Fixed vs. Variable Mortgage Rates

Hi All, this is part 1 of an informative piece from Cory Lewis of Jencor Mortage. If you have any questions, email me and I'll send you her contact info.


The Fixed vs. Variable debate is one that I receive many questions on and with the most recent interest rate news I am finding buyers are having even more trouble making this decision. Here is a break down of everything you need to know about the two options, I hope you and your clients find this helpful!


I have had some appointments come up this morning and will not be able to make it into the office , my plans are to try swing by later this afternoon around 3pm. If there is anything at all I can help you with please do not hesitate to stop by or call / email me anytime.


Fixed Vs Variable – How to decide…..which way should we go? The choice between Fixed and Variable interest rate is one that many borrowers ask about.

This is a very common question and you are not alone. First, let’s help you to understand the differences between the two types of mortgages. A Variable Mortgage is where the interest rate charged and your monthly payment will change when there is any change to prime rate. The prime rate can change up to 8 times per year. A Fixed Mortgage is where neither your payment or the interest rate will change at all during the term of your mortgage.

Both fixed and variable mortgages have their own advantages and disadvantages.

Advantages of a Variable Rate Mortgage:

  • When rates go down you benefit from that immediately and will see your payment drop – this means more towards the principal and less interest so your mortgage is paid off faster!
  • Historically variable mortgages have been significantly lower in rate than fixed mortgages
  • Variable rates off you the freedom to convert at any time to a fixed rate mortgages especially when you see rates rising at no cost – your Jencor Mortgage advisor will keep you informed

Advantages of a Fixed Term Mortgage:

  • The fixed rate offers the security of locking in your rate
  • You may prefer peace of mind – the same mortgage payment every month with a guarantee not to change for the term
  • You will know exactly how much principle and interest you are paying with each payment

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