Fixed or variable? Compare the trade-offs.
Compare the payment, interest cost and mortgage balance under both options, then test what happens if the variable rate moves up or down.
Compare Fixed and VariableCompare the numbers first. Then look at the flexibility, stability and trade-offs behind them.
What You Can Compare
Monthly payment
See the estimated payment under each option.
Interest cost
Compare the estimated interest paid over the term.
Changing rates
Test five simple variable-rate scenarios.
Fixed
More payment certainty because the rate stays unchanged during the term.
Variable
The rate may change, which can change the cost of the mortgage.
The trade-off
Rate is only part of the decision. Penalties and flexibility matter too.
Build Your Comparison
Put the same mortgage through both options.
Enter the mortgage amount, term and amortization once, then compare the fixed and variable rates side by side.
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.
Start with the variable rate you want to compare.
About the variable-rate scenarios
The comparison includes five simple planning scenarios: the variable rate staying the same, falling by 0.25 or 0.50 percentage points, or rising by 0.25 or 0.50 percentage points. These scenarios are illustrations, not rate forecasts.
Your comparison
Here's how the two options compare.
Both mortgages use the same amount, amortization and term. Choose a simple variable-rate scenario below to see how the comparison changes.
Variable-rate scenario
These are simple planning scenarios. The selected adjustment is applied for the entire term so you can see how a modest or larger change in the variable rate affects the numbers.
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
This scenario assumes the variable rate remains unchanged during the selected term.
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 is a simplified planning scenario and does not predict how variable rates will actually move.
This compares the numbers, not which mortgage is the better fit for you.
Payment stability, penalties, flexibility and your future plans can matter just as much as the starting rate.
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
Based on the selected variable-rate scenario
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.
Mortgage Payment Calculator
Estimate payments using different mortgage amounts, rates, amortizations and payment schedules.
Open CalculatorFixed vs. Variable Mortgage
Read a clear explanation of how fixed and variable mortgages differ.
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.