Most Common Questions About Variable And Fixed Rate Mortgages

Author: Shelley Russell Mortgage Agent | | Categories: Mortgage Agent , Mortgage Broker , Mortgage Refinance


Unless you’re a multi-millionaire, you will need to qualify for a mortgage and borrow most of the money from a lender when purchasing a property. This process can be straightforward with the assistance of an experienced mortgage broker.

However, when it comes to choosing between a variable and fixed-rate mortgage, there are a ton of questions clients have but often find answers difficult to come by. Therefore, Shelley Russell, Mortgage Agent, wants to give you the most accurate information available to help you make informed decisions. To do this, we’ve answered some of the most common questions about variable and fixed-rate mortgages.

1. Will the variable always be lower than fixed?

The answer is no. There is no guarantee that the variable rate will remain lower than the fixed rate. At any given time, the fixed rate can be higher than the variable rate, and vice-versa. Therefore, we look at the trends in Canada for the last forty years, not just today.

2. If I’m at a variable rate, do I have to keep that for five years?

The answer is no! you can lock into a fixed rate at any time, penalty-free. You’ll be subject to the fixed rates currently offered in the market, but you are 100% able to lock in at any time, penalty-free.

3. What is the penalty if I break my mortgage?

The answer is that it’s hard to know unless you’re at a variable rate. The variable rate mortgage penalty is a three months interest penalty, no matter when you break that mortgage. Fixed-rate penalties are based on IRD (Interest rate differential), which is unknown as it’s calculated on the rate of the day you break the mortgage.

Get in touch with us today!

If you have more questions about variable and fixed-rate mortgages, contact the experts at Shelley Russell Mortgage Agent. As the best Mortgage Brokers in Windsor and Toronto, Ontario, we provide a comprehensive range of services.

Our services include debt consolidation, first-time home buyer mortgages, home renovation financing, vacation home mortgages, switch mortgages, and self-employed mortgages. We also take care of pre-approvals and renewals for clients.

We serve clients across Markham, Vaughan, Guelph, Kitchener, Burlington, Windsor, Brampton, Hamilton, Mississauga, Toronto, and the surrounding areas.

To learn more about how we can help you, please click here or contact us by calling our Toll Free number: 1(866) 444-8115. Alternatively, you can email