A mortgage rate that’s fixed stays the same until renewal or maturity, no matter the fluctuation in the market. It’s attractive to borrowers who want to ensure their interest costs won’t rise over the term of their loan.
A variable interest rate is a rate that may vary over the term of the mortgage. The rate changes are tied to a benchmark interest rate (often the lender's prime rate), which is primarily influenced by the interest rate set by the Bank of Canada. When you're comparing mortgage rates, you'll see that variable-rate mortgages typically offer lower interest rates than fixed-rate mortgages.