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

If you’re buying a home or refinancing in Windsor–Essex or anywhere in Ontario, one of the most important choices you’ll face is whether to go with a fixed mortgage rate or a variable mortgage rate. Both have unique benefits, and the right option depends on your budget, lifestyle, and comfort with market changes.

As a Mortgage Agent Level 2 with Dominion Lending Centres, I specialize in helping clients across Windsor and Ontario secure the best mortgage rates and make informed decisions. Let’s break down the differences.

What is a Fixed Rate Mortgage?

A fixed rate mortgage locks in your interest rate for the entire term.

Pros:
Predictable payments, great for budgeting
Protection against rising interest rates
Peace of mind during uncertain markets

Cons:
Usually a slightly higher starting rate than variable
Less flexibility if rates drop
Fixed mortgages are popular with first-time homebuyers and anyone who values stability.

What is a Variable Rate Mortgage?

A variable mortgage is tied to the lender’s prime rate, so your payment may change as rates rise or fall.

Pros:
Lower initial rates than fixed
Potential long-term savings
Historically cheaper over time

Cons:
Payments can increase if rates rise
Harder to budget with certainty
Can be stressful during rate hikes
Variable rates are often chosen by buyers comfortable with some risk and who want to take advantage of potential savings.

Fixed vs. Variable: How to Decide

The right choice comes down to your financial goals and risk tolerance.
If you prefer stability and peace of mind, a fixed rate is likely your best option.
If you’re open to market fluctuations and want the chance to save more over time, a variable rate could be right for you.

Working with a local Windsor mortgage broker like myself ensures you’ll get expert advice tailored to your situation. I compare Canada’s top lenders to secure the best mortgage rates in Ontario and help you feel confident in your decision.

Let’s Find the Right Mortgage for You

Not sure whether a fixed or variable mortgage is best? Let’s talk through your options. I’ll review your financial goals, analyze today’s rates, and help you choose the mortgage that fits your needs.

Linden Crain
Mortgage Agent Level 2
(226) 787-4745
Dominion Lending Centres