Fixed or variable? It’s a question I hear from many clients, especially right now as high-ratio fixed rates are hovering around 4% and variables closer to 3%. Choosing a fixed rate on a $500,000 mortgage over 25 years means about $211 more per month in exchange for stability. Meanwhile, a lower variable rate doesn’t just reduce monthly payments—it also eases the stress-test, with qualifying payments about $232 lighter each month, giving you a bit more room to breathe when starting out. Variable rates have stayed relatively steady as the central bank holds its policy, while five-year fixed rates track funding costs and the Canada bond yield. For the big banks, renewals are a chance to work with borrowers on new terms or products, keeping risk focused rather than spreading system-wide. If the five-year Canada yield drops, fixed rates could become more attractive; if policy shifts, variable rates will likely move first. Right now, variable rates offer the lowest payments, while fixed rates provide peace of mind. My goal is always to help you navigate these options with clarity and confidence, so your mortgage fits your life—today and in the years to come.
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