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  • Writer's pictureChad Eliason

Comparing the Benefits of Fixed vs. Variable Mortgages

If you are in the market to purchase property or are facing an upcoming renewal, you are likely thinking about which type of mortgage is best for you. It is a good idea to do your research and talk to a mortgage broker to review your unique situation closely. Working together, you can determine which type of mortgage is best suited for you and your circumstances.

Let’s take a closer look at both - what each mortgage type is and the benefits.


A fixed rate mortgage is a mortgage that has a set interest rate and pre-determined payments for the duration of the mortgage.

Benefits of a fixed mortgage:

  • Knowing the exact amount of each monthly mortgage payment, so you can budget and plan your finances accordingly.

  • A set interest rate typically provides financial security, as no rate shifts occur, regardless of what is happening within the economy.


With a variable rate 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. The Bank of Canada announces the interest rates eight times per year, either going down, going up or holding.

Benefits of a variable mortgage:

  • A variable mortgage may save you money in comparison to a fixed rate, depending on the circumstances of the prime rate. For example, the interest rate on your mortgage will lower as the prime rate lowers, providing an opportunity for more of your mortgage payment to go against the principal amount owing. This means you could pay less on interest and end up paying off your mortgage faster.

  • The penalties for breaking your term with a variable mortgage are more desirable than in a fixed rate mortgage.

Many factors will depend on your finances and your comfort level when picking the right mortgage for you.

If you are looking for some advice regarding mortgages or need help in general making sense of fixed vs. variable, reach out and we can get the conversation going today!

☕️ Chad Eliason⠀⠀⠀⠀⠀⠀⠀

📞 250.804.9874⠀⠀⠀⠀⠀⠀⠀



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