Fixed vs Variable Mortgage Rates

Fixed vs. Variable

Fixed vs. Variable Mortgage Rates: Which Is Best For You?

Selecting your rate is one of the first steps to achieving your dreams of financial freedom.

There are many factors involved when shopping for your mortgage. Of course, rates are top of mind for everyone involved, but the lowest rate isn’t always the most important factor.

Here’s what you should know about fixed and variable rates…

Fixed Mortgage Rates

With a fixed rate mortgage, your mortgage rate and payments are fixed, meaning the amount you pay each month will stay constant for the term of your mortgage.



  • You can essentially “set it and forget it,” without having to worry about fluctuations month to month.
  • This makes budgeting a breeze, as the numbers falling under your mortgage will stay the same every month.



  • You may end up paying a premium for the stability protection of a fixed rate.
  • If the difference between a variable and fixed rate is significant, any premiums you’re paying may not be worth it.


Variable Mortgage Rates

With a variable rate mortgage, the mortgage rate will change with the prime lending rate, as set by your lender.



  • Historically, variable rates have proven to be less expensive over time due to lower interest charges.
  • With a variable rate, you’ll only be charged 3 months interest at any given time, should you choose to break your mortgage during the term.



  • Variable rates come with a level of financial uncertainty and can mean unpredictable payments.
  • A significant increase in the prime rate will increase your interest payable, and if you’re unprepared for this change, it can lead to financial burden.


These are just a few key points to keep in mind as you consider fixed versus variable rates, and what the differences could mean for your monthly mortgage payments.

At the end of the day, our main objective is to help you become mortgage free, faster.

You can trust us to read the fine print and cut through the jargon for you. We’re here to provide you with clarity and expert insight, so you feel equipped to make a sound financial decision.

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