The fixed-versus-variable debate never really ends, but the right answer always depends on your personal risk tolerance and financial cushion, not just where rates happen to sit today.
The Case for Fixed
A fixed rate offers payment certainty for the length of your term, which appeals to buyers who value predictability and want to budget with confidence regardless of where the Bank of Canada moves next.
The Case for Variable
Variable rates have historically outperformed fixed rates over the long run in many cycles, and they typically come with lower penalties if you need to break your mortgage early, though they carry payment fluctuation risk.
- Fixed: payment certainty, generally higher break penalties
- Variable: potential long-term savings, payment fluctuates with the Bank of Canada rate
- Consider a hybrid or shorter term if you're uncertain about your risk tolerance
How to Decide
Run both scenarios with a mortgage professional against your actual budget and stress tolerance, the 'right' choice is deeply personal, not a market-timing bet.
Next step
Numbers can be intimidating, you don't have to run them alone. Contact Hamodi Realty for a personalized affordability breakdown and a referral to trusted local mortgage professionals who know the GTA market inside and out.