Fixed vs. Variable: Which Mortgage is Right for You?

If you’re buying a home in the Lower Mainland, you’ve probably heard the big question: Fixed or variable mortgage? It’s like choosing between a steady cruise or a thrilling rollercoaster ride—both have their perks, but which one suits you best?

Fixed-Rate Mortgage: Set It and Forget It

A fixed-rate mortgage is like locking in the price of your favourite coffee for five years—no matter what happens, you’ll pay the same amount every month. This is great for buyers who love stability and don’t want to stress over fluctuating interest rates.

✔️ Pros: Predictable payments, protection from rising rates, great for long-term planning.
❌ Cons: Usually comes with a slightly higher rate, and breaking the mortgage early can be costly.

Best for: First-time homebuyers, families, and anyone who sleeps better knowing exactly what their mortgage payment will be.

Variable-Rate Mortgage: Go with the Flow

A variable-rate mortgage moves with the market—if interest rates drop, you save money. If they rise, your payment could go up. Historically, variable rates tend to be lower than fixed rates over time, but they come with a little risk.

✔️ Pros: Lower rates (typically), potential savings, more flexibility if you need to break your mortgage.
❌ Cons: Payments could increase if rates rise, requires a bit more financial flexibility.

Best for: Savvy investors, financially flexible homeowners, and those willing to take a little risk for potential savings.

Which One Should You Pick?

If you value stability and peace of mind, go fixed. If you’re open to risk and potential rewards, go variable. Either way, understanding your options is key to making the best financial decision for your home and future.

📢 Need help deciding? Let’s chat! Whether you’re buying your first home or planning your next move, I can help you find the best mortgage for your situation. hello@barbmackenzie.com