Fixed or variable mortgage: how to choose

A fixed rate stays the same for the term; a variable rate moves with the lender's prime rate.

Key points

• Fixed gives predictable payments and protection if rates rise.
• Variable has historically often cost less, but payments or amortization can change.
• Penalties for breaking a variable mortgage are often lower.

What to do next

Compare current purchase mortgages and check your monthly payment with the mortgage calculator.