Fixed rate
Your rate and payment stay the same for the whole term. It's good if you value predictability and a stable budget.
Variable rate
Your rate moves with lenders' prime rate. It's good if you're comfortable with some movement and want flexibility.
Penalties matter
Breaking a variable mortgage usually costs about three months' interest. Breaking a fixed mortgage can cost much more because of the interest rate differential (IRD) calculation.
Ask yourself
Could you sell, refinance or move in the next few years? How would a higher payment affect your budget?
There's no one right answer — only the right fit for you. Let's talk about your plans and pick the option that matches them.