Fixed or Variable Mortgage

Snapshot: Fixed or Variable Mortgage

One of the first considerations prospective homebuyers face is whether to select a fixed or variable mortgage. What does this mean, and how does it play into your overall mortgage product?

To begin with, when speaking of a variable or fixed mortgage, It is understood that it is in reference to the mortgage interest rate. This is the rate of interest you will pay on the outstanding balance of your mortgage. This rate can be fixed for the duration of the term or variable, fluctuating with the prime lending rate.

Term can be 1 year or all the way up to 10 years in some cases, depending on the Bank or lending institution.