In early 2022, variable-rate mortgage holders saw their mortgage interest costs climb every time the Bank of Canada hiked its benchmark interest rate. Many variable-rate holders now have an interest rate higher than the fixed rates available to new borrowers today.  Before locking in your mortgage at a lower fixed rate, know you generally have to pay a fee for breaking your original mortgage contract. (Our mortgage penalty calculator can help you estimate this cost.) By locking in a fixed rate, you also eliminate potential savings from a future drop in interest rates before the end of your current term. Switching to a fixed rate can be a good idea if you can no longer tolerate the risk of interest rate increases and need certainty regarding your future mortgage costs. Speak to a mortgage broker or financial advisor about what makes sense for you.