Fixed or variable mortgage rate: Kitchener and Guelph brokers weigh in on which you should choose

More than two million Canadians will renew their mortgages over the next year-and-a-half. CTV News asked more than 50 mortgage brokers across Canada how to get the best mortgage deal. This is what we found.

On the eve of the Bank of Canada’s latest interest rate announcement, questions loom for local homeowners whose mortgages are up for renewal.

According to the Canada Mortgage and Housing Corporation (CMHC), more than 1 million mortgages are up for renewal this year, with more than 1.1 million up in 2025.

Amanda Lawson is a mortgage agent level #2 for Rock Capital Mortgage in Guelph. She says many of her clients have been asking similar questions about renewing their mortgage, including: payments, penalties, and rates.

“That’s why the market is quiet right now,” Lawson told CTV News. “[Homeowners are] sitting back on the sideline wondering what’s going to happen.”

With uncertainty around where rates will go from here, homeowners are asking which mortgage is best - fixed or variable.

“A fixed person wants to be able to sleep at night, they want to know what their bills are, they have a fixed budget. A variable person is going to be the one that’s more apt to be risky,” Lawson said.

Kitchener native Carlton Benjamin has three mortgages for properties in Kitchener, Paris, Ont., and New Brunswick. He recently renewed one in April, opting for a fixed rate over a 3-year term.

“It’s important to have stability,” Benjamin told CTV News. “I don’t want uncertainty.”

Benjamin has another mortgage coming up for renewal in 2026. He says whether he goes fixed or variable comes down to the market and where interest rates go from here.

“My outlook is always going to be based on market conditions,” Benjamin said. “It has to be based on my entire financial picture, and that’s what I recommend for anyone.”

In an interview CMHC deputy chief economist Tania Bourassa-Ochoa told CTV News they’re “expecting interest rates to go down. We’re expecting them to go down by 50 basis points this year, another 100 next year, and another 100 after that.”

Lawson believes deciding between fixed or variable mortgages depends on the risk you’re willing to take.

“You’re betting that your fixed rate is going to be cheaper than the variable rate over the next three to five years,” Lawson said. “That’s the gamble you are playing.”

If your mortgage is up for renewal soon, experts suggest researching your renewal options early, consider your finances, and speak with a professional who can negotiate on your behalf.

A row of houses is pictured in this file photo. (Jessica Bryant / Pexels)

Responses to CTV News’ Mortgage Broker Questionnaire

More than two million Canadians will renew their mortgages over the next year-and-a-half. CTV News asked more than 50 mortgage brokers across Canada how to get the best mortgage deal.  This is what we found.

Broker Name: Dereck Landry

Broker Company: Mortgage Intelligence

Question #1: What is the best type of mortgage to have right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

                                                                    3-5 YEAR FIXED

Question #2: What is the best rate you can get right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

Avg. Prime minus .5% to .110%            4.79% - 5.59% FOR 5 YRS     

Rates are based on so many criteria these days. Variable rates depend on the product and transaction.

Question #3: Should I get out of my variable mortgage if I have one?

                     YES                                              NO                                   IT DEPENDS

                       X

Yes, if you are struggling.

Question #4: Should I opt for a longer amortization period?

                     YES                                              NO                                   IT DEPENDS

                       X

Longer amortization periods offer better cash flow and lower payments.

Question #5: Can I trust a bank for mortgage renewal advice?

                     YES                                              NO                                   IT DEPENDS

                                                                            X

Remember the banks only know and offer their products. One set of products that might not be a good fit. It always depends on who you’re dealing with. Not to say banks aren’t trustworthy but you need to gage the level of experience at the branch level and with a broker you have a full-service market portfolio with multiple product knowledge.

Question #6: What piece of advice or knowledge would you pass onto anyone looking to renew their mortgage?

Don’t wait until the last minute and never auto renew. Call me and save money. You have an amazing opportunity at renewal to allow a broker to negotiate on your behalf and in most cases we can provide something better based on you current needs and financial situation.   

