🧠 Fixed vs Variable Mortgages in 2025

Blog Post:

In 2025, Canadian homebuyers are facing one of the most unpredictable mortgage markets in years. With inflation cooling and the Bank of Canada expected to lower rates gradually, the choice between fixed and variable mortgages has become more strategic than ever.

A fixed-rate mortgage locks in your interest rate for the full term, offering peace of mind and predictable monthly payments — ideal if you value stability. On the other hand, a variable-rate mortgage fluctuates with the Bank of Canada’s prime rate. It may save you money in a declining rate environment, but you’ll need to be comfortable with potential payment changes.

If you expect rates to drop further into 2026, a variable or short-term fixed mortgage could offer flexibility. However, for long-term security, a 3-to-5-year fixed rate remains a safe choice. Always compare both options and speak with a RateShop mortgage advisor to find the right balance between savings and stability.