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  • Writer's pictureChad Eliason

Comparing the Benefits of Fixed, Variable & 10 Year Mortgages

Updated: Jun 14, 2021

There's no shortage of options when it comes to mortgage products available for you to choose from. However, it’s important to review and compare the details, benefits, and pitfalls of each product to ensure it’s the best choice for your current needs – with a plan for the years to come as well!

Below, I’ve outlined some benefits of fixed, variable, and 10-year 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.


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.


A 10-year fixed mortgage can be a safe option for those who plan to stay in the same home for at least five years. Although the penalties are significantly higher in the first five years of the 10-year fixed mortgage, the penalties drastically reduce to just three months interest after you’ve hit the five-year mark of being in the loan. If you are absolutely certain that you will be staying at your property for five or more years, then the 10-year mortgage option could be a great opportunity for you to capture.

If you have questions, I’d love to discuss each of these mortgage products in greater detail with you, to provide information regarding your individual circumstances and qualifications. Connect today at or 250-804-9874

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