08/06/2026
You picked a 5-year fixed rate because “stability” felt safe, but here’s what most people don’t know when they sign: 6 in 10 Canadian homeowners break their mortgage before the term is up. Life happens: job relocation, growing family, divorce, a house that no longer fits. And when it does, your “safe” fixed rate can turn into the expensive choice:
📊 Variable rate penalty: ~3 months’ interest
📊 Fixed rate penalty: Interest Rate Differential (IRD) — often 2-4x higher than variable, sometimes tens of thousands of dollars
Sometimes borrowers are able to port their fixed-rate mortgages to a new property, but it’s not automatic; it depends on your lender, your new property qualifying, and timing lining up perfectly. Miss any of those three and you’re paying full penalty anyway.
The real question isn’t “fixed or variable?”
It’s “how likely am I to need out of this before the term ends?”
✅ Staying put 5+ years, want predictable payments → fixed often makes sense
✅ Career mobility, growing family, might upsize soon → variable’s lower penalty could save you thousands if plans change
✅ Either way → ask about porting rules before you sign, not after you need them
The mortgage that “protects” you on paper can cost you the most in real life. Know your exit before you need one. And always, always speak to a qualified, licensed mortgage agent before signing because the rate isn’t the only thing that matters. The wrong product can cost you far more than a marginally lower rate.
