When you’re buying a home in Alberta, one of the biggest decisions you’ll make is choosing between a fixed-rate and a variable-rate mortgage.
Both have their perks — and pitfalls. The right choice depends on your comfort with risk, your financial goals, and where interest rates are headed. Let’s break it down in plain English.
💡 What’s the Difference?
| Type | How It Works | The Vibe |
|---|---|---|
| Fixed Rate | Your interest rate and monthly payment stay the same for your entire term (usually 1–5 years). | Predictable, stable, “set it and forget it.” |
| Variable Rate | Your rate moves up or down based on the Bank of Canada’s prime rate. Payments may fluctuate depending on the lender. | Flexible, risk-tolerant, potentially lower-cost. |
🏦 The Case for a Fixed Rate
Choose fixed if you like certainty — it’s perfect for buyers who want to budget easily and sleep soundly.
Pros:
- Predictable payments make budgeting simple.
- Protection if interest rates rise.
- Great for first-time buyers or families on fixed incomes.
Cons:
- Usually higher initial rates than variable.
- Breaking your mortgage early can trigger big penalties (especially with banks).
💡 Pro tip: If stability helps you sleep at night, fixed might be your best friend — even if it costs a bit more.
📉 The Case for a Variable Rate
Variable mortgages tend to start lower than fixed, but your payment could change when rates move.
Pros:
- Historically, variable rates have cost less over the long run.
- Easier to break early (lower penalties).
- You benefit immediately when rates drop.
Cons:
- Your payments may rise if the Bank of Canada hikes rates.
- Can be stressful if you’re tight on budget.
💡 Pro tip: Some variable-rate mortgages let you switch to fixed mid-term if rates start climbing.
🔍 What’s Trending in 2025
After several years of rate hikes, many Alberta buyers are now weighing short-term fixed terms or “hybrid” options — combining part fixed and part variable to balance stability with flexibility.
Your best choice depends on your:
- Timeline (how long you’ll stay in the home)
- Financial flexibility
- Tolerance for change
That’s why it pays to talk it through with a mortgage broker who can model both scenarios before you sign.
🧠 The ARIVL Take
There’s no one-size-fits-all answer — and that’s okay.
- If you’re risk-averse and want steady budgeting → Fixed is your match.
- If you’re financially flexible and okay with some fluctuation → Variable can pay off long-term.
The key is understanding why you’re choosing it — not just following a headline or your friend’s advice.
✉️ Want to Compare Fixed vs. Variable Options?
Our ARIVL team works with trusted mortgage partners who can walk you through both scenarios and help you pick the strategy that fits your goals.
📩 Email hq@arivl.ca or call Jakie at 780-224-5566 to get connected today.
Because your real estate adventure deserves a mortgage that fits your life — not the other way around.
ARIVL: Your Real Estate Adventure Awaits!