Fixed vs. Variable:
Let’s be real: choosing between a fixed or variable mortgage feels like a personality quiz no one studied for.
Are you “set-it-and-forget-it” energy? Or “ride-the-market-waves” type? 😅
Here’s a friendly breakdown of what’s what in 2025—plus how to decide which one fits your life best (with way less stress and zero bank-speak).
First, what’s the difference?
🔒 Fixed Rate
Your interest rate—and your monthly payments—stay the same for the entire term (usually 1 to 5 years). Predictable, stable, and often comforting in volatile times.
Great for:
First-time buyers who want stability
Anyone on a strict budget
People who think rates might rise soon
🌊 Variable Rate
Your rate can fluctuate based on the Bank of Canada’s prime rate. Some variable mortgages have changing payments, others keep your payment steady but adjust how much goes toward principal vs. interest.
Great for:
People with financial wiggle room
Risk-tolerant borrowers
Those who think rates may drop
So… which one should you pick?
Honestly? It depends on three things:
1. Your monthly budget
If your cash flow is tight or you need certainty, fixed gives peace of mind. If you’ve got some buffer, variable can offer savings (but also surprises).
2. Your future plans
Buying a home you’ll stay in for a while? Fixed might be safer.
Planning to move, upgrade, or refinance early? Variable can mean lower penalties if you break it.
3. Your stress tolerance 😬
Some people love tracking interest rates. Others would rather not know. If rate changes make you lose sleep, fixed might be your BFF.
What about hybrid mortgages?
Yep, they’re a thing! A hybrid mortgage splits your loan into fixed + variable chunks. Think of it as diversification—but for your debt.
Quick Tip: You’re not stuck forever
Most mortgage terms are 1 to 5 years. So even if you choose one path now, you’ll have a chance to reassess at renewal (and I’ll be here to help when that day comes).
👉 Thinking about your next move? Let’s chat mortgages + MLS® today.