Fixed vs. Variable Mortgages: What’s the Right Choice in 2025?

Date Posted: December 18, 2024

With the Bank of Canada gradually cutting rates and bond yields declining, the decision between fixed and variable mortgages is more complex than ever. For homeowners and buyers alike, the guidance of Mortgage Brokers Ottawa can make all the difference.

Fixed Mortgages: Stability at a Cost

Fixed rates offer predictability, locking in your rate for the term. However, this stability comes at a higher initial cost compared to variable rates. With five-year fixed rates still averaging around 5%, locking in now might mean missing future savings as rates continue to drop​.

Variable Mortgages: Risk and Reward

Variable rates are more volatile but have recently shown signs of decreasing faster than fixed rates. If further rate cuts materialize in 2025, variable mortgages could offer significant savings​.

Why Choose a Mortgage Broker?

Deciding between fixed and variable options can be daunting, but you don’t have to go it alone. Mortgage Brokers Ottawa provides:

• Market Insights: We stay ahead of the trends to recommend the best options for your circumstances.
• Tailored Solutions: We help you weigh the pros and cons based on your financial goals, risk tolerance, and market conditions.

Contact us today to discuss your mortgage strategy and make an informed decision for 2025.