Fixed vs Variable Rate Mortgage
Real Estate — Honest comparison to help you decide
Fixed Rate
- ✓ Payment never changes
- ✓ Easy to budget
- ✓ Protected from rate increases
- ✓ Peace of mind
- ✓ Best when rates are low
VS
Variable Rate
- ✓ Lower initial rate (0.5-1% less)
- ✓ Save money if rates drop
- ✓ Better for short-term ownership
- ✓ Caps limit maximum increase
- ✓ Lower total cost if rates stay flat
The Verdict
Staying 10+ years or risk-averse: fixed. Selling within 5 years or rates trending down: variable can save thousands. When in doubt, fixed wins for peace of mind.