Buyer Questions
What kind of mortgage should I get — fixed, variable, or something else?
It depends on your budget, risk tolerance, and how long you plan to keep the mortgage. Fixed offers payment stability, while variable can offer flexibility and lower penalties in some cases.

The right mortgage type depends on your financial situation, your risk tolerance, and how long you plan to stay in the home. There is no universal answer. Flowers Team Real Estate works alongside experienced mortgage professionals to make sure every buyer understands all their options before making this significant decision.

 

Fixed Rate Mortgage


Your interest rate is locked in for the term — typically 1 to 5 years. Payments stay the same regardless of what happens to rates. Best for buyers who want predictability and peace of mind, especially first-time buyers or those on tighter budgets. In the current market, most buyers are choosing fixed-rate mortgages for certainty.

 

Variable Rate Mortgage


Your rate moves with the Bank of Canada's prime rate. Historically, variable rates have saved borrowers money over the long term — but they carry more risk in the short term. An important distinction: with a variable rate mortgage, many institutions keep your payment amount the same even when rates change, adjusting only the interest/principal split. When rates rose sharply after 2020, some variable-rate borrowers found their entire payment was covering only interest, not reducing their principal at all — a situation worth understanding fully before choosing this option.

 

Adjustable Rate Mortgage (ARM)


Similar to variable, but your actual payment amount changes when rates change, giving full transparency on your monthly costs. When prime increases, so does your payment. This caught many buyers off-guard during the post-COVID rate increases, when payment amounts rose significantly faster than expected. Ensure you understand your maximum tolerable payment before choosing an ARM.

 

Open vs. Closed Mortgages


Open mortgages let you pay off the full balance at any time without penalty — useful if you plan to sell soon. Closed mortgages offer lower rates but limit how much extra you can pay down each year. Most mortgages are closed. It's worth asking your broker about prepayment privileges and other incentives built into your product that can help you pay off your mortgage faster.

 

Flowers Team Real Estate can connect you with a trusted, independent mortgage broker who will compare rates across multiple lenders — not just one bank. Get in touch today.

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