The fixed interest rate will never change throughout the life of the loan. This may make it easier to plan ahead because you will know the interest you will be charged. nnThe variable rate you are offered when your application has been conditionally approved may be lower than the fixed rate offered. This means that if the rate index used by your lender decreases or remains consistent, you may save more money over time than the fixed rate, but the opposite may occur if the rate index increases. There is an inherent risk when selecting a variable rate and it is important to know your tolerance to this risk when selecting between a variable or fixed rate.