05/05/2026
Fixed or Variable?
In my 25 years with RE/MAX, I’ve personally moved close to a dozen times.
In my later moves, I leaned toward fixed-rate mortgages with a variable line of credit. After a couple of unplanned moves, I got tired of paying penalties, so flexibility started to matter more.
Then in 2022, with variable rates so low, I changed direction and chose a variable-rate mortgage and line of credit combination. At the time, prime was just 2.45%. I expected rates to rise, but not to 7.2% by July 2023.
Thankfully, rates have come down since then—but not before creating real budgeting pressure for many homeowners… myself included.
And here’s the part most people forget… This isn’t the first time:
When I arrived in Vancouver in 1980, the market became very active. Some people chose to leverage their increased equity to buy a second home. Then came the most dramatic surge in mortgage rates in Canadian history, driven by runaway inflation and aggressive efforts to tame it. Between 1980 and 1983, homeowners faced mortgage rates that peaked In August/September 1981, as 5-year fixed mortgage rates in Canada hit a record of 21.75%. resulting in a "horror show" for personal finances. Some people lost not only the second home they bought but also their principal residence.
So, what should you choose?
If rates jumped again, would your current plan still work?
Because that’s really the decision, not “fixed vs variable”
Can you handle being wrong?
Here’s how I look at it now:
• Fixed = peace of mind
Need certainty? Go fixed
• Variable = flexibility (with risk)
Want flexibility (and can handle swings)? Consider variable
• Combo = balance
Want balance? Look at a combination of fixed and variable
Don’t try to perfectly predict rates. Choose a mortgage that still works if you’re wrong.
The right decision isn’t about timing the market, it’s about protecting yourself from it.
Call me anytime if I can help.
