Fixed or Variable: Choosing the Right Mortgage

The right mortgage depends less on headlines about interest rates and more on how much uncertainty your budget can absorb.

The simple difference

A fixed rate keeps your payment the same for an agreed period. A variable rate moves with the market, which can save money or cost more.

• Fixed suits tight or predictable budgets

• Variable suits flexible budgets and shorter plans

• Split loans offer a little of both

Questions to ask your lender

1. What fees apply if I repay early or switch later?

2. How high could my payment go in a worst-case scenario?

3. Can I make extra payments without a penalty?

In closing

Choose the loan you can live with comfortably, even if rates move against you.