Today’s Mortgage Rates updated as of December 26, 2024 1:09 am
5-year fixed*
5-year Variable*
*Insured loans. Other conditions apply. Rate in effect as of today.
Fixed vs Variable Mortgage Rates.
One of the most critical decisions Canadian homebuyers face is choosing between a fixed-rate or variable-rate mortgage. Each option has distinct benefits and risks, making it essential to understand how they align with your financial goals and market conditions. This guide breaks down the key differences, advantages, and considerations for each, ensuring you make an informed decision.
A fixed-rate mortgage locks in your interest rate for the entire term, providing consistent monthly payments. This option is ideal for those seeking stability and predictability in their finances.
Learn more about fixed-rate mortgages from the Government of Canada.
The prime rate is closely linked to the Bank of Canada’s overnight rate, which influences the lending and borrowing rates across financial institutions.
When the Bank of Canada raises or lowers its overnight rate, major banks typically adjust their prime rates accordingly, affecting millions of Canadian borrowers.
Learn more about how the Bank of Canada sets interest rates.
Learn more about today’s best mortgage rates in Canada.
A variable-rate mortgage fluctuates based on changes to the lender’s prime rate, which is tied to the Bank of Canada’s overnight rate. While it can offer lower initial rates, payments may increase if rates rise.
| Feature | Fixed-Rate Mortgage | Variable-Rate Mortgage |
|---|
| Payment Stability | Consistent throughout the term | Fluctuates based on market rates |
| Interest Rate | Higher initially, but stable | Lower initially, with potential to rise |
| Risk Tolerance | Ideal for risk-averse borrowers | Suitable for those comfortable with market changes |
| Market Conditions | Best when rates are expected to rise | Best when rates are expected to decline |
| Year | Fixed Rate Preference (%) | Variable Rate Preference (%) |
|---|---|---|
| 2019 | 65% | 35% |
| 2021 | 62% | 38% |
| 2023 | 72% | 28% |
| Loan Amount | Rate | Monthly Payment (Fixed) | Monthly Payment (Variable) |
|---|---|---|---|
| $300,000 | 5% | $1,745 | $1,645 |
| $300,000 | 6% | $1,925 | $1,825 |
| $300,000 | 7% | $2,106 | $2,006 |
While 33% of non-homeowners believe they’ll never own*, our Citadel mortgage brokers are 100% confident they can make it happen. How? With our expert advice and guidance.
(5-years interest savings with Citadel Mortgages)**
(Interest savings with Citadel Mortgages)
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Both fixed and variable rates are shaped by key economic factors:
Track overnight rate changes from the Bank of Canada.
| Year | Fixed Rate Preference (%) | Variable Rate Preference (%) |
|---|---|---|
| 2019 | 65% | 35% |
| 2021 | 62% | 38% |
| 2023 | 72% | 28% |
At Citadel Mortgages, we recognize how important it is to stay informed about changing mortgage interest rates. Whether you’re purchasing your first home, refinancing, or renewing your mortgage, we’re here to guide you through the process with solutions that suit your financial needs, even in fluctuating rate environments.
From fixed to variable rates, we offer tailored solutions that help you secure the most competitive interest rates for your situation.
Our team monitors the Canadian mortgage market to provide insights on current rates, helping you make informed decisions.
We focus on finding solutions, even if you’ve faced credit challenges or financial setbacks.
Income constraints shouldn’t hold you back. We specialize in making homeownership accessible for Canadians in various financial situations.
Enjoy a smooth experience with quick approvals and clear communication every step of the way.
Secure today’s interest rates to avoid surprises if rates increase before your mortgage closes.
Consolidate high-interest debt into a single, lower-interest mortgage payment, saving you money and simplifying your finances.
Choose flexible payment terms that fit your budget, whether you prefer the stability of a fixed rate or the potential savings of a variable rate.
Refinance your mortgage to tap into your home’s equity for renovations, debt consolidation, or investment opportunities.
Mortgage trends offer a snapshot of the current financial landscape:
A fixed-rate mortgage locks in your interest rate for the entire term, ensuring consistent monthly payments regardless of market changes.
A variable-rate mortgage has an interest rate that fluctuates based on the lender’s prime rate, which is influenced by the Bank of Canada’s overnight rate.
A higher interest rate increases monthly payments, while lower rates reduce overall costs.
Fixed rates offer stability, while variable rates provide potential savings if market rates drop.
Consider your financial stability, risk tolerance, and market trends. Fixed rates suit those who prefer stability, while variable rates may work for those comfortable with fluctuations.
Use our mortgage calculator to gain a clearer picture of what you can expect in terms of monthly payments, interest costs, and amortization schedules. Simply input your loan amount, interest rate, and amortization period to get started. This tool provides estimates to help you make informed decisions as you explore different mortgage options.
The decision between fixed and variable mortgages ultimately depends on your financial situation, risk tolerance, and market trends. Staying informed about how these options differ ensures you make the right choice for your long-term goals. For expert advice and access to the best mortgage rates in Canada, contact Citadel Mortgages today.
At Citadel Mortgages, we pride ourselves on offering expert, client-focused mortgage solutions that stand out in the industry. Here’s why you should choose us:
Our mortgage brokers are licensed and certified across multiple provinces, providing exceptional advice and service tailored to your unique needs. Our mortgage brokers are committed to delivering the highest standards of professionalism and expertise.
Unlike traditional commission-based models, our mortgage agents are evaluated based on client satisfaction and the quality of their advice. This ensures that you receive impartial guidance on the best mortgage options for your situation.
Citadel Mortgages offers competitive rates that help you save money over the life of your mortgage. Our team works diligently to find the most favorable terms to suit your financial goals.
We are dedicated to transforming the mortgage industry by offering a transparent, seamless process. Our 100% digital platform ensures that you can manage your mortgage application from start to finish with ease and confidence.
At Citadel Mortgages, our mission is to provide a positive, empowering, and transparent property financing experience. We simplify the mortgage process to make it as straightforward and stress-free as possible.
For personalized advice and the best mortgage rates in Toronto, contact our licensed and knowledgeable mortgage experts at Citadel Mortgages.
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Montreal Office – 1155 Rue Metcalfe #1500, Montreal, QC, H3B 2V6
Disclaimer
Citadel Mortgages operates an information-based website designed to display mortgage rates from its trusted partners. While we strive to present accurate and up-to-date information, we cannot guarantee the precision of the rates or other details provided at all times. Citadel Mortgages assumes no liability for errors, inaccuracies, or damages resulting from the use of the information on this site. Terms and conditions apply, and it is essential to consult directly with a licensed mortgage broker for personalized advice and accurate details about specific products and services. Please note that the rates displayed are for informational purposes only and may differ from actual rates offered.
Citadel Mortgages is licensed to operate in the following jurisdictions:
Instant Approval, Conditional Approval, Pre-Approval
All approvals are subject to credit and underwriting approval. Not all borrowers will qualify for conventional or equity financing. The receipt of an application does not constitute a financing approval or guarantee of an interest rate. Restrictions apply. The Annual Percentage Rate (APR) is subject to underwriting and approval, and fees and terms may vary. Contact us for the most current rates and further information about specific products. OAC (On Approved Credit).
We remain committed to delivering outstanding service, transparency, and ethical practices. Please note that some rates are province-specific and may change without notice. Rates may not be available in Quebec; please contact us directly to confirm availability and approval.
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