Fixed or Variable? Why More Canadians Are Reconsidering Their Mortgage Options

If you’ve been following mortgage news lately, you’ve probably heard that variable-rate mortgages are making a comeback. And if you’re like most homeowners (or soon-to-be homeowners), you’re wondering: Should I go fixed or take the plunge with a variable rate?

This is one of the biggest questions I get from clients, and honestly? The answer isn’t the same for everyone.

So let’s break it down in a way that actually makes sense—without all the financial jargon.

Why Are Variable Rates Getting So Much Attention?

For the past few years, fixed rates have been the “safe” choice. They offered security and predictability, especially as interest rates climbed. But here’s what’s changing:

🔹 The Bank of Canada has started cutting interest rates—and more cuts are expected this year.

🔹 Variable rates are now almost equal to fixed rates, which is a big shift from just a few months ago.

🔹 Lower penalties – If you ever need to break your mortgage early, a variable rate usually comes with a much smaller penalty than a fixed-rate mortgage.

Because of this, a lot of people are giving variable rates a second look—especially those who are comfortable with a little uncertainty in exchange for potential savings.

The Reality Check: Is Variable Right for You?

Let’s be real. Variable rates aren’t for everyone. Here’s what you should consider:

✔️ Are you okay with some fluctuation in your payments? If rates drop, you’ll save money. But if they go up, your payment could too.

✔️ Do you plan on selling or refinancing before your term is up? A variable mortgage could save you thousands in penalties compared to a fixed-rate mortgage.

✔️ Do you like keeping an eye on the market? If you’re someone who doesn’t mind a bit of strategy, you can switch to a fixed rate later if needed.

On the flip side, if you like stability and predictability, a fixed-rate mortgage may still be the better option for your peace of mind.

What If You’re Not Sure?

If you're on the fence, there are other options, too:

💡 Short-term fixed rates – A 3-year fixed mortgage gives you security now without locking you in for five years.

💡 Hybrid mortgages – Some lenders let you split your mortgage between fixed and variable, so you get the best of both worlds.

Final Thoughts: What Should You Do?

There’s no one-size-fits-all answer, and that’s exactly why working with a mortgage agent (like me! 😉) makes a difference. I help my clients figure out what actually works for their budget, goals, and risk tolerance, so they feel confident in their decision.

Thinking about making a move or renewing your mortgage soon? Let’s chat! I’d love to walk you through your options and help you choose the best path forward.

📩 Send me a message, and let’s talk mortgages—without the stress!