Fixed vs. Variable: Which Is Right for You?

Choosing between a fixed-rate and variable-rate mortgage can feel like flipping a coin — especially in a market with unpredictable interest rates. But the decision doesn’t have to be stressful if you understand the pros and cons of each. Let’s break it down.

Fixed-Rate Mortgages

A fixed mortgage keeps the same interest rate for the entire term (e.g., 5 years), which means your payments stay consistent.

Pros:

• Stability — you’ll always know what your payment will be.

• Peace of mind during rising rate environments.

Cons:

• Usually start with slightly higher rates than variable.

• Less flexibility if you want to pay off your mortgage early (penalties can be higher).

Variable-Rate Mortgages

A variable mortgage rate changes when the lender’s prime rate changes. Your payments can go up or down over time.

Pros:

• Historically, variable rates have been lower overall.

• More flexibility for breaking your mortgage early.

Cons:

• Payments can increase if rates rise — which can be stressful for some.

Which Should You Choose?

It depends on your risk tolerance, financial goals, and the current market. Some buyers even choose a hybrid mortgage (part fixed, part variable) to get the best of both worlds.

Not sure which one’s right for you? I’ll compare the numbers and help you choose the option that makes sense for your lifestyle — and saves you money.