Fixed vs Variable Rate

A locked rate and payment versus one that moves with prime.

A fixed-rate mortgage locks your rate and payment for the term; a variable rate is priced as your lender's prime rate plus or minus a spread, so it moves when prime moves. Fixed buys certainty at a usually higher rate; variable typically carries a much smaller penalty if you break early. The right choice rests on your tolerance for payment uncertainty and how long you will keep the mortgage, not on predicting rates.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.