03/06/2026
Answer: False!
A fixed rate mortgage and a variable rate mortgage are two very different things.
π A fixed rate mortgage: The interest rate is locked in for the term of your mortgage, and most lenders offer 1, 2, 3, 4, 5, 7 and 10 year terms. This means that your payment stays the same throughout your term
π A variable rate mortgage: The interest rate is based on the lender's prime rate. (i.e. Prime minus 0.20%) This rate is based on the Bank of Canada's prescribed rate and adjusted by the lenders accordingly. This means that your payments can increase or decrease each month. Variable rates are subject to fluctuation and therefore are a riskier product, however they have the potential to average a lower rate for the term.
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