Fixed vs. Variable Mortgages: How to Decide
With variable rates now lower than fixed rates at many lenders, more people are considering variable mortgages again. But choosing fixed versus variable isn’t a one-size-fits-all decision — it really depends on why you’re considering it.
Some borrowers choose variable expecting rates to keep dropping. However, recent job numbers show Canada added over 180,000 jobs in the past few months, a sign the economy is strengthening — which doesn’t typically support rate cuts. Now, they just released the new job numbers last week and the increase was minimal and more aligned to what they are expecting.
If you are considering variable signs are pointing to us having hit the bottom of the rate cycle which means you should prepare yourself for increases over the next 5 years as we enter the next cycle.
Variable rates can work well if you have room in your budget and are comfortable with payment changes. But if uncertainty causes stress or you have limited flexibility, a fixed rate may be the better option.
Yes, you can usually lock into a fixed rate you’ll need to round up to the next available term and you’ll be offered existing-client rates, not new customer pricing.
The Bottom Line
Choosing fixed or variable isn’t about predicting rates — it’s about what fits your budget and peace of mind.
If you’d like to talk through your options, book a meeting and we can go through it together.