The fixed-vs-variable decision comes down to one question: do you value certainty or flexibility? Both are valid - the right answer depends on your budget, your risk tolerance, and how long you plan to keep the mortgage.
Fixed-rate mortgages
Your rate and payment are locked for the entire term. You're protected if rates rise, and budgeting is simple. The trade-off is a higher penalty if you break the mortgage early (the interest rate differential).
Variable-rate mortgages
Your rate moves with your lender's prime rate. They often start lower than fixed, and the penalty to break is usually just three months' interest. The risk: if prime rises, more of your payment goes to interest.
Which should you choose?
If a rate increase would strain your budget, fixed buys peace of mind. If you can absorb some payment movement and want flexibility, variable can save money over time. We'll model both against your numbers.
Have questions about your situation? An advisor can walk you through it.