🏡 Fixed vs. Variable Mortgages –

Which One is Right for You?

Let’s talk mortgage rates, without all the jargon or the glazed eyes.

One of the most common questions I get as a mortgage broker is: “Should I go fixed or variable?”

Spoiler alert: There’s no one-size-fits-all answer. But I can walk you through the key differences so you can feel more confident, less overwhelmed, and armed with real information, not just Google guesses.

🔒 What Is a Fixed-Rate Mortgage?

A fixed-rate mortgage is exactly what it sounds like: your interest rate stays the same for the entire length of your term (usually 5 years).

Your payment? Locked in.

Your stress level? Probably lower.

Your budgeting? Easy and predictable.

🟢 Best suited for:

• First-time buyers who like consistency

• People with tight monthly budgets

• Anyone who values peace of mind over chasing the lowest possible rate

But there’s a catch: fixed rates can come with higher penalties if you need to break your mortgage early (hello, Interest Rate Differential 😬).

🎢 What About Variable or Adjustable-Rate Mortgages?

These are riskier options, but they can be smart financial plays in the right situation.

Variable rate mortgages:– Your payment usually stays the same, but the split between principal and interest changes with the prime rate. This could affect your time to pay off your mortgage when the rates go up.

Adjustable rate mortgages:– Your payment goes up or down as the prime changes. You’ll feel every rate move in real time (not for the faint of heart!).

Note: In both cases the prime rate changes with the Bank of Canada makes announcements.

Why would anyone choose this? Because the rates are often lower than fixed at the start—and if rates drop or stay stable, you should save money.

🟢 Best suited for:

• Buyers with some budget wiggle room

• People okay with a little fluctuation

• Those planning to break their mortgage early (penalties are typically lower)

  
  

🧠 So, How Do You Decide?

Ask yourself:

✅ Can I afford a possible payment increase?

✅ Is predictability important for my monthly budget?

✅ Do I plan to stay in the home (and mortgage) for the full term?

💬 Cheryl’s Take:

This is where a good mortgage broker (hi, that's me 🙋‍♀️) comes in. I help my clients run real-world comparisons based on their goals, not just rate-chasing.

Sometimes fixed rate is smarter.

Sometimes variable or adjustable rate will give you flexibility and long-term savings.

Sometimes a hybrid mortgage makes sense (yep, that’s a thing too).

📲 Want to know what fits your situation best?

Let’s have a conversation. I’ll keep it simple, strategic, and tailored to you—no pressure, no pushy talk, just solid advice.