MORTGAGE / SCENARIO PLANNER

See what a rate changes.

Compare two mortgage options, then see what paying the fixed payment on the variable mortgage could do.

YOUR HOME. YOUR OPTIONS.

A clearer view of your next move.

Compare your rates. Put the difference to work.

Mortgage amount ($)One mortgage amount for both options and all comparisons.

ON THE FENCE?

Look at what making the fixed payment on a variable rate will do for your mortgage.

If the variable rate increased by 0.25 percentage points at your selected spacing, up to your selected number of hikes, would you still be better off?

Months between rate hikesNumber of rate hikesEach hike adds 0.25 percentage points. The maximum number of hikes matches your selected spacing and variable mortgage term. A hike at the term end affects the next period; the rate holds after the last selected hike.

A LOOK BACK

How has variable compared with fixed?

ILLUSTRATIVE MODEL

In an illustrative historical model of 26 five-year mortgage periods:

Variable cost less21 times

Fixed cost less5 times

Both mortgages used the fixed mortgage’s monthly payment.

Modelled results—not actual borrower outcomes or a forecast. Annual October 16 starts, 1996–2021, with terms ending 2001–2026; 25-year amortization. Assumed rates: posted five-year fixed minus 1.50 percentage points, and prime minus 0.50 points. Historical Bank of Canada rates; monthly calculations with semi-annual compounding for both mortgages. Variable rates are approximated from weekly observations. Fees and penalties excluded. Different discount assumptions produced variable wins in 16–25 of the 26 periods. These historical assumptions are separate from your inputs above. Source: Bank of Canada posted-rate history ↗

How to read this comparison

“Closed” options here mean fixed-rate closed mortgages. Variable projections hold your entered rate constant throughout the selected term; they do not predict future rates or model fixed-payment variable mortgages when rates change. Select the compounding convention shown in your lender’s agreement. The term sets the period shown for interest and remaining balance; amortization sets the payment.

Term totals cover the shorter of the selected term or amortization. Different term lengths cover different periods, so their interest totals are not directly comparable. The third column applies the fixed option’s payment to the variable loan and compares it against that same variable loan’s normal payment. It assumes the lender permits the payment increase without penalties. Estimates exclude taxes, insurance, fees and other prepayments, and use unrounded payments internally; lender rounding and payment dates may differ.

Reference: Financial Consumer Agency of Canada mortgage calculator ↗