Fixed vs Variable: Which Mortgage is Right for You?
When it comes to choosing a mortgage, one of the most important decisions you’ll make is whether to go with a fixed or variable interest rate. Both have their pros and cons — and the right choice depends on your financial situation, risk tolerance, and market conditions.
At Maximum Mortgage, we believe in giving you Maximum clarity so you can make informed decisions that work for your life, not just your loan. Let’s break down the differences and help you figure out which option might be best for you.
🔐 What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage means your interest rate stays the same for the entire term — typically 1, 3, or 5 years (or longer). Your payments are predictable and stable, no matter what happens to interest rates in the market.
✅ Pros:
- Predictability: Your monthly payments won’t change, which is great for budgeting.
- Peace of mind: You’re protected from rate increases.
- Great for long-term planning: Especially useful if you’re planning to stay in your home for a while.
⚠️ Cons:
- Usually starts higher than a variable rate.
- Less flexibility: Breaking a fixed mortgage early often comes with higher penalties.
🔄 What Is a Variable-Rate Mortgage?
A variable-rate mortgage is tied to your lender’s prime rate, which can fluctuate with the Bank of Canada’s interest rate decisions. While the rate can go up or down, it often starts lower than a fixed rate.
There are typically two types of variable mortgages:
- Adjustable-rate: Your payment amount changes when the rate changes.
- Variable rate: Your payment stays the same when the rate changes, but how much goes toward principal vs interest will change.
✅ Pros:
- Lower initial rate: Can save you money if rates remain low.
- Potential long-term savings: Historically, variable rates have cost less over time.
- Lower penalty if you break your mortgage early.
⚠️ Cons:
- Unpredictable payments or amortization: Rates can rise, which will increase your overall cost.
- Not ideal for risk-averse borrowers.
🏠 Which Mortgage Is Right for You?
There’s no one-size-fits-all answer. Here are a few guiding questions:
- Are you planning to move or refinance in the next few years? A variable mortgage may offer more flexibility and lower penalties.
- Do you need absolute certainty in your monthly budget? A fixed rate might be a better fit.
- Are you comfortable with a bit of risk for potential savings? Consider a variable rate.
- What is the current interest rate environment like? When rates are rising, fixed rates become more attractive. When rates are stable or falling, variable may win.
📈 What’s Happening in Quebec’s Market Right Now?
As of late 2025, we’re seeing interest rate trends that make this choice more nuanced. While rates have stabilized after a period of increases, uncertainty remains. Many buyers are choosing shorter fixed terms (like a 3 year fixed) to ride out the market — while others are locking in for a 5 year fixed for peace of mind.
💬 Let Maximum Mortgage Help You Choose with Confidence
Still unsure which mortgage is right for you? That’s where we come in. At Maximum Mortgage, we work with various lenders to find the best options for your unique situation — and we’ll walk you through every step of the decision.
Whether you’re buying your first home, renewing an existing mortgage, or looking to refinance, we’re here to make sure you get Maximum value, Maximum clarity, and Maximum confidence in your mortgage choice.
📞 Let’s talk about your options today!
📞 514-591-6166
📧 info@maximummortgage.ca
