Fixed vs. variable rate—what's safer in 2026?
Quick Answer
Short answer: Fixed gives payment certainty at today's rates; variable offers lower break penalties and potential savings if rates ease further.
Detailed Explanation
Economists expect the Bank of Canada to pause through summer and hike again if inflation sticks above 3%. A five-year fixed at 4.49% gives payment certainty. Variable rates float at prime minus 0.80% but carry payment-shock risk.
Penalty math: breaking a fixed early can cost 3% interest-rate differential, while variable is three months' interest.
- Investors who refinance often prefer variable
- Risk-averse first-timers usually sleep better with fixed
- Hybrid products offer partial protection
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 5607 199 Street NW, Edmonton, AB
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