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Are you undecided between a fixed or variable rate mortgage?

July 2, 2019

The age-old debate:
Fixed or Variable?

The question of ‘Fixed versus Variable’ rate mortgages is an age-old debate. In fact, it is typically one of the first questions people ask when shopping for a mortgage. Watch the video below to learn more about fixed and variable rate mortgages!


A fixed rate mortgage is a mortgage where your interest rate remains unchanged and your payments stay constant throughout the entire term of your mortgage. A fixed rate mortgage is considered a low-risk product for borrowers and people who choose fixed rate mortgages do so because it provides them with “peace of mind”.

On the other hand, a variable rate mortgage is when your mortgage rate fluctuates with the prime lending rate set by the Bank of Canada. The Bank of Canada sets eight meetings per year to set the lending rates. Your mortgage interest rate could move up or down over the term of your mortgage if there is a change. The uncertainty of a variable rate mortgage may keep people away from it, but it has the flexibility and benefits that have been proven with past decade to save your money.

The penalty to break a fixed rate mortgage is higher due to aggressive penalties by lenders, whereas with a variable mortgage, traditionally is lower with a simple three months penalty.

MonsterMortgage.ca has always educated its clients on the pros and cons of both variable rate and fixed rate mortgages. Overall, when choosing a mortgage, it is very important to understand:

If you have any questions regarding ‘Fixed versus Variable’ rate mortgages, feel free to call us at 416-480-0234 or send an email to info@monstermortgage.ca.