Broker Name: Ryan Roth

Broker Company: Simpson and Associates - DLC

Question #1: What is the best type of mortgage to have right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

                                                                                                                              X

I typically like to ask the client a lot of questions to help determine what might be the best fit for them. Then if they are leaning towards or considering a variable rate, run a few different scenarios on what would need to be happen for that to “win” vs fixed. If they are leaning towards fixed, we can then look at whether shorter or a longer term works best based on cash flow, future plans, etc. There is definitely not a one size fits all answer!

Question #2: What is the best rate you can get right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

                6% - 6.50%                          4.79% - 5.49% for 3-5 YRS

FIXED:   Anywhere from 4.79-5.49% for 3-5 years, but varies depending on the term, amortizion, loan amount, down payment amount, and features (or lack of) of the mortgage. For shorter term fixed, rates would be higher, usually 6%+

VARIABLE: Anywhere from 6.00-6.50%

Question #3: Should I get out of my variable mortgage if I have one?

                     YES                                              NO                                   IT DEPENDS

                                                                                                                            X            

It depends on a lot of factors! How much time you have left on your term will impact what options to have for fixed rates since most lenders allow you to convert to a fixed rate that is the same or greater than the time left on your term.

Also it would depend on future plans/goals. If you planned to sell in the short term and not buy something else. Then the variable rate offers a predictable cost to break early vs a fixed rate.

Question #4: Should I opt for a longer amortization period?

                     YES                                              NO                                   IT DEPENDS

                                                                                                                             X

Some nuance to this. If cash flow is a primary objective, then taking a longer amortization can make sense. Or if you wanted to opt for a lower payment/longer amortization, but are worried about paying more interest, you can manually make extra payments or increase your payment later to effectively lower the amortization without locking into a higher payment. Some people will be better at this than others as it does have to be deliberately done.

Question #5: Can I trust a bank for mortgage renewal advice?

                     YES                                              NO                                   IT DEPENDS

                                                                            X

The banks priority is returning value to their shareholders, not necessarily making sure you have the lowest cost/best fit mortgage at renewal. Because of this, it’s a good idea to have a second opinion on your renewal offers. I’ve seen some cases where the renewal offer is fantastic and much better than current market rates and is still a good fit for the client, so it does not make any sense to change anything. In other cases, they may save thousands of dollars by moving to a more competitive lender at that time.

Question #6: What piece of advice or knowledge would you pass onto anyone looking to renew their mortgage?

Start the process early! (4-6 months out or more)

Broker Name: Robert Campbell

Broker Company: Premiere Mortgage Centre Lic #10317

Question #1: What is the best type of mortgage to have right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

                                                                                                                              X

This is a very broad question that really can’t be answered without the full client profile and plan. Some homeowners are ready to sell and move and don’t want to lock in to a longer term, so they would much rather opt into a 2 or 3 year fixed mortgage even though those rates in the shorter terms may be slightly higher than a longer term rate. Other homeowners may have great household income and cash flow, and believe that the Bank of Canada’s overnight lending rate will fall greatly over the next 2 years so they’re willing to pay a higher price currently by remaining in a variable rate and ride it down.

Question #2: What is the best rate you can get right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

                                                                                                                             X

Again, “BEST” is subjective to really coming down to the finer details of the mortgage terms and conditions. You may be able to get a 5 year fixed today at 4.69% but it comes with limitations in regards to portability and bigger than normal penalty calculations should you want to break it early. Taking a 5 year fixed at 4.89% with full portability options and very reasonable penalty calculations may be a better suit, but it really comes down to the client’s choice.

Question #3: Should I get out of my variable mortgage if I have one?

                     YES                                              NO                                   IT DEPENDS

                                                                                                                             X

If you’re currently still in a variable rate mortgage and have maintained the payments throughout the rate hike cycle, you are likely best to hold on at this point to ride it back down. Or, if you just want that payment relief immediately, you do have the option to lock it in at your current lender for the lower rate today but may miss out on lower fixed rates in the year or two ahead. Tough choice to make, really.

