Fixed vs variable: build your scenario

Fixed or variable? It depends on where rates go

A fixed mortgage locks your rate for the term, certainty, but usually at a higher starting rate. A variable mortgage moves with your lender's prime rate: it often starts lower, but your rate, and sometimes your payment, changes as prime does. The right choice comes down to what happens to rates over your term, and how much payment movement you can stomach.

How to use this tool

This is a scenario builder, not a crystal ball. Put in your own view of where prime is heading, cuts, holds, or hikes, and the calculator runs both mortgages month by month over five years, then shows which one paid less interest and left you with a smaller balance. Try a few scenarios: rates falling, rates flat, rates climbing. It quickly shows how much risk you are really taking with variable, and how much you would save if your view is right.

Want to compare payment frequencies too? Use the payment options calculator, or see your payment on a purchase with the mortgage payment calculator.

Estimates only, using Canadian semi-annual compounding. Real terms, caps and lender rules vary, which is exactly what we help you navigate.