10/02/2026
๐ก Fixed or variable mortgage? Hereโs the simple version.
The Bank of Canada held its policy rate at 2.25% in September, so variable mortgage rates havenโt moved for now. But choosing between fixed and variable is about more than guessing where rates might go next.
๐ Fixed rate: Your rate and payment stay the same for the term. It can be a good fit if you value predictability and want to know exactly what youโll be paying each month.
๐ Variable rate: Your rate can move up or down with your lenderโs prime rate. Depending on your mortgage, that could mean your payment changes or more of your payment goes toward interest when rates rise.
One number worth knowing: on a $500,000 mortgage, a 0.25% rate increase equals roughly $1,250 more in interest over a year, before considering amortization.
Thereโs no one-size-fits-all answer. Your budget, future plans, savings cushion and comfort with changing rates all matter.
๐ฌ Before choosing, talk with a mortgage professional who can walk you through both options using your actual numbers!