Should You Lock into a Fixed Rate or Let it Ride with a Variable Mortgage?

One of the best advantages to working with one of our top Toronto mortgage agents is that you’ll have access to a variety of products at the best mortgage broker rates. It’s important to review your unique financing circumstances with a certified mortgage advisor so that you can determine if a fixed or variable rate mortgage is better for you – today, and in the future.

Do your due diligence – it’s the key to protecting your financial future.

Our mortgage pros have laid out some benefits of fixed, variable, and long-term mortgages for you to compare, so you can see what may be a great loan product for you.


A fixed rate mortgage has a set interest rate and predetermined payments for the duration of your mortgage term, regardless of the current interest rate terrain. If you prefer to know your set monthly expenses, this type of mortgage may be for you. You’ll have the benefit of budgeting with confidence in a secure low-risk product.


Variable interest rate mortgages correspond with the Bank of Canada’s prime rate. This means both a variable mortgage rate and its payment will change when the BoC changes the overnight lending rate. If the Bank of Canada’s rate decreases, your mortgage payment decreases, or you may be paying more towards the principle versus interest on your mortgage loan. And the opposite, if the BOC’s rates go up.

It’s important to work with a licensed mortgage broker who can show you how today’s variable rate and future projections could be an opportunity for you.


Did you know that a 10-year mortgage is a product available on the Canadian mortgage market? Though it may not be the product for you, as mortgage professionals, we want you to know all of your options when it comes to financing real estate. 

A long-term mortgage can be a secure option if you plan to stay in your home long term. The biggest consideration when diving into a long-term mortgage is that the penalties to break your contract are generally significantly higher in the first 5 years, before they drop down to only 3 months of interest once you cross that 5 year threshold.

Which Mortgage is Best For You?

When choosing the best mortgage for you, it really comes down to personal and industry influences. Your budget, the amount of risk you can tolerate, the length of time you’ll live in the home, and current interest rates, will all have an effect in your decision.

Mortgage options are as clear as mud, hey?

Good thing we’ve got a team of licensed professionals on stand-by to answer your questions. Find your local mortgage broker today – Call or email.


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