-off is less flexibility, and breaking the term early can carry a larger penalty.
Your rate moves with the lender's prime rate, so it can rise or fall during the term. Breaking early is often less costly, but you carry the uncertainty of a changing rate.
Will a moving rate keep you up at night, or can you ride it out?
Could your cash flow absorb a payment that rises during the term?
How long you expect to keep the mortgage as it is.
Penalties differ; a fixed-rate penalty can be larger than a variable one.
Many variable mortgages let you lock into a fixed rate during the term. We will check what your terms allow.
Some lenders offer a split, part fixed and part variable, to balance predictability with flexibility.
On some variables the payment holds steady and the split shifts; on others the payment itself moves.
Tell us about your budget and your plans, and we will talk through which fits you best, with no pressure either way. 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. This is not a prediction about future interest rates, which no one can guarantee. Rate types, features, and penalty calculations vary by lender and product. Any figures are illustrative only. All financing is subject to lender review, property review, and supporting documentation. Submission of a form does not guarantee approval or financing.