Mortgages 101: Do you know the difference between fixed and variable?

If you've ever found yourself a bit confused about the difference between a fixed rate mortgage and a variable rate mortgage, don’t worry, you’re not alone.

Even though your mortgage is one of the biggest financial decisions you’ll ever make, many Canadians don’t seem to fully understand the ins and outs of how they’re paying for their home.

Put simply, a fixed rate mortgage is one where the interest rate on your loan is fixed for the term of your mortgage. So, no matter whether interest rates go up or down, your rate, and your payments, won't change until it’s time for you to renew.

On the other hand, a variable rate mortgage can change at any time. With a variable rate mortgage, the rate you pay can go up or down during the term of your mortgage, depending on a number of factors.

Check out the video above to hear from Marc Kulak, Vice President, Real Estate Secured Lending, or speak to a TD Mortgage Specialist to figure out what type of mortgage is best for you.

To learn more visit TD Mortgages.