Fixed Rate compared to Variable Rate:
Fixed Rates are tied to the bond rates which means the rate tends to bounce around. A 5 year rate is typicaly between 4% - 6%. The early payout penalty for a fixed mortgage is typically between $10,000 and $20,000. Sometimes even higher. This is something to consider when selling your house. Check with your financial institution of what their penalties are.
Variable Rates are tied to the prime rate of the bank of Canada. Currently the prime is at 2.25. If the bank of Canada rate was to go up so would the consumer interest rates. This is not about to happen any time soon in spite of what the media might say. Early payout penalties for a variable is typically 2 months interest payments. Again check with your financial institution on what your early payout penalty will be.
Follow the links below to find out more about mortgage interests and what your rates would be.
http://dominionmortgageteam-px.rtrk.ca/ House and Castle Mortgage Calculator