💡 Fixed or variable: which one to choose in 2025?
Mortgage rates are on the move again, and the debate between fixed and variable rates is hotter than ever.
But the real question isn’t which rate is the most popular — it’s which one fits your situation best.
Let’s break it all down together, no jargon, just clarity. ☕
🔍 Quick refresher: what’s the difference?
- Fixed rate: stays the same for the entire term of your mortgage (usually 3, 4, or 5 years).
- 👉 You know exactly how much you’ll pay each month.
- 👉 Peace of mind, guaranteed.
- Variable rate: changes with the Bank of Canada’s key interest rate.
- 👉 Your payments can go up or down when the central bank adjusts rates.
- 👉 You could save big if rates drop, but you need to be okay with some uncertainty.
📈 What’s happening right now (end of 2025)
Fixed rates are starting to slowly decrease after a few years of wild fluctuations.
Variable rates are regaining popularity, as many experts anticipate a gradual drop in the Bank of Canada’s key rate in 2026.
But remember — it’s not a race to the lowest rate.
The best choice depends on your risk tolerance, your financial goals, and your comfort level.
💬 So, how do you choose the right one for YOU?
🧩 You value stability
If you like the idea of knowing your payment won’t change, the fixed rate is your best friend.
It’s especially reassuring if:
- Your budget is tight;
- You’ve recently purchased your first home;
- You’re planning for long-term stability (family, kids, future projects).
💪 You’re comfortable with a little movement
If you want to take advantage of potential rate drops and can handle slight changes in your payments, the variable rate could be a great option.
It often suits those who:
- Have a solid financial cushion;
- Plan to refinance or move within 2–3 years;
- Feel confident about playing the long game.
In short: the fixed rate gives you peace of mind, while the variable gives you a shot at saving, if you’re comfortable with a bit of fluctuation.
💬 My advice as a mortgage broker
👉 There’s no one-size-fits-all answer — just the right strategy for you.
Your decision should always be based on:
- Your comfort with risk;
- Your life plans;
- Your income and job stability.
That’s exactly where my role comes in.
I help you analyze your situation, compare lenders, and build a plan that fits your reality, not the average.
📅 Curious to know what’s best for you?
I offer a free 15-minute consultation to review your mortgage and help you make an informed decision —
No pressure, just honest, human advice.
💚 In summary
- Fixed = stability and security
- Variable = flexibility and potential savings
- The right choice is the one that truly fits you
And if you’re still unsure, I’m always here to help you see things clearly — and with a smile 😄