Nobody can tell you where rates will be in three years. What you can decide is how much payment certainty you want and how much change your budget could absorb.
How the two behave
- Fixed-rate mortgages give predictable payments that protect your budget from rate changes during the term.
- Variable-rate mortgages follow the market, which can work in your favour if rates fall during your term and against you if they rise.
- Lender features such as prepayment privileges and early-exit flexibility matter as much as the interest rate itself.
- Insured mortgages often open access to a different set of rates and are tied to specific down payment criteria.
- Your credit score influences not just the rate you are offered but which lenders and products are available to you at all.
- Choosing between fixed and variable usually comes down to your comfort with change and your plans for the property over the term.
- A mortgage agent's role is to match you with the right fit, weighing product type, flexibility and your own situation rather than a headline number.
Where to go from here
Whichever you lean toward, lenders qualify you at a rate above the one you will pay, which is covered in the mortgage stress test, explained. A pre-approval holds a rate while you shop, and if you are mid-term and wondering whether to switch, refinancing lays out the real cost of breaking a contract before you decide.
This article is general information, not financial advice, and quotes no rates. Your situation may differ; speak with a licensed mortgage professional.