Fixed vs. variable rate—what's safer in 2025?
Quick Answer
Short answer: Fixed shields you from forecasted late-2025 hikes; variable offers lower penalties.
Detailed Explanation
Economists expect the Bank of Canada to pause through summer and hike again if inflation sticks above 3%. A five-year fixed at 4.49% gives payment certainty. Variable rates float at prime minus 0.80% but carry payment-shock risk.
Penalty math: breaking a fixed early can cost 3% interest-rate differential, while variable is three months' interest.
- Investors who refinance often prefer variable
- Risk-averse first-timers usually sleep better with fixed
- Hybrid products offer partial protection
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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