Fixed vs. Variable
What's right for you?
A smart mortgage strategy
starts with the right foundation
One of the first big decisions you’ll face when setting up your mortgage: Fixed or Variable rate? It’s a choice that goes beyond just numbers—it’s about how you want your mortgage to work for your lifestyle, your goals, and your tolerance for change.
At Better Mortgage Select, we don’t leave that decision to guesswork. We guide you through it, clearly and confidently, with real insight into how each option performs—and how it fits into your larger financial plan.
The quick breakdown
Fixed rate
- Rate and payments stay locked in for the entire term (usually 5 years)
- Predictable, stable, and easy to budget
Variable rate
- Moves with the bank of Canada’s prime rate
- Payments or amortization may adjust depending on the type of variable product
- Historically cheaper over time—but with more short-term uncertainty
Why choose a fixed rate?
Potential advantages
- Monthly payments never change—ideal for budgeting
- Protection from rate increases during your term
- Great for first-time buyers or anyone who prefers stability
What to consider
- Higher break penalties (especially with big banks)
- Locked in even if rates drop
- Often more costly over the long haul
Why choose a variable rate?
Ideal for borrowers who value flexibility and are comfortable riding market waves.
Potential advantages
- Lower starting rates compared to fixed
- Historically saves more in interest over the long term
- Lower penalties if you break early (typically just 3 months’ interest)
- Great for those planning to refinance or sell within 2–3 years
What to consider
- Payments may increase if prime rate rises
- Trigger rate risk on some products (VRMs)
- Budgeting can be trickier if cash flow is tight
Understanding variable rate types
Not all variable-rate products are created equal. We help you choose the one that fits your comfort zone.
Adjustable-rate mortgage (ARM)
- Payments fluctuate as rates change
- Keeps amortization consistent
- Transparent and easy to track
Variable-rate mortgage
(VRM with static payments)
- Payments stay fixed—but amortization adjusts
- Risk of hitting a “trigger rate” if rates rise too high
- Can lead to negative amortization if unchecked
At BM Select, we typically recommend ARM products for clarity and better long-term savings—unless a static payment is critical to your financial rhythm.
Which is more popular right now?
Trends change with the rate environment. Right now, many borrowers are:
- Opting for shorter-term fixed rates while watching the market
- Choosing variable with conversion options to stay flexible
- Taking a hybrid approach, combining the best of both worlds
We evaluate not just the market—but your personal plans—to find the right fit.
Who's better off with fixed?
First-time buyers
Budget-conscious households
Those who prefer predictability over potential savings
Fixed vs. Variable: Ask yourself…
- Could you handle a 2–3% rate increase in the short term?
- Would payment changes cause you stress?
- Are you planning to move or refinance within a few years?
- Is the spread between fixed and variable small (less than 0.3%)?
- Do you value certainty more than flexibility?
The answers to these questions help us build the right strategy, not just the cheapest one.
Our approach: Strategy first, rates second
At Better Mortgage Select, we don’t just quote you rates—we model the full picture. That means:
- Forecasting rate trends and payment scenarios
- Comparing real-time cost differences
- Weighing your short- and long-term goals
- Assessing break penalties and lifestyle plans
You’re not buying a rate. You’re investing in a home, a lifestyle, and a future. We’ll make sure your mortgage supports all three.
Choose what fits you
Smart mortgage advice tailored to your goals and comfort level.
Why choose Better Mortgage Select?
Because strategy matters.
We don’t just quote rates—we help you build a mortgage that aligns with your lifestyle, risk tolerance, and long-term goals.
With expert advice and a no-fluff approach, we’ll help you choose between fixed and variable with clarity and confidence.