Fixed vs Variable Mortgages in Ontario: What’s Best for You?
If you’re buying a home in Ontario, you’ve probably asked yourself: should I go with a fixed-rate or a variable-rate mortgage?
It’s one of the most important decisions in your mortgage journey—because it impacts how much you’ll pay every month, how your payments can change over time, and how confident you’ll feel about your financial future.
The good news? Once you understand the difference, the choice becomes a lot easier. Let’s break it down.
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage means your interest rate—and your monthly payment—will stay the same throughout your mortgage term.
- Your rate is locked in.
- Your payments are predictable.
- There’s no guessing what your mortgage will cost next year.
This option is best for people who like consistency, want to budget with confidence, and prefer peace of mind.
If you’re a first-time buyer, planning long-term, or simply don’t want to think about what the Bank of Canada is doing with interest rates, this is a strong choice.
What Is a Variable-Rate Mortgage?
A variable-rate mortgage changes over time based on the prime rate set by your lender, which is influenced by the Bank of Canada.
- Your rate can move up or down.
- Your monthly payment typically stays the same, but the split between interest and principal changes.
- If rates go down, you could pay off your mortgage faster.
- If rates go up, more of your payment goes toward interest.
This option suits people who are comfortable with some risk and want the opportunity to save money if rates fall. Many lenders also allow you to switch to a fixed rate during your term.
Fixed vs Variable: What’s the Real Difference?
The main difference comes down to certainty vs flexibility.
Fixed-rate benefits:
- Locked-in rate for the term
- Easier monthly budgeting
- Ideal when interest rates are low and rising
Variable-rate benefits:
- Lower initial rate (in many cases)
- Potential long-term interest savings
- Easier to break or switch with lower penalties
However, there’s no universal answer. The right choice depends on your financial goals, how long you plan to stay in your home, and how comfortable you are with changes in the market.
What the Market Looks Like in Ontario
In 2025, fixed and variable rates in Ontario are fairly close—so the decision isn’t just about the numbers. It’s about strategy.
If you believe rates will rise, fixed gives you protection. If you think rates have peaked or will go down, variable offers potential savings.
At Anton Mortgage, we’re seeing more clients explore hybrid options too—where part of the mortgage is fixed and the other part is variable. It’s a way to balance stability with flexibility.
How We Help You Choose Wisely
At Anton Mortgage, we don’t just give you rate sheets. We sit with you and go through real-life scenarios based on your actual income, lifestyle, and plans.
- We explain how each mortgage type will impact you today—and years from now.
- We compare lender offers across 60+ institutions so you’re not limited to just one bank’s view.
- And we make sure you fully understand the fine print before you commit to anything.
No pressure. No upselling. Just transparent advice designed to help you make a confident decision.
Want to Run the Numbers?
If you’d like to compare fixed and variable options side-by-side and see what fits your goals, contact us here. You’ll speak to someone who actually listens, explains the trade-offs clearly, and works with your schedule—including evenings and weekends.