The Two Paths: Fixed or Variable
When you're choosing a mortgage in Canada, you've got two main roads: fixed rate or variable. Which one suits you? Let's walk through the pros and cons of each so you can make the call that fits your situation.
Fixed Rate Mortgages
A fixed rate mortgage locks in your interest rate for the entire term. That means your monthly payment stays the same from day one to renewal — no surprises, no recalculating your budget halfway through.
The upside? You get predictable monthly payments, protection if rates climb, and straightforward budgeting. You know exactly what you're paying every month.
The downside? Fixed rates are typically higher than variable rates at the start. And if the market drops, you don't benefit — you're locked in at the rate you signed for.
Variable Mortgages
A variable mortgage means your interest rate can move up or down over the term, usually tied to the lender's prime rate. So your monthly payment can shift as the market changes.
The upside? You often start with a lower rate than fixed, which can mean real savings if rates stay flat or fall. Plus, you've got the flexibility to lock into a fixed rate later if you see rates heading up.
The downside? Your payment isn't predictable. If rates rise, so does your monthly cost. And qualifying can sometimes be trickier depending on the lender's criteria.
Which One Fits You?
It comes down to your comfort level and your goals. If you want the peace of mind that comes with a steady payment you can count on, fixed might be your move. If you're willing to ride the market a bit in exchange for potential savings and flexibility, variable could make sense.
Either way, take the time to think through what matters most to you — and don't hesitate to ask questions. This is your money and your home. Make the choice that lets you sleep well at night.
Where rates are today
Reading about rates is one thing—seeing today's is another. See today's live mortgage rates, updated every morning from every lender we work with, along with our forecast on where fixed and variable are heading next and a live fixed-vs-variable breakdown. If you're closing in the next 120 days, that's also where you'll find the free rate hold.
