Whether you’re a first-time homebuyer, renewing your mortgage, or refinancing, one of the most important questions you’ll face is

Should I go with a fixed or variable rate?

Let’s break it down so you can make the decision that works best for you.

🔒 What Is a Fixed Rate?

A fixed-rate mortgage means your interest rate and monthly payment stay the same for the term of your loan—often 1, 3, or 5 years.

✅ Pros:

• Predictable payments = easy budgeting

• Peace of mind during rate hikes

• Great for risk-averse borrowers

❌ Cons:

• Typically starts higher than variable

• Penalties can be higher for breaking your mortgage early

🔄 What Is a Variable Rate?

A variable-rate mortgage means your interest rate can fluctuate based on the Bank of Canada’s prime rate.

✅ Pros:

• Often starts lower than fixed rates

• Can save you money if rates stay low or drop

• Easier to break early in some cases

❌ Cons:

• Payments may increase if rates rise

• Less predictability = more financial risk

🧠 What’s Happening in 2025?

As of mid-2025, the Bank of Canada has held interest rates steady after a series of increases in 2022–2023. While rate cuts may be on the horizon, inflation is still a concern.

👉 For many clients right now, a short-term fixed rate (1–3 years) offers a safe middle ground.
But if you’re comfortable with some risk, variable rates could save you money in the long run — especially if rates start to drop in late 2025 or 2026.

🏡 My Advice?

There’s no one-size-fits-all answer.
It depends on your income, lifestyle, long-term plans, and comfort with risk.

As a mortgage agent, I’ll help you run the numbers and see how each option fits your unique situation.

📲 Ready to Talk?

Let’s explore your best strategy.
Contact me or download my app to get started — your personalized mortgage plan is just a click away.