Variable or Fixed-Rate Mortgages

What's the right option for you?


There are two main types of mortgages: a variable mortgage and a fixed-rate mortgage.

A variable mortgage is one where the interest rate will vary during the term of the mortgage. The interest rate is typically set at a pre-determined percentage above the prime rate and then will fluctuate up and down with the prime rate. If the variable rate is lower than the fixed rate, there is potential for significant savings in interest costs and improved flexibility.

A fixed-rate mortgage gives the borrower peace of mind because their mortgage payment and interest rate will remain unchanged during the term of the mortgage. When faced with rising interest rates, locking in at a fixed rate can be a good way to reduce the risk of unexpected mortgage payment increases down the road.

Unsure of what mortgage is best for you? Access Credit Union’s mortgage and lending specialists are here to help guide you through the mortgage process, with expert advice and a personalized approach. Talk to your local branch or call our Member Solutions Centre today.