Should you go with a fixed mortgage rate or should you go with a variable mortgage rate?

Great question, in fact I was asked to do an interview yesterday for Moneysense Magazine on this exact topic.

Let me start by saying, I’ve always believed there isn’t a one size fits all answer to this question.

I think risk tolerance is a big factor. The question then becomes, what’s the risk?

All reports coming out right now are definitely indicating a slowing Canadian economy. Add to that, the financial uncertainties around the world and I think it’s safe to say, I don’t see mortgage rates going anywhere anytime soon.

But I think you’ll agree with me, mortgage rates will eventually go up.

The billion dollar question is, when and by how much?

There’s no denying the fact that over the past 10 years when they compared a 5 year fixed mortgage rate versus a variable mortgage rate, going variable definitely came out ahead in terms of overall savings.

That said, the spread between a variable rate mortgage and a 5 year fixed mortgage is nowhere near where it used to be. In fact, we use to see variable rate mortgages discounted as much as Prime minus .9 or a full point. Now the best variable rate mortgage is sitting around Prime minus .40, which equates to 2.6%, while a 5 year fixed mortgage rate can be had around 2.99%

That’s barely .30 compared to highs of 1.7 in the past.

I like the fixed 5 year year mortgage for a couple of reason.


  1. We Probably won’t see these historically low rates in the future.
  2. The spread isn’t significant enough to justify the risk

As you can see, there’s a lot more to mortgages than just great rates

For the right advice, At the right time, you know the drill

Mark Fidgett is a Vancouver mortgage broker and the driver behind


Your Vancouver Mortgage Broker For Life

P.S. Who’s the next person you know who wants to save thousands off their mortgage? Be sure to give me a call so we can help them! 604-273-2002

Check out the video “Fixed vs variable rate mortgage with Vancouver mortgage broker variable or fixed