Fixed rate
GeneralAn interest rate that stays the same for the entire term of the loan or mortgage. Fixed rates provide certainty — your payment amount will not change — but may start higher than variable rates.
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Variable rate
An interest rate that changes with the market, usually tied to the Bank of Canada prime rate. Variable rates may start lower than fixed rates but can increase, making payments less predictable.
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Mortgage
A loan specifically for buying property, where the property itself serves as collateral. In Canada, mortgages typically have 5-year terms within a longer 25-year amortization. On-reserve, Ministerial Loan Guarantees may be required.
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Interest rate
The percentage a lender charges you to borrow money, or the percentage a bank pays you for keeping money in a savings account. Lower rates are better for borrowing; higher rates are better for saving.