Variable Rate Mortgage Terms Are Starting to Look More Appealing: Here's Why

Over the past few years the majority of people have been preferring a fixed rate over taking a variable for their mortgage. There's a few usual reasons. That being the fixed rate gives you more security. It also keeps your payment and/or amortization the same throughout the term. A bigger reason is that fixed mortgage rates have been just so low and so attractive. That coupled together with the fact that the spread, or difference, between a fixed and variable rate mortgage has also been historically low. Back in June the best 5 year fixed rate you could get was 2.89%. The best variable rate was 2.6% So why should one take a variable over a fixed if one jump in the Bank of Canada rate, which affects variable rate mortgages, would put me above the fixed rate I could hold for 5 years. Note: there are numerous other factors to consider including the way interest compounds on either and the penalties involved; they're both different.
Now that fixed rates have risen by close to one percent, especially the most popular 5 year term the variable rate term is starting to look more attractive. Instead of a .25%  there is now about a 1% difference between a 5 year variable and a 5 year fixed. A 1 to 2% spread is more of a usual difference between these two rates. 
Talk to your mortgage advisor, in depth, to discover what might work best for you and your circumstances and risk tolerance.
Tony Marchigiano1-155 Water Street
Mortgage BrokerVancouver, BC
cell: 604 505 7109
fax: 604 909 4666


*indicates required fields.

Meet the team

  • Will Pratt
  • Justin Sabbagh
  • Mike Wilcox

Mortgage Calculator

Purchase Amount:
Down Payment:
Interest Rate:
Payment Interval:
Mortgage Term (Years)
Total Payments:
Total Amount Paid:
Total Interest Paid:


The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.