The terms fixed are variable refer to how the mortgage rate changes. Fixed rate mortgages have a set interest rate that will not change for the duration of the selected term. Variable rate mortgages have rates that are based on the lender's prime rate. The variable rate can be either Prime minus or Prime plus a percentage (i.e. Prime - 0.25% or Prime + 0.25%). If the lenders Prime rate changes the payment can change which in an increasing rate environment can have a major affect on an applicant's cash flow.

Qualifying requirements can affect whether an applicant can have a variable rate, please refer to our section on Qualifying rates for more details.

Qualifying requirements can affect whether an applicant can have a variable rate, please refer to our section on Qualifying rates for more details.