Fixed vs. Variable Rates: Which One Fits You Best?

Choosing between a fixed and variable rate is one of the biggest decisions you’ll make in the mortgage process. Both options have benefits but the right choice depends on your personality, financial comfort, and long-term plans.

A fixed rate gives you the peace of mind of knowing your payments will stay exactly the same for the duration of your term. This option is ideal for anyone who values stability, has a strict budget, or simply doesn’t enjoy uncertainty. Many first-time buyers like fixed rates because they make planning easier and eliminate surprises.

A variable rate, on the other hand, fluctuates with the lender’s prime rate. Your payments may change over time, either increasing or decreasing depending on the market. While this option carries more risk, it also often comes with lower initial rates and the potential to save money if rates fall. Variable rates tend to work best for buyers who are flexible, financially secure, and comfortable navigating some movement.

When deciding between the two, consider your emotional tolerance. If rate changes cause stress, a fixed rate may give you the peace of mind you need. If you enjoy flexibility and want to take advantage of possible market drops, a variable rate could be worth exploring.

A mortgage professional can help you compare scenarios side-by-side so you can see exactly how each option affects your monthly payments. Remember — this isn’t about guessing the market, but choosing the option that fits your life.

Ultimately, the best choice is the one that lets you sleep well at night.