Mortgage Tools
Fixed vs. Variable Mortgage Comparison
Compare how a fixed mortgage and a variable mortgage could affect your payment, interest costs, and remaining balance over the same mortgage term.
Your information
Compare two mortgage options.
Enter the same mortgage amount, amortization, and term for both options. Then add the fixed and variable rates you would like to compare.
What amortization would you like to use?
This is the total period used to calculate the mortgage payments.
How long is the mortgage term?
The results will compare the two mortgages over this period.
This rate remains unchanged during the term.
Phase 1 assumes this rate does not change.
About this first comparison
This version keeps the variable rate unchanged so you can clearly compare two starting rates. Rising, falling, and custom rate scenarios will be added next.
Your comparison
Here's how the two options compare.
Both mortgages use the same amount, amortization, and term. Only the interest rate is different in this first scenario.
Fixed mortgage
4.49%
Estimated monthly payment
$2,765
Interest during term
$104,784
Principal repaid
$61,091
Balance after term
$438,909
The rate and calculated payment remain unchanged during the selected term.
Variable mortgage
4.15%
Estimated monthly payment
$2,671
Interest during term
$96,655
Principal repaid
$63,600
Balance after term
$436,400
For this first comparison, the variable rate is assumed to remain unchanged.
Under this scenario
The variable mortgage has the lower estimated interest cost.
The estimated interest difference over the 5-year term is $8,130. This does not predict which option will perform better if variable rates change.
Starting payment difference
$94
Estimated monthly difference
Interest difference
$8,130
Estimated over 5 years
Fixed balance after term
$438,909
Estimated mortgage remaining
Variable balance after term
$436,400
Assuming no rate changes
What this comparison does not decide
This tool provides estimates using the information entered and Canadian mortgage payment conventions. Actual lender payments, balances, interest costs, penalties, and product terms may differ.
Understanding the comparison
The lowest starting rate doesn't tell the whole story.
The rate affects your payment and interest cost, but flexibility, payment stability, penalties, and future plans can also shape which mortgage feels right for you.
Payment stability
A fixed mortgage generally provides more certainty because its rate remains unchanged during the term.
Rate movement
A variable mortgage can become more or less expensive when the lender's prime rate changes.
Your future plans
Selling, refinancing, or changing the mortgage before maturity can make penalties and flexibility especially important.
Continue Planning
Continue Your Home Buying Journey
These resources build on what you’ve just learned and can help you take the next step with more confidence.
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Read Mortgage MinuteMortgage Renewal Guide
Understand what to review before accepting your next mortgage term.
Read GuideA Note from Kiersten
Want help comparing your actual mortgage options?
This tool can help you see how two rates compare, but the mortgage itself matters too. I'd be happy to review the rates, penalties, features, and flexibility of the options available to you and explain how they may fit your plans.