One of the most common questions homeowners ask when getting a mortgage or renewing is whether they should choose a fixed or variable rate. The answer is not the same for everyone. It depends on your goals, comfort level, and how you plan to use your mortgage over time.
Here at Brent Leah Mortgages, we are here to guide you through the differences to help you make a decision that fits your life today and still works years down the road.
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage means your interest rate and payment stay the same for the entire term, usually between one and five years.
Why people choose fixed rates:
Predictable monthly payments
Easier budgeting
Protection from rising interest rates
Peace of mind during uncertain markets
Fixed rates are often popular with homeowners who value stability or prefer knowing exactly what their mortgage payment will be every month.
What Is a Variable-Rate Mortgage?
A variable-rate mortgage fluctuates based on the prime rate. When interest rates change, your mortgage rate can go up or down.
Why people choose variable rates:
Historically lower average rates over time
Potential savings when rates decrease
Often lower penalties if you break your mortgage early
More flexibility for certain financial strategies
Variable mortgages can be a good fit for borrowers who are comfortable with some movement in their payments or who plan to refinance or sell before the term ends.
Which Option Makes Sense in Today’s Market?
There is no universal “right” choice. Instead, it comes down to risk tolerance and future plans.
A fixed rate may make sense if:
You want certainty in your monthly expenses
Your budget is tight and payment changes would be stressful
You plan to stay in your home long term
A variable rate may make sense if:
You can handle some payment fluctuation
You want flexibility if rates change
You may break your mortgage before the term ends
Market conditions matter, but personal comfort matters more. The best mortgage is the one you can live with comfortably.
Common Myths About Fixed and Variable Mortgages
Many people believe fixed rates are always safer or that variable rates are always cheaper. Neither is always true.
Fixed rates provide stability, but they can come with higher penalties if you break the mortgage early. Variable rates can save money, but they require comfort with change. Understanding the full picture is key.
Why Advice Matters More Than the Rate
Choosing between fixed and variable should never be a guess. A good mortgage strategy looks at your income, future plans, and how long you expect to keep the mortgage.
That is where working with a mortgage broker makes a difference. Instead of being limited to one lender’s products, you can compare options and choose a mortgage that aligns with your long-term goals.
Fixed and variable mortgages both have advantages. The right choice depends on your lifestyle, risk tolerance, and plans for the future.
Brent Leah Mortgages helps Edmonton homeowners navigate these decisions with clear advice and real-world insight. Whether you are buying, renewing, or refinancing, understanding your options puts you in control of your mortgage.
Contact Brent Leah Mortgages today for a free mortgage strategy consultation.
