Rate and term education

Fixed or variable mortgage: the questions worth asking before you decide

Fixed and variable are more than labels beside a rate. The useful question is how each option may fit your payment comfort, plans, and ability to handle change. This guide helps you begin that conversation without pretending there is one answer for everyone.

Written by Jimmy Mazloumian · Author of Improve Credit & Gain Profit

Begin with the payment change you could comfortably handle.

A fixed rate generally stays the same for the mortgage term. A variable rate can move during the term, and the way that change affects your payment depends on your contract. Before comparing offers, consider how a higher payment or a different principal and interest mix would feel in your real monthly budget. Read the FCAC explanation of mortgage interest.

Look at the full mortgage fit, not only the first rate.

Term length, prepayment options, portability, the cost of changing your plan, and the flexibility you may need can matter as much as the starting rate. A lower number is only helpful when the full mortgage still supports the life you are building.

Make the decision at a pace that gives you room to think.

Ask what you would do if rates changed, your income shifted, or a move became likely. Writing down those questions can make a rate conversation clearer and help you compare options without pressure.