A mortgage where the interest rate is locked in for the entire term (typically 1 to 5 years in Canada). Your payment amount stays the same regardless of what happens to interest rates in the broader market. Fixed rates are usually slightly higher than variable rates at the time of signing, reflecting the cost of predictability.
Why It Matters
Fixed rates give you certainty -- you know exactly what your payment will be every month. This makes budgeting easier and protects you from rate hikes. The trade-off is that if rates drop, you're locked in at your higher rate unless you break the mortgage (which comes with penalties).
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