Fixed Mortgage: Your mortgage payments will stay the same for the duration of the term.
Variable Mortgage: Payments change with the prime lending rate set by your lender.

Which is better?

• Lock in payments for a specific time. You don’t need to worry about potential rate increases.
• Take advantage of historically low rates.

• Expensive to break your mortgage. 60% of Canadians do.
• Historically, the rates are higher than variable mortgages.
• Expensive mortgage penalties. On a $500,000 mortgage the penalty is $22,500*.

• Over the past 25 years, variable rates have been cheaper.
• Typically charge a 3-month mortgage penalty for breaking the mortgage. On a $500,000 mortgage, the penalty is about $5,625*.

• Your payment can go up based on the prime rate.
• The monthly payment could fluctuate year over year.