10/30/2026
📈 Variable rates have moved up. Should you choose fixed or variable for your next home?
Start with the numbers.
For a $1 million purchase with $75,000 down, this example includes mortgage default insurance, bringing the total mortgage to $962,000 over 25 years.
🔒 3-YEAR FIXED AT 5.25%
Approximately $5,733/month in principal and interest, with payment certainty during the term.
📊 5-YEAR ADJUSTABLE VARIABLE AT 3.95%
Approximately $5,034/month initially. The payment can rise or fall as the lender’s prime rate changes.
If that variable rate were another 0.75 percentage points higher, the illustrated payment would be approximately $5,432/month using the same starting balance and amortization.
Even then, it would be below the fixed payment in THIS example. But that doesn’t make variable the right choice for everyone.
Your decision should account for your cash-flow cushion, comfort with changing payments, plans to move or refinance, and the mortgage’s terms and penalties. These examples also have different term lengths: three years versus five.
And remember: $75,000 is not your total cash requirement. Closing costs, including $2,960 in Ontario tax on the insurance premium, are additional.
📩 Connect with a RE/MAX Metropolis agent to plan your purchase alongside a licensed mortgage professional.
Disclaimer: Illustrative only. First National posted rates checked Oct. 30, 2026; not best-rate quotes or a financing offer. Payments are rounded principal and interest only; other ownership costs are extra. Future rate increases are hypothetical, not forecasts. Actual later payments depend on remaining balance, amortization and lender terms. Subject to lender/insurer approval; rates may change. Minimum down payment is not exclusive to first-time buyers. Not mortgage, financial or legal advice. E. & O. E.
