Interest Rates
Fixed or Variable Rate: Which One to Choose?
By Yahia Nour Eddine KenouchePublished on February 24, 2026 6 min read
Nobody knows where rates are going. The decision should rest on your situation, not on a forecast.
Fixed rate
A stable payment for the whole term. Ideal if your budget is tight or peace of mind matters most. Break penalties, however, can be high.
Variable rate
Tracks the prime rate. Historically favourable over long periods, with a break penalty usually limited to three months' interest, but a payment that can move.
Hybrid solutions
Some lenders let you split the loan between fixed and variable, or choose a shorter term while waiting for a better window.
