Variable vs Fixed Rate Mortgages

There's a lot to learn about when you're buying a new home, so we're making it a bit easier here by explaining the differences and benefits of both variable and fixed rate mortgages.

Variable Rate Open Mortgage

Perfect for you if you want:

  • the freedom to pay off part or all of your mortgage at any time, without interest penalties or service fees
  • the flexibility to convert anytime to a Fixed Rate Closed Mortgage if interest rates rise
  • to have a flexible interest rate together with a set mortgage payment, as long as the amount is sufficient to cover your interest cost

Read our handy checklist to ensure you have all your paperwork in order for your mortgage approval process to go as smoothly as possible.

Variable Rate Open Mortgage Rates
1-Year 4.45%

Variable Rate Closed Mortgage

Perfect for you if you want:

  • our lowest mortgage rate and monthly payments
  • predictable mortgage payments; while the rate is variable and based on prime, your payments are fixed for the five year term (based on the variable rate closed pricing when you apply)
  • to be able to pre-pay up to 20% of your original or renewed mortgage balance each year, with no interest penalty or service fees
Variable Rate Closed Mortgage Rates
5-Year 3.25%

Fixed Rate Closed Mortgage 

Perfect for you if you want:

  • a guaranteed and protected interest rate; if rates go up, you're protected for the duration of your term

  • predictable mortgage payments every month; you'll know exactly what you'll be paying toward your principal and interest for the entire length of the mortgage term, making it easier to budget

  • the flexibility of terms that range from six months to five years

  • to be able to prepay up to 20% of your original or renewed mortgage balance each year with no interest penalty or service fees; you can set up a payment schedule of your choice, as long as you don't exceed 20% annually

Best Rate Fixed Closed Mortgages Rates
6-Months 3.24%
1-Year 3.29%
2-Year 3.34%
3-Year 3.39%
4-Year 3.44%
5-Year 3.49%
 

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