Fixed or Variable? How to Choose a Mortgage After the September Rate Hold

The Bank of Canada held its policy rate at 2.25%, keeping prime at 4.45%, while fixed mortgage rates rose with bond yields. Fixed rates offer payment stability, but variable rates may be lower initially and have smaller prepayment penalties. Variable rates carry risk if payments rise, especially with inflation concerns. Borrowers should assess payment tolerance, mortgage duration, savings, and stress test qualification before choosing between fixed and variable mortgages.