Question #4: Should I opt for a longer amortization period?

                     YES                                              NO                                   IT DEPENDS

                       X

If you can qualify for one, absolutely. Taking a 30 year or 25 year amortization will allow you the cash flow needed during these higher costs of gas, food, etc, but also gives you the option to top up your payments to bring them back in line with a lower amortization if you have the extra cash. Investigate your pre-payment options to get an idea of how much extra you can put towards your principle balance every month. An extra dollar paid today could mean 3-4 dollars in saved interest over the term.

Question #5: Can I trust a bank for mortgage renewal advice?

                     YES                                              NO                                   IT DEPENDS

                                                                            X

Again, exercise your options to shop the market. If you go into your favourite golden arched hamburger joint and ask them “who makes the best burger in town?” what do you think they’re going to say? Don’t rely on your current institution to offer up the lowest or best option out of the gate. Call a Mortgage Broker to get an idea of what the market is pricing right now.

Question #6: What piece of advice or knowledge would you pass onto anyone looking to renew their mortgage?

Start the renewal shopping early. Don’t leave it to the week before. Start contacting a few people to get an idea of where the mortgage rates are at and settle in with the one that you connect with and trust the most. Do your homework on them: do they have a good reputation? Do they have real Google reviews? Are they a local Broker? And leave yourself about 3-4 months before renewal to get it sorted. Best of luck!

Broker Name: Richard Castillo Meza

Broker Company: Dominion Lending – Dan Simpson Mortgage Team

Question #1: What is the best type of mortgage to have right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS                

                                                                               X                                                                                     

Given the current economic environment in my opinion it is better to have a short term fixed rate with the anticipation rates will start to decrease in the next couple of years. Fixed rates have been decreasing in the last year.

Question #2: What is the best rate you can get right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

                                                                    4.79% for 5 YRS                                                     

Question #3: Should I get out of my variable mortgage if I have one?

                     YES                                              NO                                   IT DEPENDS

                                                                                                                            X

This is a complex question and not one that can be answered by a simple “yes” or “no” you have to analyze the entire financial picture for the client to make sure they can afford a fixed mortgage payment. We have to keep in mind there is a high number of clients that have variable mortgages and non adjustable payments with 30+ years amortization. These clients are essentially renting their own house. The bottom line is you have to analyze client’s cash flow and expenses. A lot of these clients are hoping the bank of Canada starts reducing the Prime rate in order to bring down their current mortgage payments.

Question #4: Should I opt for a longer amortization period?

                     YES                                              NO                                   IT DEPENDS

                       X

Ideally yes, but again it goes back on monthly payments vs cash flow. What can the client afford to pay? Ideally paying off your mortgage as quickly as possible is the best option.

Question #5: Can I trust a bank for mortgage renewal advice?

                     YES                                              NO                                   IT DEPENDS

                                                                                                                             X

The banks only have one option to offer when it comes to renewing as opposed to the brokerages where you can get alternative options based on the clients needs. Additionally, It all depends on the experience of your financial advisor and how well he understands the overall financial situation of the client. There are many factors that need to be considered in order to make the right decision.

Question #6: What piece of advice or knowledge would you pass onto anyone looking to renew their mortgage?

When considering renewing the mortgage you have to consider many factors that are going to be of the most importance to you financial goals not only the interest rate but align your mortgage with other factors such as: cash flow retirement wealth protection debt consolidation investing equity

Broker Name: Amanda Lawson

Broker Company: Rock Capital Mortgage

Question #1: What is the best type of mortgage to have right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS                 

                                                                                                                              X                                                                                       

I can’t answer this question without knowing about the personal situation. If you are risk averse and ready to take on the rollercoaster of a variable. You might end up ahead with the variable. If you don’t want to pay a higher rate right now, banking that it will lower, then you should do fixed. Believe it or not, 5 year terms are probably still the best option. Even in this environment. You are betting that the rate you have now will be lower in the next few years. I have access to a calculator and it’s estimating anyone in a 3yr mortgage will need to have a rate in the mid to high 3’s come maturity. That’s a big jump from where we are now. Historically speaking fixed rates sit around 5% and variable rates sit around 4%. We aren't far from historical numbers.

