Fixed vs Variable Mortgages in Greater Vancouver: Which One Fits You?

Understanding the product difference in plain terms

Fixed mortgages lock your interest rate for the term, giving predictable payments. Variable mortgages change with prime rate movements—payments can rise or fall. In GVA where budgets are tight, the shelter of a fixed rate is often appealing; however, variables can save money if rates fall or remain stable.

When variable can be advantageous in GVA

For buyers with some liquidity, emergency funds, and plans to sell or refinance within a few years, variable rates often produce lower initial payments. If your amortization is aggressive and you can tolerate short-term payment swings, variable may increase lifetime savings.

When fixed is safer for local buyers

Fixed is preferable when you have limited cash buffers, buy at the top of a market cycle, or rely on stable monthly budgets. Fixed terms are also easier to plan around childcare, commuting, and household expenses.

How to split a mortgage strategically

A split mortgage (portion fixed, portion variable) combines certainty and opportunity. For example, fix 60% to protect monthly cash flow and place 40% variable to capture potential savings—an approach many GVA borrowers use to manage risk without giving up upside.