Fixed vs. Variable: How to Actually Choose Your Mortgage Rate
It’s the question almost every borrower asks me: fixed or variable? There’s no universally “right” answer — only the right answer for your situation. Here’s how to think it through.
What each one actually means
A fixed rate locks your interest rate and payment for the whole term, usually five years. Predictable, steady, no surprises. A variable rate moves with the lender’s prime rate — so your rate (and often your payment) can rise or fall as the Bank of Canada changes its policy rate.
The case for fixed
If a payment increase would stretch your budget, or you simply sleep better knowing the number won’t change, fixed is hard to beat. It’s the default choice for most first-time buyers and anyone who values certainty over potential savings.
The case for variable
Historically, variable rates have often cost less over time, and they usually come with a much smaller penalty if you need to break your mortgage early. If you’re comfortable with some movement, might sell or refinance mid-term, or expect rates to fall, variable can be the smarter play.
The questions that actually decide it
How would a payment increase feel — annoying, or genuinely stressful? How long do you realistically plan to keep this mortgage? How likely are you to move, refinance, or pay it off early? Your honest answers matter more than any rate forecast.
You don’t have to guess
I’ll walk you through both options with your real numbers, show you the penalty difference, and help you pick the structure that fits your life — not just today’s headline rate.
Helpful next steps
→ See how much you can afford
→ Explore all mortgage services
→ Read real client success stories
→ Start your application
Tyler Salmon — Mortgage Agent Level 2 (Ontario & Alberta), License #M21003803. This post is general info, not advice — every file is different, so let’s talk yours through.
Every mortgage is personal. Book a free 30-minute call and I’ll give you a straight answer based on your actual numbers — no pressure, no obligation.
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