Comparing the Features of Fixed vs. Variable Mortgages

Comparing the Features of Fixed vs. Variable Mortgages

When it comes to choosing the right mortgage product for you, it’s important to review and compare the details, benefits, and penalties of each product to ensure it’s the best choice for your current and evolving mortgage needs.

Below, I’ve outlined some benefits of the two types of mortgages; fixed mortgages and variable mortgages, for you to compare and see which of these options could be a great mortgage product for you, should you qualify. Doing your due diligence is key to protecting yourself and your financial future.


A fixed rate mortgage has a set interest rate and predetermined payments for the duration of your mortgage term, regardless of what’s happening within the economy as a whole. This may be beneficial for you if you want to know the exact amount of each monthly mortgage payment, so you can budget and plan your finances accordingly. A fixed mortgage is also a popular product among people who have a low-risk threshold, since the set interest rate typically provides financial security as no rate shifts occur. Currently interest rates remain very low, and this may be a great option for you if you’re looking to lock in and take advantage of holding onto these rates for the next few years.


With a variable mortgage, the interest rate will fluctuate when the Bank of Canada changes the overnight lending rate; meaning your monthly mortgage payment could fluctuate over the term of your mortgage. Depending on the circumstances of the prime rate, a variable mortgage may save you money in comparison to a fixed rate. For example, the interest rate on your mortgage will lower as the prime rate lowers, which provides the opportunity for more of your mortgage payment to go against the principal amount owing; meaning you could pay less on interest and end up paying off your mortgage faster. 

It’s important to work with a trusted mortgage professional who has your best interest in mind, and who takes the time to explain your mortgage options to you. If you are currently a homeowner, you may even wish to explore the opportunity to refinance your mortgage to secure a lower interest rate or draw some equity from your home to complete that home upgrade you’ve had your eye on.

If you have more questions, or if you’d like a referral to a local mortgage professional, connect with me today at or 250-718-7851 and I’d be happy to make the connection for you.


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