Let’s talk about one of the biggest questions I get from buyers, business owners, and even fellow professionals in the game:
“Should I go fixed or variable?”
Whether you’re getting into your first home or exploring a commercial deal, this question shows up again and again – and for good reason. The rate you choose doesn’t just affect your monthly payment, it shapes your whole financial experience.
And the truth is, there’s no one-size-fits-all answer. But there is a right answer for you – once you understand the real difference.
Fixed Rate: The Safe and Steady Route
What it is:
A fixed-rate mortgage means your interest rate stays the same for the entire term. No surprises. No fluctuations. Just consistent payments.
Why people choose it:
- Stability. Your payment is locked in. You know what to expect every single month.
- Peace of mind. Great if you’re on a tight budget or don’t like uncertainty.
- Rising rate protection. If interest rates go up, you’re protected.
But here’s the trade-off:
You’re paying for that peace of mind. Fixed rates are usually higher than variable rates at the start, and if rates drop, you won’t benefit from the savings.
Variable Rate: The Risk-and-Reward Play
What it is:
A variable-rate mortgage means your rate can fluctuate during the term, usually based on your lender’s prime rate. It moves with the market.
Why people choose it:
- Lower initial rate. Variable rates often start lower than fixed.
- Long-term savings potential. Historically, people on variable rates tend to pay less interest over time (but not always).
- Flexibility. Many variable-rate mortgages come with lower penalties if you break early.
What you need to be OK with:
- Rate changes. Your payment or the amount going toward interest could change when the rate does.
- Uncertainty. If rates spike, you’ll feel it. You need to be comfortable riding that wave—or at least have room in your budget to adapt.
So… Which One Should You Choose?
Here’s what I tell my clients:
- If you’re someone who values predictability—maybe you’re on a tight budget, have a young family, or just don’t like playing the market—fixed might be your move.
- If you’re in a strong financial position, can handle some fluctuations, and want to take advantage of potential savings—variable could work in your favor.
- If you want the best of both worlds, some lenders offer hybrid mortgages that split your loan into part fixed, part variable. Not for everyone—but worth asking about.
Real Talk
When my daughter was born, I started looking at money differently. Not just in terms of returns – but impact. What brings peace of mind? What builds long-term freedom? Sometimes that means choosing a fixed rate and sleeping better at night. Other times it means trusting the process and taking a little risk for bigger gains.
It all comes back to one question:
What does security look like for you – today, and down the road?
Final Word
Whether you go fixed or variable, the real win is making a decision that’s aligned with your goals—not someone else’s. Rates will change. Markets will shift. But a well-informed choice? That’ll carry you through.
Need help running the numbers or just talking it out? I’m here. No pressure, just clarity.
Let’s build something solid.
