Choosing the right mortgage rate is one of the biggest decisions you’ll make as a homeowner. For residents in Fort McMurray and across Alberta, understanding the difference between fixed and variable mortgage rates can help you save money and feel confident about your home financing decisions.

At Charlene Elliott Mortgages, we help Alberta homeowners evaluate their options and select the mortgage that fits their financial goals.

What Is a Fixed Mortgage Rate?

A fixed mortgage rate means your interest rate stays the same for the length of your term, usually 1–5 years (or longer in some cases).

Benefits:

  • Predictability: Your monthly payments never change, making budgeting simple.
  • Protection from rate increases: Even if the Bank of Canada raises rates, your mortgage rate stays the same.

Considerations:

  • Typically higher initial rates: Fixed rates are often slightly higher than variable rates at the start.
  • Less flexibility: If rates drop, your mortgage payments don’t decrease unless you refinance or break your term early.

What Is a Variable Mortgage Rate?

A variable rate changes with the prime rate set by the Bank of Canada. Your monthly payments may go up or down depending on interest rate fluctuations.

Benefits:

  • Lower initial rates: Variable rates usually start lower than fixed rates, which can save you money initially.
  • Potential savings: If interest rates remain steady or drop, you could pay less interest over time.

Considerations:

  • Uncertainty: Payments can increase if interest rates rise.
  • Budgeting challenges: It can be harder to predict monthly costs in a rising-rate environment.

Which Option Is Right for Alberta Homeowners?

The “right” choice depends on your personal and financial situation:

  • Fixed rates are ideal for homeowners who want certainty in their monthly payments and long-term budgeting stability.
  • Variable rates may suit those comfortable with some risk, who want to take advantage of potentially lower rates, or who plan to pay off their mortgage faster.

At Charlene Elliott Mortgages, we work closely with each client to assess your risk tolerance, financial goals, and the Alberta housing market to determine the best option.

Why Work With a Local Mortgage Broker?

Navigating fixed and variable mortgage options can be confusing, especially with multiple lenders and ever-changing rates. Charlene Elliott Mortgages helps homeowners in Fort McMurray and across Alberta:

  • Compare rates from multiple lenders
  • Understand the pros and cons of each option
  • Make informed decisions to save money over time

Ready to Choose the Right Mortgage Rate?

Whether you’re buying your first home, refinancing, or renewing your mortgage, the team at Charlene Elliott Mortgages can guide you to the best solution for your needs.

Contact us today to discuss fixed vs variable mortgage options and find the best fit for you in Alberta.

Want to learn more? Contact us at 780.792.0009 or charlene@charleneelliot.ca