Question #2: What is the best rate you can get right now?

          VARIABLE RATE                               FIXED RATE                         IT DEPENDS

     6.20% (Prime minus 1.00)                4.79% - 4.99% for 5 YRS                 

This is really difficult to answer because there are so many parameters with mortgages. If you want the best rate it will be based on high ratio mortgages only.            

Question #3: Should I get out of my variable mortgage if I have one?

                     YES                                              NO                                   IT DEPENDS

                                                                                                                             X

If you can’t sleep at night, because you are worried about your payment changing or you can’t handle the payment. You should look into locking in. If you are okay with the payment right now and can handle it, you’ve already been through the worst of the hikes, it’s only a matter of time they will drop. You have more flexibility with variable rate mortgages. If you were going to lock in, you should have probably locked in before when rates were a bit lower. It also depends on what you want to do in the next 5 years or whatever your new term will be. You don’t always secure the remaining term, sometimes if you lock in you are signing up for a new 5 year term and you only have 2 years left.

Question #4: Should I opt for a longer amortization period?

                     YES                                              NO                                   IT DEPENDS

                       X

If cash flow is an issue, you will want to entertain extending your amortization. Most people think extending your amortization is a bad thing. It’s not, it does extend the interest you're paying. However if you can save $200-300 a month by extending your amortization you can use those savings for investments or if you are comfortable with it, put it back in your mortgage. The amortization only matters at maturity, you can always change your amortization, as long as you qualify. There is so much pressure to pay off your mortgages, but what about building your savings? Why are we so focused on paying off an appreciating asset?

Question #5: Can I trust a bank for mortgage renewal advice?

                     YES                                              NO                                   IT DEPENDS

                                                                           X

It depends on who you are speaking with at the bank. I used to work for the bank and I know how they operate, not all mortgage specialists will do a full analysis of your situation and ask the right questions. Actually most bank renewals don’t even work with the mortgage specialist; they work with an advisor that is not an expert at mortgages. I have found that most clients that are with banks aren’t being given advice, they are being sold based on the rate. The other aspect that drives me crazy is the bank doesn’t give you the best rate. If you shop with a broker and go back to your bank with a lower rate, they may match it. Why would you want to work with someone who didn’t want to give you the best offer until you went to shop around? There is no loyalty with the bank and the advice isn’t being provided. They won’t give it to you unless you ask and even if you ask, they might not be the right answers.

Question #6: What piece of advice or knowledge would you pass onto anyone looking to renew their mortgage?

Do your research, reach out to your bank first and then go to a broker/mortgage agent and ask them to do a full review. If the mortgage professional isn’t reviewing your income documents or pulling your credit, they aren’t doing you any service. You need to have your documents and credit reviewed in order to have an accurate analysis. Most brokers/agents have access to the same lenders, so working with multiple brokers/agents isn’t advisable as our lenders will question if the application is sent in by 2 different people. Pick your mortgage professional based on the long term game, you will want this professional to be available, honest, helpful and you trust them. You would want to know that you can contact your professional and be able to tell them how you really feel even if you are upset. If you don't have a relationship with your mortgages professional you aren’t doing what’s best for you. You should touch base with your mortgage professional at least once every 12 months or so to touch base. You never know what might come out of a conversation. If you are struggling with debt, don’t hesitate to reach out and ask for your options. Be open to refinancing and extending your amortization. If you have debt, pay it off with your mortgage. Don’t worry even though rates are higher, the payments aren’t necessarily going to be double. Do not focus only on rate, focus on cash flow. Rate isn’t how you should pick your mortgage.