Independent · Canadian rules and data only · Reviewed November 3, 2026

    4 min
    Mortgages

    Fixed vs variable mortgage in Canada: what changes and what stays the same

    Quick summary

    A fixed rate stays the same for your whole term. A variable rate can rise or fall. Which fits you depends on your budget and how much change you can handle. See what a payment change would look like in the mortgage payment calculator.

    Checked November 3, 2026. Main source: FCAC: Interest on mortgages (modified Feb. 23, 2024). See all 2 sources.

    Fixed rate

    FCAC says fixed rates stay the same for the entire term, so your payments stay the same and you know in advance how much principal you will have paid by the end.

    • Pro: predictable payments and protection if market rates rise.
    • Con: the rate is usually higher than a variable rate.

    Source: FCAC: Interest on mortgages (modified Feb. 23, 2024).

    Variable rate with fixed payments

    The rate can rise or fall during the term and may start lower than a fixed rate.

    • If rates rise, more of each payment goes to interest. FCAC says in some cases none of the payment goes to principal.
    • If rates rise to a trigger point in your contract, the lender may raise your payments.
    • If rates fall, more of each payment goes to principal, so you may pay off the mortgage faster.

    Source: FCAC: Interest on mortgages (modified Feb. 23, 2024). FCAC says this option may be riskier than you expect.

    Variable rate with adjustable payments

    Your payment amount changes when the rate changes. A set portion of each payment always goes to principal, so you know in advance how much principal you will have paid by the end of the term.

    Source: FCAC: Interest on mortgages (modified Feb. 23, 2024).

    Compare with your numbers

    Questions people ask

    Is a fixed or variable mortgage better?

    Neither is better for everyone. FCAC describes fixed as predictable and usually a higher rate, and variable as possibly lower at the start and able to change. Compare with your own budget.

    What happens to my payment if the rate rises?

    With a variable rate and fixed payments, more of each payment goes to interest and the lender may raise your payment at a trigger point. With adjustable payments, your payment changes with the rate.

    What happens if rates fall?

    With a variable rate and fixed payments, more of each payment goes to principal, so you may pay off the mortgage faster.

    Can I switch at renewal?

    Yes. FCAC says you can negotiate, shop around or switch lenders at renewal.

    Try it with your numbers