A fixed-rate mortgage is one in which the interest rate is fixed for the term of the loan; most lenders offer terms of 1, 2, 3, 4, 5, 7, and 10 years. The interest rate on a variable-rate mortgage is determined by the lender’s prime rate. (That is, Prime minus 0.20%) This rate is based on the Bank of Canada’s prescribed rate and is adjusted accordingly by the lenders. This can result in an increase or decrease in monthly payments, as opposed to a fixed rate, where payments remain constant throughout the term. Variable rates fluctuate and are thus a riskier product, but they have the potential to average a lower rate over the term. Make an appointment with us to discuss the best mortgage for you and your family.