Fixed or variable? It’s a question I explore with every client, because understanding the real numbers behind your mortgage choice makes all the difference. Right now, we’re seeing advertised high-ratio fixed rates around 4% and variable options closer to 3%. On a $500,000 mortgage over 25 years, that means paying about $211 more each month for the predictability of a fixed rate. But there’s more to the story: a lower variable rate can actually help you qualify for a larger mortgage, since stress-test payments in this scenario are roughly $232 lower per month. That extra breathing room can open doors for many borrowers.
Variable rates have remained more stable lately, thanks to the Bank of Canada holding steady on policy, while five-year fixed rates have been reacting to changing term funding costs and movements in the Canada bond yield. For Canada’s major banks, renewal time is an opportunity to discuss new terms and products with clients, and to help tailor solutions as needs evolve—something I’m passionate about in my own practice.
Looking ahead, if the five-year Canada yield drops, we could see fixed rates ease further; if policy shifts, variable rates will adjust more quickly. For now, variable offers lower payments, while fixed gives you peace of mind. My goal is always to help you weigh these options with clarity, so you can choose the strategy that best fits your financial journey.
Leave a Reply